What to Do After You’ve Sold Your Used Car: The Seller’s Checklist

Selling your car to a new owner may seem a daunting process, but handing over the keys and receiving the payment is not the end. Whether you’re upgrading to a new ride, or simply selling to create more space in your garage, there are a few things to keep in mind before handing over the vehicle. Taking these necessary steps can ensure your safety, personally and legally, in the long run.

Things to Check After Selling Your Used Car

Once the sale has been finalised, and all negotiations have taken place, the next step is to inspect the car for valuables that you might want to remove, and other important steps, listed below.

Clean Out Personal Belongings

An essential step before letting the new owner drive away with your car is to take out all your personal belongings. This entails removing things in the dashboard, glove box, boot, and checking other storage areas within the car. A lot of items, such as tissue boxes, media devices, or your kids’ toys, should be removed from the car before handing it over. Another important thing to remember is to remove any sort of identity and financial documents, such as your driving licence, or bank debit cards if you store them in your car.

Checking your boot is also recommended, as you may find a spare set of shoes, or a change of clothes, stored away there. Additionally, if you have any aftermarket audio system components installed that were not included in the sale price of the car, they should also be removed. Many people tend to retain aftermarket equipment in order to install them on their new vehicles.

Ensure all Documents and Forms are in Order

To make the sale, your car’s documents must be in order. This entails ensuring your original registration certificate (RC) is handy, along with your original insurance and Pollution Under Control Certificate (PUC). If the car was financed, or has hypothecation, you must obtain an NOC from the bank or authority, in order to proceed with the sale.

Additionally, the buyer will require your personal identification documents, such as your Aadhaar Card, in order to initiate the ownership transfer process, so having a copy of the document will be a good idea. Remember to always attest your documents and write down the purpose of attesting as well. This can help safeguard you from your documents being used for other purposes, or fraudulent activities. 

The next step is to prepare the sale note, along with the necessary forms. Procuring these forms beforehand can save considerable time. They can be obtained from the RTOs, or can be downloaded online from the Parivahan Portal. You will need Form 28, Form 29, Form 30, and any additional documents, depending on the state where the vehicle is registered.

Inform the RTO and Insurance Provider

Once all your documents and forms are in order, either approach the RTO in person, or if your state allows it, initiate the RC transfer process online. Transferring ownership to the new owner is essential to legally safe guard yourself in case your car is involved in a serious crash, or any criminal activity in the future. 

Additionally, you should also inform your insurance provider of the sale. The new owner can either get your existing insurance transferred to their name, or apply for a completely new insurance policy, depending on their requirement. In either case, you need to initiate the transfer/cancellation of your existing insurance policy. 

Pay any Pending Dues

Before the car can hit the road with the new owner, you should make sure to pay off any pending dues on the car. If you’re planning to obtain an NOC for loan or hypothecation, you can pay off the remaining balance to make it easier for yourself and the new owner. Additionally, all pending traffic fines or challans must be cleared to initiate the ownership transfer process. 

Get Valid Proof of Sale and Buyer

When collecting documents for the RC transfer process, also request for additional attested copies of the buyer’s identity and address proof documents. You should store these documents in a secure location, as they may come in handy in case the ownership transfer does not go through. In case the car meets with an accident, or is involved in criminal activity before the ownership transfer is completed, these documents can ensure your well-being by proving the car is no longer in your possession.

Handover Essential Items 

The keys are not the only essential items to handover to the new owner. In case you have maintained a log of the car’s service history, you should hand it over to the new owner. Along with the service manual, if you still have the original owner’s manual of the car, it could make for another item to hand over to the new owner. 

Cars come with a few accessories when bought new, such as reflectors, spare parts such as headlamp bulbs, or toolkits. If you had previously removed any of these items from the car, it would be a good idea to hand them over to the new owner as they may be of use to them in the future. 

Keep a Copy of the Car’s Documents

Before you let go of your car, make sure to keep a copy of all its original documents, such as the registration certificate, as they will probably be handed over to the new owners. Always keep a copy of the original documents in a safe location, just in case they are required in the future. 

Follow Up on the Transfer of Ownership

Once the new owner has driven away with your car, keep a keen eye on the ownership transfer process. There are many tools available online through which you can keep track of the transfer process, even without the application number. You can use the respective state government website, or the Parivahan portal. It may take over 3o days to complete the transfer process.

However, if even after 45 days, the vehicle ownership is still in your name, follow up with the new owner regarding the transfer. Getting the vehicle transferred is essential to safeguarding yourself from future liabilities. You can also jump in earlier than 45 days and request for the application number from the new owner, just in case.

Common Pitfalls to Avoid After Selling a Used Car

While this guide essentially covers everything you need to do after you’ve sold your car, here are a few things to avoid when selling your car. 

Rushing into a Sale

As it is important to conduct thorough research and be patient while buying a used car, it is equally important to be patient while selling your car to someone. Rushing into a sale without proper research can lead to you getting scammed, or a low value offer. Take your time with buyers, and if you feel you are not getting a good deal, wait it out for a better deal.

Skipping the Documentation Process

Sometimes, you may come across family or friends who are interested in buying your car. In such cases, you may decide to skip some of the documentation process, like acquiring valid proofs, a sale note, or skip the RC transfer entirely. While it may seem alright at the time, the decision to neglect proper paperwork may still come back to bite you in the future.

It is important to complete all paperwork during a sale as it is legally binding, do not compromise on your safety with a simple miss. 

Neglecting to Inform Authorities about the Sale

After the car has been sold, it is important to inform all involved parties. This involves the registering RTO, the bank or lending authority in case of loan or hypothecation, and your insurance provider. Failing to inform the authorities about the sale may bring in complications like your ownership transfer application getting rejected. This can cause undue stress to you and the new owner of the vehicle, which can be completely avoided by being vigilant.

Trusting the Buyer Blindly

Whenever you are selling your car to someone, always ensure to take a copy of their identity and address proofs. Additionally, do not hand over the vehicle until you have received the complete payment for your vehicle. Some fraudulent buyers may try to hand over a cheque, or show a fake transfer receipt. Unless your bank verifies that the payment has gone through, do not let the buyer drive away with your car. When dealing in cash, be sure to check each currency for legitimacy.

Selling Your Used Car to CARS24 for a Hassle-free Experience

Selling your to CARS24 can help eliminate a vast majority of the hassles that come with selling a used car. From doorstep inspections, to same day payments, CARS24 offers a streamlined experience to people looking to sell their car. Additionally, our AI powered pricing engine ensures you get a great value for your car. We also take care of documentation processes such as RC transfer, so you don’t have to. 

With CARS24, you can sell your used car from the comfort of your home, and get a great deal. We also provide exchange bonuses when you trade in your old car for one from our inventory!

Conclusion

Selling a car is more than just a transaction of handing over keys and receiving money. It involves several critical steps to ensure that the vehicle is properly transferred, your legal responsibilities are fulfilled, and you’re protected from any future issues. By following this comprehensive guide, you can ensure that your car sale goes smoothly and that all post-sale processes are handled with care. Whether you're preparing to buy a new vehicle or moving on to a different form of transportation, completing these steps will allow you to feel confident in your decision to sell your car.