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Selling a Used Car | Tips on How to Sell a Used Car | Quick Guide
Thu, 04/15/2021 - 11:13
A Checklist for Selling a second-hand car
With the digitalization of the used car market, there is a huge surge in demand for used cars. Digitalization has made the process of selling cars an easy, seamless and transparent process. However, the seller will still need to identify the right price for his used car and make an estimation of the market demand for the car model that he wishes to sell. The seller will always hope to get the highest price for his car. On the other hand, the buyer is equally eager to close the deal at the lowest possible price. A buyer is concerned about the features of the car, the price and any freebies that he can get as part of the deal. The seller needs to answer questions related to the condition and performance of the car. The transfer process of the used car needs to be as easy and smooth as possible.
If you are looking to sell your used car, here are some quick pointers that can help in smoothening the sale process:
Documents required at the time of selling your car
- Sale and Purchase Agreement
This document acts as the 'contract' of the sale of the used car. It details the agreed price, handover date of the car, and other applicable terms and conditions as mutually agreed by the seller and buyer
- Details of the car as given on the one Motoring website.
You need to log into LTA’s OneMotoring website and on the digital services page by selecting option as Sing pass details and then navigate to the Vehicle Hub and then place the enquiry and you can print vehicle registration details. Capture the information and include the image as a document
How to get the best price for a used car?
- If the buyer solicits professional opinion, he can take the services and arrange for a pre-purchase car inspection for professional evaluation which will help in determining the real worth of a used car.
- Schedule the inspection of the car with all the pre-purchase car inspection companies where you propose to sell within a time interval of one or two days.
This will help you compare the prices offered by the companies and make an assessment of the market value of your used car
The procedure to sell your car as an individual seller
As an individual seller, provide specific details to help the buyer evaluate his buying decision. Share basic information about the car like manufacturing year of the car, model/sub-model of the and so on. Make sure to share the following details:
- Invoice of the Car Purchase
- Manufacturing or Make: Original registration date of the car
- Mileage Details of the car and its current condition
- Whether the Transmission is Auto or manual
- Specifications: The Engine capacity of the car and Maximum power output, check that the engine and chassis numbers of the vehicle tally with LTA records.
- Open Market Value (OMV): It is the price paid when the car was imported into Singapore. One can check the average OMVs of common car models on LTA's One Motoring website.
- Details and Information on any Additional Registration Fee (ARF)
- Insurance details including the premium paid and type of car Insurance cover opted for the car
- Whether the car is purchased from any previous owners or it is directly bought from the showroom
- Road Tax details and status showing the expiry date, road tax amount paid and the due date
- Details and Information on any additional car modifications or accessories fitting done in the car
- Servicing History Condition: Details about how often the car has been serviced, and the last date of service. The previous receipts or service records can be proof of how well the car has been taken care of.
In certain special cases, additional documents are required to sell a car:
Financed cars and Sale by Non-Residents
- Initiating the transfer of the car's ownership can be done easily online through the One Motoring website which is very user-friendly.
- One needs to provide information about the seller and the buyer. The buyer’s name, mobile number and email address, identification number, need to be shared. After this, the buyer will be prompted by a SMS to confirm the transfer of the vehicle. Upon confirmation, the buyer will pay you the balance of the purchase price.
- In case the car is under financing it cannot be transferred until the loan is paid off
- If the buyer is a non-resident, it cannot be registered under SingPass. In such cases, both seller and buyer will have to visit personally to the Land Transport Authority (LTA) Customer Service Centre to complete the application. It is advisable to carry the identification documents of the seller and the buyer.
- The seller or buyer can write in via www.lta.gov.sg/feedback to make an appointment to transfer the vehicle to the Land Transport Authority (LTA) Customer Service Centre.
A few things to bear in mind while selling directly to a buyer:
- Negotiation – Ensure that you negotiate well, keeping in mind the condition of your vehicle and market demand of your car model
- Time – Ensure you mention the time available for interested buyers to visit and check the vehicle out.
- Certificate of Entitlement (COE) – Ensure that you complete all the paperwork related to your car by yourself. This would ensure a quick and smooth transfer of RC in favour of the buyer.
- The ownership of the car needs to be transferred to the new owner within 7 days.
- The seller has the option of retaining the number of the vehicle
- Taxes that have been paid and vehicle rebates will be transferred to the new owner.
Hope the checklist will help you sell your used car in a smooth and hassle-free manner. Here’s one more free tip - take an experienced mechanic with you for secondhand car inspection and get his/her certified opinion and get insured with DirectAsia for your car second hand insurance