- To help shoppers identify authorized used car dealers from unauthorized ones, MoRTH has released a new set of guidelines. These regulations are expected to organize the second-hand car market and halt any kind of fraudulent activities in the sale or purchase of such vehicles.
According to the latest statistics, the pre-owned car market in India, is expected to grow at a Compounded Annual Growth Rate (CAGR) of 19.5% in the next five years. This surge in growth has been a result of a host of factors, including the availability of authorised used cars, buyback assurances and so on. This rising demand for second-hand cars has led the government to announce measures and policies to create a safe space for buyers, where they can buy used vehicles without indulging in any kind of fraud.
With that being said, the MoRTH department (Ministry of Road Transport and Highways) recently released a set of guidelines to regulate the second-hand car buying market. These regulations are expected to assist consumers in recognising and empowering legitimate merchants like Spinny.
With its technological advancements and innovations, Spinny is transforming the used-car industry with its exceptional performance and after-sales services. The retail giant has taken the car-buying experience of consumers to the next level by offering excellent services. The brand launched its first experiential hub, Spinny Park in Bangalore, to engage with customers in-person with the intention to offer them a superlative consumer experience, customised as per their needs.
The proposed rules in the MoRTH guidelines will empower dealers and help buyers distinguish between unauthorised and authorised retailers. The main objective of introducing these regulations is to facilitate ease of doing business and encourage transparency in the Indian used-car market. Following are the things you need to know about MoRTH’s new notification in regard to buying second hand cars.
- Car owners when selling their used car to a dealer will now have to notify RTO. This shall be done either online or offline. After the possession of the car, the dealer has to apply for an authorisation certificate for each vehicle, which will be valid for five years.
- Used car platforms are supposed to maintain a trip register for each vehicle in their inventory. The document will contain all the details of trips taken while the vehicle is under the care of the dealer such as trip purpose, driver, mileage and so on.
- Once the authorisation certificate is issued, used car dealers will have to take sole responsibility in case of an accident. Another provision says that if the dealer does not comply with any rules, their authorisation certificate may get suspended or cancelled altogether by the RTO.
- Second-hand car dealers will only be able to apply for renewal of registration certificates (RC), transfer of ownership, no objection certificate (NOC), duplicate RC or certificate of fitness after the issuance of the authorisation certificate.
These guidelines are aimed to protect the interest of customers and organize the used-car market in a better way. Furthermore, they will help tackle the challenges of late transfer of ownership, wrongly issued challans and forged or incomplete documentation. Not only will this instill confidence among buyers, but also those sellering pre-owned cars.