If you plan to sell your car, in order to transfer it successfully to someone else you need to follow 5 necessary steps.
- Sales Agreement Form
When you and the prospective buyer agree on a price, you should both sign the Sales Agreement Form; this form states the terms and conditions of the transaction. In order to confirm the transaction, the buyer needs to give you a down payment.
- Invoice
When you receive the down payment from the buyer, you should issue an invoice for the amount of money you have collected. Both you and the buyer should keep a copy of the invoice which is the proof that the buyer paid the down payment and that you have received the deposit.
- Loan Facilities & Insurance
In case the buyer needs to take out a loan to pay for the car, it is his/her responsibility to find the source that will finance the loan. When a financial source has approved the loan, the buyer should notify you, and in turn you should ask to see proof for the approval of the loan. It is also the responsibility of the buyer to get car insurance under his/her name.
Without active car insurance the transfer of ownership for the car cannot be completed.
- Existing Loan
If the car you are selling has not been paid off, you should pay any outstanding loan before the transfer of ownership to the buyer can be completed. Once all outstanding payments are settled, it is your responsibility to forward the full settlement form to the bank.
- Hand-over form
The last step in the process after the transfer of ownership is completed is the signing of the hand over form. The hand over form states that you are no longer responsible for the particular car, or for any future fines or financial claims related to the car after the date of the hand –over.
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By following the above steps you will ensure a legal and trouble-free sale of your car.
