Selling your car in India? Don’t forget these documents and car insurance essentials

Thinking of selling your car? You are not alone! Data shows that by 2030, over 10 million used cars will be in the market for sale, and for many sellers, the process can feel a little overwhelming, especially when it comes to documentation.

Whether you are upgrading, moving cities or simply letting go of a spare vehicle, understanding what paperwork is required can save you time, effort and avoid potential legal troubles later on.

This guide breaks down everything you need to know.

When is the right time to sell a used car?

There is no one-size-fits-all answer, but these are some ideal scenarios:

• Before major repairs: If your car is ageing and expensive repairs are coming up, it might be the best time to sell.
• After 5 years of use: This is usually when resale value is still decent, and depreciation hasn’t peaked.
• When you are upgrading or relocating: Selling before a move saves the cost and complexity of transporting or re-registering your vehicle elsewhere.
• Before car insurance renewal: Selling before your policy expires allows you to transfer or claim the unused premium.

Documents required for selling a vehicle

You need to gather some essential documents to transfer the ownership of a vehicle. Here's what you will need:

1. Registration certificate (RC):The RC is a document that confirms the vehicle's registration in your name, establishing you as the owner. Make sure everything runs smoothly on the RC, and if it gets lost, you should file a First Information Report (FIR) and apply for a duplicate RC document through Form 26.
2. Valid insurance certificate: Ensure the vehicle insurance is current before selling your car. Doing so will help maintain its resale value and meet other requirements.
3. Pollution under control (PUC) certificate:Obtain this certificate to confirm that your vehicle's emission levels comply with the existing standards.
4. Self-attested PAN card (1 copy):Provide a self-attested copy of your PAN card when selling your car. If you don't have a PAN, you can use Form 60.
5. Proof of address (1 copy): Submit a self-attested copy of an address proof document, such as an Aadhar card, a passport, a voter ID card or any other government-issued document.
6. Self-attested photographs (2 copies):You must provide two copies of your self-attested photographs. These photos will be attached to the transfer forms.
7. Form 28 (3 copies): This form requires a no-objection certificate (NOC) from the registration authority. Make sure to submit three copies with your vehicle’s chassis number imprinted on them.
8. Form 29 (2 copies): This form is used to inform the Regional Transport Office (RTO) about the sale of your vehicle. Along with this form, you must submit a fee to complete the sales process.
9. Form 30 (2 copies): Using this form, you should request the RTO for ownership transfer to the buyer within 14 days of selling your vehicle. Submit two copies along with the applicable fee.
10. Sales affidavit: The two parties involved in the sale must sign an affidavit stating that all liabilities related to the vehicle have been transferred to the buyer. A notary must attest to this document.

Additional documents required for selling a vehicle

In some cases, you may also need these supporting documents. If your car was financed, you must get a No Objection Certificate from the bank and submit Form 35 to remove hypothecation.

Road tax payment proof may also be needed, especially relevant if you are selling the car outside your home state or transferring it to another RTO.

If you are an NRI looking to sell your used car in India, you must obtain a signed approval letter from the Foreigners Regional Registration Office (FRRO). This letter confirms your legal status and authorisation to sell assets within the country.

Conclusion

Sellers can navigate this process smoothly and transparently by ensuring all the documents required for selling a car are correctly collected and organised. Furthermore, ensuring that your car insurance is active helps meet the obligations and protects the new owner from unwarranted difficulties.

Also, vehicles with an active, comprehensive car insurance policy are far more attractive to potential buyers. For customised insurance advice and the right solutions, simply fill out the form available on this page. Whether it is for your current car or your next purchase, we are here to support your journey.

Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the topic featured in the article. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.