The process of selling a car is not as complicated as one thinks. Let Team-BHP show you the "definitive" way of selling your car. Be sure to adhere to the following steps and you are guaranteed a smooth sales procedure.
STEP ONE : Before selling your car
- Sell the car yourself: To fetch the best possible price. Private sales, in nearly all transactions, generate the maximum. Agents charge high brokerage fees (typically 2% of the selling price) while dealers will offer you a low price (only to profit from selling your car at a higher rate later). Use online classifieds such as on Team-BHP - The Definitive Indian Car Community - Home.
- In the advertisement: Include as many photographs as possible (atleast 5 – 10) from different angles. And as much information as possible on the car. Don’t exaggerate, yet put forth your car's advantages upfront (e.g. single owner, low mileage, original paint, high fuel efficiency, valid extended warranty cover, accident-free, garaged parking etc.). Preferably, don’t give out your home or office numbers. Best to communicate via cell phone with strangers.
- Service history: If you have the entire service history of the car (which you would as a Team-BHPian ), document the same into a neatly organized file. Buyers are willing to pay a premium for well-documented service histories. Include miscellany such as a valid battery warranty cards, the PUC certificate etc.
- Preparing your car: The first impression is the one that lasts, and a tidy car always fetches more money than one that's dirty. Clean the car inside out (don’t forget the boot and under the bonnet areas), top up all fluids and throw in an air-freshener. Have your car washed at a petrol pump for 300 bucks or, even better, professionally detailed for 1,000 – 2,000 rupees. Couple of bucks can go a long way, even something as minor as getting new mats for the car (500 bucks). Minor repairs must be taken care of (torn upholstery, broken lights, blown fuses, damaged sunfilm etc.). Remove all your personal belongings from the car and bring it up to "delivery condition".
- Asking Price: Set a realistic price to complete the sale quickly. Research the market and gauge the price that similar cars (in model, location, age, trim and mileage) are selling for. Too low is obviously not to your benefit, while too high a price might deter others from even calling you. In the same breath, we might add, leave a little room for bargaining (something that we Indians love!). Tip : Applying the American retail pricing style of a Rs “3,49,000” instead of “3,50,000” or “4,99,000” instead of “5,00,000” has proven results.
- Armed with information: Keep a link to your Team-BHP review ready (if uploaded) and email the link across, prior to the buyer seeing the car in person. Also communicate the following to the potential buyer before hand (will save the two of you a lot of time):
-Year & Month of manufacture / registration
-State / City of registration
-Individual / Commercial lifetime tax
-Number of owners
-Insurance type (comprehensive / third party) & validity
-Service history availability
-Colour (interior & exterior)
-Variant / Trim level
-Kms covered
-Accessories fitted
-Reason for selling
-If the price is negotiable (always is in India)
Next Page >
Step TWO : Interacting with potential buyers
- Be straight-forward in your interactions. Don’t get overly aggressive (or eager to sell), yet remain to-the-point.
- Inevitably, you will get a lot of time-wasters. Know how to manage your time and focus on serious inquiries only. Screen potential buyers over the phone / email at your discretion.
- It’s better (and safer) to have buyers come over to your office (rather than home). Alternatively, a public place (mid-way) may be chosen. Be punctual and insist on the same from the potential buyer.
- Do NOT let the potential buyer go for a test-drive alone. They should always be accompanied by yourself or your representative (friend, driver etc.).
- NEVER sell the car in a hurry, or feel pressurized to make a sale. Feel free to take some time to think. Note : If the deal is between two Team-BHPians, a win-win deal is top priority.
- If the buyer wants to have the car evaluated by a mechanic / authorized service station, that’s a reasonable request and one that points toward serious intent. Ideally, the mechanic should come to your place, or the garage should be close to your home / office.
- If the buyer wishes to confirm the deal, but needs time to arrange for the finance, negotiate a reasonable deposit amount (Rs. 10,000 – 30,000 should do). Be clear on a timeframe by when the full payment must be made, else the deposit will entirely belong to you, and you can proceed with selling the car to somebody else. Generally, a deadline of 7 - 10 days is permissible.
