What Paperwork Do I Need When Selling My Used Car
Want to know how to sell your car? The used car selling process involves a lot of steps, from preparing your car for sale, to collecting and completing all the car paperwork, to finally passing it on to its new owner. Speaking of car paperwork, there are more than a few documents that you need to furnish before you can truly let go of your old car. Each document is important, so no matter how good your car’s condition is, if there’s a document missing or some of the information doesn’t add up, you’ll only be giving your prospective buyers a reason to second-guess their purchase and try to look for another used car to buy. Carmudi Philippines would like to discuss these car documents in detail with you so you know exactly what you need when selling your used car.
Original Certificate or Registration
A used car buyer will likely ask you to present the vehicle’s Original Certificate of Registration, or at least a certified copy of it. Confirm that the vehicle is currently registered with the Land Transportation Office (LTO) and verify that the accompanying sticker is on the license plate. Be wary of the word “encumbered” if it appears on your car document, because that tells your buyer that the vehicle has not yet cleared with the financing entity that paid for the car. Be ready to explain to your buyer why your vehicle is encumbered and support your reason with these documents.
An official receipt confirmsthat the car is currently registered. When presenting an official receipt, confirm that it is recent and up-to-date.
Absolute Deed of Sale
An Absolute Deed of Sale acts a receipt for the sale of a used car. In other countries, a Transfer of Title is more important than an Absolute Deed of Sale, or as what others might call it, a used car Bill of Sale. This is not the case in the Philippines, where the latter is often all that’s necessary to finalize the private care sales transaction. When completing an Absolute Deed of Sale, confirm that the document contains the following information:
- Purchase price and sales price
- Vehicle year, make and model
- Name and contact information of both buyer and seller
- Date of sale
Granted, you may add other information into the document that you and your buyer deem necessary.
Transfer of Title
Though it isn’t required, it’s still in your best interest to include a Transfer of Title in your used car selling documents in case legal complications arise. For instance, you could be found liable for any accident that the car is involved if you are still the vehicle’s documented owner. To protect yourself, acquire the services of an attorney in making the Transfer of Title to ensure everything is done by the book.
Original LTO Plate Number
Plate numbers issued by the LTO are the only official plate numbers allowed for use on Philippine roads. The latest license plates for private vehicles come in a two-tone black-and-white sheet metal design similar to the one used in many other countries. If the car’s plates are not original issue, you will need to supply your buyer with a document granting you the permission to use such a plate. This document is called the Authority to Use Customized Plate issued by the LTO. Using any plate other than an official-issue is prohibited by law.
Motor Vehicle Clearance from HPG
This document is used to certify that the vehicle was not obtained through illegal means nor has it been involved in any criminal activity. Your potential buyer has every right to demand this document from you, so make sure you have it on hand.
Endorsement from the Insurance Company to the New Owner
An endorsement from the insurance company states that the vehicle’s new owner will be the one responsible for paying for the insurance premium from the date of sale onwards.
Though not as critical as the aforementioned documents, maintenance records can be extremely useful to sell your car fast and at the price you want. If you have maintained your vehicle’s maintenance and repair records, you immediately establish good rapport with your buyer. Service records tell interested buyers that the car is well-loved and they are likely to experience minimal issues with it.
When you have all these documents on the ready, not only do you make it easy to earn the buyer’s trust, you also make the car selling process a breeze for you both. Of course, there are other steps that you can do to prepare your car for sale. Make the effort to get your car ready and you can fetch a higher price for it. Here’s what you need to do:
Make a lasting first impression
First impressions count whenever you’re selling a car, and even more so when you’re selling a used car. First of all, you don’t have what the new car business calls ‘showroom appeal,’ so you have to make your car look impressive in other ways. Have the car detailed from inside out and even serviced to ensure it’s in good running condition when a prospective buyer asks for a test drive. Any sign that your car needs a lot of work could put off a lot of buyers, even those who are seriously interested in it.
Get in the head of your target buyer
Put yourself in the shoes of your potential buyer and try to understand how their mind works. What would it take for you to be interested in buying your car? When you have an idea of who your buyer might be and what he wants, you’ll be better equipped to supply him with the best answers to his queries, and in so doing, achieve the quickest way to sell a car.
Research a fair price for the vehicle
You need to know the fair market value for your vehicle’s specific make, model, and year if you want to get buyers interested in it. A good way to know the ideal price for your vehicle is to use the Carmudi search tool. When using car selling sites like ours, simply type in your vehicle specifics and see how much other car owners are asking for your type of vehicle.
Keep these tips and information in mind when selling a car privately or when selling a car online. Hopefully, they can help you increase your chances of reaching your target buyers while ensuring that the entire selling process moves forward with as little issues as possible.