Documents To Check When Buying A Used Car In India

The automobile sales figure in India is growing at a robust pace. A large part of this growth is credited to the used car market in the country. On the contrary, the process of transferring the ownership of a used car in India is quite complicated. The entire process requires only a limited set of specific documents but the second hand car registration procedure is long-winded. Here, we explain the documents that need to be furnished for used car ownership transfer.

Why Should You Transfer Car Ownership?

It is very important to transfer the ownership of a second-hand vehicle you buy due to the following reasons:

  1. Insurance companies mandate that the registration certificate (RC) is in the name of the new owner for the vehicle to be covered by insurance.
  2. After the sale of the car, if there is an accident, the original owner of the vehicle will be detained for questioning as long as the RC is in his/her name. However, if the RC is in the name of the new owner, this is not required.
  3. If the RC is not transferred, it will have the address of the original owner. All subsequent documentation for the vehicle will be sent to that address.
Documents for Used Car

Different Types Of Sellers:

There are three types of sellers from whom you can buy a used car:

  1. Individual seller - If buying from an individual seller, the absence of a middleman in the deal ensures that the buyer gets the used car at a good price. However, the buyer should ensure that the seller is reliable by spending some time in investigating about him/her. Although the process is cumbersome, you can get the best deal by getting a mechanic to help you out in checking the vehicle before sale.
  2. Car company - Almost all car companies have their own used car outlets. Even luxury cars are available in the pre-owned car market. The safest way in which you can get a pre-owned car is by visiting the car company. The car ownership transfer process will require minimum overseeing from your part, and you are also likely to receive a warranty on the car. Free servicing and exchange bonuses are other benefits of opting to buy from the car company. However, the selling price of the car will be higher when compared to an individual seller.
  3. Used car dealer - Buying a vehicle through a dealer ensures that you do not have to go through the difficulty of getting the paperwork done. But you should make sure that the purchase is made from the previous car owner and not the dealer. In other words, if the dealer has got the ownership of the vehicle, then you will technically be the third owner. This can bring down the resale value of the vehicle by a significant amount. Also when buying a car from a dealer, find out if you can receive a warranty as this is a benefit offered by some dealers in the market.

Documents For Buying A Used Car From A Private Seller:

When buying a used car from an individual seller, the following documents are involved in the transfer process:

  1. Registration Certificate (RC) - The RC will have important information about the vehicle such as its engine number and chassis number. The buyer has to check the state in which the vehicle was initially registered. If the buyer will be moving it to another state, the registration will have to be done there. The buyer should ensure that the document is not the duplicate copy of the RC (marked by the acronym DRC); in case it is, he/she should check the reason with the seller.
  2. Invoice of Car Purchase - The buyer should be given an invoice for the purchase of the vehicle. Although this will be made available when the used car is bought from a company or dealership, an individual seller may not be able to provide it. In such a scenario, the seller should provide a receipt to the buyer that will serve the purpose.
  3. Insurance Documents - If the buyer intends to get the existing insurance policy transferred to his/her name, the process should be initiated well before the sale. While the insurance is being transferred, the buyer should check whether the premium was paid regularly, the claim history of the seller, and the expiry date of the policy. The buyer should also have a clear idea about the terms and conditions in the policy documentation, particularly the exclusions.
  4. If the buyer is looking to buy a new insurance policy for the used car, then the process should ideally be done before the sale so that there is no break in insurance. It should be noted that the buyer will find difficulty in getting insurance for a used car that is more than 15 years old.

