• Selling Car to dealer

Hi ,

I am planning to purchase a new car. The dealer is giving an exchange bonus scheme for my 15 year old car along with some value of the car. The car is registered now, but since it is already 15 years, it will not be registered next year. The dealer says he will send the car to scrap.

As a documentation purpose, he is giving me a letter stating date and time of car submitted to them and post that all responsibilities lies with them. Also, in my invoice there will be a mention of exchange bonus I think which will prove that I have given the car to them.. 

Keeping this in mind, what document should I ask from the dealer to safeguard myself from any malintent activity if performed on my old car. Will I have to notify the RTO ? How do i ensure that the car is scrapped and not being used? What are my responsibilities?

Thanks and Regards

Ritesh
Asked 7 months ago in Civil Law from Delhi, Delhi
1) you have to intimate RTO within period of 30 days of sale of car to the dealer and handing over RC book to him 

2) in case buyer does not transfer vehicle in his nane you would continue to be responsible for payment of compensation in case car meets with an accident 

3) you can also publish  public notice  in 2 local newspapers that   the seller shall in no way whatsoever be responsible for any misdeeds,unlawful activities or any acts of omission or commission with the motor vehicle (state make, model,type of body,registration number, engine and chassis nos.)by the buyer or any other person who directly or indirectly uses the motor vehicle for such misdeeds,unlawful activities or any acts of omission or commission. The liability of such misdeeds,unlawful activities or any acts of omission or commission shall solely rest with the buyer of the motor vehicle."
Ajay Sethi
Advocate, Mumbai
23290 Answers
1219 Consultations
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1) as long as car remains in your name in RTO records you are responsible  for payment of compensation in case car meets with an accident 

2) there is no guarantee that dealer is going to scrap your vehicle 

3) in your letter to RTO you should mention that car has been sold by you to dealer and give particulars of your car number , consideration received for sale of the car etc
Ajay Sethi
Advocate, Mumbai
23290 Answers
1219 Consultations
5.0 on 5.0
It is the legal obligation of seller of vehicle under section 50 of the Motor Vehicle Act to send a registered letter to the concerned R.T.O. informing that he has sold the vehicle to such a such person ( give his address and telephone contact number) and have handed over the R.C. Book to such purchaser, in which event when any traffic offence is done by him the police will check on with the records of the vehicle from the R.T.O which would reveal the new name of the purchaser.


Ashish Davessar
Advocate, Jaipur
18158 Answers
449 Consultations
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Here are the list of documents you require for transfer of ownership of car. The documents are pretty much consistent for all the states throughout India. All the documents need to be handed by the seller to the buyer of the car.

Certificate of Registration (RC) card of the car.
Certificate of Taxation (CT).
PUC Certificate.
Declaration of selling the car.
Copy of Existing Insurance Policy.
Transfer of ownership and No Objection Certificate (NOC). Here are the documents you need:

– Form 28: Form of No Objection Certificate.
– Form 29: Form of Transfer of Ownership.
– Form 30: Application for intimation or report of transfer of motor vehicle.
The original owner (Transferer) who is selling the car, must inform the RTO with which the car was registered about this transfer, by sending a letter with information about the new owner (Transferee) within a period of 14 days. In case the new owner falls in jurisdiction of another RTO, then the owner has to inform that RTO by sending a similar letter. On receiving an acknowledgement of receipt of the letter from the RTO, the seller (Transferer) is indemnified of all legal, tax, traffic, criminal and other liabilities pertaining to the car.
1. If the insurance is still in the seller’s name, then the buyer will not get the claims paid in the time of need.
2. If the transfer of ownership is not completed,  then if there are any legal offence involving the vehicle, the person on whose name the vehicle is registered at the time of the incident, may be held liable.

So in a nutshell all the insurance and other documents should be in the new owner’s name.
T Kalaiselvan
Advocate, Vellore
14056 Answers
127 Consultations
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But will all these apply even if I am giving my car to the manufacturer ( Maruti/Hyundai) who exchange these cars for a new car. Isnt it their responsibility if they are accepting the old car.
Plus, here in my case the manufacturer dealer is saying they will scrap the vehicle and so no need of transfer hassles. So will any kind of legal agreement and newpaper ad will suffice. I will of course inform the RTO. If yes, what should be the wordings in the aggreement. Or am I missing anything.

Once you bought a car from show room and had been using it all along and have decided to sell it, you have to observe the formalities for selling it as per the rules stipulated.
What the owner does with the sold care is not your botheration, he may re-sell it or use it or may send it to scrap, it is his own desire and choice, whereas your duty is to follow the rules meant for selling the vehicle, failing which in case of any violation or problem, you may have to face the consequences  unnecessarily.
T Kalaiselvan
Advocate, Vellore
14056 Answers
127 Consultations
5.0 on 5.0

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