Vehicle ownership transfers in India can cost nearly 10 times the official statutory fees, with charges reaching as high as ₹14,000 in some locations, according to the Ease of Vehicle Ownership Index 2026 released by IndiaTech and Consumer VOICE.
The study, which assessed ownership transfer procedures across 15 states accounting for more than 85% of India’s organised used-car market, found substantial differences between official fees and the amounts paid by buyers and sellers. Manual verification, intermediary charges and varying requirements across Regional Transport Offices (RTOs) were among the factors contributing to higher costs.
Bihar recorded the highest reported ownership transfer costs in the study, with charges ranging from ₹13,000 to ₹14,000 in Muzaffarpur. In Tamil Nadu, respondents reported paying ₹7,000–8,000 at certain RTOs, including Hosur and Krishnagiri, against an official fee of approximately ₹800. The study recorded transfer costs of ₹5,000–8,000 in Uttar Pradesh, ₹4,500–6,500 in Rajasthan and around ₹6,500 in Punjab.
Reported charges ranged from ₹3,000 to ₹3,600 in Delhi, ₹2,000 to ₹4,000 in Haryana and ₹500 to ₹2,400 in Kerala. These amounts include official fees and intermediary charges and reflect costs reported during the study, rather than uniform charges applicable across each state.
'Cost and affordability' was the weakest-performing category in the index, with 12 of the 15 states scoring below 3.5 out of 10. The report cited instances where a service carrying an official fee of ₹530 cost applicants more than ₹3,000 after additional charges.
The survey found that 39% of respondents were still awaiting transfer of their Registration Certificate (RC) after completing their vehicle transactions. Another 63% could not accurately estimate the total transfer cost, while 61.5% were unaware of physical appearance requirements, known as Party Peshi, until reaching the RTO.
All respondents surveyed reported relying on agents or intermediaries to complete ownership transfer formalities. The study linked this dependence to complicated procedures, manual verification requirements and limited transparency around charges.
Andhra Pradesh Tops State Rankings, Uttar Pradesh Last
Andhra Pradesh ranked first in the Ease of Vehicle Ownership Index with a score of 5.91 out of 10, followed by Kerala at 5.74. Tamil Nadu and Delhi scored 4.58 each, while Karnataka secured 4.30. Uttar Pradesh ranked last at 2.47, behind Bihar at 2.51 and West Bengal at 2.56.
None of the 15 states scored above six. The assessment found considerable differences in processing timelines, digital services and documentation requirements across RTOs.
Andhra Pradesh performed relatively well due to its biometric-based ownership transfer system, which has reduced the need for physical RTO visits. The report found that transfers in major urban centres could be completed within one to three days. Kerala was recognised for its relatively mature digital transfer system and wider implementation of the deemed ownership framework.
Despite the availability of online services through VAHAN and Parivahan, applicants in several states continue to require physical document submission and verification at RTOs. Unresolved traffic challans, delays in removing loan hypothecation and differing requirements for non-objection certificates can also hold up transfers.
The report identified road tax refunds as another difficulty in interstate vehicle transactions. Telangana and Andhra Pradesh were the only two states assessed as having functional refund mechanisms, with reported processing times of 15–30 days.
Dealer Ownership Framework Sees Limited Adoption
The study also examined the implementation of the deemed ownership framework introduced through amendments in 2022. The provision allows authorised dealers to be recognised as owners of vehicles held in their inventory, helping protect original owners from liabilities after a sale.
According to the report, Delhi, Karnataka and Telangana had no dealers registered under the framework, while Andhra Pradesh, Haryana, Gujarat, Punjab and Uttar Pradesh had registrations in single digits. Kerala, Rajasthan and West Bengal were among the states where dealers and agents were reported to be using the provision during vehicle transactions.
The findings come as India’s pre-owned vehicle market is projected to grow from $36.4 billion in 2025 to $73.5 billion by 2030. Annual sales volumes are expected to increase from 5.9 million to 9.5 million vehicles over the same period.
Industry data cited in the report indicates that 60–65% of buyers in the organised pre-owned vehicle market are first-time car owners. The share of organised players in the used-car market is projected to increase from 14% in FY21 to 21% by FY26.
IndiaTech and Consumer VOICE have recommended eight reform measures, including standardised ownership transfer procedures, integrated digital vehicle records, automatic removal of hypothecation following loan settlement and uniform rules for non-objection certificates.
The recommendations also include a common road tax framework to address interstate taxation issues, a unified payment system covering statutory and service charges, and enforceable service delivery timelines. The report proposes completing services within 24 hours.
The index evaluates states on six parameters: policy and regulatory framework, digital infrastructure and services, process efficiency and timeliness, transparency and accountability, institutional ecosystem, and cost and affordability. The assessment combines official procedures with experiences reported by citizens, dealers and agents.