How to sell your vehicle privately. A step-by-step guide.

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ipodmusicman

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Hi folks,

Updated this post on the 29th of July 2012.

We are selling our Renault Megane Sedan and I want to sell it privately since I can get MUCH more money for it than if I traded it in at a dealer.

I am compiling a step-by-step guide with help from from you, the MyBB forumites. I am sure this question gets asked a lot, but nobody seems to detail the steps one needs to follow. I hope to detail it with your help with precise instructions - even indicating which parts of the various forms one needs to fill in as well as any other details that I have missed.

I have outlined the following so far from the very sketchy explanations given on some websites, but any feedback on the steps below and any answers to questions that I have would be greatly appreciated. If there are any websites out there that give a good and concise step-by-step guide, please post it here. I want to make this a 1 stop step-by-step guide and your help making it awesome would be greatly appreciated a lot. :)

I'll monitor this thread and modify this post accordingly.

Ok, here goes.

Preparation of the sale

1. Make sure that all known defects are resolved. I had to replace my brake pads and discs, two rear tyres and wiper blades. If you have a conscience as a seller, you'll feel good that at the end of the day that you sold a car that has no issues that you are aware of plus it all adds up to being honost to the buyer.

2. Optional. Get a multi-point check done on the vehicle. Dekra is the company that is associated with that AA that carries out these checks. This does include a roadworthy test as well. If you really want to go the extra mile, you can have a technical inspection done which can take around 2 to 3 hours to complete. This just gives the buyer confidence. The only snag here is that Dekra could point out issues that you were not aware of that could cost you thousands to repair in order to clear your conscience. More details http://www.aa.co.za/36/vehicle-tests/ or http://www.dekraauto.co.za/

3. Optional. The seller can have the vehicle roadworthied beforehand, but since the roadworthly certificate is only valid for 21 days, it is recommended that the buyer do this. The buyer is required to hand this in, together with the "Blue" form and other supporting documentation.

4. Go to your local traffic department and pick up the following:

4.1 One "Yellow" Notification of Change of Ownership/Sale of Motor Vehicle form. http://www.capegateway.gov.za/other...change_of_ownership_or_sale_motor_vehicle.pdf

4.2 One "Blue" Application for Registration and Licensing of Motor Vehicle form. http://www.capegateway.gov.za/other/2006/3/rlv_app_registration_licence_motor_vehicle.pdf

I am going to refer to the "Yellow" and "Blue" forms within the context of this post.

5. Download a sales agreenment and print it out. Found one http://www.cooperattorneys.co.za/Vehicle/sale of vehicle.pdf

6. If you've paid off the vehicle, which I have, have the proof of ownership documentation with you as well the letter indicating that the car has been paid off. This letter is sent to you by the bank after you have settled the vehicle finance. If you're selling your car after you have transferred owership from the bank to yourself, then your Registration Certificate is proof enough that the car has been paid off.

If you have not paid off your vehicle as yet, request a settlement letter from the financial institution with whom your vehicle is financed through. This letter contains the settlement amount and it is generally a good indication that the car isn't stolen, etc.

You should also be in possession of the Registration Certificate of the vehicle which you'll need to hand over to the buyer.

7. Take the car for a major valet. Got those seats cleaned, esp if your car is a family car where on occasion your toddler has spilt food or drink on the seats. I did that and the seats are stain free and the car is shiny and clean.

The Sale

8. Advertise your car online (Gumtree, OLX, JunkMail, CarFind, Autotrader, etc) Make sure that you attach good and clear pictures of the vehicle. Also add a good description of the features and even include the reason for selling the car. Word the ad in a warm and friendly tone. Be honost and include any extras like it having iPod connectivitiy for example. If you decided to go with the AA multipoint check and roadworthy, indicate that in your ad as well.

9. Viewing of the vehicle by the buyer. This is your first person-to-person contact with the buyer and can be a nerve wrecking experience since you are trusting that your prised asset does not go bye-bye by some opportunist. Although we try to be a good judge of character by the initial phone call, decide based on your gut where to meet the buyer. Avoid corresponding with a potential buyer over SMS or e-mail. Go back to basics and speak to them on the phone.

Two possible suggestions are to get the buyer to come to your house or to a busy service station. Service stations generally have many people around and have CCTV cameras, so if there is an issue, the CCTV will be the watchful eye. Never meet them at their place of residence. It is up to you as to whether to invite them to your house to view the vehicle.

10. Make sure you have a friend / family member with you when buyers come and see the vehicle. You'll find that the buyer will also bring a friend / family member along for advice.

