Purchasing a vehicle can be daunting for those who have never done it before. And if you are not familiar with the processes involved, it could become a confusing process. A vehicle purchaser also needs to consider that there are different processes involved for each payment method, whether it is through financing the vehicle or merely paying cash.
For those considering paying cash, here are some steps you need to follow and documents you need to provide the seller, whether it is a private seller or dealership, for the sale to be successfully completed. But if you are considering selling your car for cash, why don't you try our Instant Offer tool here before you search for new or used models on AutoTrader here.
Related: How does AutoTrader's Instant Offer work?
Inspection
Before making a purchasing decision, it is important to inspect the vehicle for any flaws or mechanical issues and make notes of these items. When drawing up a purchasing agreement, you and the seller can agree on who will be responsible for rectifying the issues and specifically point out the flaws so that you have an agreement in place.
During the inspection, you are most likely to want to go test drive the vehicle to see if it is still sound. For this to occur, the seller will require you to provide a valid driver's licence for insurance purposes and for them to know that you can legally operate the vehicle on public roads.
Check vehicle documents
Once you have thoroughly inspected the vehicle and are fully aware of its condition, the next step is to inspect the vehicle registration documents. Firstly, request the proof of ownership document. This is usually accompanied by a letter from the bank that states that the car is truly theirs.
Also, check for a valid license disc on the vehicle and an accompanying vehicle registration certificate. The registration certificate will be needed when you want to change the ownership onto your name. Lastly, confirm that the vehicle has no outstanding fines and that the license is fully paid up, as that will prohibit you from registering the vehicle in your name until the amount is settled.
Intent to purchase
Once you are satisfied with the vehicle's condition and papers and have successfully negotiated a purchase price agreeable to you and the seller, the next step in the process can occur. In the case of a private sale, you or the seller can draw up a sale agreement document or proof of sale that stipulates the registration number, VIN number and engine number of the vehicle, identity numbers of both the seller and buyer and the terms of the agreement such as the purchase price as well as who is responsible for any repairs still to be made.
In the case that you are purchasing a vehicle from a dealership, they will require you to sign an offer to purchase, for which you will have to provide proof of residence as well as certified copies of your barcoded ID document.
Documents you need to provide
For the sales agreement or proof of sale to be drawn up, in the case of a cash purchase, the seller will require you to submit proof of residence and certified copies of your barcoded ID document. Proof of residence documents can consist of the following as long as it contains both your address and your name and surname:
- Utility bill
- Bank statement
- Tax certificate
- Recent active lease or rental agreement
- Municipal rates and taxes invoice not older than 3 months
- Valid television license renewal letter
- Home loan statement
- Motor vehicle registration/license documents
Payment and collection
Once the proof of sale has been signed by all parties involved, and you have paid the seller either via a cash deposit or Electronic Funds Transfer (EFT), arrangements can be made to collect the vehicle. Note that even though you provide proof of payment, sellers might request that the vehicle is only collected once the funds clear in their respective accounts.
In the case of a private seller, they will provide you with copies of all of the documents in order for you to successfully register the vehicle in your name and will hand over the keys. A dealership will do the same but might require you to sign a delivery note which indicates that you are happy with the vehicle at the time of collection, do note that is the final legally binding document in the deal.
Registration
The seller will now use the proof of residence and certified copy of your identity document to complete the yellow notification of change of ownership form and submit it to their closest vehicle licencing centre for processing.
You will have to complete the blue notification of change of ownership form and submit it as well as a roadworthy certificate, proof of residence and certified copy of your identity document to your closest vehicle licencing centre in order to register the vehicle in your name. The latter needs to be done within 21 days of the purchase date.
