11 January 2011

Procedure of Selling / Buying a Second-Hand Car in Malaysia

1. Document preparation
i. Get a set of transfer forms needed in the nearest J.P.J. branch.
a) Borang Semak (TM3).
b) Transfer of ownership form (JPJK3). (JPJK3A is for deceased owner)
c) Form to certify new ownership (TM-AB). (It is needed only if the new owner does not able present to JPJ)

ii. Fill up the form and sign it wherever necessary.

iii. The new owner’s identification card or MyKad have to be certified by:
a) An officer of the Transport Department.
b) A Commissioner of Oaths.
c) A Justice of Peace of J.P.
d) A Judge from the Session Court.

(If you wish to save some money, you could go to J.P.J. office. An officer there will help you certify the above documents.)

2. Puspakom - Car checking
Find the nearest Puspakom center to do this checking.
(please check it at http://www.puspakom.com.my/html/inspection_branches.aspx). Although your car should be in a good condition to pass the test, it is good idea to send it for servicing before sending it for inspection purposes. After that, Puspakom authorities will supply a K5 certificate which is required in the car transferring by the J.P.J. authorities.In my case (private car), it took me about one hour and the cost is just RM30.

3. New insurance purchasing
The new owner is required to buy a new insurance (under his/her name).

4. Submitting all the documents and the transfer form to the J.P.J. for transfer.
Another cost is a transfer fee of RM100. That's all for today. More fascinating articles and sharing will be updated from time to time in Xaivier Blog. Therefore, you are welcome to subscribe our feed, look at our sitemap or simply visit our Homepage.

Written by: Xaivier Chia

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Other Useful Links:
-For more information about No Claims Discoun (NCD), Excess, Own Damage Claims, Theft and Windscreen Claims etc.
http://www.roadtax.com.my/faq.htm

-JPJ forms and Q&A-
http://portal.jpj.gov.my/index.php?option=com_content&view=article&id=72:panduan-tukar-hakmilik-secara-sukarela&catid=6:kenderaan&Itemid=42&lang=en

-"I wish to inform you that “middle men” demand as much as RM450 – RM500 for such a transfer. So, do you think the amount is worth paying for such a job done, by all means, you could engage their services."
http://driving-school.com.my/driving-in-malaysia/how-to-transfer-vehicle-ownership-in-malaysia/

P/S: I paid RM250 for so-called "middle man" (Motor Insurance Agent) for processing step 1, 3 and 4 after I settle Puspakom myself. In fact, it was a not bad experience for me in Puspakom. Just drive my car to Puspakom and then wait for checking. That's all. Simple and save money.

P/S: For latest information about "Procedure of Selling / Buying a Second-Hand Car in Malaysia", please consult J.P.J. officer in your nearest J.P.J. branch or log on www.jpj.gov.my.

//==============================================//
Updated: 2013 Oct
About sell your car during the existing Hire Purchase (HP) term:
"When you sell your car during the existing Hire Purchase (HP) term, ensure the outstanding loan is fully settled with your financier before you transfer the ownership. You will be liable for any unpaid installments as long as the HP loan is still under your name" - AKPK


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90 comments:

popo said...

Can you please share with me the contact person of the Motor Insurance Agent that you used for this as I will need to engage in one to help us with all the documentations and what not.

thanks.

Xaivier Chia said...

Hi Popo,

As a rule of thumb, please always find your trusted local Motor Insurance agent. Most of them know how to do it because it is not a rocker science.

The local agent must be reachable and with good reputation.

So, what I can share with you is just ask your friends or relative "who are their motor insurance agent?" "Are the agent helpful?" "Are the fee reasonable?"

Good luck and all the best.

popo said...

Thanks for your advise Xaivier and would you happen to know where exactly can i find this form or do i just create one myself?
c) Form to certify new ownership

Also, the JPJK3A form title actually states that its a "borang Penyata Pertukaran Milikan Kenderaan Motor selain daripada pindahmilik secara sukarela oleh pemunya berdaftar". Should it not be the JPJK3 form then since it's the "borang penyata pertukaran milikan kenderaan motor secara sukarela oleh pemunya berdaftar" ?

Since my boyfriend is acutally tranferring the ownership to me shouldn't it be the second form? JPJK3?

thank you!!!

Xaivier Chia said...

Hi Popo,

If you are in Malaysia, you can get all needed transfer forms in the nearest J.P.J. office.

To find local JPJ office, you can visit JPJ website: http://portal.jpj.gov.my/index.php?option=com_sobi2&catid=2&Itemid=53&lang=ms

Next, about JPJK3A and JPJK3: Yes, you are correct. You should use JPJK3. Thanks for pointing out this matter. JPJK3A, in fact, is for for deceased owner.

You are very welcome.

Xaivier Chia said...

For latest information about "Procedure of Selling / Buying a Second-Hand Car in Malaysia", please consult J.P.J. officer in your nearest J.P.J. branch or log on www.jpj.gov.my.

