The Journey continues
In my previous post I led you through the forest that is prepping and getting your motor vehicle sold. I still have more to share on that score as the process can be complicated if you are not sure about the steps to take when actually making the transition.
For one thing, educating yourself about the process is key, especially as it relates to the requirements for transferring the vehicle as well as how you decide to free the vehicle from your lender (if necessary).
The first thing I was reminded of was the fact that there was a lien on my car because of the car loan I had on the vehicle. I still owed money on the vehicle from my lender, so that needed to be cleared BEFORE the car could be transferred.
Now let me explain an important, non-negotiable aspect of the buyer-seller relationship (which I learned in hindsight). Once you have identified a buyer, it is highly recommended that they pay you a deposit. In fact, if the buyer is really serious they will be willing to pay a deposit, and if not unfeasible, enough to cover the cost of the lien on the vehicle.
This helps in two ways, namely it ensures that you are not wasting your time, making a commitment to someone who does not intend to purchase your vehicle and also saves time by clearing the lien from your lender (in case this applies). Many persons choose to sell their vehicle after they’ve completed paying off the loan, so the lien requirement may not be an issue, nevertheless the deposit remains important.
Clear the Way
Once the lien is paid off from your lender, you will receive paperwork, which includes the motor vehicle certificate of title, to take to both the insurance company as well as the tax office.
Clear the lien with the insurance company and you’ll be good to go to the tax office where you will need to take the document showing that you have cleared the lien, the vehicle title and registration documents.
The motor vehicle transfer process is pretty simple. The seller will need to get the title stamped at the tax office before handover to the buyer. The traditional story about this process is that both buyer and seller visit the tax office at the same time. This is not necessary as the seller can begin the transfer process alone and simply hand over the documents to the buyer.
Once the title is stamped and handed over to the buyer, they are now free to start the process of registering the motor vehicle in their name and get their own registration plates and return the ones you own. Some insurance companies also require the certificate of fitness before providing insurance coverage.
Close the Deal
Before even getting to this stage, handing over copies of vehicle registration information to the buyer will be necessary, specifically if they need to acquire a loan to complete the transaction.
As the seller you will need to provide a pro-forma invoice and if the vehicle is imported, import and sale documents.
Once the buyer has possession of the vehicle, it’s time for you to cancel your own insurance to close out the deal. Transaction now complete you can now move on with your life, until of course, it’s time to do it again.
I found that the process is made easier if both parties are fully educated about the process. Both buyer and seller must be empowered and proactive in this regard in order to prevent unnecessary headaches.
So, did I miss anything?
Be inspired, Be informed, Be Glorious!
Kevin
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