The auto industry has always been thriving, but recently there has been a significant increase in the popularity of used cars, primarily to financial convenience. When purchasing a used car, understanding the RC transfer process is crucial. RC or Registration Certificate is a legally-required document that every vehicle owner in India must possess.
This article aims to elucidate everything you need to know about the RC transfer process while purchasing a used car, focusing mainly on the RC transfer fees, along with explanations of what is RC in a vehicle.
What is RC in a Vehicle?
RC stands for Registration Certificate, a vital document that proves the ownership of a motor vehicle in India. It contains pertinent details about the vehicle, such as the chassis number, engine number, make and model, year of manufacturing, colour, and more. It also includes crucial details about the owner, making it clear who has legal ownership of the vehicle. This makes the necessity of an RC transfer process evident when purchasing a used car.
The RC Transfer Process
The RC transfer process involves several steps to ensure that legal ownership of the vehicle is correctly shifted from the seller to the buyer.
1. Sale Agreement: Once the payment terms have been agreed upon, the Sale Agreement is the first document to be drafted. This agreement document includes the agreed price, the RC transfer, and the time limit within which the process will be completed.
2. Sale Deed: This is the document that legally moves the ownership of the car from the seller to the buyer. It is proof that the vehicle has been handed over to the buyer.
3. Transfer of Insurance: Any existing insurance policy on the vehicle needs to be transferred to the new owner’s name. The insurance company needs to be notified of the vehicle’s sale and the prospective new owner’s details.
4. NOC from RTO: If the vehicle is being sold to an individual residing in a different RTO jurisdiction, a No Objection Certificate (NOC) must be obtained from the original RTO where the vehicle was registered.
5. Visit RTO for Transfer: The seller and buyer must visit the RTO for the transfer of RC. They must fill Forms 29 & 30, submit the original RC book, provide a copy of the insurance certificate, and emission test papers, among other items.
RC Transfer Fees
The most significant area of concern for most used car buyers is the RC transfer fees. The fee varies based on the kind of vehicle, its age, and the state in which the transfer process is taking place. As per the Central Motor Vehicle Rules, the fee for transfer of ownership of a motor vehicle is Rs. 300 for cars and Rs. 100 for bikes. However, this may increase with the addition of various other charges, like smart card fees and postal charges.
There could also be an additional fee if the vehicle is from another state. This would involve acquiring a NOC from the initial RTO and re-registering the car in the new state, for which charges would apply.
Conclusion
Overall, the process of RC transfer when buying a used car might seem tedious, but it is critical for legal ownership. Not only could skipping it attract penalties, but it also means that any traffic infringements or accidents will be legally the responsibility of the previous owner even though you possess the vehicle.
Understanding RC transfer fees and knowing what is RC in vehicle are imperative when investing in a used car. With careful attention to detail, meticulous form-filling, and punctuality, this process can be successfully completed, ensuring the smooth use of your ‘new’ used vehicle.
Remember, every step in this process equates to security for your investment, possibly preventing any legal troubles in the future. As such, always ensure you take the time to aptly understand the process and make all necessary actions to make your vehicle legally yours.