Selling a car can be stressful if you have never done it before. Not only do you need to know what documents you need to provide a buyer but also what you require from them. Then there is the added stress of a potential scammers messing you around too. To help mitigate all that, here is a quick guide as to what you would need to do for a legal sale to take place.
Alternatively, you could always make it very easy on yourself and get an Instant Offer from a reputable dealer here or sell your car quickly and easily in a few easy steps here. Looking for your next car, search for new or used models on AutoTrader here.
Related: Private car sale: can you sell without a valid roadworthy certificate?
Legal documents for car sale
It is time for your old car to go, and you might have advertised it privately, and now you have a buyer. What documents do you need for the sale to be conducted legally? Well, for your personal protection as well as that of the buyer and legal purposes, here are the documents we recommend having.
Related: Top tips to advertise your car for sale online
Identification
For your own protection and that of your buyer, you should request a certified copy of their identification document as well as supply them with a copy.
Proof of ownership and vehicle registration
Once the vehicle is paid up, you will want to contact your financial institution and acquire the forms proving that you are the legal owner of the vehicle. This typically takes the shape of a vehicle registration document and a bank letter stating that you are the legal and full owner of the vehicle. While this will have to be handed over to the buyer, do keep certified copies on file for the vehicle's de-registration.
Settlement letter
If you still owe the bank or financial institution money for the vehicle, you must request a settlement letter from that entity. This will indicate the outstanding amount and account information for the payments to be made for the loan to be settled and the vehicle to be legally sold.
Related: Everything you need to know about the settlement letter
Notification of Change of Ownership
This legal document serves as a notice to the authorities that you are selling your car and that the vehicle needs to be transferred to the new owner. You can get this document from any traffic department or even downloaded here. Note that you will have to complete this but both you and the buyer will have to sign it. You will then have to give a copy of the document to the buyer as well as submit a copy to the Department of Transport.
Related: The Yellow Notification of Change of Ownership form, explained
Proof of sale
Once the deal is sealed, write a receipt acknowledging the date, the amount paid, the make and model of the car, the car’s registration, VIN number, and the names and contact details/addresses of the buyer and seller. Both you and the buyer should keep a copy. For clarity, you can further detail the condition of the vehicle too. While this document isn't needed by the department to transfer the vehicle into the buyer's name, it is good to have should anything fishy arise after the deal has been concluded.
Roadworthy certificate
In order to make the deal go through easier, you could obtain a roadworthy certificate for your vehicle. However, the responsibility does not fall on the seller and isn't a legal requirement. The buyer, however, will have to submit a roadworthy certificate within 21 days of the sale to legally transfer the vehicle into their name, and a valid roadworthy certificate could either attract more buyers or be a good bargaining tool to get the best price.
Related: Should I obtain a roadworthy certificate or vehicle inspection report before selling my car?
Service history and receipts
While not a legal requirement, having all the receipts of repairs, maintenance or services records and any information regarding the vehicle's warranties, will be something the buyer will want to get from you. Having a full history record will also give you, the seller, a stronger foot to stand on in negotiations should the condition of the vehicle be under scrutiny.
