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Used Cars Documents Transfer Process in India

Used Cars Documents Transfer Process in India

Snapshot: Here is a list of documents you must check, submit or retain in order to avoid any unpleasant situation and enjoy full ownership of your car.

Owning a car features on everyone’s wish list. If you are buying a used car to realise this dream, be careful to check all documents before making the deal or you could land in trouble in future. Here is a list of documents you must check, submit or retain in order to avoid any unpleasant situation and enjoy full ownership of your car. 
 
Registration Certificate (RC)
This document is of utmost importance as it carries the name and address of current owner along with vehicle number. It also has the chassis and engine number. Make sure all details filled in are correct and up-to-date. RC needs to be transferred in the name of the new buyer. If the vehicle is being sold to another state, then the vehicle needs to be registered there and the seller needs to inform the previous registration office within two weeks of transfer. Check for authenticity of the documents by inquiring at RTO. Also verify that the RC is free of hypothecation, in case the car was taken on a loan. If the car is still hypothecated to a bank or financer do demand for an NOC prior to sale. If loan is active do insist for Foreclosure Charge Statement as on date and have this recorded in sale agreement with the seller.
 
Insurance Policy
The car insurance also needs to be transferred to the buyer’s name or it can cause a problem if you have to make a claim in the future. Check if the policy is valid on the date of transfer or expiring soon. This will help you negotiate with the seller. The documents must carry the right vehicle, chassis and engine number. Make sure the latest premium has been paid.
 
Road Tax receipt& Sale receipt
This is a one-time tax that needs to be paid by the first owner at the time of buying the car. Take the original receipt of the tax paid. Ask for an invoice of sale whether you are buying from a company or an individual.
 
Dual fuel certification & PUC certification
If the car has been modified to run on two types of fuels then it needs to have an NOC from RTO. Ask the seller for this certification. Also if CNG kit has been fitted in the car, make sure it is mentioned in both RC and Insurance policy. If the PUC certification is still valid you can ask the seller for that also. During transfer process a copy of PUC will have to be attached along with other documents.
 
Service book
You can avail any left services of the car or see a track record of the car servicing by this document. This way you would understand the health of the car and understand its true condition.
 
Apart from these documents, RTO Sale Transfer Forms 29 & 30 needs to be duly filled in and signed by both seller and buyer. If the car had been on loan then RTO forms 32 & 35 need to be submitted along with NOC of bank or financing body.
 
In case of inter-state transfer, Vehicle Fitness Certificate issued by RTO inspector, Clearance Certificate from original RTO, NOC from Traffic Police for no dues and NOC from state police for no criminal case needs to be procured. RTO forms 27 & 28 for No Objection Certificate of Inter State Transfer of Vehicle and form 20 for Re-registration needs to be duly filled and signed.

Don’t forget to retain a copy of all the forms being filled and submitted in case of any dispute in future. It is always better to be safe than sorry.

ALSO READ: Legal things to mind while buying or 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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