Used car dealership remains the top choice for sellers because of reasons shared in the previous post. We will share the process and steps in details when selling your car to a used car dealer.
1: Sourcing for the best price
Best price don't come easy, our take is to get quotes from at least 3-5 car dealerships. There are 5 car marts with over 700 used car dealership in Singapore; you will first need to drive your car down for them to view, it would be good if you can speak to the boss instead of the sales person for a better price.
If you feel that visiting each and individual car mart is too tedious for you, you can pick up your phone and start calling from the used car dealership directory. Take note, very commonly the offered price over the phone is very lucrative but expect to see huge deductions from the original price when you drive your car down for the dealer to view.
Alternatively, you can source for quotes at Motorist.sg. Your car details will be instantaneously sent to more than 100 used car dealership bosses and purchasers. Click here to explore.
2: Viewing of your vehicle
Now that you feel that the price obtained for your car is the ideal. Next step will be viewing of your vehicle. It is necessary for every used car dealer to view your vehicle before giving you a firm offer for your car. The interior and exterior of your vehicle will be inspected to see if there are any defects or signs of previous accidents. This is to ensure that the car is in a proper selling condition, any defects found that was not mentioned earlier will be subjected to deductions from the initially offered price.
It is important to have a true and precise description of your vehicle condition so you do not see much discrepancy in the final vehicle offered price. And dealers usually mark-up their repair costs to obtain the best price for themselves.
At Motorist.sg, we offer the service of sending a representative down during the viewing to ensure that the dealers only deduct a fair amount so that you get the best price out of your vehicle.
3: Signing of documents
Upon agreeing on the final offered price, dealer will hand you couple of documents to sign. Take note of each documents sequence and clarification.
- Cash Deposit – Amount ranging from $500 to $2000
- Purchase Agreement - At this point in time, you are obligated to sell off the car to the dealer or you will be liable to return double the amount of the deposit.
- Full Settlement Form – If there is still outstanding bank loan on your vehicle. This is for dealer to check and settle the loan balance amount with the bank
- LTA Form(ES04 Transaction Pin Form) - If you are comfortable with the dealer holding on to your NRIC, they can help with the collection of the transaction pin at Land Transport Authority (LTA Sin Ming) instead of you making a trip down yourself. After obtaining the pin, remember not to open the envelope.
- LTA Form(M01 Transfer Form)
In completion of the above, both parties, dealer and you will agree on a date and time (usually within a week) to hand over the vehicle.
4: Days before handover date
If your vehicle has an outstanding bank loan, the dealer will contact the bank for the outstanding balance and this process will usually take two to three working days. During this period, do take extra precaution and drive with care as you do not want an event where your vehicle is not in a worthy condition to be sold off.
5: Handover date
On the day of your car handover, payment will be completed by issuance of a company cheque. If your vehicle still has an outstanding loan, the cheque value amount will be after deducting of outstanding loan. However, if there is no outstanding loan, request for a cashier order from the dealer just to be on the safe side.
Upon receipt of the payment, you can now hand over the vehicle with the transaction pin obtained from LTA. In addition, to safeguard yourself from any unnecessary troubles, remember to sign on the purchase agreement and state the specific handover date/time. In the event of any traffic offenses, fines or damages that are incurred after the stated duration will not be your responsibility.
After your vehicle has been successfully handed over, you can call up your insurance company to terminate your policy and request for rebates refund if any.
We hope that this article has helped you to better understand the process of selling your car to a used dealership. Should you have any enquiries on the selling process, feel free to post your question in the comments section below.