How to sell my car in Singapore?
The ultimate guide to selling your car by yourself
Here’s what we’re going to cover :
1. How to find out your car’s value
2. How to take pictures of your car using just your phone’s camera
3. How to list your car properly
4. Customer viewing and Test Drive
5. The Paperwork
6. How to settle your outstanding car loan
7. (For buyer) – Car Loan
8. (For buyer) – Car Insurance
9. Transfer of balance amount and vehicle
10. Handover of vehicle
How to sell your car in Singapore (on your own)
First of all, get the log card of your vehicle. The log card is like your car’s IC, it contains your vehicle’s engine number, chassis number, registration date, ARF, OMV and other important details.
To do this, go to this OneMotoring link and enter your car’s plate number, the last 4 digits of the owner’s IC number, intended registration date (which can be 2 weeks from the current date), and select no for ‘vehicle to be exported’.
How to find out your car’s value
If your car’s information that you entered is correct, scroll all the way down to the ‘total rebate amount’. That is what’s known as paper value.
Next, you can go on to sites like sgcarmart to find out how much similar cars like yours are selling for.
Do note things like modifications, mileage, condition, number of past owners will affect the car’s price. So compare it objectively and be honest and practical about how much your car can sell.
One of the important things to consider is the yearly depreciation.
Remember that your car is competing with the rest of the other cars on these selling platforms, so your price and offer has to be attractive enough to be attract potential buyers, yet high enough for it to make sense for you to let go of your car and make some money in the process*.
*’Make money’ here means that your car’s selling price is greater than your outstanding loan amount, and therefore you will get some cash in hand after you sell your car.
So let’s say you have a March 2016 Toyota Altis that has a deregistration value (paper value) of about $40,000 today (September 2020). Your car is well taken care of, you are the only owner and your car has a relatively low mileage.
With these advantages, you are looking to sell your car for more than other similar cars in the market.
The first thing you can do is to look at the depreciation other cars are selling at.
If you typically see a depre of $9k/year for other 2016 Toyota Altis, you can price your car at $9.5k – $10k depre since you have the above mentioned advantages that can command a higher price.
This means that while other Altis are selling at $62-$63k, you can price your car at about $65-$66k instead, which will give your car a depre of about $10,000/year.
NOTE : there can be different variants for a specific model of car, so be sure that you are comparing your car with exact same cars on the market (e.g BMW 320i vs BMW 320i Efficient Dynamics have different engines and therefore different prices/depre).
Listing your car at $66k does not mean you are going to sell it at that price, since its very likely that potential buyers are going to negotiate on the price.
Another thing to remember is that there are many other Toyota Altis available on the market, and that since potential buyers have a variety of choices – they can be picky about the car they want.
Lastly, keep in mind that some cars are bought from Parallel Importers and some from Authorised Distributors.
Where your car is bought from can also affect your pricing, since cars from Authorised Distributors cost more, may have a longer and more comprehensive warranty, etc. They can typically fetch a higher price.
Note : in this age of COVID-19, my take is that it is a buyer’s market – since many people are selling their cars but lesser people are buying. So do not be surprised if your car takes awhile to find a buyer.
How to take nice pictures of your car
Like I mentioned above, your car is competing with the rest of the other cars in the market.
And when it comes to online listings, pictures sell!
Make sure your photos clearly show all angles of the car (front, side, rear and rear quarter) as well as the interior.
We know that most people will use their phones to take pictures of their car, so we took the below images of one of our cars using an iPhone X and did some very simple editing to make the red color of the car truly stand out :
If your car has some nice modifications or features, do be sure to get them in the photos, since you’ll never know what prospective buyers may be looking for.
Your listing is what attracts customers and make it stand out, so put more effort in your listing!
Mention things like :
- If the car is still under warranty
- Accident free
- Smoke free
- Pet free
- When it was last maintained
- Full servicing records?
- Any modifications
- Any other items that can help to make your listing more attractive
Here’s a sample of a listing of a car we sold recently :
Viewing and Test Drive
Before the viewing, do ensure your car is clean and presentable. Nobody likes to see a dirty car.
If your car is messy or dirty, it won’t give a good impression to prospective buyers. So spend a few mins to get rid of any stains and clean the interior.
“Can nego bro?”
Prospective buyers will also negotiate on the price with you, so be prepared for this, and to also mentally prepare your reserve price (which is the absolute lowest price you’ll accept for your car).
Prospective customers will also ask if they are able to test drive the car.
It is important to get them to sign an indemnity form that will indemnify you (that is, not hold you liable) from any damage/loss or injury sustained during the test drive.
Suppose the buyer decides to buy your car, the first thing you have to do is collect a deposit from them (usually $1k or $2k) and issue them a receipt for it.
The industry practice is that this deposit is refundable only if the loan is not approved, or if the car has a major problem (typically engine or gearbox) during the pre-inspection purchase.
Get the buyer to sign it so that there is proof of this deposit received.
If the buyer wants you to send the car for a pre-inspection purchase, you can proceed to do so.
For sellers and buyers who do not have a trusted workshop they go to, you can send your car to STA for a comprehensive check.
