Procedure for Selling Used Cars

Procedure for Selling Used Cars: Process, Paperwork, and Cost

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Procedure for Selling Used Cars

Buying and selling of used vehicles are seeing a surge since June 1, 2020, as the Ministry of Road Transport and Highways has announced hikes in the price of third-party premium insurance. With the expected 15% hike in the prices, most vehicle buyers are strongly considering pre-owned bikes and cars as a wise option.

This is a great opportunity to sell used cars and other states for those who are looking to switch their car up and trade their old car on a third-party platform so that they can use the funding for a new car. An owner with multiple cars may see this as an opportunity to dispose of one or two of their cars in order to optimize expenses related to fuel and maintenance.

Selling Used Cars

The used car segment is a thriving business. Especially in a state where the literacy rate is high and the population is comparatively less, selling used cars to a known party or on a 3rd party platform is very common. But selling a used car requires knowledge and some basic upkeep of the car so that there is a good value for the car in the market.

If the car is poorly kept or not maintained, there will be close to no buyers for such cars. This means that owners of cars who wish to sell off in the future must take good care of their cars from the beginning by maintaining the car well and keeping all documents related to the car updated.

Below are some steps to prepare a car for sale:

  • Make sure that the car is mechanically fit and runs smoothly.
  • Add detailing to the car and clean it properly.
  • Any custom parts on the car should be removed as most buyers would prefer original parts.
  • Take photos of the car from different angles, both interior and exterior for future reference.
  • Highlight the decors.
  • Take pictures of the damages to give detailed information later.
  • Important details such as mileage of the car, RC book, Insurance, and pollution certificate must all be handy.

Formalities for Selling Cars

There are various platforms to sell used cars. One can make use of various online sites, newspaper ads, and magazines or approach a local car dealer to sell used cars in Kerala. An important thing is to fix the right selling price considering the market value. A potential buyer might negotiate for a lesser amount but the seller has to be clear with the lowest price that can be offered.

When meeting with a prospective buyer, the vehicle can be taken for a test drive. If the deal is closed, follow the guidelines and rules provided by the state without any delay. Approach the nearest RTO to transfer the documents to the new owner judiciously.

There should be a name change to the new owner in the car insurance even before going to an RTO. Any loan borrowed must be repaid and the RC book must be clear. Hypothecation that is mentioned in the RC book can be cleared after the bank certifies that the loan is closed. Pollution certificate, service documents, and NOC in case the car has to be transferred to another state are other factors to be noted.

Amy Adams Author

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