How To Sell a Used Car In India – A Step By Step Guide

Rahul Jha
Rahul Jha

Updated on: 19th October, 2023 IST

how to to sell your car

The Indian used car market is expected to grow at a CAGR (Compound Annual Growth Rate) of 19.5% till 2027. As such, it should come as no surprise that over 5 million pre-owned cars are being sold in India every year. 

Selling a pre-owned car can sound like a challenging experience, and considering the amount of information available, or the lack of it, it can feel like an almost impossible task. But it doesn’t have to be. In this blog  we will navigate through the car-selling process, ensuring you reach your destination with ease and success.

From preparing your vehicle for sale to harnessing the power of online platforms, we will explore every nook and cranny of the selling process. Whether you are a seasoned seller or a first-timer, our guide will steer you in the right direction, unveiling the best way to sell your car in the Indian market. 

How to Sell a Second-hand Car in India?

Selling a second-hand car in India can be a daunting task, but it doesn't have to be. There's two ways to go about the process — offline and online methods. Here's a quick breakdown of the two: 

  • Offline Methods
  1. Offline methods of selling a car, such as placing an ad in the newspaper or word-of-mouth, can be unreliable
  2. You may not reach a large enough audience, and you may not be able to verify the identity or financial status of potential buyers
  3. The offline process can be time-consuming as you may have to wait weeks or even months to find a buyer
  4. You may not get the best possible price for your car if you sell it offline as Buyers may try to lowball you, and you may not be able to compare different offers
  • Online Methods
  1. Online methods of selling a car, such as online car selling platforms, are more transparent
  2. You can get a real-time update on your car selling journey and compare offers from different buyers
  3. You can list your car for sale online and start receiving offers within minutes
  4. You are more likely to get a better price for your car if you sell it online
  5. Buyers are more likely to be serious about buying a car if they find it online, and they are more likely to be willing to pay a fair price

How To Sell a Second-hand Car The Traditional Way?

Traditional offline methods for selling a used car in India are often unreliable and can't get you good offers. Here's a breakdown of some of the conventional methods: 

  • Word of mouth
  1. This method relies on your personal network, which may not be large enough to reach a large number of potential buyers
  2. Additionally, there is no guarantee that the people you tell will be interested in buying your car
  • Local dealerships
  1. Dealerships are likely to offer you a low price for your car, as they need to make a profit
  2. They may also try to haggle you down on the price, even if you have already done your research and know what your car is worth
  • Newspaper classifieds
  1. This method is slow and outdated
  2. It can take weeks or even months to sell your car through newspaper classifieds, and you may not even get any responses
  • Car exchange programs
  1. Car exchange programs can be highly inconvenient and they often offer you a low trade-in value for your car
  2. You may be better off selling your car privately and then using the proceeds to buy a new car
  • Local auto mechanics
  1. Auto mechanics may be able to connect you with potential buyers, but they will likely charge you a commission for their services
  • Vehicle exhibitions
  1. Vehicle exhibitions can be a good way to reach a large number of potential buyers, but they can be expensive to participate in and might not allow all types of vehicles 

How To Sell a Second-hand Car The Modern Way?

With the advent of technology and the organised sector revolutionising the process, selling second-hand cars in India has become more convenient and efficient than ever. With online platforms like CARS24, selling your second-hand car has become truly effortless. 

How to Sell Your Car on CARS24

Selling your car on CARS24 is a simple and hassle-free process. Here are the steps involved:

  1. Get an instant offer

Answer a few questions about your car's condition on the CARS24 website or app to receive an instant offer. Our smart AI pricing engine will assess your car's value based on factors such as the make, model, year, mileage, and condition.

  1. Schedule an inspection

If you're happy with the offer, you can schedule an inspection at your nearest CARS24 branch. Our expert will physically verify your car's condition and make a final offer.

  1. Get paid instantly

If you agree on the final offer, CARS24 will transfer the amount directly to your bank account. There's no need to wait for a check or wire transfer.

  1. We handle the paperwork

CARS24 will handle all the necessary paperwork, including the RC transfer. This means you can relax and enjoy the rest of your day, knowing that your car has been sold and the paperwork is taken care of.

The entire selling process can be completed from the comfort of your home. You don't have to run around to get things done. CARS24 will come to you, inspect your car, and pay you on the spot. It's that easy!

Here are some additional benefits of selling your car on CARS24:

  • You'll get a fair and transparent price for your car
  • You can sell your car quickly and easily
  • You won't have to deal with any hassle or paperwork
  • You can sell your car from the comfort of your own home.

If you're looking to sell your car, CARS24 is the best place to do it. We offer the best prices, the easiest process, and the most convenient way to sell your car. So what are you waiting for? Get started today!

What Are the Pros and Cons of the Various Ways to Sell a Second-hand Car?

Each selling method has its own set of advantages and disadvantages. Consider your priorities, convenience, and preferences when choosing the method that aligns best with your selling goals and expectations.

Here is a comprehensive table outlining the pros and cons of various ways to sell a second-hand car in India:

Selling MethodProsCons
Local DealershipsThe convenience of a professional evaluation.
Potential for a quick sale.
No direct involvement in the selling process.
May offer lower prices compared to private sales.
Limited negotiation power.
Online Classified PlatformsWide reach and exposure to a large audience.
Ability to set your asking price.
Direct interaction with potential buyers.
Increased competition from similar listings.
Professional Car Buying ServicesConvenient and hassle-free selling process.
Immediate payment and paperwork assistance.
Option to sell cars in any condition.

Limited negotiation power.