The cheapest car evaluation costs $188 and will take about 2 hours.
Suppose the pre-inspection purchase goes well and the car is good to go, you can get them to sign the Sales and Purchase agreement.
This document states the sales term (like the agreed selling price, car details, seller details and buyer details) and is to be signed by both seller and buyer.
This document is to be used later during the loan application process.
What if I have an outstanding car loan?
If you have an outstanding car loan, you will need to settle that loan before you can sell your car.
This is because you will not be able to transfer the car to the buyer if it is under finance.
To settle your loan, you will have to call up your bank/finance company to get the full settlement figure, then go down to their office to pass them a cheque/cashier’s order for that full settlement amount that they quoted you.
This settlement amount will include any admin fees/early settlement fees etc.
Settling your outstanding car loan on your own means that you need to have the cash in hand to settle that loan.
Most people do not have the cash upfront to settle their car’s outstanding loan (or they just don’t want to fork out a huge sum to settle).
If you are unable to fork out that outstanding loan amount, then you will need a dealer or finance company to help you settle that car loan before you can sell it.
If you need help to settle your oustanding car loan fast, do reach out to us via Whatsapp here.
Car Loan (for buyer)
Once the deposit has been received, the buyer can either pay full cash for your car or get a car loan for it.
In the event they need a loan, they will have to manually apply to the different banks or finance companies and provide them with the vehicle log card, seller and buyer’s IC, sales and purchase agreement.
The documents will also have to be filled up properly for the banks to accept them.
If the buyer is taking a high loan or full loan (e.g $0 downpayment or less than 30% downpayment), then a guarantor may be needed and the paperwork and loan process will be more lengthy.
This car loan process can be quite daunting and time consuming, so it’s best to be left to someone experienced to handle.
If you are buying a car and need help getting an attractie interest rate for your car loan, do reach out to us via Whatsapp here.
Note : whether you are a seller or buyer, do be very careful with the other party’s personal information (his IC, personal details, income statement etc).
This is because you still have to be compliant with PDPA’s guidelines to protect their information.
Car Insurance (for buyer)
Assuming the loan is approved and the buyer accepts it, then he/she can go on to buy a car insurance.
A valid insurance is required before you can transfer the car to the buyer.
If you need help getting quotes from multiple insurers for your car, do reach out to us via Whatsapp here.
Transfer of balance amount and the vehicle
Once the loan is approved, the car’s outstanding loan has been settled and the buyer has a valid insurance for the car, the buyer will hand over the balance of the amount agreed upon.
E.g the car’s selling price is agreed at $50,000.
Buyer gave a deposit of $1k.
The balance to collect from the buyer will then be $49,000.
This can be done by cash, cheque, cashier’s order or bank transfer.
NOTE : if the buyer issues a cheque, wait for the cheque to clear first before transferring the vehicle to the buyer.
Even if you are selling to a friend/relative, wait for the funds to be in your bank account first before transferring the vehicle over.
This is because if you transfer the vehicle first and the cheque bounces, then you have a huge problem to solve since you have to get money from the buyer when the car legally, no longer belongs to you.
Once the funds are in, then you can proceed to transfer the vehicle to their name.
You can do so via OneMotoring here.
NOTE : some buyers may want you to transfer the vehicle to them first before they pass you the balance amount, since they are afraid that you may not transfer the car to them after receiving the money.
On the other hand, you want to get the money first before transferring ownership of your car.
This is a typical chicken and egg problem when selling your car, so work something out with the buyer (e.g both of you are physically present to receive the funds and transfer ownership immediately after funds are received etc.) that works for both parties.
If you need a dealer to be a 3rd party to hold the funds in this process, do reach out to us via Whatsapp here.
Handover of vehicle
Handing over the car is the last step in the car selling process.
Make sure you hand over the agreed items (like accessories, 2 keys etc.) and get the buyer and yourself to sign a handover form.
This document serves as proof that the car was handed over by you, to the buyer at a specified date and time, and that after that handover time the buyer is responsible for the car.
Any summons that occur before the handover time is to be borne by the seller, and any that occur after that is to be borne by the buyer.
So that’s it! That’s how you sell your car.
Well, that’s up to each individual. Some may find it tough, others may find it relatively easy 🙂
Ultimately, a lot of people choose to consign their cars instead, because most dealers charge just 1% (of the selling price) to handle everything for you – from the marketing of the car, the listing, viewings, paperwork and handover.
If you’d like to engage us to help you sell your car, do Whatsapp us here ! We’d be happy to assist and answer any questions you may have.
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Cars we’ve sold
Take a look at some of the cars we have successfully transacted. Your car could be next!
Selling Price : $110,000
Selling Price : $55,000
Kia Cerato Koup
Selling Price : $29,800
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Customers who’ve sold their cars
Thanks Dan for the very fast service. Didn’t expect to let my car go so quickly haha. Submitted my quote today, and my car was sold less than 2 days later. Super fast
Got $1500 more for my car as compared to quotes from other dealers. Thanx !
Didn’t expect to get the cash on the spot. I thought there would be alot of paperwork involved and it would take time.
Also thank you for accomodating to my request to hand over the car over the weekend, appreciated
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