Step THREE : Payments & Documentation
- You must sign the transfer papers & proceed with delivery ONLY after the payment has been received in full. Strictly no part payments or EMIs (they can go to a bank for that). If the car's buyer is paying via cheque, wait for clearance. Don’t blindly trust demand drafts either, fakes have been circulating in the market. Only when the cash is received, or your bank confirms the deposit, should you hand over the car. Remember that the cheque / demand draft must be in favour of the registered owner of the car.
- Have the RTO transfer forms and delivery note (all forms attached to this post) signed by both the parties (buyer and seller). Do NOT leave the buyer field blank, or sign on any other blank documents. If required, and time permitting, offer to visit the RTO together to complete the transfer.
- Retain a government issued photo id with address proof (e.g. driving licence or passport) of the buyer. Also take his landline phone number.
- Ask someone to take a photo of you & the buyer shaking hands, with the car in the background (sample). This is just additional proof that you have handed over the car.
To hand over to the buyer:
- Form No.28 - Application for N.O.C. and grant of certificate, if the buyer falls in another RTO’s jurisdiction (3 Originals).
- Form No.29 - Notice of transfer of ownership of vehicle (Original).
- Form No.30 - Report of transfer of ownership of vehicle (Original).
- Delivery note (Copy).
- Registration certificate (Original).
- RTO tax documents (Original).
- Insurance policy (if included as part of the deal).
- Owner's manual of the car.
- Any warranty papers (battery etc.).
- Service history.
- Invoice of the car (if available, and in copy).
- PUC certificate.
- Duplicate keys.
Finance NOC, if applicable:
Form No.35 - NOC from the Finance Company (Format Attached). If your car’s outstanding loan is not yet entirely paid off, the general procedure dictates for you to foreclose the loan (pay your financing bank the outstanding principal amount, pending interest & related charges), procure an NOC from the finance company and hand the same over to the buyer.
To retain with yourself:
- Form No.28 (Copy).
- Form No.29 (Copy).
- Form No.30 (Copy).
- Delivery note (Original).
- Govt. issued photo id of the buyer (Copy).
- Registration, RTO tax papers & insurance policy of the car (Copy).
- Invoice of the car (Original).
- Form No.35 - Finance company NOC (if applicable & only a copy).
NOTE: Click on the Orange links to download the forms in PDF format
Next Page >
Other Points of consideration:
- Are you sure you want to sell? Do read this article first.
- In case your current state of residence varies from the one that the car is registered in, it is always better to sell the car in the state of its registration. Better price, lesser hassles.
- Your car may have some after-market accessories that you want to retain, for use in your next car (e.g. audio system, air-intake kit and more). Be absolutely clear with potential customers of which accessories are part of the deal and which aren't. We would recommend you to remove the accessories that you wish to retain, before showing the car to potential customers.
- Very few RTOs require the older TCA ( Form TCA - Intimation of transfer (Buyer).pdf ) and TCR ( Form TCR - Intimation of transfer (Seller).pdf ) forms, they have been discontinued nationwide. However, in the rare event that the buyer's RTO requires these forms, you may find them attached to this post.
- If you are upgrading to a new car, check with the new car dealership what their best price will be for a trade-in. Tell them you'll buy a new car from their showroom only if they give you a good price for your existing car.
- To know more about the buyer's perspective, view this article: How to buy a *USED* Car in India.
- A unique methodology shared by a BHPian who sold his car to a dealer
Originally Posted by AbhiJ
Well, I sold my Indica early this year to a used car dealer who I didnt know too well. Here's what I did.
At the time of delivery, I received cash and got a delivery note. However, I also got the dealer to sign a "Transfer of Ownership" form with HIM as the buyer. I retained the form with myself and told him that if he doesn't find a buyer in 45 days, I'll fill up the form and submit it to the RTO.
This way my "liability" was limited to 45 days.
Around 40 days after the sale, he had sold the car and he came and got the form signed with the name of the actual buyer. Then I destroyed the first form in front of him. How did the whole arrangement help me? If the dealer "disappeared" or started ignoring me, I could have just transfered the car in his name and called the deal done! It wouldnt have been morally/ethically incorrect either.
