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Things to Consider When Selling a Car

By Vikas Chandra Das
21 July 2022, 11:46 AM

Selling your beloved car is a little more complicated than you might have imagined it to be. Not only do you have to deal with your emotions of letting go of it, but you must also keep in mind the various protocols and processes that accompany the sale of a car.  In 2018-19, 4 million second-hand cars were bought and sold, according to a recent report on India’s pre-owned car market by IndianBlueBook, a used car pricing guide by Mahindra First Choice Wheels.

You have to be thorough about the paperwork and transfer of documents like RC, car insurance, etc, and ensure that the entire process is carried out with precision.

Top Things to Keep in Mind While Selling a Car

Do all the paperwork thoroughly

Keep a checklist of all the documents concerning the car which need to be transferred to the prospective buyer of the vehicle. The documents will be related to the title of the car and proof of ownership of the car. Some of the documents needed are –

  • Registration certificate
  • Service history of the car
  • Regional transport office tax details
  • NOC if the car was purchased on a loan
  • PUC certificate

Transfer the insurance correctly

The transfer or sale can happen directly or through third-party insurance. Well, which way is, be sure to transfer the insurance papers in a proper manner. The policyholder has complete discretion if he or she wishes to transfer the insurance policy along with the car. The insurance is not transferable unless you wish to do so. The policyholder can also ask for an NCB preserve letter to retain the no claim bonus for a period of a maximum of two years or seek for transfer of the NCB to a new vehicle.

Run the inspection

Ensure that the car gets checked thoroughly before selling it – it is your responsibility to fix small problems in the car before selling it to the buyer. A well-maintained car in good condition will always fetch a better price at the time of sale.

Have a clear idea about the market value of your car

This is crucial as you must not be short-changed by the buyer. Ensure that you do adequate market research about the price of the car and consult traders and buyers alike to understand how much of an amount can you get for the car that is being sold.

Prepare your car for the show

Give the car a good wash and make it appear presentable – polish and wax it and clean the interiors too. Let the potential buyer feel that he or she is buying into a good deal. A prim and proper car immediately attracts the prospective buyer and also says a lot about the seller.

Take some quality photos of the car

Use these good pictures for advertising the sale of the car and to attract more buyers. The photos can be displayed on online selling portals.

What are the Documents Required to Sell a Car?

  • Individual documents that are required to sell the car are as follows –
    • One Self-Attested Copy of a PAN Card.
    • One Self-Attested Copy of Address Proof such as Aadhar card, voter ID, passport, ration card, etc.
    • Two Self-Attested Copies of Passport Size Photographs.
  • RTO documents required to sell a car are as follows –
    • Three Copies of Form 28 with Chassis Imprint.
    • Two copies of Form 29.
    • Two copies of Form 30.
    • One copy of Form 35 and NOC.
    • One copy of Sale Affidavit.
    • One copy of the Clearance Certificate.
  • Documents required to sell the car are as follows –
    • Mandatory RC.
    • Mandatory PUC.

A brief note on how the seller should not forget to transfer the NCB to his or her name before selling the car

If you have been a diligent, risk-averse driver, then you would have accumulated a good sum of No Claim Bonus (NCB) on your car insurance policy.

While selling the policy, be vigilant and get the NCB that you have preserved transferred to your name through a retention letter or by getting it transferred to a new car insurance policy for your new vehicle.

Also, please note, the NCB will not be transferred even though there is a transfer of car insurance to the buyer unless you have expressed assent to doing so.


People sell their cars for different reasons - some have urgent financial needs to cater to, some wish to upgrade to a newer model, while others want to clear a debt using the proceeds of the sale.

Regardless of the reason for the sale, follow all the steps meticulously to make the selling process hassle-free and reduce the overwhelming burden of this work. Make the transfer of the car a win-win situation for both the buyer and yourself using the tips given above.

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