Team-BHP > Team-BHP Advice > On owning a car


Reply
 
Thread Tools Search this Thread
Old 19th February 2020, 18:19   #616
Newbie
 
Join Date: Feb 2020
Location: Pothole City
Posts: 16
Thanked: 12 Times
Default Re: ARTICLE: How to sell a *USED* car in India

Quote:
Originally Posted by hserus View Post
That is only about registration of new bs4 cars. Not relevant to the re registration of used bs4 cars.
Thank you. I can heave a sigh of relief.
ascii is offline  
Old 16th July 2020, 11:08   #617
Senior - BHPian
 
Pancham's Avatar
 
Join Date: Dec 2009
Location: Kolkata/NCR
Posts: 1,139
Thanked: 691 Times
Default Re: ARTICLE: How to sell a *USED* car in India

Guys I have a couple of queries with regard to selling my current car, a 2011 i20 Asta Petrol which is in my mother's name. I plan to exchange the car for a new car which will be in my name.

1. Will it be an issue to exchange a car (in my mother's name) and buying a new car that will be in my name?

2. The car currently has a 50% NCB. So, going forward, when purchasing the new car, which will be in my name, is there a way I can transfer the NCB to the new car? Note: The policy and the old car is in my mother's name.
Pancham is online now  
Old 16th July 2020, 11:17   #618
Senior - BHPian
 
Join Date: Oct 2011
Location: Hyderabad
Posts: 11,630
Thanked: 19,069 Times
Default Re: ARTICLE: How to sell a *USED* car in India

Quote:
Originally Posted by Pancham View Post
1. Will it be an issue to exchange a car (in my mother's name) and buying a new car that will be in my name?

2. The car currently has a 50% NCB. So, going forward, when purchasing the new car, which will be in my name, is there a way I can transfer the NCB to the new car? Note: The policy and the old car is in my mother's name.
Point 1: Shouldn't be an issue IMHO.

Point 2: As the policy is on your mother's name, the 50% NCB benefit shall be entitled to her only. If the new car is purchased on your name, no NCB benefit can be used by you.
a4anurag is online now   (1) Thanks
Old 26th July 2020, 11:27   #619
BHPian
 
Join Date: May 2017
Location: Hyderabad
Posts: 495
Thanked: 734 Times
Default Re: ARTICLE: How to sell a *USED* car in India

I am planning to sell my vehicle, however, I have below challenges
  • 2 years bank loan is still pending. I will be clearing it and will get NOC from bank.
  • Buyer is from different RTO, so need to get RTO NOC and Hypothecation removal from RTO.

Buyer is willing to pay 50% cash and 50% DD. He agreed that he will take delivery only once DD is cleared and bank NOC is issued.

My problem is, getting Hypothecation removal will take easily 3-4 weeks due to covid situation. Can I hand over my vehicle to buyer once amount is cleared? Will I face any legal actions due to his mishaps if any? Will sale agreement help in legal cases?

Last edited by ramnaresh_2000 : 26th July 2020 at 11:28.
ramnaresh_2000 is offline  
Old 27th July 2020, 11:50   #620
BHPian
 
Join Date: Jun 2020
Location: Pune
Posts: 39
Thanked: 49 Times
Default Re: ARTICLE: How to sell a *USED* car in India

Quote:
Originally Posted by ramnaresh_2000 View Post

My problem is, getting Hypothecation removal will take easily 3-4 weeks due to covid situation. Can I hand over my vehicle to buyer once amount is cleared? Will I face any legal actions due to his mishaps if any? Will sale agreement help in legal cases?
I don't think you need to worry too much about handing the car over to buyer as long as you are being paid fully. Please follow team bhp guidelines about delivery note, getting buyer's documents etc before handing over the vehicle.
If I read correctly, there is Supreme Court ruling that owner is responsible for any mishaps until its on his name and not been transferred to the buyer. There is a thread on this forum where you might find answer to your second question. Additionally, please see if you can get as much information as possible of the buyer and take a call if you want to sell it to this buyer accordingly.
daredevil is offline   (1) Thanks
Old 3rd August 2020, 23:37   #621
BHPian
 
Join Date: Jun 2010
Location: chandigarh
Posts: 335
Thanked: 62 Times
Default Re: ARTICLE: How to sell a *USED* car in India

Hi,
I'm selling my Alto Lx 2007. Have to go to RTO to do the paperwork day after tomorrow I.e. 5th august. The RTO panchkula requires form 29, form 30, PUC certificate, Insurance certificate, NCRB report, chassis print, address proofs and buyer and seller undertakings as attached. Do I still need to get an affidavit/ sale agreement which is notarized by public? Do I still need to make the delivery note as given in first post? Asking because the buyer and seller undertakings have most of the points except the price at which sale is finalised.

Note to Mods: its not letting me upload images. After selecting the images and pressing upload I get 'invalid post specified. If you followed a valid post, contact the administrator' or 'backend error'.

