Bihar man buys second-hand car, pays Rs 14,000 for RC transfer, around 10 times the govt fees to agents, report finds

Transferring ownership of a used car can cost up to Rs 13,000-14,000 in parts of Bihar, including agent charges, while the process takes more than 30 days in Uttar Pradesh. The total expense can be up to 10 times the statutory fees, according to the Ease of Vehicle Ownership Index 2026 released by Consumer Voice and IndiaTech.

The report found that the all-inclusive cost of transferring a registration certificate (RC) is Rs 500-2,400 in Kerala, Rs 2,000-2,500 in Karnataka, Rs 3,000-3,500 in Andhra Pradesh and Rs 3,000-3,600 in Delhi. In Tamil Nadu, the expense ranges from Rs 7,000 to Rs 8,000, while it is Rs 5,000-8,000 in Uttar Pradesh.

Nearly 100% rely on agents for vehicle ownership transfers

The report found that unofficial expenses, procedural inefficiencies and dependence on intermediaries continue to increase the cost of transferring vehicle ownership.


Nearly 100% of respondents surveyed said they had relied on agents to complete the transfer process. As many as 63% could not accurately estimate the total cost of an ownership transfer, indicating a lack of clarity about the charges involved.

The survey also found that 61.5% of respondents were unaware of the requirement of party peshi until they reached the Regional Transport Office (RTO).

The report assessed ownership transfer procedures across 15 states, accounting for more than 85% of India's organised pre-owned car market. It was prepared using the Central Motor Vehicles Rules, transport policies of 15 states and interviews with automobile dealers, RTO agents and vehicle owners.

UP takes over 30 days, Andhra Pradesh completes RC transfer within 7-10 days

The time taken to complete an ownership transfer varies significantly across states. Andhra Pradesh generally completes RC transfers within seven to 10 days, while Telangana takes around a week. In Uttar Pradesh, the process takes more than 30 days.

A survey of 1,000 buyers and sellers found that 39% of respondents had experienced delays in receiving their RCs after vehicle transfers. Only 9.6% said the process was completed within two weeks.

The report also found that 13 of the 15 states require applicants to submit physical documents to the RTO despite the availability of online applications.

Andhra Pradesh tops index, UP, Bihar and Bengal rank lowest

The Ease of Vehicle Ownership Index assessed states on their policy and regulatory framework, digital infrastructure, process efficiency, transparency and accountability, institutional ecosystem and dealer support, and cost and affordability.

Andhra Pradesh topped the index with a score of 5.9 out of 10, followed by Kerala at 5.7. Tamil Nadu and Delhi scored 4.6 each, while Rajasthan scored 4 and Haryana 3.9.

West Bengal scored 2.6, while Bihar and Uttar Pradesh scored 2.5 each, placing them at the bottom.

None of the 15 states featured in the high-ease or excellent category.

The report also highlighted differences in road tax. For a Rs 6 lakh petrol car, road tax ranges from 3% in Uttar Pradesh to 14% in Karnataka and Telangana, resulting in a price difference of more than Rs 66,000 for the same vehicle.

What changes has the government proposed?

Minister of State for Road Transport and Highways Harsh Malhotra said on Wednesday that the government was working on policies to simplify used vehicle ownership transfers across states.

"There are hassles and challenges in the transfer of ownership. The central government is working on policies for this... Integration of policies and their implementation across states is important," he said at the launch of the index, according to PTI.

Malhotra said differences in state-level policies and their implementation often lead to these difficulties.

The report recommended amendments to certain provisions of the Central Motor Vehicles Rules to introduce statutory timelines for ownership transfers. These include approval within one to two days, dispatch of the RC within two to three days, interstate no-objection certificates (NOCs) within two days and road tax refunds within 14 days.

The report comes as India's pre-owned vehicle market is projected to grow from $36.4 billion in 2025 to more than $73.5 billion by 2030. The market has already overtaken new vehicle sales in volume.

The report said reducing hidden transaction costs would be important for improving accessibility, accelerating market formalisation and simplifying vehicle ownership transfers.

(With bureau inputs)