Buying/Selling Your Car Privately: Your Paperwork Questions Answered

Car owners are increasingly taking the sale of their vehicles into their own hands, but the paperwork can be a little daunting. Head of Gumtree Auto, explains what you will need to buy or sell your next car.

  • Settling the car

If the car has been paid off, you will need a registration certificate and letter from the bank or financial institution stating that there are no outstanding payments, as well as a proof of ownership.  The Registration Certificate can be registered directly in the name of the new owner if accompanied by the Copy of the ID of the bank’s proxy, the paid-up letter and the Change of Ownership form signed by the Bank’s Proxy.

If finance is still outstanding, request a settlement letter from the financial institution and notify them of your intention to sell. The buyer can settle the car with the bank and the seller, after which the transfer of ownership can take place.

  • Change of Ownership

The seller must complete and submit a Notification of change of ownership (Yellow Form) at the department of transport. A roadworthiness certificate must be obtained before a vehicle can be registered in a new owner’s name. The buyer or seller can obtain this by going to the nearest testing station with the registration certificate, ID document, fees and application for Roadworthiness Certificate.

  • Registering the vehicle

To get the vehicle registered in the new owner’s name, the seller or buyer has to submit their ID, vehicle’s registration certificate (in the seller’s name), roadworthy certificate, proof of purchase, their license, their completed application for registering and licensing a motor vehicle (blue form) and application fee at the nearest vehicle registration authority.

“It is important to note that you are still legally responsible for your vehicle until it is registered in the new owner’s name – including any traffic fines they may occur,” says Osborne. “Make sure that the change of ownership happens as soon as possible and never hand over your car until the payment has cleared at the bank. Scammers will often pay for vehicles using a cheque, which takes time to clear, and then cancel the cheque after receiving the car.

“Remember that private sales have none of the protection of the CPA, so perform your due diligence when testing the car. Never pay for a vehicle that you have not personally seen or inspected.”



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