The ever-expanding urban population in the country and the rising prices of new cars have boosted the used car market in Delhi NCR. This boost has been particularly visible in the last three to four years.
A buyer venturing into the used car market anywhere in the country today has options galore at their disposal. From hatchbacks and sedans to SUVs and luxury brands, the pre-owned car market features it all.
Buyers across the country now consider buying a used car a wise financial decision. However, the city in which you buy that used car is also a huge contributing factor. That’s because the local rules, insurance procedures, tax rules, and RTO formalities vary based on the city.
What You’ll Learn in This Guide
- Step-by-Step Process of Buying a Used Car in Delhi NCR
- Test Drive & Inspection Tips
- Document Verification Checklist
- RTO Rules & Ownership Transfer Process
- Used Car Insurance Transfer in Delhi NCR
- Road Tax, Green Tax & Other Charges
- Vehicle Age Restrictions in Delhi NCR
- Used Car Buyer’s Checklist
- Common Scams and Mistakes to Avoid
- Where to Buy Used Cars in Delhi NCR
Step-by-Step Process of Buying a Used Car in Delhi NCR
Research and Shortlisting
1. Buying from Online Portals: In today’s digitized economy, you can browse and buy used cars from online portals such as Motozite, CarDekho, and OLX. Such platforms boast a wide collection of cars, provide cars with inspection reports, and even offer a range of warranty options.
2. Buying from Dealerships OR Individual Sellers: When you buy from individual sellers, a rather personal buying experience is a given. However, you can miss out on additional protection benefits. If you buy the car from a dealership, you get a professional buying experience along with a full range of warranty, service protection, etc.
3. Establish a Budget: Depending on where you want to buy your used car from, you’ll have your complete ownership budget established, including potential repair costs, transfer and insurance charges, etc.
Test Drive and Inspection
1. Physical Inspection Checklist: When eyeing up a used car to buy, remember to check the tire condition, engine noise, underbody rust, lights, AC, suspension, etc. Also, remember to check if the rivets and nut bolts have signs of being unscrewed in the engine bay, which is often a sign of some heavy mechanical work done in the engine. Furthermore, this doesn’t happen in the case of minor repairs or regular service.
2. Additionally, remember to cross-check the odometer reading with the car’s service history.
3. As a bonus tip, you can also bring a trusted and qualified mechanic along with you to give the car a more thorough inspection.
4. When it comes to taking a test drive, you should consider several factors. These include clutch and brake performance, gear shifting smoothness, car steering alignment, and all dashboard warning lights.
Document Verification
When going through the paperwork for the used car you’re considering buying, remember to check these documents:
- Registration Certificate (RC)
-
- Pollution Under Control (PUC) certificate.
- All relevant Insurance Documents.
- Road Tax Payment Receipts
- Loan history documents (if applicable).
Used Car Transfer & RTO Formalities in Delhi NCR
Ownership Transfer Process
1. In Delhi NCR, like anywhere in India, the ownership transfer process involves the filing and submission of Form 29 and Form 30. While Form 29 is to inform the RTO about the sale of the vehicle, Form 30 works as an application for the transfer of ownership.
2. Online filing via Parivahan is available once both parties upload ID/address proof, RC, insurance, PUC, and Forms 29 & 30. Aadhaar OTP verification is required.
3. Notably, these forms with the document attached need to be submitted to the relevant RTO within 30 days of the sale.
Key RTOs in Delhi NCR
1. In Delhi, some of the major RTO offices are situated in Vasant Vihar, Janakpuri, and Sarai Kale Khan.
2. The Noida RTO office is situated opposite NTPC in Block A of Sector 32.
3. Gurgaon RTO Office: The Gurgaon RTO (HR26) is typically located near the Mini Secretariat, Rajiv Chowk, Sector 12. However, it’s best to check the Haryana Transport Department website for the most up-to-date address and timings.
Notably, the average timeline for this entire process of ownership transfer and paperwork usually takes anywhere between 20 to 30 days.
Hypothecation Removal
The hypothecation removal completely removes the lender’s claim from a vehicle when the borrower (the customer who bought the car) has fully paid off the loan. This is vital when buying a used car to ensure that the entity you’re buying from has full ownership of the vehicle.
Challan History
Checking the challan history before buying a used car is crucial to avoid unexpected legal and financial liabilities. Unpaid traffic fines or pending challans are linked to the vehicle’s registration number, and once you become the owner, you could be held responsible for clearing them.
It also indicates how responsibly the previous owner maintained the car and followed traffic rules. A clean challan record ensures smoother RC transfer, avoids delays during re-registration, and safeguards you from potential legal complications.
Verifying this small detail can save you from big headaches after purchase and ensures complete peace of mind.
Used Car Insurance Transfer in Delhi NCR
When a pre-owned car goes to a new owner, several other things also come with it. For instance, the insurance also needs to be shifted in the name of the owner-to-be. So, here’s a brief breakdown of that process.
Transfer Of Existing Insurance
1. Notably, the involved parties must transfer insurance within 14 days of the ownership change.
2. It is crucial for both the buyer and the seller. For the former, it ensures continued coverage while the seller avoids any future claims or legal issues.
3. Documents like a copy of the RC, previous insurance policy, proof of sale like a sale agreement, and a No Objection Certificate (NOC) from the previous owner, along with ID proof, are some major documents required for the process.
