[Amrik Singh]

A much needed step to safeguard the interest of Car sellers

https://m.timesofindia.com/auto/cars...w/94184729.cms

Should be put in place by the soonest. It is to be seen what loophole the dealers find to circumvent this

As per the proposal, the vehicle owner will be required to intimate the registering authority (RTO) electronically as soon as the registered vehicle is handed over to the registered dealer. The dealers will also have to put in their signatures. The authorised dealer will be deemed owner of the vehicle and will be responsible for any incident related to the vehicle during its custody. It can apply for the fitness, duplicate RC and NOC, transfer of ownership of vehicle. The authorised dealer of registered vehicles will not use them on public roads except for trial runs for potential buyers, for maintenance and painting. There have been several instances when vehicles sold through dealers remain in the name of the original owners for months and they face the risk of getting challans for traffic rule violations and even receiving notice for such vehicles involved in crimes. The authorised dealer will also have to maintain a trip register of each vehicle in their possession and maintain the details. After the final resale, the vehicle will be transferred in the name of the new owner.

[speedmiester]

Originally Posted by Amrik Singh

A much needed step to safeguard the interest of Car sellers

https://m.timesofindia.com/auto/cars...w/94184729.cms

Should be put in place by the soonest. It is to be seen what loophole the dealers find to circumvent this

A welcome move and very much essential to control the unscrupulous used car dealers.
There are multiple instances of used car dealers using customer cars as their own and create issues to the original seller.
This will help the organised players, like Spinny, Cars24, Maruti True value and others.

[GTO]

No more driving around on someone else's RC, with the original owner being liable for the same? I think this is a step in the right direction. The government has included "online" players in this, hence you can sell your car to Cars24 / Spinny / OLX etc with more peace-of-the-mind now.

[ninjatalli]

Originally Posted by Amrik Singh

A much needed step to safeguard the interest of Car sellers

Very useful and necessary step. Hopefully this reform gets approved quickly.

Should be put in place by the soonest. It is to be seen what loophole the dealers find to circumvent this

There will be always workarounds - one option I guess would be that dealers will demand the cars be kept with the owner (or the dealer's yard) in the owner's name till they get a buyer; citing this way they'll get a better price for the car. The dealer simply dons the role of a broker here. It's already happening quite commonly so that would become the modus operandi.

What will be good is there would be at least a movement in the right direction and we might see a few dealers operating by the book; atleast for fast moving models/manufacturers (e.g. Maruti).

[shancz]

Very welcome move and hope it gets approved.

Our previous car was exchanged as scrap years ago, still didn't get its RC changed and the dealer(Premsons Maruti, Ranchi) went beating around the bush everytime it was brought up with the argument that "the details are mentioned in the exchange document".
We gave up after wasting a lot of time over this and decided to keep our cars as long as legally possible and then scrap it in person following the required process or sell to knowns(if earlier) with the RC transfer being done in our presence, skipping any exchange offers and of course the dealer going forward.
Hope this gets the backing of the industry too as cases like this affect the car sales in higher magnitudes than imagined.

Hope that this mandates a standard letter/certificate/declaration shared by the authority for all dealers to fill, stamp and provide to the customers so the scope of any further grey areas is eliminated.

[itwasntme]

Agree! Will relieve many people who avoid dealers only for this reason.

However, I wish MoRTH had put in place a similar scheme for private, i.e. direct sales too. There seems to be no change, and still leaves a genuine seller at the mercy of an (unscrupulous) private buyer who refuses or delays RTO transfer.

[KiloAlpha]

This is a welcome move, and I hope the devil is not in the detail. I hope the procedure to notify the RTO of a car's sale to a dealer is as simple and straight forward as "fill a form and submit it".

If this is to work to the benefit of all parties involved in the marketplace (seller, dealer, and buyer), number of owners should not be incremented if the car is sold to a dealer. The Vaahan system should have the provision to distinguish between "owner" and "keeper", and clearly assign legal responsibility to these two parties. Normally, the owner will be the keeper, but if the car is in possession of a dealer or any other intermediary, then the owner remains the seller but keeper becomes the dealer.

[sandeepmdas]

A very welcome move to plug the loophole that is a threat to the law and order situation of the country. IMHO an unidentifiable car is a threat to national security even more severe than unauthorized SIMs and Chinese apps.

Originally Posted by itwasntme

However, I wish MoRTH had put in place a similar scheme for private, i.e. direct sales too. There seems to be no change, and still leaves a genuine seller at the mercy of an (unscrupulous) private buyer who refuses or delays RTO transfer.

