A few months ago when I was about to buy a new car, my entire focus was on how will I finalize selling my old car. People who haven’t sold their old car usually believe that finding a buyer is a major problem. Let me break it to you – if you have taken care of your car, it isn’t something you have to worry about.
One common problem that unites all the sellers in the secondary buying market for cars is the planning we have to put into making the sale. The car is a registered asset and its transfer requires a boatload of documents. I searched across the internet and met a ton of car sellers as well as seasoned car buyers before closing my own process of making the sale. Guess what – my car got sold without any hiccups.So based on all the research I conducted that helped me sell my car like I was selling a chocolate cake to a room full of hungry children.
It’s an authentic document of the fact that your car is registered under the relevant department. Most of the car buyers rely on a registration certificate to affirm the ownership. If there are any misspellings or the document is damaged, you should make the required changes.
An insurance policy will increase the sale value of your otherwise used car. The insurance officer does a thorough inspection of the car and accordingly suggests the insurance plan. With little car servicing, you can restore the natural look and performance of your car. An appropriate insurance plan provides financial protection to your vehicle in case of accidents or damage.
Various cars emit harmful gases into the environment. Therefore, it is important that your car is certified to be fit for running on the road. Pollution under control certificate is proof that the emissions from your car are under prescribed limits. The certificate is granted after undergoing a smoke test for petrol and diesel vehicles. One can get the test done, at an authorized car servicing center or petrol pump.
There are certain forms that you are required to fill before selling your car. These forms are required to be submitted in the RTO office. One of such forms includes Form 28 or a NOC. Its purpose is to ensure that there are no liabilities restricting you from selling the car.
Once the transaction has been made and the money has been received, there are still a few things you have to take care of. One – the taxation you will attract on capital gains. Usually, if you had maintained the car properly, you would get a nice windfall thanks to the sale. You should be well-aware of how you will be taxed on this income.
Second – a plan on what are you planning to do with the cash inflow. If you had buy the car for using the money, then you’re good. Otherwise, you should either sit with your CA or figure out how you would spend or invest the money, in order to plan for the taxes.
With all your documents in order, you can undergo a legit sale. It also helps in attracting first time buyers who prefer authentic paperwork. The sale should be finalized with a sale affidavit.
Selling your old car may seem to be tedious process. But now you’ve a decisive list of documents along with the planning that you have to do before you sell your car to make it all simpler. These documents helped me find a buyer in less than two weeks. If you get things in the right order you too can sell your car in a jiffy!