Once your car is past its life span, or has met with an unfortunate occurrence that has rendered it useless the best option that you can avail is getting the rid of such a vehicle. However, as easy as it may seem, it is not anywhere close to be called a facile process.
Many factors need to be considered before you sell your car. The reason why these factors are essential is that each one of these factors can have either have a progressive impact on the deal or you will land yourself into a heap of trouble by the conclusion of the same.
Below we are counting the most important things you need to consider before selling the car:
1. Condition of Your Car
The prime and the most important factor that needs to be considered on a priority basis is the condition of the car you are planning to sell. It goes without saying that if your car is in a considerably good condition then you will get a better price for the same, but on the contrary if the car is not in good shape not only will it affect the price that you will get but will also cut down your options. Any person who buys a vehicle seeks to buy a car that it is drivable and such person won’t be giving you the desired Cash for Cars Melbourne if he/she is not receiving the bare minimum quality of the vehicle you are selling. If you are selling the car to one of the Car Wreckers Melbourne then you won’t have toworry that much as if you are dealing with the ones that provide the best services like Vic Car Wreckers, not only will they accept the car in any condition but will also facilitate the process for you, however, such is not the case with the other buyers therefore better to be prepared instead of regretting later!
2. The paperwork and the formalities
When the ownership of the car is transferred from one person to a company or to another person there is a ton of paperwork that needs to be finished before the deal could be called ‘complete’. The transfer laws in Australia are such thatthe procedure for the transfer of vehicle varies from state to state in both interstate and intrastate transfers. Let’s say you are here in Melbourne and you are selling the car to a buyer or company in Sydney, so since you are making an interstate transfer of the car you will have to follow a different procedure than what you would have followed if you were making the transfer within the state. It is these formalities eat up a lot of your time, but are imminently necessary for the legal validation of the transaction. In addition to this if any glitches are found in your papers that could have a nullifying effect on the entire transaction depending on what state your living in, therefore you have to be careful when you are amidst the process or about to begin the process that you have chosen the correct kind of professional for the task of the completion of the paperwork. If by chance you are looking for one then never hesitate to call up Vic Car Wreckers – not only do they provide the best assistance at the time of the completion of the paperwork but they also provide the highest Cash for Cars Melbourne.
3. Insurance of the vehicle
Another crucial step in the process of the sale of the car is the transfer of the insurance to the buyer. It is the one document about the car that guarantees immunity to the insurance holder against any accidents that might occur during the course of the ownership. When the car is sold, it becomes mandatory to transfer the insurance on the name of the buyer. For this you can either contact your insurance agent to take the necessary steps or you can directly file an application to the insurer mentioning that you have sold the car to the concerned person and the insurance be transferred in the name of such person. Either which way the insurer will issue a notice of disposal, copies of which will be sent to both the seller and the buyer along with an intimation to the buyer that he is the beneficiary to the insurance now and any payments of premium or any other arrears shall be borne by him. Omitting the completion of the transfer will render the transaction incomplete and might even cause a legal trouble in the days to come, therefore it is always better to keep a weather eye on the horizon and take the necessary steps since the very start.
4. Transfer of Car Loans
A number of people prefer the mode of a loan for buying a car, which is indeed a more convenient way of buying a car if you are in a situation that doesn’t allow you spend a heavy amount of money at once. If there is such a loan that you are repaying and if during the course of the loan you consider the sale of the car, then in such a case getting the loan transferred on to the buyer is also one of the responsibility of the seller. All that you have to do is intimate the bank that the ownership of the car has been transferred and the loan ought to be transferred as well. On the receipt of the application the bank will transfer the loan on the name of the buyer and will consequently collect the EMIs from such buyer. Just like the other documents this too is a crucial piece of documentation that needs to be done beforehand so as to avoid any discrepancies or miscommunications between the buyer and seller that can potentially lead to a full blown dispute in the future course of dealings.
5. Disclosure of relevant information
The sale of your car is not merely all paperwork, once the car and the ownership is transferred then comes the last and final steps of the transfer of the car which is apprising the buyer of the relevant details of the car and the significant belonging of the same. The seller has to make sure that he hands over the following articles to the buyer:
- All keys including those for the ignition, glove box, boot and alarm
- The service books, owner’s manual and log book
- Instructions for working and deactivating any alarm
- Location of the hidden ignition switch if there is one
- Radio security number
You have to pay stamp duty when a vehicle is registered in a new name. Roads and Maritime Services collects the stamp duty on Revenue NSW’s behalf. You will pay stamp duty on the market value of the vehicle or on the price you paid for the vehicle, whichever is higher. Stamp duty is three percent of the market value of the car, up to $45,000 then five percent on the value over $45,000.
Calculations are provided by Roads and Maritime Services and are correct at time of publishing. Please check with Revenue NSW or Roads and Maritime Services to confirm.
Keeping all the above points in your mind you now have the complete information about how the paperwork and the procedures on a car sale functions
We hope the information so furnished in the above blog proves to be helpful to you and don’t make a mistake while selling your car
Adios !! Good Luck