Since you have finalised your decision to buy a used car, the process of paperwork may seem intimidating and may force you to throw your money on an agent. Instead, check out this step-by-step guide for the formalities you need to do after purchasing a used car. It´s simple enough that you can do it all on your own.
The first and the most important step, get all the documents checked regardless of who the seller is.
The list of documents to be checked -
Having completed the first step, you can now move on to the second step i.e., RTO procedure. There are several things you will need to do in this procedure such as previous e-challan payment, transfer of Registration Certificate or RC and transfer of insurance.
Since you are already spending your money buying a car, you would not like to pay for the traffic offences of your car's previous owner. Before transferring of ownership, you need to make sure that all the e-challans/fines are payed by the previous owner so that the vehicles records are clear. Ask the seller to show the records for the same. You can also check the records of the vehicle by yourself by logging online and checking at the RTO the vehicle is registered to.
Transfer cost of car ownership may cost around Rs. 300 to Rs.2000 or more depending on the RTO and vehicle.
This can be done both Offline and Online.
Offline-
Now this agreement requires a payment to be made for a sale. It must be including details such as Mode of payment (Cheque, Demand Draft, etc.) , RC, Insurance , Condition of the Vehicle.
Now that you have made the payment, Both the buyer and seller have to sign two copies of Form 29 and a single copy of form 30, these copies are to be submitted to the local RTO.
You will be applying for a clearance certificate from the RTO. To avail this certificate, you'll need a requisition letter with an envelope attached with stamps and documents received by the seller.
This step may differ with RTOs and states. Additional documents may also be required from your side.
After doing so, the RTO will provide the seller an acknowledgement form, when submitted a mail with the clearance certificate will be sent to you.
After paying the ownership transfer fee to your local RTO, you will be given 2 payment receipts.
Attach the following documents to it-
You will receive an acknowledgement form after submitting the above documents and the new RC will be mailed to you.
Online –
This is to be done by the seller of the car in favour of the buyer.
This is a very important thing to do while buying a used car. Following are the steps for the same:
After getting the NCB retention certificate the seller needs to transfer the policy. To do so the insurance company may ask document such as updated RC having the sellers name, new policy application etc.
Having this done transfers the insurance from the seller to buyer.
