NEW DELHI: Vehicle ownership transfers can cost up to 10 times the statutory fees, with total expenses, including agent charges, in the range of Rs 13,000-14,000 in parts of Bihar, Rs 7,000-8,000 in Tamil Nadu and Rs 5,000-8,000 in Uttar Pradesh, according to the Ease of Vehicle Ownership Index 2026 released by a consumer rights advocacy organisation and a startup industry body.The report, prepared by Consumer Voice and IndiaTech on the basis of Central Motor Vehicles Rules, transport policies of 15 states and interviews with automobile dealers, RTO agents and vehicle owners, has exposed the sharp gap between reforms initiated by the Centre and ground realities in states in terms of their actual implementation.The report found that the all-inclusive cost of an RC transfer, including agent charges, is the lowest in Kerala (Rs 500-2,400), followed by Karnataka (Rs 2,000-2,500), Andhra Pradesh (Rs 3,000-3,500) and Delhi (Rs 3,000-3,600). The time taken to complete a transfer also varies widely — as little as a week in Andhra Pradesh and Telangana but more than a month in Uttar Pradesh.The study assessed ownership transfer procedures across 15 states accounting for more than 85% of India’s organised pre-owned car market. It found Andhra Pradesh, Kerala, Tamil Nadu and Delhi to be top performers in ease of vehicle ownership while Uttar Pradesh, Bihar and West Bengal were placed at the bottom of the list.The report highlighted how unofficial expenses, procedural inefficiencies and dependence on intermediaries continue to inflate the cost of transferring vehicle ownership. Nearly 100% of respondents surveyed said they had relied on agents to complete the transfer process. “Reducing these hidden transaction costs will be critical for improving accessibility, accelerating market formalisation and enhancing the overall ease of vehicle ownership,” it said.None of the states figured in the ‘high ease’ or excellent category, with Andhra Pradesh, the top-ranked state, scoring only 5.9 on a scale of 0-10. Kerala scored 5.7, followed by Tamil Nadu and Delhi at 4.6 each. Rajasthan (4) and Haryana (3.9) were also in the lower half of the rankings, while West Bengal (2.6), Bihar (2.5) and Uttar Pradesh (2.5) brought up the rear.
The report comes at a time when India’s pre-owned vehicle market is expanding rapidly and projected to grow from $36.4 billion in 2025 to over $73.5 billion by 2030. The market has already overtaken new vehicle sales in volume. However, fragmented state-level rules, incomplete digitisation and cumbersome procedures continue to impede seamless vehicle ownership transfers.It also found that 39% of respondents had reported delays in receiving their registration certificates after completing vehicle transfers, while 61.5% were unaware of the requirement of party peshi until they reached the RTO. As many as 63% could not accurately estimate the total cost of completing an ownership transfer, reflecting widespread opacity in transaction charges.