Step by Step Documentation Process to Buying Used Car

Step by Step Documentation Process to Buying Used Car

When buying or selling a used car, there are certain steps that need to be followed very strictly. Failure in doing so can leave you with a low-value car or without a car at all. So, to help you get everything in order and without any issues,

Here is a step-by-step guide to the entire documentation process around buying or selling a used car.

Step 1: Once you have decided on which car you want and how much you are willing to pay for it, you have to complete the documentation part of the purchase. Documents such as a Sale Affidavit and Delivery Note need to be downloaded and filled. Along with those, you need to have copies of the Demand Draft or Cheque and any payment receipts which are signed by the seller. You should request a Tax Invoice in the case where you’re buying a car from a Certified Dealer rather than a direct seller.

Step 2: After the purchase is complete, you will have to complete the documentation required for the RC or RTO transfer when the vehicle has been delivered. Here, there are two types of transfer that can be done.

  • If the buyer and seller are in the same RTO or Regional Transport Office jurisdiction, only Form No. 29 and 30 are required to be filled.

  • If the buyer and seller are in different RTO jurisdictions or is the buyer is planning on taking the vehicle to another RTO jurisdiction, Form No. 28, 29, and 30 are required to be filled.

Along with these forms from the RTO form list, the following documents must be submitted to the RTO:

  • Buyer’s ID proof – Aadhar Card, Passport, PAN Card, Driving License, Voter ID, etc.

  • Buyer’s Address proof – Passport, Bank Statement, Electricity Bill, Telephone Bill, etc.

  • 4 passport-sized colour photographs of the buyer.

With these documents, the buyer must submit a copy of the pollution under check or PUC certificate as well as a copy of the insurance to the RTO.

There might be some sellers who cannot produce their original documentation for several different reasons. In case this happens, you have to inform the seller in any of the cases mentioned here:

  • If the original registration certificate of RC is lost, the seller must submit Form No. 26 and a copy of an FIR or First Information Report which should be filed at the local police station.

  • If the seller has installed or removed an LPG or CNG tank, they must submit all the bills for the CNG or LPG Kit and Cylinder as well as the approval certificate for the CNG or LPG tank.

Step 3: If there is any addition or removal of lien on the RC, these documents must be submitted with the above-mentioned documents to the RTO:

In case of hypothecation removal – When a car is purchased with the help of a loan, the vehicle’s RC will have the bank’s hypothecation on it and thus the RC will not be transferrable. If the seller or buyer wishes to remove the hypothecation, an NOC and 2 copies of Form No. 35 must come from the bank or financier. This can only happen when and if the loan for the car has been completely paid. If the validity of the NOC has expired, a new one must be obtained before moving forward.

In case of hypothecation addition – In the same way, if the buyer wishes to purchase the car with the help of a loan from a bank or financier, the RC must be hypothecated in their name. This can be done by submitting Form No. 34 which will be provided by the bank or financier.

Documentation for Insurance: Once everything is completed and the RC is in the buyer’s name, the insurance must also be transferred. This is done by submitting the Insurance-Transfer application along with the RC to the insurance company of the buyer’s choice. Before the car can be insured though, a routine inspection of the car is conducted by the insurance company and costs about Rs 500. In case the previous insurance policy had an NCB or No Claim Bonus, the buyer is required to pay the NCB amount if they want it transferred. If the previous policy has already expired, the buyer must take out a new one by submitting a copy of the registration certificate to the insurance company.

As you can see, buying or selling a used car requires a lot of documentation and it doesn’t matter if you’re looking at used cars in Nasik or used cars in Pune, the rules and regulations remain the same throughout the country. So, before you can think about buying or selling a second hand car, it is best to get all the documentation properly managed and in order so that you don’t face any difficulties in the future.

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