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Informative guide - Used car registration process in India

Snapshot: We have tried here to decode the process of buying and registering a used car in India.

India is one of the biggest emerging markets in the world and will continue to grow rapidly. The growth can be credited to the fact that India sold one used car against one new car in 2014. This means roughly 2.5 million used cars were sold in 2014 and the sales has almost doubled in the last 5 years. So, we know the significance of used cars market in India.

However, contrary to the significance, the procedure of buying a used car in India is a very complicated. While only a handful of documents are required to get yourself a new vehicle, it takes a lot of pain to get a used car registered in your name. We have tried here to decode the process of buying and registering a used car in India.

Why do you need to transfer used car ownership?

When one buys a new car, the documentation generally happens in the name of the person who bought it. However, when the vehicle is sold forward to any other entity, the documentation process has to be done from the scratch because of following reasons -

1. If the ownership is not transferred, the original owner will be detained, in case of an accident.

2. During insurance payouts, it will create trouble for the new owner.

3. When selling the car further, one would need details of the first owner.

4. The address mentioned on RC will be old and all the documentation will happen in the old place.

What all is needed for used car ownership transfer?

While driving the car, one only needs the following documents-

1. RC or Road Tax Certificate

2. Insurance papers

3. Driving License

4. Pollution Under Control Certificate

While used car insurance renewal is annual and is done by many private companies, it can be easily transferred. So RC is the only thing that one needs to transfer in their name.

Used Car RC Transfer Process

As aforementioned, it is essential to transfer the used car registration certificate to the new owner's name, and one must know the proper procedure to buy or sell a used car. Here are few important points of the buying-selling process of used cars -

-      Submit the original RC Copy Book 

-      If you have taken a loan, then NOC (No Objection Certificate) from the financier along with RTO Form Number 35 will also be required

-      VIN (Vehicle Identification Number) to be imprinted

-      2 copies of RTO Form Number 29, 30 Sale Transfer forms need to be signed by both - the seller and the buyer

-      Attested copies of address proof (both seller & buyer), where address is to be same as in RC, else enclose an affidavit

-      Attested copies of insurance and PUC Certificates

-      Attested Copy of PAN Card of Buyer or Form 60, 61

While all these documents are required if one is transferring used car ownership in the same city, the process may differ if one transfers the car from one city to another within a state, and even more if one changes the address from one state to another. 

RC Transfer in the same state but a different city

In addition to the above mentioned documents, one needs to furnish NOC from the RTO where the car registered. For intance an Agra car getting re-registered in Noida.

Inter State RC Transfer

While the above mentioned procedure for RC transfer in the same city or a different city within the same state is relatively easy, it is the process of RC from one state to another that sometimes creates a lot of problems for the buyers and sellers. Here we decode some of the important documents needed in this case.

Apart from the above mentioned documents, one has to get hold on the following additional documents in this case-

-       NOC from traffic police that there are no pending dues of traffic violations

-       NOC from Deputy Commissioner of Police that the car is not involved in a criminal case

-       Clearance Certificate issued by RTO of the state where the car was initially registered

-       All these three documents are to be submitted to the new RTO office

-       Form 27 and Form 28 for NOC of Inter State Transfer of the Vehicle

-       Form 20 for Re-registration of the car

-       Vehicle Fitness Certificate issues by RTO Inspector

-       Attested address proof of the new owner

-       Insurance Policy with complete details

-       Since emission norms differ city to city, one has to check the case and avoid a car with old emission norms. 

Documents to check before buying a Used Car

While we have explained to you the important documents needed to transfer the ownership in various conditions, here are some important points you must check while buying a used car -

-       Check for owner name, address and VIN on RC

-       Match all this information with the ID proof of the seller

-       Although an expired insurance policy won't hamper the transfer, one must check the details on insurance papers by matching the VIN from RC and that of the Insurance Policy

-       Check if the car was bought with a car loan. If yes, ask for NOC by the bank from the seller as it will be required to transfer the RC

-       CNG fitted cars need to be double checked if CNG is mentioned on RC and Insurance papers.

Important points to cover

-       Do ensure what all documents work as address proof with RTO. Rent agreement, Credit Card statement, Appointment letter of Private Company are not considered address proof

-       At the time of re-registration, a seller need not to be present at the RTO. It is the responsibility of the buyer to get all the documents inline.

-       Though, if the signature of the seller on the documents and ID proof differs, the RTO may call the seller to avoid any fraudulent activity like theft of the car.

-       In general, 15 days are taken by RTO to process all the documents. Still, it depends on RTO to RTO and one must confirm the exact time needed to complete the process.

-       Since all the documents will be with RTO during the transfer process, as a matter of caution, the seller must submit a Form TCR to intimate the RTO office along with copy of ID & address proof of the buyer.

*Important Note - The above mentioned process is duly checked with various RTOs and is valid in almost all the cities. Still, ask your RTO with full details before buying and selling a used car.

Are you looking to buy/sell one? Have a look at the latest pre-owned cars here

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