The market for a second hand car in India is booming as millennials are keen to buy used cars. It especially helps the first time buyers to save money and even upgrade a segment. Further, the rate of depreciation of such a car is slower than a brand new car.
If you have such a car and are toying with the idea of selling it, follow the steps below.
Selling a second hand car is easier than you think
The car should be in top shape to attract buyers. Get a mechanic to thoroughly inspect the car and carry out the necessary repairs. This helps you know your car’s worth. Make a note of all the relevant information that will be required to advertise the sale of the second hand car. Such information includes details of registration, the state where the car is registered, details of the car insurance policy, the number of kilometers covered by the car, and the expected price. You can place the advertisement on social media, online classified portals/marketplaces, or contact a local car dealer.
Once you start receiving interests for the purchase of the second hand car, screen the serious buyers. Start your discussions with such buyers but don’t appear too eager to sell. Keep ample scope for negotiating the price. Invite the prospective buyer to inspect the car. Keep all the documentation in order so that the buyer can verify the information.
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Once the deal is finalized with the buyer, set out a timeline for completing the process of purchase. Make sure that the delivery and handing over of the relevant documents takes place only after you receive the payment in full. Fill up all the relevant forms issued by RTO for the transfer of the car. Some of the important documents that you need to hand over to the buyer include Form 28, Form 29, and Form 30, original copy of the Registration Certificate, a no-dues certificate from the bank if you had availed a loan for purchasing the car.
You have sold the car but don’t relax just yet. Notify the RTO within 14 days from the sale and send across all the necessary documents supporting the sale via registered post. Inform your insurance company about the sale. Request the buyer to provide an updated Registration Certificate taking note of the change in ownership.
During the process of selling a second hand car in India, never feel pressured to go ahead with it if you are not sure. Remember to think through before you make a decision. Once you finalise the buyer, ensure that there is a written exchange of communication between the parties. Set out a clear time frame within which you want to consummate the transaction. This will also give the buyer ample time to arrange for finance from third parties.