Date: May 16, 2014
Know Process to Exchange Car at Dealership. Tips before Exchanging Car at a Used Car Dealer Showroom in India
Planning to buy new car by doing trade in (i.e. exchange) of your Old Car
Its important to know - how to seamlessly process a sale purchase transaction with a dealer by knowing exchange formalities
Process mentioned below is after the exchange deal price agreed (Applicable only when you selling your Car to Authorized Dealer)
Insurance NCB Transfer Do you have any NCB on Used Car ? If yes - Once the value is decided of used car, do not miss to mention that NCB (if any) will be transferred from your Old Car to New Car and dealer will not have any objection for this.
Note:- In event of NCB Transfer - Insurance company cancels the old policy, if dealer does not transfer it to his name. Its advisable to mention it in writing - that you will be transferring No Claim Bonus from Used Car Selling to New Car. In event of some foul play or same not discussed - dealer may ask you to get car insurance done - by stating that he has done valuation with insurance.
Documents Original RC, Insurance, ID & Address Proof along with Signed Form 29,30 will assist in transfer. If car is financed, Form 34 also needs to be signed along with Bank No Objection Certificate
Before handing over the Car, its important to know - who will do RC Transfer and in how much time.
For Information: Used Car RC Transfer does not take more than 2 Weeks in RTO (But as dealer will find a final buyer for the car - process can take much time)
Take an undertaking from dealer - that you are providing him signed copies of Form 29,30 along with Original documents and its dealer responsibility to get RC Transferred in Stipulated Time. A Timeline if agreed upon - even of 90 days or 120 days - would be a better idea - rather than not mentioning anything of that nature
Once the car is handed over to dealer - dealer will acknowledge by giving you a :-
Delivery receipt - it will state that car is been taken over by him with all responsibilities including road taxes, maintenance, challans and offenses from date of delivery. Details of Make, Model including date, time duly stamped and signed by dealership
Purchase / Exchange Receipt - It will state value of the used car. Also - will mention the documents collected by dealership. Do mention clearly - Keys, Insurance, RC Book, Owner Manual etc as handed over to them in original. The Purchase Value (if adjusted towards down-payment, new car margin money or loan foreclosure should be clearly mentioned in the Exchange Receipt)
Intimation to RTO Though - as per RTO Rules - its a seller responsibility to let RTO Know within 30 days that he has sold the car. You can be more safeguard - if you follow by informing RTO about same. Form TCR (Intimation of Transfer of Ownership of a Motor Vehicle by Transferor) serves the purpose
Follow up Its important to keep all your documents in custody and do not miss to followup with dealer for Transferred RC. In case of lapse, get the manufacturer involved
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