With the rise of online used car marketplaces, people can easily sell their cars. Some brands talk about selling a car within a day, which is commendable.
However, the real complexity begins after the car is handed over – during the RC (Registration Certificate) transfer process. In India, RC transfer remains a legally intensive, multi-agency workflow that often involves paperwork, verification, and coordination with the RTO.
This creates a gap between physical sale and legal ownership change – a period where sellers are paid, but their names still remain on official records.
Why Delayed RC Transfers Create Real Risks
Until the RTO officially updates ownership details, the seller continues to be the registered owner in government databases.
This interim phase is where most legal and financial risks arise, regardless of how or where the car was sold.
The risks of a delayed RC transfer can lead to loss of Lakhs of rupees and steal sellers’ mental peace.
- The traffic cameras are increasing on the roads and highways, and can generate e-challans instantly. If the new owner jumps a red light or overspeeds, the fine notification lands on the seller’s phone.
- Vehicles are often used in illegal activities like smuggling or petty theft. If your sold car is intercepted by the police before the RC transfer, the seller becomes the primary suspect.
- Under Indian law, specifically regarding hit-and-run cases and accident liabilities, the registered owner faces immense pressure to prove they are no longer in possession of the vehicle. Without a formal shield, sellers could be dragged into court cases that usually last for years.
How Online Platforms are Responding to RC Transfer Risks
Most Indian used car platforms have recognised these risks of the waiting period, and they have introduced their own protection policies.
Speaking about the Maruti Suzuki True Value, the company relies on the heritage of the Maruti brand. When sellers sell their cars to them, they issue a Certificate of Undertaking (Delivery Note). This document acts as a legal proof of handover. While their process is highly structured and process-driven, it relies heavily on the “Delivery Note” as the primary shield for the seller.
Spinny offers a policy to protect its sellers, which acts as a safety net after the car handover. If a mishap occurs while the RC is still in the seller’s name, Spinny provides assistance in resolving the issues at its own cost. This takes the immediate legal pressure off the individual.
Where CARS24 Seller Kavach Fits into this Ecosystem
At one place where several platforms offer assistance, CARS24 has redefined the seller protection with the Seller Kavach- a more structured form of seller protection designed specifically for the RC transfer waiting period.
In an ecosystem where RTO timelines vary widely across states, Seller Kavach is positioned as a legal risk cover – not merely assistance – during ownership transition.
How Seller Kavach typically works
- Financial Immunity from Challans – Traffic e-challans are one of the most common issues sellers face during the RC transfer period. Seller Kavach ensures that any challans generated post-handover are taken care of by CARS24. Sellers don’t have to chase the new buyer or the platform itself.
- Accident & Misuse Protection – If the vehicle is involved in an accident or illegal activity during the transfer period, Seller Kavach provides complete legal and financial cover. The platform ensures that sellers are completely insulated from liability.
- Professional Legal Defence – CARS24 provides a professional legal expert to handle any case if a police summons or court notice arrives in the seller’s name. The company covers all the costs related to the legal service.
- Transparency through Technology – The CARS24 mobile app provides RC Transfer Tracker to the sellers, and notifications are sent whenever there is any update in the ownership transfer process. This transparency gives sellers the mental peace of knowing exactly where their document stands in the RTO pipeline.
This structure exists because RC transfer delays are common – not because platforms expect misuse.
Conclusion: RC Transfer Delays Are Common – Seller Protection Should Be Standard
The road safety laws are becoming stricter with each passing year, and digital surveillance is growing rapidly on the city roads and the highways. Thus, selling a car to a random individual or an unorganised dealer can become a massive gamble. With digitisation and speed, the whole used car market is evolving and leading to demand for complete protection of the sellers.
RC transfer delays are a structural reality of India’s vehicle registration ecosystem, influenced by state RTO processes, documentation requirements, and inter-state complexity.
What sellers can control is the level of protection they have during this waiting period.
Platforms that acknowledge this gap and offer documented legal coverage provide sellers with greater peace of mind – even when timelines stretch.
The conversation is now shifting from “How fast can I sell?” to “How safe am I until ownership officially changes?”
Therefore, before finalising a used car platform to sell your car, ensure that you are getting absolute protection from countless financial and legal risks during ownership transfer.