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We provide eight comprehensive steps and the necessary documents that you should be making use of when selling your car to a prospective buyer.

Category: Car Selling Advice

Selling your car yourself to a direct buyer guarantees you the most financial returns but it takes time and comes with a little paperwork hassle. And When selling to a direct buyer, you'll need to advertise on a tested and proven advertisement platform like

But isn't just a proven advertisement platform. It's also one that helps sellers and buyers with essential documents. Here are some steps, and what documents to have, that you should take note of.

The seller should always have the potential buyer sign an indemnity form before heading out on a test drive

Step 1. Indemnity Form for Test Drive

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.

This form indemnifies the seller from any liabilities should there be damage to the vehicle, as well as death or personal injury that is sustained by the buyer during the test drive.

Step 2. Signing the Sales Agreement Form

Once the price has been agreed upon, both the buyer and seller will proceed to endorse the sales agreement form. The buyer will have to place a deposit to confirm the purchase.

Step 3. Issuance of Receipt

After the deposit has been placed, the seller should issue a receipt for the deposit collected. This receipt serves as a confirmation for the receipt of the deposit given by the buyer to the seller.

A receipt prevents potential disagreements by serving as a confirmation of the deposit given by the buyer

Step 4. Source for Loan Facilities & Insurance

Unless the buyer is paying cash in-full for the car, he/she will need to source for any loan facilities on his own accord. 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.

Step 5. Full Settlement of Existing Loan

If the vehicle is still under financing, the seller is 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.

To transfer, you'll also require a transaction pin, which you can go down to the Land Transport Authority (LTA) office at 10 Sin Ming Drive personally, queue and get it over the counter.

Or, you can get Quotz to do it on your behalf, but you will have to handover your original IC. Everything can be done online but it will take three to five working days (ideal if handover is not urgent).

Step 6. Transfer Fee Payment and M01 Form

The ownership of the vehicle is now ready to be transferred.
A transfer fee is to be made payable to LTA. This is to be borne by the buyer and it is on top of the agreed selling price for the vehicle.

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 also has to produce his original NRIC. The buyer is to ensure that the road tax is still valid when the ownership of the vehicle is to be transferred.

An M01 form must be filled up and signed by both the buyer and seller before being submitted to the LTA

Step 7. Balance Payment to Seller

After the ownership of the vehicle has been transferred to the buyer, the buyer will pay the balance payment (car price - deposit - buyer's loan amount) to the seller.

The remainder will be issued by the finance company directly to the seller upon submission of the proof of transfer. Alternatively, a buyer not taking a loan will pay the remaining balance payment in full cash or cashier's order to the seller.

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

Step 8. Signing the Hand-Over Form

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

This hand-over form specifies the official hand-over of the vehicle. 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.

sgCarMart Connect provides free settlement for loans, insurance and paperwork for both buyer and seller

Note : Steps 6 to 8 should all be done on the same day at the Land Transport Authority office.

If you do not wish to trouble yourself with all the documentation, sgCarMart Connect can help the buyer of your car apply for a loan, settle your outstanding loan, if any, apply for an insurance refund, draft legal documentation, and do the LTA ownership transfer for both parties. And this service is free for all cars advertised on sgCarMart.

sgCarMart Connect can be contacted at 6744 3540 or through Whatsapp at 8686 3540.

*This article was updated on 6th March 2018.
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