Costs & repayment
Used Car Transfer, Repairs & Insurance Budget
The costs on top of the price and down payment — and who normally pays them.
Updated 8 October 2026 · 8 lenders trackedLowest used car loan rate
9.45%
PNB Used Car LoanWhat you need to know
Plan a budget beyond the car price and loan for transfer fees, insurance, fines and early repairs. Many of these are set by your state or depend on the car, so get quotes before finalising.
Budget worksheet
| Item | Usually paid by | Notes |
|---|---|---|
| RC transfer fee | Buyer (negotiable) | State fee on Parivahan |
| Hypothecation entry (Form 34) | Buyer | State fee on Parivahan |
| Old hypothecation removal (Form 35) | Seller | State fee |
| Inter-state NOC and re-registration | Buyer | Road tax in the new state may apply |
| Insurance transfer / new policy | Buyer | NCB recovery or new premium |
| Pending challans | Seller | Clear before transfer |
| Loan processing fee + GST | Buyer | 0.25% – 2.95% by lender |
| Inspection | Buyer | Optional but advisable |
| Immediate service and wear parts | Buyer | Oil, filters, tyres, battery, brakes |
Ways to keep it low
- Negotiate transfer costs into the price.
- Buy a car that is recently serviced with new tyres or battery.
- Pick a lender with a low fee (PNB caps at ₹1,500).
Frequently asked questions
Do I pay road tax again on a used car?
Not within the same state. If you move the car to another state, that state may charge road tax on re-registration (partly refundable from the original state in some cases).
For information and comparison only. Loan terms, rates and rules change — confirm with the lender and read the Key Facts Statement before borrowing.