Buying or Selling A Second Hand Car

I sold of my car recently and this was the first experience for selling a second hand car. Instead of the selling the car to one of the second hand car dealers like True Value and First Choice I wanted to sell it to an individual buyer. The advantage of selling to an individual buyer is that you get a higher price for your vehicle while the flipside is you don’t know the person, and there is a need for you to be extra cautious. This is a post which would provide to be of help to both the buyers especially on the documentation required for the transfer of the car.

The seller & buyer needs to sign the following forms for initiating the transfer of vehicle-

Form 29- Notice of Transfer of Ownership of a Motor Vehicle

Form 30-Application for Intimation and Transfer of Ownership of a Motor Vehicle

In case the vehicle is under hypothecation then you need following additional documents signed by the seller-

Form 28- Application and Grant of No Objection Certificate

No Objection Certificate- From the Bank which has hypothecated the vehicle

In addition to the above documents the following documents are required-

1- Original Registration Certificate of the Car

2- Copy of the Insurance Cover Note/Policy

3- Pollution Certificate

4- Identity proof of the seller

5- Identity proof of the buyer

6- Address proof of the buyer

In addition to the above documents it is always beneficial to get into a contractual agreement (on a stamp paper) which outlines the deal between the buyer and seller. A very important use of this document is it also ascertains the liability of any unwanted accident or incident specially if the car has not been transferred or the buyer is delaying the transferring of the car. I am attaching such an affidavit which can be used for outlining the contract on Twenty Rupees Stamp Paper which I used. You can access the document here. Like any other contractual agreement this would require two witnesses and it would be better if each buyer and seller have their own witness along with identity proof (but such a situation seldom happens). Also make sure you keep a copy on record for each of the documents above for your reference in case any unfortunate situation arises.

Happy Driving!!!

Disclaimer: This post is based on my understanding of the process and my experience on selling my car. I am not liable in case of any incorrect information above and also might not be updating the same based on changes in the RTO policy. Please visit the RTO office where your car is registered for an up to date procedure and contact lawyer for an accurate contract.

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5 comments on “Buying or Selling A Second Hand Car”

  1. Ramesh Reply

    Excellent Prats – a very useful post to be bookmarked and kept as reference.

    Wonder how you found all this – The RTO office is one of the most secret and corrupt offices that exist. An individual going alone has little chance of getting anything done. I couldn’t find a place where you can get clear directions, there is little signage at the office itself etc etc. Nothing is possible online. It all seems to be designed to herd individuals into “agents” with all the attendant corruption that it entails.

    • Prats Reply

      @Ramesh: Thanks a lot sir. I had to do it as I was in a very peculiar situation. My car was registered in Hyderabad and I was living in Bangalore. Recently I had traveled to Hyderabad for an assignment for couple of months and I wanted to sell the car and ensure it is transferred before I leaved the city hence all the research and running around happened.

      I agree the RTO is one of the offices where you find systematic corruption, owing to which I had paid the road tax for my car twice 🙁

  2. Shilpa Garg Reply

    Just last week, we were amidst all these documents. We had sold our car to hubby’s colleague last year and now he wanted to sell it to somebody else. He had not got the car transferred in his name, so we had to give him some of the above mentioned documents along with car-loan clearance papers from the bank!
    Very true, selling to an individual is better than selling to the car dealers.

    • Prats Reply

      @Shilpa: This was a situation I wanted avert desperately when the buyer doesn’t register the car. I believe you guys would be ok with that as he was your husband’s colleague; because if the car is not transferred and it is involved in the accident the primary liability lies with the person in whose name the car is registered

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