DIY Car Sale

DIY Car Sale

Some useful tips on how to sell your car yourself, to a direct end consumer buyer (i.e. not car dealers etc)

Step 1. Test Drive – You need to get indemnified

This form indemnifies the seller from any liabilities that is sustained by the buyer during the test drive, should there be damage to the vehicle, as well as death or personal injury.
Apart from the driver’s license check, before going for the test drive, the seller will need to get the indemnity form signed by the interested party who wishes to test drive the car.
Step 2. Sales AgreementAfter the deal is struck and price confirmed, the buyer and seller will proceed to endorse the sales agreement form. A deposit is placed by the buyer, to confirm the purchase.
Step 3. Invoice
The seller should issue an invoice for the deposit collected. This invoice serves as a confirmation for the receipt of the deposit given by the buyer to the seller.
Step 4. Source for Car Loan & Car Insurance

Usually, the car buyer needs to source for a car loan on his own, unless the buyer is paying cash in-full for the car. AutoMoneyBack will help to do loan sourcing and paperwork for the car buyer, and reward the car buyer automatically.

Once approval for loan has been given, the buyer can then notify the seller. The seller can then demand to see the documents as proof of the approval for the loan.

The buyer is expected to source for, and activate a motor insurance under his name, which is necessary in order to do the transfer of ownership of the vehicle at a later stage. This service is provided by AutoMoneyback, with rewards to the new car owner.

Step 5. Full Settlement of Seller’s Existing Car Loan

The seller has to check on the outstanding loan amount and to make the necessary payment to the finance company before the ownership of the vehicle can be transferred to the buyer, if the vehicle is still under financing.

Step 6. LTA’s M01 Form, and Transfer Fee Payment

The ownership of the vehicle is now ready to be transferred.

The buyer pays this, and it is on top of the agreed selling price for the vehicle. A transfer fee is to be made payable to the Land Transport Authority (LTA).

Also, the buyer may opt to register a new car registration number (additional fees to LTA), or retain the existing car plate.

The M01 form is the official form that needs to be submitted to the LTA. It needs to be endorsed by both the buyer and the seller. The buyer is to present a valid motor insurance certificate and his original NRIC to effect the transfer. The seller has to produce his original NRIC.

The road tax is still valid when the ownership of the vehicle is to be transferred.

Step 7. Balance Payment to Seller

The balance payment will be issued by the finance company to the seller, after the ownership of the vehicle has been transferred to the buyer.

Or, a cash buyer will pay the remaining balance payment in full cash to the seller.

Seller should then issue an invoice for the balance payment collected. The invoice serves as a confirmation for the receipt of the balance payment.

Step 8. Hand-Over 

The vehicle is now ready to be handed over to the buyer, once the ownership transfer has been done.

The hand-over form completes the official hand-over of the vehicle, and the buyer now bears the responsibility for any fines, summons or any claims relating to the vehicle from the date and time of hand-over.