Sale agreement

Dear Shivasankar. Not advisable to purchase the vehicle which is under the hypothecation with TATA Finance. Better to close the loan in TATA Finance and cancellation of hypothecation endorsement in the RC Book of the Vehicle and transfer the vehicle in your name after obtaining signatures from the necessary RTO forms from your friend and register the vehicle in your name. If your friend is ready for the above arrangements you may go head in purchasing the vehicle. Regards,

Now in this situation I would ask you to do things preference wise:

a. First take full information about the loan.For that you have to go to the tata office with the person who financed the vehical(the seller) and ask for the full statement till yet ,then you will know how much is the loan amount, how many emis have been paid and rest which you have to give.

b. Now see can u be able to pay the emi ,if you take the vehical, if no. Deal closed.: if yes then there would an aggreement done with seller, you and tata, that loan is beeing transfered in your name and now onward the vehical's rest loan will be paid by you. vhicals ownership would be transfered to you in the company a/c.

c. and you have to give your signed cheques ,of your a/c.Then An NOC will be given to you by tata. on basis of that NOC you can transfer the vehica's ownership in the R.C. in the RTO office.

d. all legal things in tata office can't be done without the seller's presence.

Note: It is not advisable to do such transactions,

coz you willnever know what % rate you will give the emis. The prvt banks policy is:

on 1st emi amount 80% is interest & 20% is principie.

on second emi 78% would be interest and 22% principle,

till yet the first owner would have given approx 75% of interest if he has given atleast 16-17 emis.

there is a chart of every finance co. if you can get the Tata finance chart. which they dont give, you wil never come to know the real status of the loan, and Rate.