RTO Procedure Guide For Buying A Used Car

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Many of us prefer to have a used car as our first car. It has various advantages like low cost of ownership, low insurance premiums and many more.

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 –

  • Registration Certificate (RC)
  • Insurance
  • Address proof documents
  • Form 28,29,30,31,32 & 35
  • Road Tax Receipt
  • Purchase Invoice/Sales receipt
  • PAN
  • PUC Certificate
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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.

Payment of the previous e-challan

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.

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Transfer of Ownership

Transfer cost of car ownership may cost around ₹ 300 to ₹ 2000 or more depending on the RTO and vehicle.

This can be done both Offline and Online.

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Offline-

  1. Certify the Sale’s Agreement

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.

  1. Submitting all the necessary document

                 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.

  1. Applying of Clearance Certificate

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.

  1. Applying for the transfer of ownership at buyer’s RTO:

After paying the ownership transfer fee to your local RTO, you will be given 2 payment receipts.

Attach the following documents to it-

  • PAN
  • Registration certificate
  • Clearance certificate
  • Insurance
  • Address proof document
  • PUC certificate
  • Two copies of Form 29
  • Single copy of Form 30
  • Self-addressed envelope attached with stamps
  • Passport-sized photograph

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.

  1. Visit ParivahanSewa  
  2. Click on “Online Services” and go to “Vehicle Related Services”
  3. Enter the Car’s registration number and Proceed
  4. Go to misc. and enter your Phone number to generate OTP
  5. Choose “Transfer of Ownership” in the “Application selection” and enter all the required details.
  6. Make payment and print the copies of 2 payment receipts, Form 29 and 30.
  7. Both buyer and seller have to sign the hard copies of these documents and submit to RTO along with other necessary documents.
  8. New RC will be provided to the buyer via mail if the documents are verified successfully.

Transfer Of Insurance

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This is a very important thing to do while buying a used car. Following are the steps for the same:

  1. The seller should inform the insurance company and get NCB (No Claim Bonus) retention certificate.
  2. Transfer the policy

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.

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Having this done transfers the insurance from the seller to buyer.

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