11. Keep your car keys at your side at all times. When going for a test drive, get into the front passenger seat while your friend / family member gets in at the back and then hand over the keys.

12. Once the buyer has indicated that they are interested in the car, confirm how they are going to finance the vehicle. A cash paying buyer is of course, the best and simpliest option.

12.1 If they are paying cash, require them to do EFT only. No cheques - not even bank guaranteed cheques or cheque deposits either.

12.2 Question: If they need to finance the car, what is the steps that need to be followed here?

13. Fill out the sales agreenment as mentioned above and both parties must sign. This is a binding contract. Question: Does the Consumer Protection Act apply here in terms of a 7 day cooling off period?

14. The buyer and seller must both fill in and sign the "Yellow" form from the traffic department. The buyer must fill in and sign the "Blue" form.

15. Request a copy of the buyer's identity document and drivers license. You want to sell your car to a licensed driver after all. Also keep in mind that you'll need to make a copy of your identity document as well which is to be submitted with the relevant forms to the traffic department.

16. Never let the vehicle leave your house without payment in full. Make sure that the funds are in your bank account and that they reflect as such. Cheque deposits reflect as an entry on your bank statement, but the funds are not available as yet until they clear. Make sure that the funds are available in your account. There have been many cases where a seller takes the proof of payment as gospel, but never checks that the funds actually cleared. Once that is the case, you can release the vehicle to the buyer.

17. Once the buyer has paid for the vehicle, agree on a date of collection of the vehicle. Again, rather get them collect it. Much easier on the logistics. :)

18. Besides the keys, provide the buyer with the spare key and any accessories that form part of the vehicle that are not attached to the vehicle (blinds, nets, etc). Provide the buyer with the following documents:

18.1 Proof that the car has been paid off if it was previously financed.

18.2 The "Blue" form from the traffic department filled in and signed.

18.3 Current Registration Certificate. If you do not have your Registration Certificate, you can obtain a new one by filling in the peach "DRC" form and paying R165 at the traffic department.

18.4 Copy of your identity document.

18.5 Roadworthy certificate if you decided to do the roadworthy yourself.

18.6 A receipt as proof of the sale.

18.7 Optional. Draw up an agreenment between the seller and the buyer indicating the date and time of the collection of the vehicle and that all fines incurred before transfer of the vehicle are his responsibility. Keep in mind that legally you, as the current owner, according to the traffic department, are still responsible for the fines incurred after the buyer has taken delivery and it is important that you hand in the yellow form to the traffic department as soon as possible to minimise the risk. An agreenment of this nature could possibily act as a scare tactic which could bind the buyer to drive responsibly.

It is advisable that you make copies of all documentation for your own purposes.

After the sale

18. As the seller, hand in the "Yellow" form to the traffic department. The buyer needs to hand in the "Blue" form as well as roadworthy documentation and registration certificate.

19. I believe the only time when new plates are required is when the buyer registers the vehicle in a different district. Eg. if the car has a "CA" reg and the buyer lives in Bellville, the buyer will get a "CY" reg.

19. Done! Now you can use the proceeds of the sale to finance your next vehicle. :)

Well that is it. Please comment below so that I can make this a concise step-by-step guide.
 
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Question: What documents, etc must be handed to the buyer?

17. Question: Does the buyer or seller or both need to hand the change of ownership form at the traffic department?
Click to expand...

To answer your questions:

The buyer must get a receipt from you saying that you have sold him the car and that it is fully paid for. He should also get a blue and a yellow form, signed by you, signing the car over to him.

I would then do an extra yellow copy for myself and make sure that I personally hand that in, as that is what new owners sometimes forget. It effectively gives him 21 days to get it into his name.

I would also draw up an agreement that he must sign, stating that he took delivery of the car at X time on X day, and that he is liable for any traffic fines from that time onward.
 
The BUYER and SELLER fill in the yellow form, but the SELLER hands in the yellow form. Very important, do NOT give the yellow form to the buyer to hand in, if he forgets it's YOU the seller who gets in the ****, not the buyer. Until that yellow form is handed in, the SELLER is responsible for all traffic fines, etc that the BUYER incurs after buying the car, so it's important that you, the SELLER, hand it in as soon as possible after selling the car.

Only the BUYER fills in the blue form and hands it in.

Roadworthy can be done by whoever as long as it is less than 6 months old. Bottom line is that the car will not be allowed to be transferred unless there is a less-than-6-months old roadworthy certificate to go with the transfer.
 
Thanks very much for your feedback so far, keep them coming. I'll be updating the OP above.