  5. Service Book - This will give details on the servicing history of the car. The buyer will have a better idea of the condition of the vehicle through this. If the car has been serviced as per the schedule then it is more likely to be in better condition that a car that had infrequent services.
  6. Forms 28, 29, 30, 32, and 35 - Forms 29 and 30 are mandatory documents required for buying a used car in India. The second-hand car registration procedure requires the seller to sign two copies of Form 29 and a copy of Form 30 and hand it out to the buyer. The buyer will then submit the same at the RTO for transfer of ownership.
    • Form 29 is the notice of transfer of car ownership
    • Form 30 is the application for the intimation and transfer of car ownership
    • Form 28 is the No Objection Certificate that is mandatory when the car ownership is transferred between states
    • Forms 32 and 35 are needed when the seller has taken a loan to purchase the car

    In case the car was bought through a loan, the buyer will have to get the No Objection Certificate from the financing bank through the seller. This document will clarify that the complete loan has been paid by the seller. If this is not procured, the buyer may be held responsible for repaying the loan after the transfer of ownership.

  7. Receipt for road tax - Road tax is paid only once, i.e., at the time of registration of the car by the first owner. If the road tax is not paid on time, it can accumulate a huge penalty over a period of years. There could even be a situation in which the new owner is liable to pay the same. The road tax varies between states and is usually between 2% and 18%. It is the responsibility of the seller to provide a road tax receipt to the buyer.
  8. Certification for bi-fuel kits - If the car being sold has been configured to run on two types of fuel, the seller should ideally provide the bi-fuel certification to the buyer. A No Objection Certificate is also required from the RTO, indicating the same. The bi-fuel kit usually has a guarantee of 5 years from time it was fitted to the vehicle. So the buyer should ask for the sale receipt of the kit too.
  9. PUC Certificate - It is important to procure the Pollution Under Control (PUC) certificate from the seller, as this certification is mandated by the law.
  10. Owner’s Manual - Do not forget to get the owner’s manual from the seller, as this has important information about the vehicle. The servicing schedule is usually mentioned in the car owner’s manual, and this should be followed if applicable.

Other documents required for the car ownership transfer process include the seller’s and buyer’s ID and address proof, PAN Card of the buyer, and Clearance Certificate (CC) from the RTO where the vehicle was originally registered.

The aforementioned points are also relevant when you make a used car purchase from a pre-owned car dealer or the car company itself. The procurement of documents and the entire ownership transfer process is, in fact, much easier when the purchase is made from the car company.

