Regulations for pre owned vehicles in India

The used car market in India is gradually gaining momentum. In recent years, the emergence of online marketplaces that deal with buying and selling used cars has boosted this market as bike buyers and bike dealers can easily connect.  

The centre has issued regulations governing the trade in used cars and bikes. The official statement says that this is done to bring ease of doing business and transparency in the sale and purchase of the registered vehicles through retailers. However, the market is so vast, either for bike buyers or car buyers, so there is a need for proper regularisation. 

The "used-car market" in India is gradually gaining momentum. In recent years, the emergence of online marketplaces for pre owned vehicles that deal with buying and selling used cars has given an additional boost to this market. The car dealers and bike dealers are equally lacking the advantage of regularisation. Similarly, the number of 2nd hand bike buyers has also increased, and now these laws assure the safety of these buyers.  

"In the current ecosystem, there are many problems when transferring a vehicle to the next successor. Disputes regarding liability for damages to third parties, difficulties in determining the defaulter are among other things," the statement added. The bike buyers and bike dealers may not avoid the dispute because of the absence of rules for 2nd hand purchases and selling.  

The Road Transport and Highways Ministry has amended the Central Motor Vehicle Rules 1989 to create a regulatory ecosystem for the used car market. Under the new rules for dealers of registered vehicles, a power of attorney certificate has been introduced to verify the dealer's authenticity. In addition, the procedure for writing the transfer of a car between the registered owner and the dealer is also mandated in detail. In the same way, 2nd hand bike buyers will also be benefitted from these laws. 

Bike dealers and car dealers were authorised to apply for registration renewal or certificate of fitness renewal, duplicate registration certificate, certificate of no objection or transfer of ownership of vehicles in their possession. Pre owned vehicles will be assured to sell and purchased with transparency in the market. 

As a regulatory measure, the maintenance of an electronic register of vehicle trips was prescribed, which will contain detailed information about the trip taken, such as the purpose of the trip, driver, time, mileage, etc.

The powers and responsibilities of a dealer owning registered vehicles have also been clarified. These rules are intended to assist in the recognition and empowerment of resellers or dealers of registered cars and to provide adequate safeguards against fraud in the sale or purchase of such vehicles.

Such steps are not only appreciated by the bike buyers, but they are the need of the hour for bike dealers too. AS technology brings ease, fraud and cheats also come along in the selling and purchase of pre owned vehicles. The timely regulations of old laws assure the safety and security of transfers of ownership and fund transactions.