I get the impression that it is optional for the buyer to hand in the yellow form or is it best practise for both parties to hand in the yellow form.

What document is the "Blue" form? I hope to make a pitstop at the traffic department this week to get all these forms. It seems that it is a better move on the seller's part to get the roadworthy done so that the transfer after the sale can happen ASAP.
 
ipodmusicman said:
Question: What do you need if your car is still financed and how do you get the documentation?
Click to expand...

Phone your finance bank and ask for a settlement letter. This will show the outstanding finance amount which the bank is willing to accept in full and final settlement of your debt to them.

The settlement letter is also, sort of, proof for the buyer that the vehicle is legit and is not stolen etc. The downside is that a settlement letter is usually only valid for 14 days - so, as a buyer, you want to make sure the settlement letter you receive is up to date.

If I were the buyer, I would ask for this letter and pay the amount directly to the bank (with proof of payment sent to the seller). Once the seller has received the registration papers, I would pay the net amount left to the seller. If I were the seller, I wouldnt have any issues with this (because proof that the buyer has paid is easily confirmed) but I would record that if the buyer opts for this method, any payment by him is at his risk (so if the bank made an error on the bank details / reference number - it does not constitute payment by him to the seller).
 
ipodmusicman said:
9. Get the buyer to come to your house. Never meet them somewhere else or at their place of residence.
Click to expand...

I disagree - I dont want any potential car thieves to know where I live. If they do, they can always come back later and just steal it. So I always meet buyers in a public place.

10. Make sure you have a friend / family member with you when buyers come and see the vehicle.
Click to expand...

This really helps. There is so much to know about cars, its so easy to miss something vital. Also get someone knowleadgeable about the particular car you are looking at - pay them if you have to. It can save you from buying a lemon.

15. Never let the vehicle leave your house without payment in full. Make sure that the funds are in your bank account and that they reflect as such. Cheque deposits reflect as an entry on your bank statement, but the funds are not available as yet until they clear. Make sure that the funds are available in your account. There have been many cases where a seller takes the proof of payment as gospel, but never checks that the funds actually cleared. Once that is the case, you can release the vehicle to the buyer.
Click to expand...

Yes, a thousand times yes. Never, under any circumstances, release the car before full payment has been made. Never. You will get screwed over.

I would also suggest that, if you already have the roadworthy, and the funds have cleared, then take the forms, both of them, to the traffic department, and get it changed over. Why? Because some people are forgetful, lazy or just plain looking to avoid having to pay traffic fines, so they leave the car in your name. If in any doubt, get the roadworthy done, get him to sign the forms, and then have the car transferred. That way, you know 100% sure you wont get any traffic fines for a vehicle you no longer own, or arrest warrants (have heard it happen).
 
What document is the "Blue" form? I hope to make a pitstop at the traffic department this week to get all these forms. It seems that it is a better move on the seller's part to get the roadworthy done so that the transfer after the sale can happen ASAP.
Click to expand...

The "Blue" form is the one that transfers registration into the name of the new owner. The Yellow form takes it out of your name and into his. BOTH forms have to be handed in, if you are to register the car.
 
ipodmusicman said:
Hi folks,
3. Optional. It is highly recommended for the seller to have the vehicle roadworthied. The transfer of the vehicle into the buyer's name can only occur once a roadworthy certificate that is no older than 21 days old accompanies the transfer documents that are handed in at the traffic deparment. If you are like me and you want something done properly, do it yourself. The less delay you add into the equation on the buyer's side to get the car transferred over to their name, the better. But if you choose not to do the roadworthy, the buyer would be responsible for this.

4. Go to your local traffic department and pick up the following:

4.1 One "Yellow" Notification of Change of Ownership/Sale of Motor Vehicle form. http://www.capegateway.gov.za/other/...or_vehicle.pdf

4.2 One "Blue" Application for Registration and Licensing of Motor Vehicle form. http://www.capegateway.gov.za/other/...or_vehicle.pdf
Click to expand...

1. The seller is responsible for the roadworthy and has to have this done before sale of the vehicle. This is by law. The roadworthy needs to have been done in the last 6 months (not 21 days as stated).

It costs around R200 at the Department of Transport but depends a bit on where you go.

Note: don't bother wasting your money on this if you are selling to a company that resells vehicles or trading it in. Companies like that do their own and it costs them less. They will also cover all registration.

2. The buyer is responsible for change of ownership and registering of the vehicle (both blue and yellow forms but seller must sign yellow form) and this must be done within 21 days (actual days not working days). Personally I prefer to do this myself in a private sale just to make sure.

