Despite (or perhaps because of) the high price of COEs, the second hand car market in Singapore is thriving. People get rid of their cars when they get too close to the end of the COE than they’re comfortable with, selling them to those who can only afford to buy a car on the tail end of its COE lifespan.
Selling a car on your own, without the help of a dealer, is easy thanks to an abundance of online tools. Here’s how to do it.
WHO CAN YOU SELL YOUR CAR TO?
You can sell a car to anybody in Singapore who’s got valid ID and is legally residing in Singapore. They don’t even need to have a driver’s licence, although they must have valid motor insurance nonetheless.
WHAT DETAILS MUST YOU HAVE TO LIST YOUR CAR ONLINE?
In order to list a car, you will need to provide the following information:
- Licence plate number. This is usually not displayed but typically provided to the platform so they can fill in information on your model
- Selling price
- Car model
- Registration date and COE expiry date
- Good pictures of your vehicle
- Not compulsory but good to have: other information like mileage and servicing history
HOW TO GET YOUR VEHICLE DETAILS FROM LTA?
Your buyer might ask to see your vehicle log card so he or she can apply for a car loan and shop around for motor insurance.
To access your vehicle log card, log in here using your Singpass, Select “Vehicle Hub” and then “Enquire and print vehicle registration details”.
SET A PRICE FOR YOUR CAR
You will need to take into consideration not only the model, condition and age of your car when setting a price, but also the number of years left on the COE.
In order to set a reasonable price for the car, do research on the very same websites you’re selling your car on (ie. carro.sg, Carousell and so on). Check out similar models with the same age and number of years left on the COE, and you’ll have a good idea of an acceptable price range for your car.
Buyers tend to try to negotiate, so it is acceptable although not necessary to stipulate a price that’s slightly higher than what you’re willing to accept.
SET UP A TEST DRIVE WITH YOUR POTENTIAL BUYER
Once you’ve posted your ad, if your price is acceptable, you can expect to start getting inquiries from potential buyers in the following weeks.
Drivers will now show up at your home or an agreed venue in order to inspect the car and test drive it.
It’s a good idea to demarcate beforehand the route you wish to allow the buyer to take on the test drive. You should also get the driver to sign an indemnity form like this one before setting off, otherwise you could be liable for any damage caused during the drive.
DRAW UP A SALES CONTRACT
Once you and the buyer have decided on a price both of you are happy with, it’s time to commit to the sale.
While both of you could just agree to waltz down to LTA and transfer ownership without signing an agreement, it’s a good idea to get the buyer to sign a sales contract like this one the day he decides to buy your car.
A contract lets you collect a deposit from the buyer so he won’t play you out. It also ensures that the buyer has confirmed that he or she will have to pay all of LTA’s transfer fees and levies, and be responsible for his or her own motor insurance.
SETTLE YOUR CAR LOANS
If your car isn’t fully paid for at the time you sell it, you’ll need to pay off the remainder of your loan before you can transfer ownership to the buyer.
Once your loan has been repaid, you can then head down to LTA together to transfer ownership.
TRANSFERRING CAR OWNERSHIP TO YOUR BUYER
Once you have collected payment from the buyer and paid off your loan, both you and the buyer should go to LTA to transfer ownership of the car.
Before that, the buyer should already have settled their own loan and motor insurance, so make sure you ask them before making the appointment. The buyer should show up with the original motor insurance certificate.
Both you and the buyer should bring along your ICs and a signed transfer form.
Once the documents have been submitted to the LTA, a transfer fee of $25 needs to be paid, and you will have officially sold your car.
This article was first published in MoneySmart.