What Paperwork Do I Need When Selling My Used Car
Want to know [how to sell your car>(https://www.carmudi.com.ph/journal/how-to-sell-your-car-online/)? 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.
## Official Receipt
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.
