Transfer of Ownership of Used Car

As cars have become more of a necessity than a luxury for the average Indian, the market for new as well as pre owned cars has witnessed rapid growth. Though the market of used cars in India is brimming with great choices, you may also come across unscrupulous sellers. So before buying a used car, check the paperwork thoroughly and also make sure that your seller sends the letter of information about the sale to the Regional transport office, RTO (where the car had been registered) within 14 days. Here are some important documents which you must get before finalising the deal.


Thoroughly inspected car parts and documents:

Firstly, get the car checked by a trusted mechanic; doing this will either help you in fixing the problems by the owner itself or you can negotiate the price. Check the number of documents here:

Insurance papers: Check if the car had undergone any accidents and claims related to it. To know this, you must check the no claim bonus (NCB) percentage. It’s always better to have a high NCB.

Always check if the chassis number and engine number matches the numbers on registration papers.

Examine the condition of the tyres, brakes and filters of the car. A poorly maintained car is not worth of your money.


Transfer of the ownership of car

A buyer should submit the following forms to the nearest jurisdiction. These forms must be signed by the previous owner and the current buyer.
  • Form 28: No objection certificate (NOC)
  • Form 29: Transfer of ownership of car
  • Form 30: Application of intimation and transfer of ownership


In case, the car had been registered in a different jurisdiction then a buyer can demand a NOC from the RTO of that jurisdiction, it will speed up the whole process of transferring the ownership.

After submitting the above documents and forms, the local RTO would start the process of transferring of ownership. A buyer will receive a receipt in 15 to 20 days and a copy of RC (with buyer’s name) will come in around 40 to 45 days. This process shows your legal transaction and acts like an evidence of transaction.

Once you receive the RC, there are some other documents also which you need to take care of:
  1. Get the car insurance transferred at your name, or get a new one as an alternative
  2. Do not forget to get the service book which includes all the records of services done along with the road tax receipts
  3. If the car has CNG fitted to it, then do get the bi-fuel certificate
  4. Also ensure that the seller should give you pollution under control (PUC) certificate.
In case your seller had taken a car loan for buying the car, then make sure you get Form 32 and Form 35, It will make sure that car has no pending and previous loan on it.

If the car is bought on finance then make sure that you get the original invoice of the car along with the NOC issued by the car finance company.

Conclusion

Buying a used car from a dealer is less exhausting as he takes care of transferring of ownership in the name of the new buyer. But make sure that you are buying the car directly from its first owner and not the car dealer, in that case you will become the third owner and it would cut down the resale value of the car. However, buying a car from the auto company is one of the best and safest options as you get all the documents thoroughly checked by the company itself. It does the full car servicing before selling it and gives a warranty of up to 1 year along with 1- 3 free services. But usually this advantage has many terms and conditions applied to it, you can avail an exchange offer only if you have bought your first car from the same company. 


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