-----------------------------------------------
By the way, I found any other similar post that might be useful as stated below:

Items to be presented at JPJ:
1. RM100 postal order.
2. A4 sized photocopy of IC (seller & buyer), front & back on the same page.
3. Car Registration Card of course.
4. 2 copies of Form JPJK3 (filled & signed by both parties. Forms can be downloaded from internet. Don't mistaken JPJK3 for JPJK3A which is for deceased owner.)
5. Presence of seller & buyer at JPJ. If the seller cannot be present, he/she has to sign another JPJ form titled 'Surat Akuan' (which is available from JPJ, not online, or from any Commissioner of Oath) in front of a Commissioner of Oath as well as have the commissioner verify and stamp the photocopy of IC.
Any other letter from the C of O is not valid. After that, the buyer's presence alone at JPJ is adequate to complete the transfer.

Asked an agent at JPJ how much they charge if they were to do it for me, RM130. These agents have got all the forms ready, even blank 'Surat Akuan' signed and stamped by commissioner of oath!

Source:
http://www.motortrader.com.my/cars/forums/forumsearch.aspx?forumid=148&threadid=935305

Xaivier Chia said...

For latest information about "Procedure of Selling / Buying a Second-Hand Car in Malaysia", please consult J.P.J. officer in your nearest J.P.J. branch or log on www.jpj.gov.my.

-JPJ forms and Q&A Link:
http://portal.jpj.gov.my/index.php?option=com_content&view=article&id=72:panduan-tukar-hakmilik-secara-sukarela&catid=6:kenderaan&Itemid=42&lang=en

Xaivier Chia said...

Hi, Popo,

The form to certify new ownership is needed if the applicants do not able to present to JPJ. The form is available in JPJ website as well. Link: http://portal.jpj.gov.my/index.php?option=com_docman&task=doc_download&gid=6&Itemid=96


A useful source you can refer to:
Panduan Tukar Hakmilik Secara Sukarela
http://portal.jpj.gov.my/index.php?option=com_content&view=article&id=72%3Apanduan-tukar-hakmilik-secara-sukarela&catid=6%3Akenderaan&Itemid=42&lang=ms

Good luck and all the best^^

Mr. Fox said...

Hi Xaivier,
Good day. Could you please advice the step-by-step process which involves buyer getting a loan from finance company?

Xaivier Chia said...

Hi Mr. Fox,

Sorry. So far, I did not have similar experience.

But generally, do visit nearest local bank. Get your personal credit report. Good credit report will help you get a better loan offer.

Then apply few from few banks. Compare them before making final decision.

Good luck.

Mr. Fox said...

Hi Xaivier,
I meant to find out not the loan application process, but rather the process leading to ownership transfer when the buyer is taking a loan.

In particular, I'd like to find out whether the transfer of ownership takes place before or after the bank pays the seller; and how does the e-hakmilik works?

Also, what about insurance termination - when should the seller's insurance be terminated?

Thanks again.

Xaivier Chia said...

Hi Mr. Fox,

For insurance matter:
Buyer, new owner, must have an insurance policy with his name;
Seller can transfer existing NCD to his new car;
If the insurance still not reach its maturity date (one year, normally), seller can refund it, or transfer/sell it to the buyer. But more fee is required if buyer has less NCD than the seller (for paying the discount which was given the seller, not the buyer). NCD of the seller will not be affected and cannot be transfered.

For others, I am not very sure.

In my case, I brought my current car from my relative by cash. In fact, both things, ownship transfer and payment, are done separately.

For secure, normally, you can try to ask the banker to transfer the money to seller only if the ownership transfer is successful. The first step apparently is to apply a loan. One the loan is done, then ownership transfer. And Finally, allow banker to process the payment to the seller.

Without proper agreement:
1. the seller will be trouble after transfering ownership if the buyer does not able to get loan for payment.
2. the buyer will not get his purchase after paying.

I hope these will help you. Good luck.

jelly said...

Hi , can i check wiht you:
other than the above mention form, do i need to get a loan settlement letter from the bank ?
because the bank staff claimed they will send to us automaticall after we settled the loaned ,but so far never receive,
now i am going to sell the car to relative, is it a must to get the letter from bank again ?

Thanks !!

Xaivier Chia said...

Hi Jelly,

As long as you have car ownership card, it is supposedly not necessary to get a loan settlement letter from bank for owner transferring.

Generally, car ownership card has been kept by banker until the loan is settled, then it will be returned to the owner.

Good luck.

Hewey said...

Hi, thanks for the useful info.
But I would like to ask one thing, when selling a car, are the procedures 1-4 normally done by the buyer or seller?

Xaivier Chia said...

Hi Hewey,

This matter will affect the price of the car. If the seller done it, who will also add the cost into the price of the car.

In other words, we must check this matter when we make a price comparison. The price difference will upto few thousonds dollar (The major cost is insurance fee).

nys62m said...

i want buy a celica direct to the owner wat should i do??
i just age of 20, can i get loan??
which bank will give me the lowest interest???
will the income tax officer disturb when i buy the car???

Xaivier Chia said...

Hi nys62m,

Firstly, make sure the car is legal and the reason why the owner want to sell it.

