Real Stories Where Seller Kavach Helped Sellers Avoid Disputes

The Hidden Risks of Selling a Car: How CARS24 is Revolutionising Seller Safety in India

Selling a car in India has traditionally been a fingers-crossed experience. You might have the money in your bank account, but as long as your name is on the Registration Certificate (RC), you are legally tethered to that vehicle. If it jumps a red light, gets involved in an accident, or is misused by a third party, the law knocks on your door first.

Recognising this, CARS24 introduced Seller Kavach, a total shift in how used car transactions are handled, ensuring that the moment you hand over the keys, your liability ends.

When the RC Transfer is Pending: Real-World Protection

To understand why this protection is vital, we have to look at the interim period, the gap between the car being sold and the RTO updating the records. Even with a signed Delivery Note, the primary owner remains the point of contact for the authorities.

Take the case of Mr Sharma, a Delhi-based professional who sold his sedan to upgrade to an SUV. Weeks after the sale, he began receiving automated SMS alerts for speeding violations on the Yamuna Expressway. In a traditional sale, he would have had to chase the buyer or pay the fines himself to avoid a court summons. Because he was protected by Seller Kavach, CARS24’s legal team stepped in immediately. We verified the timestamp of the sale and cleared the e-challans on his behalf, ensuring his driving record remained spotless.

Navigating Legal Disputes and Accidental Liability

The stakes get higher when accidents are involved. Mrs Iyer, who sold her car before relocating for work, found herself in a stressful situation when her old car was involved in a minor multi-vehicle collision while the RC transfer was still in progress.

The third party involved filed a claim against the on-record owner. For an individual, this would mean hiring a lawyer and attending court hearings. However, CARS24’s infrastructure is built for this. We provided a specialised legal representative at no cost to Mrs Iyer, presenting the delivery documentation to the authorities. This effectively transferred the liability to the corporate entity and the new possessor, allowing Mrs Iyer to focus on her new job without a legal cloud hanging over her.

The Documentation Engine: Precision Over Guesswork

CARS24 doesn't just protect you after the sale, we prevent issues from arising in the first place through a rigorous documentation process.

• Vahan Integration: Every vehicle is cross-referenced with the national database to ensure no pending litigations or blacklists exist before the sale.
• Bank NOC Coordination: For cars under hypothecation, CARS24 manages the complex process of obtaining Form 35 and the bank’s No Objection Certificate, which are the biggest hurdles in a smooth RC transfer.
• Digital Accuracy: By digitising the paperwork, they eliminate the blank form risks common in the unorganised market, where signatures are often misused.

Total Peace of Mind for the Wrong Place, Wrong Time Scenarios

Rare but serious issues can arise if a vehicle is impounded. Consider Mr Singh, whose previously owned SUV was picked up during a routine police check for a permit violation by the new buyer. When a notice was sent to his address, the Seller Kavach protocol was activated.
 

CARS24 provided the necessary legal barrier, communicating with the police station and providing encrypted proof of sale. This established a clear-cut-off point, proving Mr Singh no longer had custody of the vehicle. He never had to step foot in a police station.

Conclusion: Sell and Truly Forget

CARS24 has transformed the Indian car-selling landscape from a game of chance into a professional, secure transaction. We handle the complexities of the RTO and the risks of the road, so you can focus on your next journey. We don't just facilitate a sale, we take full accountability for the vehicle's transition. When you sell to us, you aren't just getting a fair price, you’re securing your name, your driving record, and your legal standing.