Experience of Selling Car to Direct Buyer

10 Dec 2015 - Put up the ads in carlist.my (approved by carlist).


15 Dec 2015 - Potential buyer text me via whatsapp to inquire about my ads. 

19 Dec 2015 
  • Potential buyer came to view the car. TWO potential buyers view my car at the same time. For safety purpose, I meet them in my condo's visitor bay. 
  • One viewer really interested in my car and even test drive it. Immediately he agrees with the offer price. But another young viewer just see thru the car & within 5 min left.
  • Done some research on how to deal with selling of owned car to direct buyer. Here's the link which is very helpful to anyone. At least to know what's the basic steps/procedures of selling used car. Links : 
  1. http://nextimelah.blogspot.my/2014/02/selling-used-car-in-malaysia-from.html 
  2. http://www.street-love.net/2013/12/complete-guide-and-tips-to-buying-and-selling-used-car-malaysia/

20 Dec 2015 
  • One of the potential buyer brings his friend & mechanic friend to view my car again (examine & negotiate for lower price, which I know they are joking & I can't offer lower price anyway). 
  • Buyer pays RM 500 for refundable deposit. Also sign deposit receipt as proof, for both party's protection.
  • Give copies of my IC, License & car registration card (the only copy I have during purchase of the car) to buyer, for him/her to apply for the bank loan, only if buyer is getting hire purchase loan from bank. In case of cash buyer, no need this step.

21 Dec 2015 - Get car registration card from bank. Call the hire purchase loan bank to ask which branch holds the card, to avoid trouble visiting wrong branch of bank.

6 Jan 2016 
  • Finally buyer's bank loan is approved. Waited so long due to the long holiday break. It is advisable to use same bank as seller's car if buyer wanna get hire purchase loan, easier the process. 
  • Now I can plan for the runner to do puspakom inspection. Meanwhile buyer is arranging for Friday (8/1/2016) to sign Letter of Undertaking (LOU) at the bank side. 


Words from my agent for the puspakom inspection process : 
  • Make sure the car tyres are in good condition. (If not, bring it to workshop and change the tyre.)
  • Make sure the car exterior no rusty part. (If there is, must bring it to workshop paint it first)
  • Make sure your windscreen tint removed. 

8 Jan 2016 - Sign LOU at the bank, together with buyer. Apparently Maybank just let buyer sign all docs including loan agreement first, even before puspakom inspection. Just that after puspakom inspection is done, make sure pass the B5 & B7 report to the bank. For seller in this case, just bring along IC & maybe car certification card (just in case any incorrect info keyed in by bank side & they need a copy of your car certification card again for amendment). 

11 Jan 2016 
  • Car Service in the morning. Done car wash & polishing also. 
  • Pass my car to agent so that the next day his runner will take it to puspakom for inspection. Actually this step is unnecessary for most people. You as seller, can just call puspakom for appointment date and drive your car in for inspection. Just tell them you need to do B5 and B7 inspection for your car. I can't tell you why I need to do this, hehe. However, if you hate the trouble of taking an half / day off, then ask for a runner to do it for you. B5 cost only RM 30.00 & B7 is RM 60.00, by this date of writing.

12 Jan 2016 - Puspakom inspection day. Got the report & car back around 2pm. Here's the reports look like:
B5 Report

B7 Report


13 Jan 2016 - Went to JPJ Mini UTC Sentul to cancel roadtax. Apparently the officer told me I can't cancel it unless I finished the loan. So I told him back that I just want to cancel roadtax first then only I can cancel my insurance & will do transfer name with buyer in last step. He insisted that I can't do that and want me to speak in Malay with him. I was shocked that the fact I was not allowed to cancel roadtax, which I read from the result of google search engine that most bloggers mentioned about step of canceling roadtax shall be done before transfer of ownership. The steps were like this: Seller cancel roadtax & then cancel insurance, (Seller has to cancel insurance in order for new buyer to purchase new insurance for the car.) next is buyer (bank) can process new insurance for the car & then process transfer of ownership in JPJ. Maybe my case is different where I still have loan balance to settle & buyer is also getting loan for the car. So I called to JPJ Setapak to clarify and their attitude was so bad and insist talking to me in Malay as well. The staff told me the same as the officer in UTC Sentul. In the end, I gave up. Walking back home under the hot sun as I walked there earlier)

14 Jan 2016 - I went to Bank with buyer to pass them all docs like B5, B7 and car registration card. But the JPJ forms that I signed with bank did not have roadtax termination form. So I wonder can JPJ process transfer of ownership without the seller cancelling the roadtax? If can, then I will be delighted. Bank officer just keep saying "Its up to you and buyer" which I don't know what it means. So we will see what happens next Tuesday in JPJ with buyer to do transfer of ownership together with bank's runner. For now, I just assumed that I dont have to cancel roadtax (after all it is due in March 2016) & insurance, and bank can proceed with the loan settlement & everything else. After the bank visit, I met with my Honda agent in my place and he said he will do insurance termination for my old car and transfer NCD to new car. Signed some docs and paid full cash for the new car. Yes, I'm not getting a damn loan for car anymore, so next time I want to sell it would be much easier process.