Finding Your New Policy (Things to Consider)
1. Comprehensive Insurance vs Third-Party Insurance: While third-party insurance only covers damages caused to the third party and their vehicle, comprehensive insurance covers its own damage along with third-party liabilities.
2. While choosing the right policy for your car, you should consider some add-ons to ensure optimum protection. These include the zero depreciation cover, engine protection, gearbox protection, and loss of personal belongings.
Taxes on Pre-owned Cars in Delhi NCR
Road Tax
- In Delhi NCR, the road tax is already paid by the first owner of the vehicle. As a buyer, you are not required to pay it again unless you plan to re-register the car in another state, in which case the road tax must be repaid as per that state’s regulations.
Registration Charges (If applicable)
The total fee for transferring car ownership in Delhi NCR is around ₹550. This includes:
1. This might vary from RTO to RTO and could range between 300 to 1500
2. ₹200 for smart card issuance
3. ₹50 for postal charges
These charges are to be paid at the respective RTO office at the time of submitting the ownership transfer documents. Do note that if the transfer is delayed beyond 30 days of sale, a late fine of ₹500/month is applicable.
Green Tax & Environmental Restrictions in Delhi NCR
Delhi NCR follows stricter vehicle age regulations due to environmental concerns.
- Diesel cars older than 10 years and
- Petrol cars older than 15 years
…are automatically deregistered and banned from usage, even if their fitness is intact. In many cases, recently for a couple of days such vehicles were also not allowed to refuel at Delhi petrol pumps, although that decision has been revoked for now
As a result, Green Tax in the traditional sense (payable at the time of re-registration) is not applicable, since these vehicles cannot be re-registered or legally used within Delhi NCR.
A fixed environmental cess may apply in Delhi for diesel cars under 10 years old at the time of registration or RC renewal. It typically ranges from ₹2,500 to ₹5,000 depending on the vehicle’s engine capacity.
Green Tax Misconception Alert!
While Green Tax is a real fee in many states for cars older than 15 years, Delhi NCR bans such vehicles altogether. Hence, you’re unlikely to encounter or pay a Green Tax during RC renewal or transfer here. Instead, make sure your used car is well within the permissible age limit before purchase.
Vehicle Age Restrictions in Delhi NCR (Must Know!)
Before buying a used car in Delhi NCR, you must be aware of the NGT (National Green Tribunal) rulings that apply in the region:
| Vehicle Type |
Legal Usage Limit |
After Limit |
| Diesel |
10 years |
Banned, de-registered |
| Petrol |
15 years |
Banned, de-registered |
These rules are strictly enforced. You won’t be able to renew the RC or use the vehicle on public roads in Delhi NCR once this age is crossed—even if the car is in perfect condition. It’s best to avoid buying vehicles close to or beyond this age limit.
Used Car Buyer’s Checklist: Delhi NCR Version
| Activity To Be Taken Care Of |
Status |
| Conduct Physical Inspection |
✅ |
| Test Drive |
✅ |
| RC Verification |
✅ |
| Insurance Status Check |
✅ |
| Pollution Certificate Verification |
✅ |
| Service History Review |
✅ |
| Loan NOC and Form 35 (If Financed) |
✅ |
| ID and Address Proof for Buyer and Seller Verified |
✅ |
| Insurance Transfer |
✅ |
| Form 29 and Form 30 Filing and Signing |
✅ |
| Ensure the NCB in insurance is intact |
✅ |
| 360-degree inspection via OEM Dealership |
✅ |
All the boxes ticked? Now let’s move on to some common mistakes that you must avoid while buying a used car in Delhi NCR!
Common Scams and Mistakes to Avoid
1. Tampered Odometers can give you a false picture of the distance that a particular vehicle has covered. So, make sure that you verify the number on the odometer with service logs, or you can also try using an OBD scanner.
2. If the dealer is refusing to provide you with the Insurance Copy because the ‘previous owner retained it, take it as a sign of suspicious accidental history.
3. Ask for the original NOC before you make the purchase to ensure that there are no remaining outstanding loans on the vehicle.
4. You can visit the Parivahan Seva website to check if a particular vehicle is blacklisted or has any pending e-challans.
5. If you’re buying the car from outside the Delhi NCR, remember to check the original NOC to ensure that you don’t end up buying without proper clearance.
Used Cars in Delhi NCR: Where to Buy?
When looking to buy a used car in Delhi NCR, several options come to mind. First of all, you can shop with certified car dealers like us at Motozite. We offer a diverse range of pre-owned luxury cars, along with an extensive lineup of luxury demo cars, as well.
You can also seek better service tie-ups, quick RC transfer, and more room for negotiation while buying from local dealers.
Lastly, you could go with online marketplaces that offer inspection reports and are trustworthy enough to buy from.
Conclusion
Buying a used car in Delhi NCR is a smart decision, especially looking at the diverse set of options on offer. With a bit of patience and diligence during the purchase (which means a thorough inspection of the car, the documentation, and insurance and legal documents) can unlock massive value.
Thankfully, the vast dealer network in Delhi NCR makes sure that buyers get enough options to pick from and make the purchase that suits them.
So, what are you waiting for? Go ahead and get the best-used car deal in Delhi NCR, armed with the only buying checklist you need.
Disclaimer: The information provided in this guide is based on our best knowledge and efforts as of the time of writing. Rules, processes, and charges related to taxes, RTO formalities, insurance, and ownership transfer may vary or change over time. We recommend verifying details with official authorities, RTO offices, or trusted professionals before making any decisions.
