Whether it be the Christmas season tempting you to spoil yourself with a newer set of wheels or the New Year ushering in the resolution of a new vehicle, many signs point towards an auto-upgrade in 2022. However, to sell a car and get your hands on a newer model, you need to be prepared for the arduous process of getting the necessary documents and paperwork in check. Not only does it safeguard the transaction but it also helps to protect you – the seller – under the Consumer Protection Act.
Finding out all the paperwork you require in order to sell your vehicle can be exhausting. That is precisely why we have compiled this step-by-step checklist of the necessary documents you will need to sell a car successfully in this mad, bureaucratic world!
#1 Prepare copies of your ID
Ideally, you should take certified copies of your drivers licence accompanied by your ID book or passport. Don’t forget to request the same documents from your buyer too!
#2 Proof of Ownership Certificate
This document serves as financial proof that the car you are selling is fully paid for, with no outstanding amounts owed to any financial institution. If your car is already paid off and you can’t find your Proof of Ownership Cert, consult your original lending provider to request a copy before you sell a car in your possession
#3 Settlement Letter
If you are still making repayments on your existing car loan, you will need to furnish a Settlement Letter from your financial lending provider stating the current balance owed and providing transparency of your loan agreement to the buyer.
#4 Notice of Change of Ownership (NCO)
Also known as “Transfer of Ownership”, this can be acquired through your local traffic department in order to change the ownership of the vehicle to the buyer’s name. Please note that all outstanding traffic fines will need to be paid up before any change of ownership can be completed.
#5 Supply of existing Vehicle Registration Certificate
Hang in there, we’re more than halfway! Once the NCO is processed before you sell a car, the buyer is entitled to register the vehicle in their name. But before doing so, he or she will need a copy of your existing Vehicle Registration Certificate (which will then be de-registered on the Department of Transport system).
#6 Proof of Sale Agreement
While this is not a statutory requirement, we highly recommend that you draft a Proof of Sale agreement to be signed by both parties. This should include important information such as:
- final sale price,
- car model details,
- VIN number, and
- both the buyer and seller’s contact details.
(Should any future dispute arise, this document will protect all parties involved).
#7 Roadworthy Certificate (RWC)
Part of the final handover process, and required within 21 days of handing the keys over when you sell a car. If your current RWC has expired, don’t stress! Take your vehicle to your nearest testing station, along with your ID, VRN certificate, and a completed Application for Roadworthiness Certification, and the station will do the rest for you and your buyer.
#8 Service History Records
The importance of a full-service history record cannot be understated and one that is often overlooked. Some buyers will not conclude a deal without one! Ensure that you hand over all receipts and service records along with any relevant warranty documents relating to your vehicle.
Fill up your file for a stress-free, hassle-free deal
Getting your documents ready, in advance of selling your second-hand car shows a potential buyer that you are serious about creating a smooth transaction and handover process. The paperwork required to sell a car is no walk in the park. However, once you lay out the initial paper trail, you can look forward to the more exciting part – negotiating with serious buyers and receiving great cash offers on a reputable online car marketplace.
Thorough paperwork ensures clarity, transparency and a smooth handover. More importantly, it allows you to shift your focus towards more important things – your next dream car!