Then, to get loan, it depends on your income and the amount you want to loan.

Since the interest of bank will change from time to time, you may need to compare few of them before making decision.

Lastly, of course, income tax officer has responsible to check any suspected account. So, as long as the income or the money you accumulated by legal way, this should not a problem. In addition, paying tax is the duty of all people.

I hope these will help. All the best.

kwokwah said...

Is there any difference selling a car to a foreigner? Same procedure to be followed?

Xaivier Chia said...

Hi kwokwah,

Sorry. I am not sure about this matter.

But you can ask JPJ officer about this matter when you go to JPJ to take those documents.

All the best.

bri said...

Hi Xavier Chia

Please let me know what to fill up for form JPJK3
a) No. Pendaftaran
b) No. Pendaftaran (UN/DC)
what are they?

Thanks
bri

Xaivier Chia said...

Hi Bri,

"No. Pendaftaran" is the car registration number, e.g. XXX 1234.

From the notes of the form:
"No. Pendaftaran(UN/DC)" - Isikan nombor pendaftaran UN/DC sekiranya pertukaran milikan melibatkan kenderaan berkenaan.

So, this is only applicable for the applicant who has DC (Kor Diplomatik) or UN (wakil Pertubuhan Bangsa-bangsa Bersatu) vehicle.

I hope this will help you. All the best.

Xaivier


reference:
http://www.bharian.com.my/articles/WWWpecahrekod/Article/print_html

Kian said...

Hi Xaivier,
Could the seller get a prorated refund for the auto insurance on the said car being transferred? Since the buyer will get a new insurance anyway.
Thanks,
Kian

Xaivier Chia said...

Hi Kian,

Yes, of course. Just like other insurance - we prepay one year insurance fee for one year coverage. So, insurance company should return the extra premium of a particular insurance after we cancel the insurance before the expire date.

In short, remember to ask your insurance agent to cancel the unwanted insurance and return the unused premium.

All the best^^

Qazi Mamoon said...

Hi,

I am a foreigner, and I was interested in buying a 2nd hand car. Do the same rules apply to me also?

Also, how can I know if the car being sold is legal or not?

Xaivier Chia said...

Hi Mamoon,

First, please don't give any deposit until you know the car being sold is legal. You can check this matter with http://portal.jpj.gov.my/ or visit nearest JPJ office.

Actually, I have no idea about your case. But, supposedly, you can check this at http://portal.jpj.gov.my/.

All the best.

ichiro said...

if i understand your posting correctly, meaning going to the jpj branch to sign over the ownership of the car would be the last step in the whole purchasing procedure?

Xaivier Chia said...

Hi ichiro,

All you need to do is to ensure all required documents have been prepared completely, then submit them to jpj branch for processing.

Actually, you do not neccessary follow the steps. For example, I went to Puspakom first to ensure the car I was going to buy passed the Checking since I outsource the steps 1,3 and 4 as I mention in the post.

Best wishes.

sg chee said...

hi Xaivier,
I wish to do the following:
I am in KL and want to transfer my car to a new owner in Penang. I am unable to go the Penang to do the transfer due to work commitment. The new owner to be is a good friend of mine and he is willing send the car to puspakom for checking and do the necessary transfer in Penang. What must I do?
(1) can I just get form TM3 and JPJk3 sign and hand the form to him. Will this step is enough on my part? What else should i do? of course i will give him the car registration card and a copy of my identity card in A4 paper.
Please advise me.
Thanking you in anticipation.
SG chee(Penang)

Xaivier Chia said...

Hi Chee,

A good news for you, i.e. you can complete ownership transfer application via online as stated below:
"... the revamped system would allow the public to book vehicle registration numbers for any state. They can also get the latest statistics on new vehicle registrations and ownership transfers..."

Read more: RTD's new online system to be ready in June - Top News - New Straits Times http://www.nst.com.my/top-news/rtd-s-new-online-system-to-be-ready-in-june-1.67653#ixzz1qTrdcVnx


However, the system is only started at June. So, maybe you need to wait for few months if you want to do ownership transfers via online.

Now, let me share some of my experience and I hope these will help you:
1. You should present to JPJ as well to complete the ownership transfer application. If not, you need to sign a form to assign a third party to on behalf you.

2. You should photocopy your and your friend's IC on a particular form which contains two boxes, one for car owner, the other for new car owner (sorry, I forget the name).

p/s: Supposedly, you also need to provide your handphone number. JPJ will call you for verification as one of parts of ownership transfer procedure.

All the best.

Mark Nicol said...

H Xavia,

I have a few questions regarding selling a car to a second hand dealer to make sure I get the money and also that the car is properly transferred from my name.

I have agreed a price verbally and have sent a copy of the log book and my IC so he can check I am the owner and there are no outstanding summons. We agreed to meet in a few days time when we will sign the documents for JPJ and go there to confirm the handover of the car. After this he will give me a cash cheque and I will give him the keys. I am concerned on 2 fronts:

1. How do i know once I have signed the car over he will give me a cheque, as i understand once we sign and JPJ approve he docs he is the legal owner.
2. Should I receive the money and ensure it is cleared before signing the documents at JPJ?

