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Used car dealerships remain the top choice for sellers because of reasons shared in the previous post. In this article, we will share the sales process in detail when selling your car to one.
1. Sourcing for the best price
The best price doesn't come easy, therefore, our recommendation is to get quotes from at least 3-5 car dealerships. There are 5 car marts with over 700 used car dealership in Singapore; and you will first need to drive your car down to them for viewing. To get the best price, speak with the boss or manager instead of the sales person.
If visiting each individual dealership sounds too tedious, you can pick up your phone and call them instead. Take note, the offered price over the phone might sound lucrative, but expect to see a huge difference from the offered price when you drive your car down for the dealer to view.
Alternatively, you can source for quotes with Motorist.sg. From the comfort of your own home, you will be able to receive competitive offers from more than 272 used car dealerships.
2. Inspection of your vehicle
If the price for your car is ideal, the next step will the inspection of your vehicle. It is necessary for every used car dealer to inspect your vehicle first before giving you their final offer. 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 good condition to sell. Any defects that were 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's condition. This ensures you will not see a huge price difference in the final offer for the vehicle. Dealers usually mark-up their repair costs to obtain the best price for themselves.
3. Signing of documents
Upon agreeing on the final offered price, the dealer will hand you a couple of documents to sign. It is important to take note of each document:
- Cash Deposit – Amount ranging from $500 to $2,000
- Purchase Agreement - At this point in time, you are obligated to sell the car to the dealer, or you will be liable to return double the amount of the deposit.
- Full Settlement Form – If there is an outstanding bank loan on your vehicle, the dealer will check and settle the balance amount with the bank.
- LTA Form (ES04 Transaction Pin Form) - If you are comfortable with the dealer holding onto your NRIC, they can help with the collection of the transaction pin from Land Transport Authority (LTA Sin Ming). That way you won't have to make the trip down yourself. After obtaining the pin, remember not to open the envelope.
- LTA Form (M01 Transfer Form)
After the completion of the steps above, both you and the dealer 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 and settle the outstanding balance. This process will usually take two to three working days. During this period, do take extra precaution and drive with care as your vehicle must be in the same condition as when it was being inspected.
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 the deduction of the 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. If any traffic offenses, fines or damages were incurred after the stated duration, they 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, if any.
We hope that this article has helped you to better understand the process of selling your car to a used car dealership. If you want to skip the hassle and prefer to have a professional to assist you through the entire process, Motorist.sg can help you!
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