 4.5 / 5.0   by 2617 users
Used this product? Write a review >>

Policy Coverage

Customer Service

Claim Experience

Cashless Garages

Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

Car Insurance Reviews

Page 1 of 50 1 2 3 4 5
  • Universal Sompo Car Insurance
    "Good Insurance"
    0.5 5.0/5 "Blown Away!"
    Taken my car insurance from Universal Sompo because the premium is less when i compared to other insurance provider, they have provided me a IDV value of Rs. 4 lakh. When i have done the cashless claim, they have sanctioned in 2 days. I'm getting renewal message in prior when the policy is getting lapsed. This is a first party insurance policy.
    Was this review helpful? 0
    , chennai
    Reviewed on Feb 20, 2020
  • Reliance General
    Reliance General Car Insurance
    "Good Policy"
    0.5 4.0/5 "Great!"
    My friend has referred me about the car insurance from Reliance. I pay the premium amount of Rs. 10,200 for this policy. This is a third party insurance. My friend is working as a agent and he will renew the policy. I have not approached them for any kind of claim. They use to send the reminders to renew the policy.
    Was this review helpful? 0
    , tirupur
    Reviewed on Feb 20, 2020
  • Oriental Insurance Car Insurance
    "One of the best policy"
    0.5 5.0/5 "Blown Away!"
    My car insurance was selected from Oriental insurance since the branch office is located to nearby my office. I pay the premium amount of Rs. 6000 for that they are providing me a IDV value of Rs. 2.8 lakhs. This is a first party insurance. Even though i don't have any claim experience, they have not provided me any no claim bonus.
    Was this review helpful? 0
    , guwahati
    Reviewed on Feb 19, 2020
  • National Insurance Car Insurance
    "Good policy"
    0.5 5.0/5 "Blown Away!"
    For the economical and low premium purpose, i have chosen the two wheeler insurance from National. I pay the premium amount of Rs. 7000 every year and they are giving the IDV value of Rs. 4 lakh. I used to renew the policy in the branch nearby located to my place. I have no claim experience till now.
    Was this review helpful? 1
    , kolkata
    Reviewed on Jan 30, 2020
  • National Insurance Car Insurance
    "Excellent policy"
    0.5 5.0/5 "Blown Away!"
    TATA AIG car insurance is pretty awesome policy. So I have taken my car insurance from this company because they are providing me a bumper to bumper offer, comprehensive policy even if the car is 7 years old and this is the only company who provides this facility. To apply the claim is very easy in a single call. They have provided me 100% claim.
    Was this review helpful? 1
    , bangalore
    Reviewed on Jan 28, 2020
  • United India Car Insurance
    "Secure and fast claim"
    0.5 5.0/5 "Blown Away!"
    My car insurance was purchased from United India and i have been renewing the policy with the same company for last 5 years. My claim experience is very fast and there is no struggle in getting the claim. The person will come to the spot by the next day once we applied the claim. I got the claim upto 90%. I have been receiving the no claim bonus also.
    Was this review helpful? 1
    , kochi
    Reviewed on Jan 22, 2020
  • Royal Sundaram Car Insurance
    "Money waste policy"
    0.5 1.0/5 "Really Bad"
    I have taken my car insurance from Royal Sundaram at earlier but I'm not satisfied with their services. When i applied for my claim, they have taken most of the part and they didn't provide the cashless claim in their garages. Quality of service is not that much good. I bought the policy through online. They didn't promised their word.
    Was this review helpful? 1
    , chennai
    Reviewed on Jan 21, 2020
  • Oriental Insurance Car Insurance
    "Need to improve the service"
    0.5 4.0/5 "Great!"
    ORIENTAL INSURANE has provided a car insurance and they have provided me a better offer with the better quotation including the bumper to bumper offer so that i took the same and till now i never spoke with the customer care also. I have not approached for them for any claim. They have offered me a coverage value of Rs. 3.5L. I have renewed the policy in online.
    Was this review helpful? 1
    , chennai
    Reviewed on Jan 21, 2020
  • United India Car Insurance
    "Service is good"
    0.5 4.0/5 "Great!"
    Took my car insurance from United India based on the agent suggestion. I pay the premium amount of Rs. 3600 its because of the no claim bonus and some extra discounts. I have not applied any claim till now. From 7 years, i have been renewing the policy with the same company. They will give reminder call and I'm getting SMS from United India before the policy expiry.
    Was this review helpful? 1
    , jaipur
    Reviewed on Jan 16, 2020
  • New India Car Insurance
    "Good policy"
    0.5 4.0/5 "Great!"
    Chosen my car insurance from New India since its a government sector company and i have a known person over there. There is no cashless claim i had because there is a delay in that and it takes almost 1 week. They are giving claim upto 70% since my vehicle is old one. I pay the premium amount of Rs. 12500 on every year. They said they are providing a road side assistance and no claim bonus facility.