I am an expat leaving the country and am concerned I may end up losing the car and getting nothing.

Appreciate your views/experiences on what steps I should follow, and in which order, to ensure I am not conned.

Thanks,
M.

Mark Nicol said...

Sorry for spelling your name wrong Xaivier!

Xaivier Chia said...

Hi Mark,

Personally, I will:

1. make sure the dealer has a good reputation in the market (e.g. already doing this business for years, have a legal licence, shop).

2. (if possible)ask a full payment before sign the ownership transfer doc. supposedly, the dealer will ask you to sign an agreement to safeguard his interest as well, i.e. the car owner must be transfered successfully, otherwise, you should return back all money within few days.

3. require an duplicated copy of all signed documents (both seller and buyer) for your personal record.

4. make sure you have received the full payment before confirm with JPJ about the ownership transform. Supposedly, JPJ will call you to ensure you have agreed to the application before they proceed the application.

Lastly, the most safest way is to make an agreement in black and white about this application, with a present of one witness, who will sign the document as well.

Example of agreement:
http://www.donnyspi.com/images/vsa.pdf

From other useful website:
i.e. "In my opinion, many motorists do not know the correct procedures to adopt when selling a vehicle. What they normally do is:
i) Sign the MV3 form.
ii) Provide 2 copies of their MyKad to the new owner.
iii) Hand the Registration card (blue book) to the purchaser or finance company and that’s about it.

They should in fact:
i) Inform in a letter to the Registrar of Motor Inland Vehicles (R.M.I.V) of the sale
ii) Inform the Police authorities of the sale too.
iii) Inform the insurance company of the sale as well.

Ideally, a simple agreement should then be concluded between you and the purchaser of your car.

In it, state that as from henceforth, you are no longer liable for:
i) Any traffic offences that might be caused by the said vehicle.
ii) For any accident which might involve the vehicle which is registered under your name.
" (source: http://driving-school.com.my/driving-in-malaysia/how-to-transfer-vehicle-ownership-in-malaysia/)


All the best.

Joe said...

If i post my car for sale eg mudah.com
and a buyer agree to buy, my car still under finance, still owe MBB 26k.

What is the procedure on banking part? u only explain on jpj part.

I take it he will pay me certain deposit? Then he will approach bank to apply for loan, when loan approved. He will sign the offer letter and bank will issue cheque under my name..
Then with the cheque we will go over jpj to transfer name ? Who is paying for the transfer fees?

What docs involves in the process?

BMW said...

Hi Xaivier, I Bought A Second Hand Car from a Car Dealer. Its Been A Month Since Yet To Recieved The Car Owner Transfer to My Name Yet.
and I have Paid Cash For The Car. When ask the dealer Say It Will Take 10 days To 2 Weeks.And When Ask Again Dealer Says Dont Remind Him.Is There A Problem

Wk Yong said...

hi, just want to ask for your opinion, sold my car at RM17000 cash to a buyer today. we will go together to the bank and get the cash transferred into my ac. Once done, what should i do next? give him the car and the car registration card on the spot? he said he will do the change of ownership himself...asked me to give him my photo copy of IC with certified by commission of oat. Should i come out with my own letter to let him sign as to protect myself, stated that vehicle is fully paid and transferred to buyer, and causes to the vehicle will be under buyer's responsibility. appreciate if you could give some advise. Thank you

Xaivier Chia said...

Hi Wk Yong,

As a practical rule of thumb, it is better for you to do the ownership transfer together with the buyer in JPJ personally.

Two things you should concern about:
1. Eventhough you have receive the payment from buyer, you are still the owner of the car before the ownership transfer is done. In other words, what you should do if any bad thing happens related to the car before the ownership transfer is done?

2. How does the payment make to your account? By cash deposit or by cheque or by direct account transfer? Can the buyer hold on and cancel the cash transfer within one working day? To avoid such worry, an agreement signed by both parties (buyer and seller) is quite useful.

I believe if buyer/seller really want to buy or sell their car, they are very willing to sign those agreement to protect both parties' interests.

All the best.

Failure Queen said...

Hi, What are the procedures if the buyer wants to buy my car cash?

I don't owe the bank anything since I've finished paying for the car last year.

Xaivier Chia said...

Hi there,

The answers can be found in the previous comments.

Regards.

jhiawei. said...

hi xalvier,
my friend is interested in taking my car
i have a balance of 15k for my car.

1) Will banks allow him to take a full loan?
2) Will the banks be able to help with all transfering of paper work?

Xaivier Chia said...

Hi jhiawei,

1. Banker will assess his financial status before making any loan decision. However, for second hand car, it is rarely for banker to offer full loan.

2. Banker provides financial related services. For special services, maybe you need to ask them personally.

Best wishes.

Jen Yap Yong said...

Hi,i wanna buy a secondhand car ,but the car still have instalment with the bank.So wht should i do? the car is selling at RM20000,and the balance of instalment is RM 10000, so the owner ask me to paid the balance first , then just go puspakom and renew the insurance.
I feel something wrong with it...

