STEP ONE : Before selling your car

Sell the car yourself to fetch the best possible price. Private sales, in nearly all
transactions, generate the maximum. Agents charge high brokerage fees (typically 2% of
the selling price) while dealers will offer you a low price (only to profit from selling your car
at a higher rate later). Use online classifieds such as on Team-BHP - The Definitive Indian
Car Community - Home.
In the advertisement Include as many photographs as possible (atleast 5 10) from
different angles. And as much information as possible on the car. Dont exaggerate, yet put
forth your car's advantages upfront (e.g. single owner, low mileage, original paint, high fuel
efficiency, valid extended warranty cover, accident-free, garaged parking etc.). Preferably,
dont give out your home or office numbers. Best to communicate via cell phone with
strangers.
Service history If you have the entire service history of the car (which you would as a
Team-BHPian
), document the same into a neatly organized file. Buyers are willing to pay
a premium for well-documented service histories. Include miscellany such as a valid battery
warranty cards, the PUC certificate etc.
Preparing your car The first impression is the one that lasts, and a tidy car always
fetches more money than one that's dirty. Clean the car inside out (dont forget the boot
and under the bonnet areas), top up all fluids and throw in an air-freshener. Have your car
washed at a petrol pump for 300 bucks or, even better, professionally detailed for 1,000
2,000 rupees. Couple of bucks can go a long way, even something as minor as getting new
mats for the car (500 bucks). Minor repairs must be taken care of (torn upholstery, broken
lights, blown fuses, damaged sunfilm etc.). Remove all your personal belongings from the
car and bring it up to "delivery condition".
Asking Price Set a realistic price to complete the sale quickly. Research the market and
gauge the price that similar cars (in model, location, age, trim and mileage) are selling for.
Too low is obviously not to your benefit, while too high a price might deter others from even
calling you. In the same breath, we might add, leave a little room for bargaining (something
that we Indians love!). Tip : Applying the American retail pricing style of a Rs 3,49,000
instead of 3,50,000 or 4,99,000 instead of 5,00,000 has proven results.
Armed with information Keep a link to your Team-BHP review ready (if uploaded) and
email the link across, prior to the buyer seeing the car in person. Also communicate the
following to the potential buyer before hand (will save the two of you a lot of time):
-

Year & Month of manufacture / registration

State / City of registration
Individual / Commercial lifetime tax
Number of owners
Insurance type (comprehensive / third party) & validity
Service history availability
Colour (interior & exterior)
Variant / Trim level
Kms covered

- Accessories fitted
- Reason for selling
- If the price is negotiable (always is in India)

Step TWO : Interacting with potential buyers

Be straight-forward in your interactions. Dont get overly aggressive (or eager to sell), yet
remain to-the-point.
Inevitably, you will get a lot of time-wasters. Know how to manage your time and focus on
serious inquiries only. Screen potential buyers over the phone / email at your discretion.
Its better (and safer) to have buyers come over to your office (rather than home).
Alternatively, a public place (mid-way) may be chosen. Be punctual and insist on the same
from the potential buyer.
Do NOT let the potential buyer go for a test-drive alone. They should always be
accompanied by yourself or your representative (friend, driver etc.).
NEVER sell the car in a hurry, or feel pressurized to make a sale. Feel free to take some
time to think. Note : If the deal is between two Team-BHPians, a win-win deal is top
priority
If the buyer wants to have the car evaluated by a mechanic / authorized service station,
thats a reasonable request and one that points toward serious intent. Ideally, the mechanic
should come to your place, or the garage should be close to your home / office.
If the buyer wishes to confirm the deal, but needs time to arrange for the finance,
negotiate a reasonable deposit amount (Rs. 10,000 30,000 should do). Be clear on a
timeframe by when the full payment must be made, else the deposit will entirely belong to
you, and you can proceed with selling the car to somebody else. Generally, a deadline of 7 10 days is permissible.
Step THREE : Payments & Documentation

You must sign the transfer papers & proceed with delivery ONLY after the payment has
been received in full. Strictly no part payments or EMIs (they can go to a bank for that). If
the car's buyer is paying via cheque, wait for clearance. Dont blindly trust demand drafts
either, fakes have been circulating in the market. Only when the cash is received, or your
bank confirms the deposit, should you hand over the car. Remember that the cheque /
demand draft must be in favour of the registered owner of the car.
Have the RTO transfer forms and delivery note (all forms attached to this post) signed by

