India's used car market is booming. Used cars outperform new cars in terms of price and value. It is not a bad idea to buy used car and save extra cash.
Cars depreciate the fastest in the first five years of ownership. Hence, the benefit of buying a used car is that the depreciation rate is slower. The used car market now has many models and variants. The best part is that most banks provide amazing loan offers based on used car valuation and used car insurance premiums are also reasonable.
The procedure of transferring ownership of a used car can be confusing for many car owners. We usually leverage costly car ownership transfer agents at the RTO office. A little investigation and knowledge can help you quickly transfer car ownership between seller and buyer without a third party. Here's how to transfer car ownership.
Transferring Vehicle Ownership Within a state - A Step-By-Step Guide
Notary sale agreement
The buyer and seller's transaction happens with a notary-signed selling agreement and include payment information (whether by demand draft (DD) or check). It also records the vehicle's condition, the status of the RC, and its handover as well as insurance information. The sale agreement specifies the payments made for the vehicle's ownership transfer and the buyer's ownership status at the time the keys are handed over to the buyer.
Once the seller receives payment, he or she should sign two copies of Form 29 and one copy of Form 30 and send them to the RTO. These documents will show the seller's consent to the transfer of ownership.
If the car is financed the buyer must sign form 35 and a bank "No Objection Certificate".
The seller should give the car buyer following documents.
- Car owner's manual
- Warranty papers
- Car's original invoice copy
- Servicing history
- Valid insurance
- Original registration certificate
- Request letter for the clearance certificate
- Copy of PUC certificate
- RTO tax documents
- Delivery note copy
Documents that the car seller should keep include the following.
- The sale agreement
- Buyer’s ID and Address proof
- Cheque or DD copy
- RC and insurance
- Form 29
- Form 28
- Form 30
- RTO tax papers
For buyers, the old Regional Transport Office will issue a clearance certificate (CC). If the car is not financed, here are the documents required to sell used car.
- Letter of request for the clearance certificate
- Original RC
- Valid vehicle insurance copy
- Emission certificate copy
- A self-addressed envelope with Rs. 30 stamp
The buyer should have the RTO clerk check and attest the documents. The next step is to submit the documents to the RTO, which will issue an acknowledgment form and charge no fees for the CC application. After applying, the buyer will receive the CC and the modified RC book in 30 days.
The buyer must go to the new Regional Transport Office to transfer ownership.
Following documents are required at the new RTO if you have not financed the car.
- Form 29 two copies
- Form 30
- Original RC
- Valid car insurance copy
- Emission certificate copy
- Buyer's address proof copy
- Buyer's PAN card copy
- Original CC
- Self-addressed envelope with 30 rupee stamps
- Buyer’s one passport-sized photograph
Transferring car ownership costs
The transferee must pay transfer fees within 14 days, afterwards, a late fees is charged as per RTO rules.
Upon payment of the fee, the customer will get two challans to submit the documents, and they should attach both challans. The clerk will issue an acknowledgment and mail the RC book to the buyer within 30 days. You need forms 32 and 35 if you have financed your car.
Hope, above mentioned details will help you buying or selling used cars conveniently.