Xaivier Chia said...

Hi Jen Yap Yong,

Based on my friend's experience, an extra legal fee is needed for bank to transfer ownership if there is an outstanding loan by previous owner. Moreover, earlier settle up the loan will also have extra penalty charges. Supposedly, the seller need to bear these charges.

Supposedly, you need to do ownership transfer first (i.e. go to puspakom first then JPJ) before buying a new insurance under new owner's name (a.k.a. your name).

The thing is whether the ownership of the car can be successfully transfered to you. Because Puspakom will verify the safety of car, then JPJ will verify the background of the car.

To safeguard both interests, it is better to have an agreement as a black and white.

Additionally, you should also make sure the price of RM20,000 inclusive and exclusive of what items, e.g. insurance, road tax, and other costs.

So, what you can do first is to check some background of the car via JPJ website. Then, make sure the car condition can pass Puspakom inspection.

10K is quite huge portion (50%). I hope my humble opinion can help you.

All the best.

Eugyn said...

Xaivier,

I encounter a problem which is I paid a deposit to a 2nd hand car dealer for used 1 month old new car without test drive and check any outstanding summons of that car since it was festival season.

What else I should look in to it when I submitting my other documents to them for bank loan?

Thanks!

Xaivier Chia said...

Hi Eugyn,

Supposedly both of you (car dealer and buyer) need to sign an agreement to protect both parties' interest upon the receiving of the deposit. In such case, the responsible of dealer and buyer will be written to avoid any conflict. Therefore, you can refer to the agreement to see what you should do and what the dealer will help you to do (that is the responsible of dealer).

For testing drive matter, it is better to find your familiar experienced auto technicial to do it and provide you an independant third-party technical advice.

Remember the car dealer is to sell their car a.s.a.p. They also may not have the responsible to tell you the full story of the car (such as the history of the car; the reason why the previous owner what to sell the car; any accident case involved; any serious replacement of the car original parts; etc).

If the dealer has a good reputation for years, I think the chance for them do take a risk to ruin their reputation is very low. Nevertheless, as consumers, we also have our responsible to do our homework.

I hope my humble opinion can help you.

All the best.

Eena Waseem said...

Dear Xaivier,
I need to ask you some urgent matters. I am a foreigner in Malaysia and my dad bought a second hand car two years ago which was registered under my brothers name.

Today, I wanna sell the car, many buyers come and as the owner my brother is not in Malaysia,they say that the ownership cannot be transferred as the owner himself as to sign in a document in front of a lawyer.Can you tell me the procedure of selling the car if the owner is not here?

Xaivier Chia said...

HI Eena,

If possible, I would like to suggest you to go to nearest JPJ for inquiring the latest ownership transfer procedure.

One thing which is quite sure is that the owner must sign the ownership transfer form (Because it is his car, and of course it is a must to have his agreement).

All the best.

Eena Waseem said...

Dear Xaivier,

Thank you for the information.
Will it be alright if i have a letter from the owner stating all the details with his finger print and IC Copy. is it a must that he should be present?

Xaivier Chia said...

Hi Eena Waseem,

Supposedly, the owner can assign a third-party person to complete the ownership transfer application on behalf of he/she. However, of course, there are some forms need to be filled and verified by the ownership personally to justify this matter.

In order to save precious time, it is a good idea to inquire the latest procedure from JPJ officer. And please don't forget to take all relevant forms/documents from them as well if they are available.

All the best.

manav said...

Thank you for the info. It sounds pretty user friendly. I guess I’ll pick one up for fun. thank u









Procedure to register a branch office

sid said...

i have the grant
i have the old owner's ic

can i still transfer the names without the old owner being besides me??
what im tryin to say is i want to change it all by myself...

....is it still possible to do that nowadays?

im buying a 2nd motorcycle

Xaivier Chia said...

Hi Sid,

You need the owner's verification and agreement first.

Owner can ask third party to represent he or she to JPJ. Please consult your nearest JPJ's officer.

Best wishes

Mechanism8 said...

Hi Xaivier,

I wish to sell my sister's car on her behalf because she is currently overseas. Is there a requirement for the owner to be personally present at the JPJ office to sign or can I poslaju the dox to her for signing?

Xaivier Chia said...

Hi Mechanism8,

Last time (around Jan 2011), my ownership transfer was done by third party since both buyer and owner were not available.

As long as the rule is still the same, I believe you do it on behalf on your sister.

All the best.

Xaivier Chia said...

General JPJ transfer car ownership procedure:

1. Get the forms ready for transfer. You can download the forms from JPJ website. Forms you need are as follow: JPJK3, TM-1, TM-AB (photocopy both buyer/seller IC).

2. After completing, go to JPJ and submit all the forms together with the original Car Registration Card, new buyer insurance cover note and PUSPAKOM inspection report. Some JPJ branch required buyer and seller to be present but some only buyer will do. Seller unable to present must get their photocopy of IC certified by Comissioner of Oath.

3. Pay RM100 (you can buy postal order from JPJ itself).

4. Wait for the transfer name to complete and collect back the transferred ownership of car registration card on the same day.

