After the terrorist attack near Delhi’s Red Fort on 10 November, several questions are being raised about the sale and purchase of old vehicles. Many people are confused about how to protect themselves from buyers who may be involved in suspicious or illegal activities.
If you also have similar concerns, this article will help you understand what to do and what to avoid when selling your old car.
What to Do When Selling Your Old Car
Collect These Essential Documents Before Starting the Sale Process
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Registration Certificate (RC): Must be original and valid
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Pollution Under Control (PUC) certificate
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NOC (No Objection Certificate) from the Transport Department if you are selling the car to a buyer in another state
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Loan closure update: If you had taken a loan on the car, ensure that it is removed from the RC through the RTO after repayment
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Valid Insurance Certificate: The policy must be active at the time of sale
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Address Proof: Aadhaar, passport, electricity bill, etc.
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Vehicle chassis imprint: A pencil tracing of the chassis number for verification
Forms Required: Form 29 & Form 30
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Form 29: Notice of transfer of ownership (two copies signed by both seller and buyer)
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Form 30: Application and intimation for transfer of ownership
Step-by-Step Process to Sell a Car Legally
Follow these steps to ensure a smooth and legally valid ownership transfer:
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Clear pending dues: Pay all outstanding challans or fines before transfer
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Vehicle verification: The buyer may need to bring the vehicle for chassis number verification
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Fill Form 29 & 30: Download them from the Transport Department website and get signatures from both parties
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Submit at the RTO: Visit the RTO where the vehicle is registered and submit all required documents
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Issuance of new RC: After verification, the RTO issues a new RC in the name of the buyer
If the buyer does not submit vehicle documents to the RTO within 14 days after filling Form 29 and 30, they are liable to pay a penalty of ₹100 per month—though the amount is very small.
Where Problems Actually Occur
Despite clear rules, many people do not complete the process properly.
Delays in Transfer of Ownership
Dealers or buyers often delay the ownership transfer, especially when vehicles pass through multiple middlemen.
Ignored Formalities
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Some dealers buy the vehicle but do not transfer it to their own name
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Paperwork is postponed until they find a new buyer
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Sometimes the process is skipped completely
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Repeated registrations may reduce the vehicle’s resale value, so people avoid updating it
What NOT to Do When Buying or Selling a Vehicle
❌ Do Not Make Informal Agreements
Many people sell vehicles on plain paper without formal ownership transfer. This is a serious legal risk.
❌ The Seller May Still Get Challans
If the vehicle remains registered in the seller’s name, they may continue to receive SMS alerts, e-challans, or legal notices for violations committed by the new owner.
❌ Seller Can Be Held Legally Responsible
If the buyer commits a traffic violation or gets involved in an accident, the seller can also be held responsible because the RC still shows their name.
This has caused many innocent sellers to get trapped in legal trouble simply because the transfer process was not completed.