Last edited by guptavis : 3rd August 2020 at 23:45.
guptavis is offline  
Old 4th August 2020, 13:33   #622
Senior - BHPian
 
hserus's Avatar
 
Join Date: Sep 2014
Location: Chennai
Posts: 3,930
Thanked: 6,591 Times
Default Re: ARTICLE: How to sell a *USED* car in India

Send this to your RTO with a copy of the sale paperwork, registered post acknowledgement due. You're covered.

This is on the Maharashtra RTO site but this form is valid throughout India.

https://transport.maharashtra.gov.in...R/form_tcr.pdf

Quote:
Originally Posted by daredevil View Post
I don't think you need to worry too much about handing the car over to buyer as long as you are being paid fully. Please follow team bhp guidelines about delivery note, getting buyer's documents etc before handing over the vehicle.
If I read correctly, there is Supreme Court ruling that owner is responsible for any mishaps until its on his name and not been transferred to the buyer. There is a thread on this forum where you might find answer to your second question. Additionally, please see if you can get as much information as possible of the buyer and take a call if you want to sell it to this buyer accordingly.
hserus is offline  
Old 8th August 2020, 14:40   #623
BHPian
 
Join Date: Mar 2015
Location: New Delhi
Posts: 202
Thanked: 280 Times
Default Re: ARTICLE: How to sell a *USED* car in India

Hi Everyone,
I have a Honda City ZX, 1.5L petrol, Registered Jan. 2006 (Manufactured Nov. 2005). The car is in pretty decent condition except for minor scratches here and there and has a full service history record of being serviced at Ace Honda in New Delhi NCR at regular 5k intervals. The car is in great running condition and has done 1.90L Kms.
Because of the 15 year rule in Delhi NCR, I need to sell the car. Can anyone advise as to how much I should quote for the car. The car is currently 14.5 years old.
Look forward to your advise.
Timothy is offline  
Old 19th August 2020, 17:19   #624
BHPian
 
DharmeshGohil's Avatar
 
Join Date: Dec 2014
Location: Thane
Posts: 37
Thanked: 55 Times
Default Re: ARTICLE: How to sell a *USED* car in India

Friends,

I couldnít find a better place to put this question. Request the moderator to move this post to the right thread, if needed.

I have a situation and would like some advice. Explaining this scenario with dummy names for ease of understanding:

Amar bought a car back in Jan 2015. Since he couldnít get a loan, so he bought the car in the name of his brother ďAkbarĒ along with a car loan. Amar was regularly transferring the EMI amount to Akbarís account to pay the bank EMIs and maintaining the car.

3 years later, Amar decided to sell the car since he was moving out of the country for a few years. Anthony was a known friendís friend, who offered to buy the car. Anthony made a deal with Amar by giving him part payment in cash, and agreed to pay the EMIs regularly by transferring the EMI amount into Akbarís account.

Also, Amar had misplaced the car papers (all of them), so Anthony did not have any original car documentation with him. Loss of RC was filed when Amar came back after 2 years and Anthony now is in possession of the RC Ė which is still on Amarís name.

2 years passed and the loan was closed and now Anthony decided to sell the car, which is still on Amarís name. Amarís father is refusing to sign the transfer papers since Amar could get into income tax complications that could arise since Amar would have to show an income generated by the sale of the car. His father is asking Anthony to provide a notarized undertaking that he shall be responsible for all tax related complications in future.

Now that you have some background, here are my questions:
  1. Was it possible for Anthony get the carís ownership transferred, without having the original RC?
  2. Was it possible to get the loan transferred with car papers?
  3. Is it fair to think that Anthony purposely did this deal so that he could use the car for few years, get an easy loan, and avoid any depreciation in the car value due to the no. of owners.?
  4. Is it fair to think that Amar (a businessman) would have shown the car as an asset (for the past 2 years) and taken the benefit of asset depreciation and expensing the EMI amounts while filing his IT returns?
  5. What to do if Amar is ready to sign transfer papers, but not ready provide PAN or Aadhaar?
  6. If Anthony has to provide the legal undertaking, what should be mentioned to safeguard himself or ensure Amar does not abuse the document?
  7. Is there anything Amar should have made sure when he sold the car to Anthony?
Iím sure there are mistakes done by all involved, but whatís the right way to go about resolving this situation now.

Any advice will be appreciated. Thanks.
DharmeshGohil is offline  
Old 19th August 2020, 17:40   #625
Distinguished - BHPian
 
androdev's Avatar
 
Join Date: May 2007
Location: bangalore
Posts: 1,961
Thanked: 4,832 Times
Default Re: ARTICLE: How to sell a *USED* car in India

Never buy a car when amar, akbar and anthony are involved.

I am guessing you are anthony. I am still trying to stop my head from spinning.

Just give them the affidavit about tax liability, collect your money and move on. Nothing good will ever come out of that affidavit, ask a lawyer friend for advice. No income tax officer is going to entertain some random affidavit conceived by amar akbar anthony.

Or just handover the car back to them for a reasonable amount of money.

Last edited by androdev : 19th August 2020 at 17:44.
androdev is offline   (2) Thanks
Old 19th August 2020, 22:40   #626
BHPian
 
DharmeshGohil's Avatar
 
Join Date: Dec 2014
Location: Thane
Posts: 37
Thanked: 55 Times
Default Re: ARTICLE: How to sell a *USED* car in India

Thanks.