    Was this review helpful? 2
    , coimbatore
    Reviewed on Jan 16, 2020
  • Liberty Car Insurance
    "Wrost service ever "
    0.5 1.0/5 "Really Bad"
    My car in total loss and they have reject my claim. 2 months they have investigate case and after they reject. they says your car is sold by you . i am saying i have not sold and i have proof but they dont want to listen us. never buy from liberty insurance.
    Was this review helpful? 1
    , ahmedabad
    Reviewed on Jan 13, 2020
  • Iffco Tokio Car Insurance
    "Good Insurance Policy"
    0.5 4.0/5 "Great!"
    I have a zero claim experience for my car insurance from Iffco Tokio. Actually my friend has suggested me to take the car insurance from Iffco Tokio because he is working as a agent over there. I have paid the premium amount of Rs. 8000 for that they are providing the coverage value of Rs. 2.75 lakhs. I have no idea about the road side assistance and no claim bonus.
    Was this review helpful? 1
    , vapi
    Reviewed on Jan 06, 2020
  • New India Car Insurance
    "Good Insurance company"
    0.5 4.0/5 "Great!"
    Taken my car insurance from New India Assurance. When i purchased the car from the showroom that time they have provided this insurance which i'm continuing. Till now i didn't claimed anything and i have no idea about the coverage value. They are giving good customer support and wish to continue the same.
    Was this review helpful? 1
    , bangalore
    Reviewed on Jan 06, 2020
  • Reliance General Car Insurance
    "good service"
    0.5 5.0/5 "Blown Away!"
    I have chosen Reliance insurance as my friend is a franchise. I have taken a third party car insurance from them. I pay the premium of Rs.3000 on yearly basis. Even though it is a third party insurance, I can get upto 15lakhs. I will not get notification for renewal. I pay the premiumthrough online or directly to them.
    Was this review helpful? 2
    , bangalore
    Reviewed on Dec 27, 2019
  • Reliance General Car Insurance
    "Good service"
    0.5 4.0/5 "Great!"
    I have taken a car insurance from RELIANCE GENERAL INSURANCE. It has some good benefits and the premium is low. I pay Rs.7,000 on yearly basis and also as no claim bonus options. It also includes garage benefits. I have no claim experience yet. I will get notification regarding the insurance from car showroom not from the insurance provided. I pay through online or cheque.
    Was this review helpful? 2
    , chennai
    Reviewed on Dec 22, 2019
  • Reliance General Car Insurance
    "Good policy"
    0.5 4.0/5 "Great!"
    Chosen my car insurance from Reliance. Because their office near by my work place, so that its easy to renew the policy. They have provided me IDV value of Rs. 4.50 lakhs and the provided premium amount was Rs. 9,500. This is a third party insurance. I have not applied for any claim till now. I have got the no claim bonus of 30%.
    Was this review helpful? 1
    , bangalore
    Reviewed on Dec 20, 2019
  • Shriram Car Insurance
    "Good Plan"
    0.5 5.0/5 "Blown Away!"
    1 month ago, i have purchased the car insurance policy from Shriram General Insurance. Since the premium amount was less, i have chosen the same. They have given me a documents on the same day. I have not got any no claim bonus. I have paid the premium amount of Rs. 19000. Its a third party cover policy.
    Was this review helpful? 2
    , chennai
    Reviewed on Dec 20, 2019
  • Iffco Tokio Car Insurance
    "Good Claim experience"
    0.5 4.0/5 "Great!"
    Earlier i had a car insurance with Iffco Tokio and had a claim experience. Since the premium amount is high and the IDV value is less hence i have changed the policy by next year. They have processed the claim in one week. They have cover upto 100% and i have paid only Rs. 500. I have paid the premium amount of Rs. 50000 for the coverage amount of Rs. 7.40 lakhs.
    Was this review helpful? 1
    , chennai
    Reviewed on Dec 18, 2019
  • Bajaj Allianz Car Insurance
    "Easy policy to take"
    0.5 4.0/5 "Great!"
    From Bajaj Allianz, i have chosen the car insurance policy. Its easy to claim hence my friend had recommended me about this policy. I have paid the premium amount of Rs. 30000. They are giving a IDV value of Rs. 6.90 lakhs. Its a zero depreciation policy. I do not have any claim experience as of now.
    Was this review helpful? 1
    , chennai
    Reviewed on Dec 18, 2019
  • Oriental Insurance Car Insurance
    "Good Service"
    0.5 5.0/5 "Blown Away!"
    Chosen my car insurance from Oriental because their office is located next to my office. I had a claim experience once and it was very good. They have provided the claim immediately as per the spot instruction. They provided me a 100% since its a zero depreciation policy. I used to visit their branch to renew the policy.
    Was this review helpful? 1
    , coimbatore
    Reviewed on Dec 17, 2019
Common Loader Icon
Page 1 of 50 1 2 3 4 5
reTH65gcmBgCJ7k
This Page is BLOCKED as it is using Iframes.