Source: http://www.jpj.my/Ownership_Transfer_and_Payment.htm

Xaivier Chia said...

Voluntary Ownership Transfer System

More info: http://www.myeg.com.my/faq/stmsr.html

James Ong said...

Hi Xaivier

What is the procedure if we buy a second hand car from a used car dealer? Although the dealer says he will settle everything I still want to know whats going on so I wont be cheated. That being said, what do we, as the buyer, need to make sure that the dealer does or doesn't do?

Normally the price quoted by used car dealers is only the price of the car? and not insurance, road tax and such?

Thanks

Xaivier Chia said...

Hi James,

Actually, the procedure will not be much different from the post.

To secure your interest, always read and understand all black and white you are required to sign. Especialy all the terms and conditions.

About the pricing matter, it will very depend on your negotiation skills and market condition. But with sufficient comparison in the market (such as visit more than 3 different dealers) you should be able to find a good dealer that provies competitive price.

All the best.

Mey yk said...

Dear Xaivier, may u translate this?

1. Borang Penyata Pertukaran Milikan Kenderaan Motor Secara Sukarela oleh Pemunya Kenderaan.

2. Saya, pemunya berdaftar kenderaan motor ini, menukar milikannya secara pindahmilik secara sukarela kepada pemilik baru tersebut di bawah.

3. saya mengaku telah menerima milikan kenderaan motor tersebut secara pindahmilik secara sukarela yang dibuat oleh pemunya berdaftar di atas dan memohon untuk didaftarkan sebagai pemunya berdaftar kenderaan motor ini.

Xaivier Chia said...

Hi Mey yk,

I've tried my best as follows.

1. The Form of the Voluntary Ownership Change Statement of a Motor Vehicle by the vehicle's Owner.

2. I, the registered owner of the motor vehicle, voluntarily transfer the ownership via ownership transfer to the new owner as below.

3. I acknowledge that I have received the ownership of the motor vehicle via ownership transfer voluntarily ​​by the above registered owner and applied to be registered as registered owner of the motor vehicle.

Hopefully it would be helpful.

Best wishes.

Faisal Nadeem Saher said...

This blog is very informative. I have found almost all information to sell my car to new owner.

Thanks for sharing such information.

balqissy said...

Hi Xaivier,

this post really help me a lot! Thank you so much :)

However, i encountered some problems in dealing with the bank. I am currently in overseas, and my mom is helping me selling the car to one of the car dealer, back in Terengganu. She is the guarantor for d loan back then (Maybank Kajang). I believe all documentation w/ RTD solved, but the bank is not allowed anyone else except the owner to transfer the authorities (or something). So, how can I make it done? My mom is kinda old, and not really knows this kinda stuff, while the dealer is sucks big time. Please please help me on this. Thank you very much in advance.

Xaivier Chia said...

Hi Balqissy,

Suggestion 1. There is a way. Clear the car loan first. But you need to pay some extra charge.
Since the car will be sold to car dealer, maybe you can ask the car dealer to give you a deposit that enough for you to settle remainder car loan first.

Suggestion 2. Rule is made by man. Appearantly, you are not able to come back in short term. Why don't call the branch's manager to negotiate this matter. You can ask your mom to meet the manager first. Then, pass your mom's phone to the manager (or staff in charge) so that message can be conveyed clearly.

Suggestion 3. If you are not so rush, then come back to settle it personally. Because there are some documents that require you (as an owner) sign/verify.

Personally, I think the first and third optional are more workable since bankers do not like to risk themself.

All the best.

redyoyo said...

Xaivier,

Thank u for posting this, it helps a lot of ppl who want to do things on their own.

I have a question. The insurance company does not want to insure the buyer of my car, since the transfer has not been made yet.

Then how can the buyer submit insurance cover note to JPJ for transfer purpose? I am confuse.

Xaivier Chia said...

Hi Redyoyo,

Optional 1: It is quite strange. Please try to buy the insurance from other insurance company. And please make sure they will refund if the ownership transfer is cancel.

Optional 2: Do it via online. That is, Voluntary Ownership Transfer System
More info: http://www.myeg.com.my/faq/stmsr.html

All the best.

kumara thevan said...

Hi Xaivier

I own a second hand car and planning to trade that in for a new car at Toyota. The Toyota sales agent has agreed to arrange for a second hand dealer to check my car. Now i have 2 problems with my old car.

1.No Road Tax (Expired)
2. I have 2 summons issued for the old car (JPJ and Police)

Do i need to renew my road tax & insurance as well as settle my Summons as well in order to sell of the car.

*ps I do not owe the bank anything. Bought the car for cash.

Xaivier Chia said...

Hi Kumara,

I think road tax is not a problem since you are going to transfer the ownership. The new owner must buy an insurance under his/her name. However, a vehicle without a roadtax is illegal if it is operated on the road. So, without a road tax, you need to figure out a way to legally transfer your car for Puspakom's checking and to the new owner physically.

Next, you do need to settle all summons first. Because JPJ will check the background of the car first before approve the ownership transfer. Besides, it is also good for you to be a zero summon driver.