I'm actually the friend in between Amar and Anthony, and since Amar's father knows me well, asking me to sign the affidavit as a guarantor.
DharmeshGohil is offline  
Old 19th August 2020, 22:53   #627
Senior - BHPian
 
mukeshgoel's Avatar
 
Join Date: Sep 2008
Location: Gurgaon
Posts: 1,081
Thanked: 1,346 Times
Default Re: ARTICLE: How to sell a *USED* car in India

Quote:
Originally Posted by androdev View Post
Never buy a car when amar, akbar and anthony are involved.
Not just amar, akbar and anthony but a father is also involved whose children are not adult enough to take a call.

One should never pay without having RC in hand no matter how close the friend is. One should keep friendship and car (or any other asset) sale/purchase separate.
mukeshgoel is offline   (1) Thanks
Old 21st August 2020, 14:52   #628
BHPian
 
Join Date: Jun 2010
Location: chandigarh
Posts: 335
Thanked: 62 Times
Default Re: ARTICLE: How to sell a *USED* car in India

Quote:
Originally Posted by DharmeshGohil View Post

Amar bought a car back in Jan 2015. Since he couldn’t get a loan, so he bought the car in the name of his brother “Akbar” along with a car loan. Amar was regularly transferring the EMI amount to Akbar’s account to pay the bank EMIs and maintaining the car.

.......

Also, Amar had misplaced the car papers (all of them), so Anthony did not have any original car documentation with him. Loss of RC was filed when Amar came back after 2 years and Anthony now is in possession of the RC – which is still on Amar’s name.

2 years passed and the loan was closed and now Anthony decided to sell the car, which is still on Amar’s name. Amar’s father is refusing to sign the transfer papers since Amar could get into income tax complications that could arise since Amar would have to show an income generated by the sale of the car. His father is asking Anthony to provide a notarized undertaking that he shall be responsible for all tax related complications in future.
Im guessing the second and third part in bold are typos and the car is in Akbar's name.
Why does Amar or Akbar's father need to sign any papers. Is the car in their father's name?
How would the income be generated in Amar or Akbar's hand? Was the car bought as an asset in a proprietorship business?
If it was bought by an individual in his individual capacity and sold for less than purchase price (this is obvious), then noone is making any income on it and IT department does not come into the picture.
If A buys a car for Rs.100 and sells it after 5 years for less than Rs.100 (lets say Rs.50). There is no income generated for A.
All this would come into play if the car is an asset in a proprietorship business and is sold for more than its written down value. In this case you could make the documents for sale at written down value so as to avoid any income tax hassles.

And really Amar Akbar Anthony does not make this any easier. ;P

Last edited by guptavis : 21st August 2020 at 14:54.
guptavis is offline   (1) Thanks
Old 21st August 2020, 15:41   #629
BHPian
 
DharmeshGohil's Avatar
 
Join Date: Dec 2014
Location: Thane
Posts: 37
Thanked: 55 Times
Default Re: ARTICLE: How to sell a *USED* car in India

Quote:
Originally Posted by guptavis View Post
Im guessing the second and third part in bold are typos and the car is in Akbar's name.
Why does Amar or Akbar's father need to sign any papers. Is the car in their father's name?
How would the income be generated in Amar or Akbar's hand? Was the car bought as an asset in a proprietorship business?
If it was bought by an individual in his individual capacity and sold for less than purchase price (this is obvious), then noone is making any income on it and IT department does not come into the picture.
If A buys a car for Rs.100 and sells it after 5 years for less than Rs.100 (lets say Rs.50). There is no income generated for A.
All this would come into play if the car is an asset in a proprietorship business and is sold for more than its written down value. In this case you could make the documents for sale at written down value so as to avoid any income tax hassles.

And really Amar Akbar Anthony does not make this any easier. ;P
Sorry for the confusion, brother, I could have use A,B and C instead. And you're correct, it was a typo. Should have been Akbar.

I see your point and should help. Thanks so much for your inputs.
DharmeshGohil is offline  
Old 2nd September 2020, 18:50   #630
BHPian
 
AtheK's Avatar
 
Join Date: Jun 2014
Location: Bangalore
Posts: 997
Thanked: 2,490 Times
Default Re: ARTICLE: How to sell a *USED* car in India

Hi, i am looking to buy a pre owned bike, and the owner is abroad. Bike has not been used much since last two years, and only used for run around to keep the engine running, and taken to showroom for service. The problem is insurance expired two years back and owner never renewed it.

Now my question is since i will need the insurance to have bike transferred to my name, how does the owner get the insurance done. He is staying abroad. Will a physical inspection be required before a cover note is issued, and will there be any penalty for not having the bike insured.

Please advise what is the best way to move forward.
AtheK is offline  
Reply

Most Viewed
Thread Tools Search this Thread
Search this Thread:

Advanced Search

Copyright ©2000 - 2020, Team-BHP.com
Proudly powered by E2E Networks