18 Jan 2016 - 9am reached JPJ Setapak with my car. Everything is so easy with all docs in Runner's hand & we just be there for the thumb-scan. After everything is done, I passed all necessary things to buyer and drove me back home. For the first time I was in passenger seat in my beloved car. It's weird feeling, knowing that I no longer the owner of the car. The saddest thing is I didn't even selfie with the car in this particular day for the last time! Luckily I still keeping photos which the first day it was delivered to me :) #throwback


Photo taken in March 2014

19 Jan 2016 - Maybank reimbursed the balance to my account with 1 day float. Fine with me :) So everything considered done. And I am going to collect my new car tomorrow :) 


This post is purely my own experience of selling my own car (still within loan period) to direct buyer (buyer getting the loan) just by posting advertisement in mudah.my as well as carlist.my. 

Hope it helps you if you are planning to sell your existing car to direct buyer. Thank God, it took only about 1 month to settle all. It could have been shorter but there were Christmas & New Year holidays in between. Good luck to you :) 

Leave a comment if you have something to ask. I'm not expert but if I can help based on my experience here, then I will reply you :) Thanks.







Comments

  1. Can I know which Maybank branch that buyer get the hire purchase loan?

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    Replies
    1. I think any Maybank branch will do for you :) Any particular reason why you wanna know which branch?

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  2. Hi LazyBun,

    Thanks for your reply.. I heard rumours mostly from the car sales agent and used car dealer that applying hire purchase loan directly to the bank is not possible without going through used car dealer.. I want to sell my car and most my potential buyer want to buy the car using loan but do not know how to apply it.. As a seller I would like to help my buyer to apply the loan.. but I don't know which branch.. I can visit any of the branch but I afraid it will make waste of my time to know which branch that can process it..
    Hopefully you can tell me.. Thanks.. or you can pm me the detail to karim.jamal1971@gmail.com

    ReplyDelete
    Replies
    1. Hi Karim Jamal,

      Regarding how to apply bank loan is up to Buyer. I am not sure if you as Seller can do that for buyer. What you as Seller need to do on this step is to give copies of your IC, license and car registration card (make sure you cross the lines on the copies for safe) and send to Buyer. Buyer will use these docs together with his/her's docs (maybe bank statement, 3-6 months salary slip, ea form & etc, depending on bank's requirement) & submit to bank. And then bank will call you as Seller (provided your Buyer gave the bank your contact no) for verification purpose. All these are vary in different bank, though.

      As for which branch my buyer went, it is Maybank Selayang. Hope it helps you :) Good luck

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    2. What do you write when you cross your IC copy?

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    3. Hi Eng Kiat Ang, I just crossed with "Sell Car Purpose"

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  3. Hi Lazy Bun,

    I would like to ask, do you need to pay full settlement first before sell your car to buyer? Salesman from Honda told me that I need to pay full settlement first for my car then only I can sell it to buyer. Please advise.

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    Replies
    1. Hi fiza,

      It depends.

      IF your buyer paying you cash for the car AND you still have loan to settle, then you need to pay full settlement for the loan to the bank in order to sell the car to the buyer.

      IF your buyer is getting a car loan for buying your car AND you still have loan to settle, then you would just let the banks to settle it without you paying full settlement. Because the banks will settle it. That is why it is advisable that your buyer's bank is same as your bank. Easier the process of the settlement.

      Hope it helps :)

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  4. Cash for new car! Wah! What did you get after selling off CRZ? :)

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    Replies
    1. I got Honda Jazz. The reason was to have 4 doors & price within the range of selling-off CRZ. That's why cash I guess ;)

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    2. Honda Jazz is my favourite car. I sold off the Jazz thinking to get another Jazz. Nearly gotten a slap from my friends haha.

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  5. at which stage the buyer will pay the seller of the remaining amount(car selling price - (bank loan + deposit))?

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    Replies
    1. I guess your case will be, you getting lower bank loan than selling price for the vehicle? In this case, with both agreement from seller & buyer, it is better to pay the balance of the amount during handover of the car, which is passing the car key from seller to buyer & buyer transfer the balance amount to seller either cash or banking term.

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  6. Hi Lazybun,

    I'm planning to sell my second car. May I know who has to send car for puspakom inspection? The seller has to pay for puspakom check (not sure how much it costs now) and change of ownership which costs RM100. So if we use a runner who pays for the runner?

    My car road tax and insurance will expire in early january 2017 so how to take the car to puspakom for checkup without road tax/insurance? If seller takes the car for inspection himself is there a possibility that he might run off with my car?

    TQVM in advance for your reply.

    ReplyDelete
    Replies
    1. advisably you as seller, has to send the car for puspakom inspection (PI). However, if not mistaken, I read about some buyer actually PAY for the PI fee as well as the runner fee (you as seller or your runner send the car to PI). The cost of B5 & B7 report roughly the same, it won't increase or decrease much. See my 11 Jan 2016 section in this post. So whether seller or buyer to pay for it, it is entirely up to you both agreement. But in my case, I paid fee for the runner as well as the puspakom inspection fee. You have to find a good & trustable runner though.

      Not sure about the road tax expiry date. You have to check the PI requirement for B5 & B7 report, whether a valid road tax&insurance is necessary. I'm not sure about this. My apology.

      "If seller takes the car for inspection himself is there a possibility that he might run off with my car?" --> If seller takes car for PI, why would seller might run off with the car? He is the seller. I think you meant 'buyer'. Well, so far I never read about seller giving the car to a total strange buyer to do the PI. Usually buyer will pay for the report fees only though.

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