All the best.

andalus andalucia said...

Hi xarvier,

Someone interested buying my car thrumudah.my advertisment. The guy wanted to pay cash. My car loan is still on and got balance.. This is my 1st time selling a car. Can you please advise me the right way to deal with this.

Hope you can help me on this,
Thank you,

Xaivier Chia said...

Hi andalus,

Generally, you need an agreement that agreed and signed by both parties (seller and buyer) plus a third party witness to secure both interests.

If the buyer want to buy your car via cash, normally, the buyer should pay some deposit according to your agreement.

And then, the seller need to complete the ownership transfer after received the deposit within the period stated in the agreement.

After that, the buyer must pay all the remainder within the period stated in the agreement (e.g. 7 days after the ownership have completed the owership transfer)

About your loan balance, if you settle it earlier, Banker will charge you some extra fee; if you ask Banker to help you to transfer the owership, you still need to bear other extra cost. Thus, you need to seek the advice from banker to see which optinal (maybe have other option) can minize this extra cost.


P/S: Don't forget to bring the agreement stamped by LHDN to legalize it before you process the steps above.
P/S: both parties need to discuss about who (may both) settle the cost e.g. ownsershipt transfer, stamp duty.

I hope this sharing can help you in some extent.

All the best^^

Plaintiff said...

Hi Xaivier,

I have a case that need your expertise/advice.

I sold my car to Jo. Jo's elder brother, Ramu, is a car dealer and he helped in settling all the process and procedure as both myself and Jo are not familiar with it. I remember after signed so many forms, we went to JPJ Pesuruhjaya Sumpah. There were 2 sets of original documents, which Ramu has passed one set to me to hold first. He advised me to send him this set of original documents once Jo or Ramu himself have paid the remaining balance to me. He told me that without this set of original documents, he will not be able to perform the Ownership Transfer for the car. However, after so many rounds of follow up and so many times of promises Ramu has made to me to pay the balances, he has never deliver it. Now can I lodge a police report or file a complaint to tribunal against him? What can I do to recover back the balance of payments? Please help.

Thank you.

Xaivier Chia said...

Hi Plaintiff,

Based on my understanding:
1. you have received some deposit from Jo.
2. ownship of the car is not yet transferred to Jo.

But where is the car now?

First, please make sure you are still the owner of the car, and the car is still in your place.

Then, if both of you have signed an agreement, then you can refer to the agreement to take any necessary action upon the buyer.

If not, you should seek a lawyer's advice to issue some sort of "final warning letter" to the buyer so that the buyer will complete the deal withint certain period of time. Or else, the deposit will not be refunded since the buyer breach the agreement, and you shall take back your car within certain period of time.

In order to avoid making it more serious, it is better for you to give the buyer final warning personally before seek the advice from a laywer.

p/s: If the car is in Jo's place. Please lodge a police report immediate IF you are still the owner of the car! Because you have no idea WHO uses YOUR car for WHAT in next seconds!

All the best

Gerald Lim said...

Hi Xaivier,

First of all thanks for your valuable advice you provide here.

I need your advice on my situation... My father-in-law passed away two years ago. He leave behind an old car which I planned to sell off. But the car is still under my father-in-law name. How do I sell it off/transfer the ownership? He didn't leave behind any will.

Thank you in advance

Xaivier Chia said...

Hi Gerald Lim,

I have no experience to handle cases that similar to your. But I hope the sharings below might help you.


First, all the assets of your father-in-law should be transferred his family (e.g. wife, then children) if no will is left. But this shall not be done automatically. Family member needs to apply for the ownership transfer with a time frame (I am not sure how long, by the way) with the related authority/department.

(p/s: I am not sure which government's department will handle this kind of cases in this moment. Please consult ketua kampung/wakil rakyat (or their assistants) or other experts (e.g. lawyer) who should know about this)

The death's certification, and other relevent documents are normally required to process the application.

After his assets (includes the car) have been transferred to his family, then the car ownership transfer can be done as normal case.

All the best.

Alan Liew said...

Is the Finance Release Letter still required by JPJ for Tukar Milik ?
I heard that it can be checked online ?
Does JPJ verify seller's signature as the car is 10 years, seller's signature might have changed ??

Xaivier Chia said...

Hi Alan Liew,

1. Yes, if you haven't declared the finance release letter to JPJ.

2. & 3. I have no idea about that.

Since we can do the ownership transfer via internet, I think the signature should not a big issue.

All the best.

lam heng said...

hi Xaivier, i bought a user car on last year. Recently, i curious on one of the document need my fingerprint chop, what is that document?

Xaivier Chia said...

Hi lam heng,

Sorry, I really cannot figure out any document required fingerprint chop.

Nevertheless, the title of the document should indicate the purpose of that document.

Please read the title and T&C first before sign or stamp any document for the sake of security.

All the best.

Edward said...

Hi Xaivier

I would like to buy a 2006 proton saga from my friend which is RM11,000.00
I would like to know the procedures how to apply loan and transfer of ownership for this car.
Do I need to get a runner or can I do it myself?
Thanks in advance for advice.
Hope to hear from you soon.