In Kerala, you can do this: If you are the seller, absorb the transfer of ownership costs by yourself. Simply tell the buyer that you'll transfer the ownership to them and they don't have to worry about it, insist it as a part of the deal. Ask the buyer to bring all the necessary documents and verify them before accepting money. Always seek professional help if you're in doubt, never hesitate. Then go to the nearest Akshaya center or approach an RTO agent and file all the papers. You will get the file number, means the change of ownership has been filed and you have done max of what you can do. At least you won't left high and dry if a need arises.

99% buyers will happily oblige.

[jai_asnani98]

A much welcome move, indeed! I believe the practice of maintaining a trip register each time the car is tested by a potential buyer is already followed by a certain Manufacturer based Used Car Division. Have personally witnessed this since I was checking out used cars and the kilometres driven, date, time, etc. were being filled in meticulously.

[Sran]

Originally Posted by shancz

Our previous car was exchanged as scrap years ago, still didn't get its RC changed and the dealer(Premsons Maruti, Ranchi) went beating around the bush everytime it was brought up with the argument that "the details are mentioned in the exchange document".

What is the correct procedure for scrap car exchange with new car? I thought the dealer gives you some kind of reciept acknowledging that they now have the car and the liability lies with them. Just a slip, as I was also given only that. I was under the impression that scrap cars have no RC transfer.

A welcome move by GoI.

[shancz]

Originally Posted by Sran

What is the correct procedure for scrap car exchange with new car?

No idea, there is supposed to be certificate/letter mentioning the sale as scrap but that doesn't make sense.
Typically the scrapping means to take the car to the scrapyard, get it "cut", have the identifying numbers scraped off like the engine/chassis, get the factory plate removed and carry it with you along with the letter and then get it deregistered.
The exchange as scrap should follow the same process but leave the deregistration part to the customer or as agreed upon.
But that's hardly what happens.
In my case the "beating around the bush" went from lost transfer form, to resale, to will do ASAP to finally resting on scrapped and a hastily handwritten form with incorrect details was sent across.
The only document which mentions the details clearly is the one from the dealer mentioning the exchange bonus and amount in lieu of the used car.
Practically a sea of greys and even more difficult to get hold of people once the sale is made.

Even after the policy comes through we would still prefer to keep the cars as long as possible but might consider an exchange/sale to unknowns only if this becomes and rule comes into practical effect, and it should for the benefit of the sector.

[padmrajravi]

Originally Posted by itwasntme

Agree! Will relieve many people who avoid dealers only for this reason.

However, I wish MoRTH had put in place a similar scheme for private, i.e. direct sales too. There seems to be no change, and still leaves a genuine seller at the mercy of an (unscrupulous) private buyer who refuses or delays RTO transfer.

For direct sales, you don't have to rely on buyers to do the transfer. It is the responsibility of seller to transfer the car.

Originally Posted by sandeepmdas

In Kerala, you can do this: If you are the seller, absorb the transfer of ownership costs by yourself. Simply tell the buyer that you'll transfer the ownership to them and they don't have to worry about it, insist it as a part of the deal. Ask the buyer to bring all the necessary documents and verify them before accepting money. Always seek professional help if you're in doubt, never hesitate. Then go to the nearest Akshaya center or approach an RTO agent and file all the papers. You will get the file number, means the change of ownership has been filed and you have done max of what you can do. At least you won't left high and dry if a need arises.

99% buyers will happily oblige.

True that. And I don't think this is Kerala specific. In fact you dont even need to go to Akshaya centre now. Seller can use the parivahan site to generate OTP by providing buyer and seller numbers. The buyer needs to provide his OTP and thereafter seller can handle the whole process. You will need signatures from buyer and his ID card copies. Do not hand over the car till you have this.

[lsjey]

Great news! Finally!

After the SC Judgement came that the previous owner is responsible I was sitting on Vahan website checking if my Indigo Manza was resold and registered every day. Had butterflies in stomach every time I saw my name on the portal. I must have pestered the dealer many times for status.

Now sellers can rest easy. But the key is to inform the RTO.

Can someone share how this can be accomplished? (I do understand that this is still a proposal stage.)

Regards,
lsjey

[S.MJet]

Very welcome move.

Had gone through the pain of a long a follow-up.
Exchanged my old car (Punto) with Seltos at a reputed dealer of the city (Bhavana Kia), yet had to run after them for ~1.5 years to get the RC transferred. In between had to pay two challans (wrong parking and a red light jump).

Hope this policy also covers car dealerships and local used car dealers going forward.

[SnS_12]

Will dealers of high end cars and bikes have a tough time to sell the same vehicle as a single owner vehicle to multiple customers now? Can the RTO portal show the status of the vehicle when it was first sold to the dealer/new buyer by the original owner?