Documents Required for Selling a Second-Hand Car

Registration Certificate (RC)Proves ownership of the vehicle
Insurance PapersEnsures the vehicle has valid insurance coverage
Pollution Under Control (PUC) CertificateDemonstrates compliance with emission norms
Service RecordsProvides information about the vehicle's maintenance history
Original InvoiceOptional but helps establish the car's purchase value
No Objection Certificate (NOC)Required if the car is financed or hypothecated
Loan Closure LetterRequired if the car was purchased through a loan
Transfer FormsForm 29 and Form 30 are needed for the transfer of ownership
Affidavit of SaleOptional but can be used to declare the sale transaction
Buyer's Identity ProofPhotocopy of the buyer's valid ID (driving licence, Aadhaar card, etc.)
Buyer's Address ProofPhotocopy of the buyer's address proof (electricity bill, passport, etc.)
Seller's Identity ProofPhotocopy of the seller's valid ID
Seller's Address ProofPhotocopy of the seller's address proof
Passport Size PhotographsFor both the buyer and the seller

Here is a category-wise breakdown of explanation of the documents required for selling a second-hand car in India:

Car Documents

  • Registration Certificate (RC)
  • Insurance Certificate
  • Pollution Under Control (PUC) Certificate
  • Service History
  • Original Owner's Manual

Individual Documents

  • Permanent Account Number (PAN) Card
  • Address Proof (such as a passport, voter ID card, or Aadhaar card)
  • Self-attested Photographs

RTO-Related Documents/Forms

  • Form 29
  • Form 30
  • Form 32

Additional Documents

  • If you have a loan on your car, you will need to provide a No Objection Certificate (NOC) from the lender
  • If you have modified your car, you will need to provide the necessary documentation to the RTO

Here are some additional tips that will come in handy when you are gathering the required documents:

  • Make sure that all of your documents are up-to-date
  • Get multiple copies of each document
  • Keep your documents in a safe place

The Process to Sell a DL-Registered Car in Other States 

Selling a Delhi (DL) registered car in Bangalore follows a similar process as selling a car within the same state. Here are the general steps to sell a Delhi-registered car in Bangalore:

  • Get the necessary documents, including the Registration Certificate (RC), Insurance Papers, Pollution Under Control (PUC) Certificate, Service Records, Original Invoice (optional), No Objection Certificate (NOC), Loan Closure Letter (if applicable), and Buyer's and Seller's Identity and Address proofs
  • Advertise the car using online classified platforms, social media, and local classifieds, providing clear photographs and detailed descriptions
  • Screen potential buyers, verify their contact details, and arrange meetups in safe locations for test drives and discussions
  • Negotiate the price with interested buyers and finalise the deal by drafting a sales agreement that outlines the terms and conditions
  • Accompany the buyer to the Bangalore Regional Transport Office (RTO) to initiate the transfer of ownership process. Submit the necessary documents, including the transfer forms (Form 29 and Form 30), original RC, insurance papers, and identity/address proofs. Pay the required fees for ownership transfer
  • Inform the insurance provider about the sale and transfer the insurance policy to the buyer's name. Inquire about cancelling the road tax paid in Delhi and the possibility of obtaining a refund.

It's important to note that while specific RTO procedures and required documents may vary slightly between states, the overall process of selling a car remains largely the same. Sellers should familiarise themselves with the specific requirements of the destination state and ensure compliance with the necessary regulations and paperwork.

Here are some additional tips for selling a DL-registered car in other states:

  • Make sure that you have all of the required documents before you start the process
  • Be prepared to pay the road tax in the new state
  • Get a new registration number for the car in the new state
  • Advertise your car for sale in both the old and new states

Post-sale Steps

Once you have successfully sold your car, there are a few essential post-sale steps to take to ensure a smooth transition and tie up any loose ends. Let's explore these steps:

  • Transfer the ownership of the vehicle at the Regional Transport Office (RTO)
  • Inform your insurance provider about the sale and initiate the transfer of the insurance policy to the new owner's name
  • If applicable, cancel the road tax paid for the remaining period of your car's registration
  • If your car had any pending dues or outstanding loans, inform the buyer and ensure they assume responsibility for settling those dues
  • Before handing over the vehicle, thoroughly check and remove any personal belongings, documents, or accessories that belong to you
  • Inform your local authorities, such as the police station, about the change in ownership to avoid any future liabilities or legal complications

The Bottom Line

Selling your car in India can be a rewarding experience if you follow a step-by-step approach and stay organised throughout the process. From assessing your vehicle's condition to advertising effectively, negotiating the deal, and completing the post-sale formalities, each step plays a crucial role in ensuring a successful sale.

By organising the necessary documentation, involving the buyer in the transfer of ownership process, and tying up loose ends such as insurance transfer and road tax cancellation, you can complete the sale smoothly and with peace of mind. So, whether you choose traditional methods or embrace the modern way, thorough preparation and knowledge of the process will help you navigate the road to a successful sale!


Q. What documents are required to sell a car in India?

To sell a car in India, you typically need documents such as the Registration Certificate (RC), Insurance Papers, Pollution Under Control (PUC) Certificate, Service Records, Original Invoice (optional), No Objection Certificate (NOC), Loan Closure Letter, and Buyer's and Seller's Identity and Address proofs.

Q. What are the things to take care of while selling a car?

When selling a car, take care of proper documentation, ensure the car's good condition, set a competitive price, advertise effectively, and prioritise safety during meetings and test drives with potential buyers.

Q. How do I negotiate the price of my used car with a potential buyer?

To negotiate the price of your used car with a potential buyer, research the market value, be flexible and open to reasonable offers, justify your asking price with the car's unique selling points, and maintain respectful communication

Q. What are the factors that determine the price of my used car?

The price of a used car in India depends on factors such as age, mileage, condition, brand and model, demand and supply, market trends, and additional accessories or features. These factors collectively determine the value of the car in the market.

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