Xaivier Chia said...

Hi Edward,

1. To apply loan, please visit your nearest bank or perference banker. You should at least prepare your latest three months income statements to prove your affordability and financial condition. You may try to ask different bankers to find a better offer/rate.

2. You can find a runner or do it by yourself or partially do it by yourself.

I think the content from this page is sufficient for you if you want to transfer the ownership by yourself.

All the best.

Edward said...

Yeah I understand.. but should i do the ownership transfer first or apply bank loan 1st?

Xaivier Chia said...

Both of them can be done separately or simultaneously. It depends on the agreement between saler and buyer.

Normally, saler want to ensure the buyer is able to get the loan and make those payment before transfering the owner to the buyer.

Buyer, of course, need to ensure the buyer transfers the owner after receiving the payment.

So, a proper agreement is normally required to avoid unhappy events.

All the best.

jessjass said...
This comment has been removed by a blog administrator.
Amiel said...

Hi Xavier,

I have some inquiries. I am an expatriate working here in Malaysia. I plan to buy a 2nd hand car from direct owner. Is there any special process to transfer ownership to me or should we follow the same steps and procedures you poste on this post

Thank you in advance

Xaivier Chia said...

Hi Amiel,

Supposedly, it would be some extra documents you need to prepare.

Please visit your nearest JPJ for more details.

Best wishes

雨后的彩虹 said...

Hi,

I am going to buy a second hand car,
but I will start my work next week.
Can the runner make for me with my photocopied IC but without my signature?
and may I know the procedure for ownership transfer via internet?

Thanks

Xaivier Chia said...

Hi there,

For conventional method (e.g. hires runner and hardcopy document), signatures of both seller and buyer are indispensable.

Ownership transfer via internet can save hidden cost (from middle man). Based on my memory and previous homework (that I forgot to record it properly):

1. Both seller and buyer must have their registered 1malaysia ID first. 1Malaysia ID can only be register in certain Kiosk machine. Please try to check it from RHB bank.

2. Of course, the car is still needed to be inspected by Puspakom to ensure the car is legal and safe. To do this, either seller or buyer need to drive the car to nearest puspakom center to that inspection.

3. Login the website (supposedly is myeg), the fill in the relevant information and upload required document.

4. New owner must have an insurance for that car under his / her name.

I hope this "incomplete" sharing can save you some time to the right direction and complete your ownship transfer via internet.

Best wishes

The Doctor said...

Hi Xavier,

I plan to sell my car to a car dealer and buy a new car from his shop. I still have balance loan finance with the bank. The car dealer get his used car dealer and offered me with a trade in price which we both parties have agreed. However car dealer also informed me the used car dealer will only settle my balance car loan after they found a new buyer but car dealer claimed will take full responsibilities of my old car hand over to him and continue make the instalment to my finance bank which is a common practice. I'm concerned that during this period, the car is still registered under my name and if car dealer not making the payment or anything happens to my car eg. summons, illegal activities etc, i'm still liable for it. Hope to get your advice whether this is a common practice in the used car market not to settle full payment until they found a new buyer? What is the risk on us as seller and how do we secure ourselves to prevent any trouble? Thanks!

Xaivier Chia said...

Hi The Doctor,

First, you need to think about: if the used car dealer does not manage to sell your used car, then how? Normally, as a seller, we sell our cars to dealer and get FULL payment directly. Whether they manage to sell the car is a business risk that they should take.

I think the practice you mentioned is to save two ownership transfer fees (from you to seller, then to new owner) to one transfer fee (you and new buyer). So, it is fine. However, do remember to ask dealer to sign an acknowledgement or agreement about he/she are FULLY responsible for the car after the date you handle the car to dealer. This agreement should protect your interest.

If the dealer insist only settle your balance after sell your car, you should try to find another dealer.

All the best.



p/s: Give you an example, assuming that you have fully settled your car's loan. What will happen now? Dealer pays you fully for buying your car, right? Thus, it sounds illogic for me about the instalment (by dealer in your behalf) that you mentioned about.

Muhammad Musoddiq said...

Hi Xaivier,

I want to change my mother car to my names as her request. The grant IC no is the old one which is 44*****. Should I put old IC or her new IC in JPJ K3 form?

Yousef said...

Please help me
I am a foreigner
I bought car in 2009 from a person and we
wrote agreement between me and him. I transferred the money to his bank account and he promised me that he will change registration car papers to my name.
After a week I contacted him he did answer my calls.
Two months later I found he accidently.
he told me that the car is registered in the name of the bank and he can not transfer ownership
I discovered that he lied to me from the beginning.
since that day he run away and the car still with me and every year I renew the rod tax but under his name .
he pay monthly to the bank
but he never reply to my call plz tell my what I should do??? if I make police report hoe long it will take ?? there is any way can I transfer the car under my name because I want to sale it?

Xaivier Chia said...

Hi Muhammad Musoddiq,

Sorry for not having similar experience.

The best way is to visit or call JPJ for latest practice.

All the best.