It costs around R120 for change of ownership and for registration R69 + penalties and arrears + licensing which depends on tare mass (R250 for an average hatchback).

3. The license plate remains the same unless you are registering the car in another province. The buyer will receive a new registration number and can then purchase license plates. This is their responsibility; do not get involved.

4. As buyer, when handing in both yellow and blue forms (at the same time, yellow form sign by seller or bank proxy) you must also have a copy of their id (or bank proxy id), your id and the Registration Certificate.

5. The Registration certificate is the most important - you should never pay until you have seen this and confirmed that all the details on the form match the vehicle itself i.e. VIN number, year model etc.

6. Some advice: use mytransunion.co.za to check a vehicle once you are serious about buying it. You will need VIN, engine number and registration number. You can get a valuation, registration details, accident history (only those reported to insurance) and a police clearance. R110 for an all in one report.

7. Hortors also have an excellent Offer to Purchase for R20. I just make a copy and reuse it ;)
 
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deweyzeph said:
The BUYER and SELLER fill in the yellow form, but the SELLER hands in the yellow form. Very important, do NOT give the yellow form to the buyer to hand in, if he forgets it's YOU the seller who gets in the ****, not the buyer. Until that yellow form is handed in, the SELLER is responsible for all traffic fines, etc that the BUYER incurs after buying the car, so it's important that you, the SELLER, hand it in as soon as possible after selling the car.

Only the BUYER fills in the blue form and hands it in.

Roadworthy can be done by whoever as long as it is less than 6 months old. Bottom line is that the car will not be allowed to be transferred unless there is a less-than-6-months old roadworthy certificate to go with the transfer.
Click to expand...

Just a note: actually both are the buyer's responsibility and you can get out of paying the fine with proof that you sold the car but yes, I don't trust anyone and rather do it myself because we all know how dealing with the DOT can be esp. with regard to fines.
 
IzZzy said:
Phone your finance bank and ask for a settlement letter. This will show the outstanding finance amount which the bank is willing to accept in full and final settlement of your debt to them.

The settlement letter is also, sort of, proof for the buyer that the vehicle is legit and is not stolen etc. The downside is that a settlement letter is usually only valid for 14 days - so, as a buyer, you want to make sure the settlement letter you receive is up to date.

If I were the buyer, I would ask for this letter and pay the amount directly to the bank (with proof of payment sent to the seller). Once the seller has received the registration papers, I would pay the net amount left to the seller. If I were the seller, I wouldnt have any issues with this (because proof that the buyer has paid is easily confirmed) but I would record that if the buyer opts for this method, any payment by him is at his risk (so if the bank made an error on the bank details / reference number - it does not constitute payment by him to the seller).
Click to expand...


So I have a question: what is the actual rule regarding paying for a bank owned vehicle? Technically the bank owns the vehicle and their agreement with the seller is between them and has nothing to do with the buyer i.e. the full amount should be paid to the bank as the owner. It's more complicated than that of course and the internet has a surprising dearth of information.

What I want to know is, what does the bank say about who gets paid when I buy a financed vehicle privately? I don't want to know what everyone thinks - I want the actual hard rule.

I will ask the bank but sometimes it can be hard to get information out of them!
 
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deweyzeph said:
The BUYER and SELLER fill in the yellow form, but the SELLER hands in the yellow form. Very important, do NOT give the yellow form to the buyer to hand in, if he forgets it's YOU the seller who gets in the ****, not the buyer. Until that yellow form is handed in, the SELLER is responsible for all traffic fines, etc that the BUYER incurs after buying the car, so it's important that you, the SELLER, hand it in as soon as possible after selling the car.

Only the BUYER fills in the blue form and hands it in.

you would be able to register it without a roadworthy but you wont get a disc till you have the rwc..meaning the longer you take the more you going to pay again on your lisence disc.and 100% on the rest:)
Roadworthy can be done by whoever as long as it is less than 6 months old. Bottom line is that the car will not be allowed to be transferred unless there is a less-than-6-months old roadworthy certificate to go with the transfer.
Click to expand...

Roadworthy can be done by whoever as long as it is less than 6 months old. Bottom line is that the car will not be allowed to be transferred unless there is a less-than-6-months old roadworthy certificate to go with the transfer.[/QUOTE]
 
Regarding the validity of roadworthy certificates, it is 21 days. This become effective on the 25th of November 2010.
 
I'm still confused by which forms have to be handed in by whom.
If I'm the seller can I hand in both blue and yellow at the same time, and the buyer does nothing?
Or can I just hand in the yellow form, and the buyer deals with the blue form in their own time (within 21 days)?
 
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