Now that you have taken your time and done thorough research (Tips) on the value of your car - and have hopefully read our 24-day strategy to sell your car, you are now ready to sell your second-hand car,
There are several documents needed when selling your car privately, even if you consider selling through a dealership - these papers are the critical documents to successfully make a sale of your vehicle.
Have the following documents handy
When selling your car, you will need a copy of your ID or driver's license - Remember both Identification for the buyer and seller are needed. Copies are accepted, taking a clear picture of the ID is acceptable as it forms part of scanning a document. An Identification can be an ID Copy/Book, smart ID, Driver's Licence, or Passport.
Proof of ownership certificate is provided to the owner of the vehicle only when it's paid up. Should you find yourself without documents, it is often advised to contact the relevant institution to obtain the documents. However, when buying a car privately, the seller should have these papers.
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Do you still have outstanding fees for your car? You will be required to have your settlement letter in handy.
"A settlement letter is a letter that provides a quote for the amount you need to pay in order to settle your vehicle finance account in full. The quote is valid for a specific period—usually seven calendar days (which amounts to five business days plus a weekend)—a period that is in line with the rules of the National Credit Act.
This letter will also show you the most recent instalment you paid: this instalment has been taken into account in the calculation of the settlement amount still due. For the settlement quote to be valid, you need to pay any monthly instalment that may fall due in the next seven-day period. This monthly instalment amount is indicated in the letter."
Typically known as NCO, this form is very important in terms of liability. You don't want to find yourself in a saga of unpaid traffic fines, you need to notify the Department of Transport of the new ownership of the vehicle.
The Buyer and the seller need to sign the NCO form, and DoT should also receive a copy.
Once this is concluded, the new owner will be verifiable.
This goes without saying - for complete registration of the vehicle when selling, the original copy of the Vehicle Registration Certificate is needed. It is of utmost importance to have a copy as well. Keep copies in case of unforeseen circumstances.
After finalizing the deal, draft a receipt that includes the date, the amount paid, the make and model of the vehicle, its registration, and VIN number. Additionally, record the names and contact details or addresses of both the buyer and seller. Make two copies—one for you and one for the buyer. While this isn't a legal requirement, it serves as essential proof of the transaction, protecting both parties in case any issues arise.
Finally, Have your service history and receipts - This is highly valuable, as some buyers won’t consider purchasing a used car without a full-service history. Be sure to provide all receipts and any documentation related to the car’s warranty, if it’s still valid.
In Summary:
When selling a car, whether through a dealer or privately, you'll need the following documents:
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