Home » India » India – Buying or Importing a Car

India – Buying or Importing a Car

Buying a Car in India

If you are planning to buy a car in India, whether it is a new or used one, there are several steps you need to follow. Here is a step-by-step guide to buying a car in India:

Step 1: Find a reliable dealership or seller

The first step to buying a car in India is to find a reliable dealership or seller. You can start your search by browsing online car sales platforms or visiting car dealerships in person.

Step 2: Choose your car

Once you have found a dealership or seller, you need to choose the car you want to buy. Before making a decision, it is important to inspect the car thoroughly and take it for a test drive. You should also ask for the car’s history report to ensure that it has not been involved in any major accidents or has any pending fines.

Step 3: Negotiate the price


Get Our Best Articles Every Month!

Get our free moving abroad email course AND our top stories in your inbox every month


Unsubscribe any time. We respect your privacy - read our privacy policy.


After choosing the car, you need to negotiate the price. In India, it is common to negotiate the price of a car, so don’t be afraid to haggle. You can also ask for discounts or promotions offered by the dealership or seller.

Step 4: Complete the paperwork

To finalize the purchase, you need to complete the paperwork. The dealership or seller will provide you with a purchase agreement that outlines the terms of the sale. You will also need to provide identification documents such as your passport or national ID card.

Step 5: Register the car

Finally, you need to register the car with the Regional Transport Office (RTO) within 30 days of the purchase. You will need to provide the purchase agreement, proof of payment, and proof of insurance. Once the car is registered, you will receive the license plates and registration certificate.

Foreign nationals may face additional requirements, such as obtaining a local driver’s license.

Importing a Vehicle in India

Importing a vehicle to India can be a complex process, and it is recommended to hire a customs broker to handle the process. Here is a step-by-step guide to importing a vehicle to India:

Step 1: Obtain the necessary documents

Before importing a vehicle to India, you need to obtain the necessary documents. These include a bill of lading, an invoice, and a certificate of origin. You will also need to apply for an import license from the Director General of Foreign Trade.

Step 2: Pay the import taxes

When the vehicle arrives in India, you need to pay the import taxes. The amount of the taxes can vary depending on the vehicle’s age, type, and value. You can calculate the import taxes using the Indian Customs’ online calculator.

Step 3: Inspect the vehicle

After paying the import taxes, the vehicle will undergo an inspection by the Automotive Research Association of India. The inspection checks the vehicle’s safety and environmental compliance. If the vehicle passes the inspection, you will receive an inspection certificate.

Step 4: Register the vehicle

Once you have the inspection certificate, you need to register the vehicle with the RTO within 7 days. You will need to provide the import documents, inspection certificate, proof of payment of the import taxes and customs broker fees, and proof of insurance. Once the vehicle is registered, you will receive the license plates and registration certificate.

Here are the contact details and links to relevant government departments in India:

Selling a Car in India

If you are selling a car in India, there are several steps you need to follow. Here is a step-by-step guide to selling a car in India:

Step 1: Obtain the necessary documents

Before selling a car, you need to obtain the necessary documents. These include the registration certificate, pollution under control certificate, insurance policy, and a no-objection certificate from the Regional Transport Office (RTO) if the car is more than 15 years old.

Step 2: Advertise the car

To sell the car, you need to advertise it. You can do this through online car sales platforms or place a classified ad in a local newspaper.

Step 3: Negotiate the price

Once you have found a potential buyer, you need to negotiate the price. It is common to haggle over the price, so be prepared to negotiate.

Step 4: Complete the paperwork

After agreeing on the price, you need to complete the paperwork. You will need to sign a sales agreement that outlines the terms of the sale. You will also need to transfer the registration certificate to the buyer’s name and provide the pollution under control certificate, insurance policy, and no-objection certificate (if applicable).

Step 5: Receive payment

Once the paperwork is complete, you need to receive payment from the buyer. It is recommended to receive payment through a bank transfer or a certified check.

Step 6: Notify the RTO

Finally, you need to notify the RTO of the sale within 14 days. You will need to provide a copy of the sales agreement and transfer the ownership of the vehicle. The RTO will then update their records to reflect the change of ownership.

In conclusion, buying or importing a vehicle in India can be a complex process, but by following the steps outlined above and seeking the help of professionals such as customs brokers, the process can be simplified. It is important to ensure that all necessary documents are obtained and that all taxes and fees are paid to avoid any legal issues.


Latest Videos

Expat Focus Financial Update February 2024 #expat #expatlife

Expat Focus 28 February 2024 1:53 pm

This error message is only visible to WordPress admins

Important: No API Key Entered.

Many features are not available without adding an API Key. Please go to the YouTube Feed settings page to add an API key after following these instructions.