How to change status of commercial vehicle to private? Know here

  • Re-registration of a vehicle from commercial to private requires cancellation of the commercial registration first.
Converting a car's registration from commercial to private can be done offline and online both, (REUTERS)
Converting a car's registration from commercial to private can be done offline and online both,

Thinking about purchasing a second-hand car? While searching online, we often find second-hand cars that are commercially registered but offer a good deal. However, as these are commercially registered for use as taxis, many shy away from buying the vehicles. But, buying a commercial car and converting it into a private one is possible.

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Following certain steps and shelling out a bit of money can get you a really good deal, as commercial passenger cars are often available at an affordable price and sometimes, in really good condition. Here are the steps on how to get a commercially registered passenger car converted into a private one:

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Re-registration of the commercial car as a private one needs to be done after applying for cancellation of the car's commercial permit (State or National permit - as the case may be).

The owner who wants the registration converted into a private one can write an application letter to the concerned RTO in charge with reasons for cancellation along with RTO Form ACC (Application for Surrender of Permit and Clearance Certificate).

Along with the above mentioned documents, he or she also requires to submit a copy of the registration certificate, insurance, ID and address proof. Also, bank NOC needs to be submitted if the vehicle was purchased with bank finance.

Once the commercial registration of the vehicle is cancelled by the RTO and NOC is given, the owner of the vehicle can apply for a re-registration as a private one. For this, he or she requires to deposit the appropriate road tax amount along with the documents such as identity and address proof along with a copy of PAN card, photographs, NOC of cancellation permit acceptance, Form 20 for registration, Form 35 (applicable if hypothecated to Financier as NOC), insurance policy, invoice along with the confirmation that the excise duty was paid in complete without any rebate. The process can be completed through the Vahan portal online as well.

How to convert a commercial vehicle into a private one
Step 1 :

Apply for cancellation of the commercial permit.

Step 2 :

Obtain permit cancellation certificate and NOC.

Step 3 :

Apply for re-registration along with cancellation proof.

Do note that while certain deals on commercial vehicles in the used-car business may be tempting, it is always important to check the vehicle's condition before signing on the dotted line. Commercial vehicles tend to have been driven for more than private ones but if the previous owner maintained it well, it could indeed be a sweet offering still.

First Published Date: 28 Sep 2022, 08:48 AM IST

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