Buying a Used Vehicle: The Processes Involved

When it comes to purchasing a vehicle, the process is quite different for a new vehicle compared to a used one.

So, if you have been thinking of getting your hands on a second-hand vehicle, don’t stress, as we will enlighten you with the things you need to do, the organizations you need to deal with, and the forms you need to fill throughout the whole process.

Once you have identified the car you want to purchase, the first thing you need to do is get in touch with the seller, and find out everything you need to know about the car. Find out things like how long the seller has owned the car, the mileage, why he or she is selling it, if the car has been in an accident, has the previous loan been settled, if there have been any modifications to the car, if there are any problems with the car, if the seller smokes in the car, and if it is in a “buy and drive” condition.

Since most sellers would want to tell you only what you want to hear, it is always a good idea to cross-check with the Road Transport Department (JPJ) or the Royal Malaysian Police (PDRM) and find out if the vehicle has been in a serious accident, if there are any pending fines, or if there have been any cases involving the vehicle.

If everything is ‘clean and clear’, always, meet the owner and test drive the car to get a first-hand experience on how it feels, so that you will really know how tip top the vehicle is. If possible, take a mechanic with you to spot issues that the layman sometimes faild to notice.

Next, the vehicle must be inspected by PUSPAKOM before JPJ approves of the ownership transfer because the regulations say so. This process used to be a pain in the butt because it required the owner to drive to JPJ and wait for hours to get it done.

But now that PUSPAKOM has their Mobile Inspection Services, just give them a call, set an appointment, and just wait for them to visit the vehicle and do the necessary. This process is usually handled by the seller.

And then comes the trip to JPJ. Keep in mind that both the buyer and seller must be there to complete the transfer of ownership. The documents needed are copies of the buyer and seller’s IC, the vehicle grant/ vehicle ownership card, transfer of ownership form (B5 form if you’re buying the vehicle cash, or B7 if you’re taking a loan).

Also, an official transfer of ownership requires the buyer to purchase a new insurance policy to take over the car’s coverage from the preceding one. For the road tax, no such restrictions apply. If the previous owner had paid for the car’s road tax, it remains valid until the stipulated expiry date. If not, you will have to renew it at JPJ.

As for the financing, if you want to take a loan for the vehicle, both you and the seller need to be at the bank with the car registration document in order to apply for the loan. However, if one or both parties are far away from one another, the seller can fax over the vehicle registration documents.

Upon approval, the bank will issue an undertaking letter and only after that, the seller ownership transfer takes place. Upon completion, bank will release the fund to the seller. Any additional fees in loan/transfer ownership shall be paid by the buyer.

If it is a cash deal, make sure that the seller issues you with a receipt stating the date, amount paid, make, model and registration number, along with the names, addresses and signatures of both parties.

Last but not least, please make sure that you have a pen with you. You’re welcome!