If you’re considering selling your old car, it’s important to take care of some specific legal steps and paperwork first. Even a small mistake can cause problems later, like getting fined, having issues if there’s an accident, or dealing with legal troubles. To avoid these hassles, make sure you gather all the necessary documents before selling or giving away your car.
This includes checking that your car’s registration is up to date, transferring your insurance to the new owner, and getting any necessary approval letters, which are sometimes called No Objection Certificates. Taking these steps will help ensure a smooth process for everyone involved.By following these steps, you can help prevent any troubles in the future.
Let’s go over some important things to keep in mind when you’re selling or getting rid of an old car.
Your safety must come first
When you’re ready to sell your car, keeping yourself safe is really important. Here are a few simple tips:
- Always meet potential buyers during the daytime in busy places where there are lots of people around.
- Tell a friend or family member what you’re doing, or even better, bring someone along when you meet the buyer.
- Be cautious about sharing your home address or personal information too early. Your safety comes first!
Before giving anyone a test drive, always ensure the validity of the buyer’s driving license by checking and noting down the details, and be present during the entire drive.
Selling a car to someone you know
It’s generally better to sell a car to someone you know or, if applicable, the last owner.
- Sign the RTO documents only after they are completely filled out. Do not sign blank papers.
- Cancel your current insurance, including any No-Claim Bonus you have, and remind the new owner to get their own insurance.
- Get copies of the new owner’s driver’s license and proof of where they live.
- Make sure to have a signed paper that says you handed over the car to them on a specific date, and that they agree to register it in their name by a certain date.
- It’s important that both you and the new owner have witnesses when signing the document. These witnesses should also sign the paper and include their addresses.
By following these steps, you’ll help ensure a smooth transition of the vehicle ownership.
Tips for the buyer meeting
- Keep these things in mind during the buyer meeting:
- Meet buyers in an open, secure area with CCTV surveillance.
- Always bring someone with you or inform a friend of your plans.
- According to Cars24, keep your phone fully charged and share your live location with your contact during the meeting.
- When selling your car, it’s important to keep your personal and financial details private until everything is settled.
Complete the sale with confidence:
- Once you’ve agreed on a price, make sure all the important papers are ready before you hand over the car.
- Wait to get paid before giving away the keys. It’s safer to receive money through a secure bank transfer instead of cash.
- Both you and the buyer should sign all the necessary documents, like the sales agreement and the form to transfer ownership.
- Remember, it’s really important to double-check everything—from confirming the payment to making sure the paperwork is submitted properly. This helps protect you during the sale of your car.
Selling without transfer of ownership
When you sell a car to a dealer but don’t complete the ownership transfer right away, it can lead to some problems. Even though you’ve sold the car, you are still considered the owner until the official paperwork is updated at the local vehicle registration office. This means you could still be responsible for anything that happens with the car, which can be risky. It’s important to make sure all the ownership details are properly taken care of to avoid any legal issues.
If the car is involved in an accident, crime, or traffic violation, the authorities will pursue you. According to the Sudhirrao portal, it’s strongly advised not to agree to any such arrangement and insist on the immediate transfer of ownership as a condition of sale.
ALSO READ: Skoda to launch more global models in India, but EV plans remain on hold
