You can choose to either sell your current car to a dealer, engage an agent, or DIY
Image source: Carsome
First, selling to a used car dealer is the fastest way to get your car off your hands. They’ll usually take it ‘as is’ too, so you don’t have to spend money fixing it up. This is often used as an excuse to offer you a very low price though.
Now, an agent can find you a buyer, but for a (sometimes hefty) commission. You’ll usually get a better price this way, because the higher the price, the higher their commission! But you’ll have to let them keep your car during this process so there’s some risk involved.
If you are rajin and kiam siap, cut out the middlemen and sell your car yourself. Not only would you be able to set your own price, there's usually lesser risks involved. There are many online calculators that will help you figure out your car’s resale value. Other things may affect its value as well, like major accidents, mileage clocked, and even (believe it or not) the colour of your vehicle! You’ll also want to factor in your outstanding loan amount, if any.
Once you’ve decided on a price, you can advertise your vehicle on some of the many online marketplaces. DIY can be time-consuming as you have to layan all the potential buyers yourself but hey, it’s worth it! Ka-chiiing!
Yay, I have a buyer! So, how to transfer the ownership ah?
Image source: CompareHero
If you used a dealer or agent, they can help with this. If you DIY, this part also must DIY la!
Here’s the step-by-step:
- Get an earnest deposit. This is usually forfeited if the buyer changes his mind or can’t secure a loan.
- Settle the outstanding loan, if any. Go to any branch of your lending bank and ask them to calculate your early settlement amount. Once paid, the bank will inform JPJ to update ownership to you. This might take up to a week.
- PUSPAKOM inspection. This is to ensure that your vehicle is still roadworthy. Make an appointment online and bring your Vehicle Registration Card or Vehicle Ownership Certificate (VOC) on the day. If the buyer is paying for the car in cash, PUSPAKOM will issue an Ownership Transfer Certificate (B5 Form,costs RM30). If a loan is involved, you’ll also need a Hire Purchase Inspection Report (B7 Form, costs RM60). PUSPAKOM also does on-site (mobile) inspections for an additional fee.
- Settle outstanding summonses, if any. You can check this online at sites like MyEG.
- Transfer ownership at JPJ. Both you and the buyer should be present. Get a Tukar Hak Milik (Change of Ownership) form at the counter and fill it up. There’s a RM100 fee and an additional RM50 if there’s a new loan involved, but the buyer usually pays for this.
- Collect your moolah. At this point, the buyer should have the downpayment amount ready. You’ll have to wait a few more days for the buyer’s bank to send you the balance.
- Cancel your insurance policy. Your insurance company will give you an endorsement letter stating your No Claim Discount (NCD) amount. You can use this to claim NCD for your new vehicle.
- Aaaaaand DONE. Bye-bye old car!
I also plan to buy a car. What’s the process ah?
Would you prefer a brand new car or a used one? This is the time to shop around!
Once you’ve decided on a vehicle, the above process repeats itself, but with you in the buyer’s seat instead. Again, if you buy from a dealer or agent (or salesperson if it’s a new car), they can help you.
If you’re buying directly from the owner, here’s what you need to do:
- Pay an earnest deposit. See step 1 above.
- Secure a bank loan, if needed. Shop around a few banks for the best deal. You will need to provide copies of the car grant, your salary slips, EPF statement, IC and driving license. The bank you decide on will issue a letter of undertaking to JPJ to transfer ownership.
- Apply for an insurance policy. While there will be agents providing this service at JPJ, it’s muuuuuuch more convenient to do this online beforehand. Make sure the sum insured is at least 90% of the purchase price or Agreed Value.
- Transfer ownership at JPJ. See step 6 above. Here, you can also renew the car’s road tax if it has expired.
- Hand over the cash. See step 6 above.
- Aaaaaand DONE. You can now drive away with your new set of wheels!
Got any other tips or not?
But of course!
Pro Tip 1: Remove any dark window tints before you do the PUSPAKOM inspection to avoid problems there.
Pro Tip 2: Cancel your old insurance policy only after you’ve handed over the car. You shouldn’t be driving around without insurance!
Pro Tip 3: Before buying a used car, check with JPJ and the police to see if it has been in any major accidents.
Pro Tip 4: It’s common practice to have your insurance and road tax expire on the same day, for ease of renewal. If you buy a used car with a still active road tax, your insurance provider can advise you on how to line up these periods.
Do you have any more pro tips? Let us know your experience changing vehicles in the comments section below, and don’t forget to share this article!
Happy cruisin’!
*The above article is intended for informational purposes only. Loanstreet accepts no responsibility for loss that may arise from reliance on information contained in the articles.
