With used car dealership being a top marketplace for sellers, we feel that it is crucial for you to be informed on the selling processes for a better judgement. So, here is a useful guide to the 5 stages of selling your car to a used car dealership.
- 1.Sourcing for the best price: Get Quotes From At Least 3-5 Car Dealerships.
There are currently 5 car marts with over 700 used car dealership in Singapore. To negotiate a better price, it will be good to drive down to the dealership to speak to the boss instead of the sales person. If you find it too tedious, you can alternatively call the various used car dealership directory for price quotes. Often than not, the attractive buying price quoted offered over the phone can be substantially reduced upon the dealer's further inspection of the car.
2. Vehicle Inspection:
Now that you have obtained a good selling price for your car, the next step is to go for the car inspection. It is typical of a used car dealer to view the selling vehicle before giving a confirmation offer. Both interior and exterior of your vehicle will be examined for defects or signs of previous accidents. This is to ensure that the car is in a proper selling condition while new defects found will result in the deduction of the initially offered price.
It is crucial to obtain a comprehensive description of your vehicle condition to avoid discrepancy in the final offered price. Sometimes, dealers may even markup their repair costs to obtain the best price for themselves.
3. Signing Documents
Upon agreeing on the final offered price, you will have to sign a couple of relevant documents. Do take extra time to read through each of the documents sequence and clarification thoroughly.
Documents will Include:
- A.Cash Deposit – Amount ranging from $500 to $2000
- B.Purchase Agreement - At this point, you are obligated to sell your car to the dealer or you will be liable to pay double the amount of deposit.
- C.Full Settlement Form – When there is still outstanding bank loan on your vehicle. This is for the dealer to check and settle the loan balance amount with the bank.
- D.LTA Form (ES04 Transaction Pin Form) - If you are comfortable with the dealer keeping your NRIC, they can help with the collection of the transaction pin at Land Transport Authority. If you are collecting them yourself, do note to not to open the envelope.
- E.LTA Form (M01 Transfer Form): Lastly, both dealer and you will agree on a date and time — usually within a week — to hand over the vehicle.
4. Days before handover date
If your vehicle still has an outstanding bank loan, the dealer will contact the bank for the outstanding balance which will take two to three working days. During this period, take extra precaution and drive with care. You will not want an event where your vehicle is rejected by the dealer.
5. Handover date
On the car handover day, you will receive a cheque by the company. If your vehicle still has an outstanding loan, the cheque value would have been taken account of the outstanding loan. Even if there is no outstanding loan, you should request for a cashier order from the dealer just to be sure.
Upon receipt of the payment, you can now hand over the vehicle with the transaction pin obtained from LTA. OF course, sign on the purchase agreement and state the specific handover date/time to avoid possible dispute. In an event of traffic offenses, fines or damages after the stated handover date, it will not be incurred by you.
After handing your car over, you should contact the insurance company to terminate your policy and request for rebates refund if any.
We hope that this article has served you well and provide a more in-depth understanding on the process of selling your car to a used dealership. All the best!