both the parties (buyer and seller). Do NOT leave the buyer field blank, or sign on any other
blank documents. If required, and time permitting, offer to visit the RTO together to
complete the transfer.
Retain a government issued photo id with address proof (e.g. driving licence or passport)
of the buyer. Also take his landline phone number.
To hand over to the buyer:
1. Form No.28 - Application for N.O.C. and grant of certificate, if the buyer falls in another
RTOs jurisdiction (3 Originals). Format attached.
2. Form No.29 - Notice of transfer of ownership of vehicle (Original). Format attached.
3. Form No.30 - Report of transfer of ownership of vehicle (Original). Format attached.
4. Delivery note (Copy).
5. Registration certificate (Original).
6. RTO tax documents (Original).
7. Insurance policy (if included as part of the deal).
8. Owner's manual of the car.
9. Any warranty papers (battery etc.).
10. Service history.
11. Invoice of the car (if available, and in copy).
12. PUC certificate.
13. Duplicate keys.
Finance NOC, if applicable:
Form No.35 - NOC from the Finance Company (Format Attached). If your cars outstanding
loan is not yet entirely paid off, the general procedure dictates for you to foreclose the loan
(pay your financing bank the outstanding principal amount, pending interest & related
charges), procure an NOC from the finance company and hand the same over to the buyer.
To retain with yourself:
1.
2.
3.
4.
5.
6.
7.
8.

Form No.28 (Copy).

Form No.29 (Copy).
Form No.30 (Copy).
Delivery note (Original).
Govt. issued photo id of the buyer (Copy).
Registration, RTO tax papers & insurance policy of the car (Copy).
Invoice of the car (Original).
Finance company NOC (if applicable & only a copy).
FINAL Step : After the sale

This may sound like additional work, but it is only to ensure your security. Search the forum
for horror stories where buyers (including dealers) drive the car around in your name. The
law states that YOU are responsible for the car as long as it stays registered in your name,

and the onus of informing the RTO lies on you.

Notify the RTO (from where your car was registered) within 14 days of sale. Send a copy
of all the 8 categories of documents that you were asked to retain (in the previous post).
Include a covering letter and send the package via Regd. Post. Remember, the law states,
until the car is in your name, you are responsible for it (even if the car is used for criminal
activities or involved in a hit & run accident). Maintain the postal confirmation in your
records. Once you receive delivery acknowledgement, you are indemnified of any liability
related to the sold car. NOTE : In case, the buyer's address falls in the jurisdiction of
another RTO, you will send an identical document set to them as well.
Notify your insurance company of the transfer (in case insurance was part of the deal) or
cancellation (in case you are retaining your insurance premium) via registered post. If you
visit the insurance company in person, take an acknowledgement stamp on a copy of your
application. Note that No Claim Bonus benefits (Link to full article (ARTICLE: No Claim
Bonus - How to save on your insurance premiums!)) are not transferrable. Be sure to use
your No Claim Bonus toward your next car.
Request the buyer to send a copy of the updated RC book (transferred to his name) to
you. This will, in all probability, require a certain amount of followup. Once received, include
it in the same file as the other sale-related documents.
Bid a sweet farewell to the car that's served you well for so many years
& here's hoping you find a good home for her.
Other Points of consideration:

. Happy selling

Are you sure you want to sell? Do read this article (ARTICLE: YOUR 5 year old car : Keep,
Upgrade or Swap?) first.
In case your current state of residence varies from the one that the car is registered in, it
is always better to sell the car in the state of its registration. Better price, lesser hassles.
Your car may have some after-market accessories that you want to retain, for use in your
next car (e.g. audio system, air-intake kit and more). Be absolutely clear with potential
customers of which accessories are part of the deal and which aren't. We would recommend
you to remove the accessories that you wish to retain, before showing the car to potential
customers.
Very few RTOs require the older TCA and TCR forms, they have been discontinued
nationwide. However, in the rare event that the buyer's RTO requires these forms, you may
find them attached to this post.
If you are upgrading to a new car, check with the new car dealership what their best price
will be for a trade-in. Tell them you'll buy a new car from their showroom only if they give
you a good price for your existing car.
To know more about the buyer's perspective, click here (ARTICLE: How to buy a *USED*
Car in India).
A unique methodology shared by a BHPian who sold his car to a dealer :
Quote:

Originally Posted by AbhiJ

Well, I sold my Indica early this year to a used car dealer who I didnt know too well. Heres
what I did.
At the time of delivery, I received cash and got a delivery note. However, I also got the
dealer to sign a "Transfer of Ownership" form with HIM as the buyer. I retained the form
with myself and told him that if he doesn't find a buyer in 45 days, I'll fill up the form and
submit it to the RTO.
This way my "liability" was limited to 45 days
Around 40 days after the sale, he had sold the car and he came and got the form signed
with the name of the actual buyer. Then I destroyed the first form in front of him. How did
the whole arrangement help me? If the dealer "disappeared" or started ignoring me, I could
have just transfered the car in his name and called the deal done! It wouldnt have been
morally/ethically incorrect either.