Step by Step Process to Transfer your Car

Right now, the used car market in India is going through an economic boom. People are now seeing that used cars have distinct benefits as they give more value for money. The product quality is good as well. In fact right now, the used cars are in top shape and quality. Thus, if you buy one, you save up a lot of money.

The depreciation rate for cars is the fastest ever, right now, for the first 5 years. When buying a new car, you may think that you are buying a shiny, new vehicle for personal use. Yes, you are spending a lot of money, but you don’t mind since you are fulfilling your dream of owning a car. What many people forget or do now know is that your new car’s value depreciates by a huge margin in the 5 years after you buy. 

This is why many people are now choosing used cars. Their quality is not too much below the completely new ones. And besides, you don’t need to fear the vehicle’s depreciation for used cars since you are paying less for them. Today, you have a lot of choice when getting a second hand car. However, the best thing is that you get attractive interest rates if you get car loans. The premium rates for used car insurance are lower as well.

One area where people have problems is the process of car transfer. Most outsource the work to the RTO or regional Transport Office. Unfortunately, RTO agents charge a lot for their help. The good news is that with a little research and study, you can easily transfer your car without third-party involvement. 

Here’s how to transfer car ownership

Step by step guide for vehicle transferring

Get an agreement from a notary

Before anything, you need a sale agreement from an official notary. The document needs to include payment details, condition of the car, status of the RC and the car’s handover, the insurance details, and etc. When the seller receives the payment, he or she needs to sign 2 copies of Form 29, along with a copy of Form 30. This shall be submitted by the car’s buyer to the RTO. The form says the seller is giving consent to transfer the car’s ownership. In case the vehicle is under a loan, Form 35 needs to signed as well along with a NOC or No Objection Certificate from the bank who lent the loan. The seller needs to handover documents to the buyer, such as:
- Valid insurance
- Origination registration certificate
- Copy of PUC certificate
- Request letter for Clearance Transfer.
-Copy of delivery letter
- RTO tax documents
- Vehicle manual
- Servicing history
- Warranty documents
- Car’s original invoice’s copy
The seller should still keep copies of documents like
-Sale agreement
-Buyer’s address proof and ID
-Cheque or DD copy
-Form 29
-Form 30
-Form 28 when relevant
-RC and Insurance
-Car’s RTO tax paper

Buyer needs to get clearance certificate from RTO

When the car is not with a loan, the seller needs to submit these documents to the RTO.
- Original registration certificate of RC
-Clearance certificate request letter
-Vehicle’s insurance’s copy
-Emission certificate copy
-One self-addressed envelope with stamps of Rs. 30

Buyer needs to apply for car ownership transfer at the RTO

If the car is not under any loan, these documents need to given to the RTO.
-Copy of emission certificate
-Copy of buyer’s address proof
-Copy of car insurance
-Original registration certificate
-Form 30
-2 copies of form 29
-Copy of PAN card of buyer
-Original CC
-Buyer’s address proof
-Buyer’s passport-sized picture
-One self-addressed envelope with stamps of Rs. 30

Car ownership transfer cost

The transferee needs to pay the fees for ownership transfer. There will be a late fee charged if the transfer application is not submitted in 14 days of the car’s sale.
Once this is paid, the buyer shall get two challans. These need to be attached to the documents by the buyer and submitted to the RTO’s clerk. The clerk shall acknowledge this and the buyer shall get the RC book within 30 days.

There may be some more steps involved.

Car transfer can be hassle-free if these steps are followed. Always keep copies of the important documents whether you are the buyer or the seller.