There are many strings attached when it comes to selling a used car. You need to examine factors like the mode of selling, the documents required to sell, the process flow, and the legality involved. If you are going to sell your car for the first time, you need to be wary of people duping you on low-price quotes. Read through to gain the most basic knowledge you need to have when you deal with used car sales.
Ways to Sell Your Car
Some people prefer selling it to a dealer and buying a new car from the same dealer, whereas the others may just want to sell an extra car lying in their garage. Based on your preferences and circumstances, you can go for one of the following ways to initiate the process of selling your car.
- Dealer: It is a rather easy and quick option to approach a car dealer and sell your car to him. The other side of the story is that you will end up giving away the car for a smaller amount than what you can get when you sell it yourself to a buyer. The dealer will inspect your car thoroughly, may find some grey areas, and settle the deal for a low price. However, you can go for this option only if your car is a really old one with a lot of issues.
- Agent: An agent, similar to a dealer, have the required skills to sell a used car to the right buyer. Agents sell your car for a commission amount and don’t buy it themselves as in the case of a dealer. However, you need to know that you should leave your car to the agent’s hands for him to show the car to prospective buyers. So, be cautious when you trust an agent and hand over your car with him/her.
- Online Platforms: There a few online sites that buy used cars and resell it, such as carsome, Motor Trader, Carlist, and mymotor. You can drop a quote enquiry by listing the specifications of your car on the website. You will then receive a rough quote of the price based on the details you provide. Sometimes, your car will be inspected in person, and an actual quote will be provided. You can then go ahead with the deal if the price is convincing.
- Yourself: If you choose to sell the car yourself directly, you will get a comparatively higher price for your car. You need to do the groundwork to be familiar with how you can handle everything.
Preparations required to sell it yourself
Follow these pointers to keep yourself prepared for everything it takes to sell a car yourself.
- Check if there are any repairs required for your car to get a perfect score. If your car looks old, it may not attract buyers. You may have to invest in painting, fixing dents, and other similar things that may spoil the overall appeal of your car.
- Assess the good and bad about your car, the age, model, current market price, miles travelled by car, and other related factors. This is essential for you to come up with a price at which you would sell the car.
- Once you know how much to quote, your next step must be towards choosing a right platform to advertise about the car. Based on your preference and affordability, you can choose to circulate the matter among your friends or online.
- Though you have specified a price, every potential buyer would be up to negotiate it. So, you need to decide on a buffer amount up to which you can let a buyer negotiate.
- Keep all the car-related documents at your hand’s reach. You would not want a buyer to step back for the sole reason of insufficient documents.
Car Ownership Transfer Process
The crucial step of settling the deal completes when you transfer the ownership of your car to the buyer under legal bounds. Here are a few important things you need to know about ownership transfer:
- In case you are still paying your car loan, make sure to settle the loan in full before you get the ownership of the car from the bank.
- It takes up to 7 working days for the bank to update the Jabatan Pengangkutan Jalan (JPJ)—the Road Transport Department of Malaysia about the transfer and complete the related procedures.
- You need to get “e-batal” before you transfer the ownership to a buyer.
- After the ownership transfer to you from the bank, Puspakom—a Malaysian government appointed vehicle inspection firm inspects your vehicle.
- It is recommended to book a prior appointment with Puspakom to avoid congestion and delay.
- Carry your original Vehicle Registration Card to the inspection centre.
- If the buyer is paying you cash, you will be given Form B5 (the ownership transfer certificate).
- If the buyer is going for a bank loan, then Puspakom will provide you with Form B7 in addition to Form B5.
- Don’t forget to cancel the insurance policy before you visit the JPJ. You have to collect an endorsement letter from the insurance company stating your NCD.
- It is highly recommended that the cancellation date must be the same as the transfer date on papers. This is because driving a car without insurance coverage is considered illegal in Malaysia.
- On your visit to JPJ, the seller and the buyer must be present. Fill up the application form and attach the required documents.
- Some of the documents you may have to carry are:
- Buyer’s and seller’s IC.
- Original Registration Card.
- B5 Inspection Report.
- JPJ K3 Form.
- You will be required to pay a fee of RM100 for the transfer. In case of a hire-purchase loan, an additional RM50 will be charged.
- The buyer has to purchase an insurance policy and pay the road tax.
- The buyer is now good to take your car and drive on Malaysian roads.
As a bit of advice, make sure you are not giving away your car before the actual process of ownership transfer. Take all the necessary precautions and meet buyers at a safe place. Do not get tempted when a buyer makes an unusually high offer.
Selling your car may seem a bit tedious since it involves multiple things to take care of. However, you now know the inner details of the process. So, it shouldn’t be a difficult affair for you to handle it.