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Paperwork Required for Selling a Used Car

No need to panic...It's all part of the process!

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Selling a used car privately inevitably has some paperwork involved. This need not be a headache and is all part of the process. It is worth taking time to familiarize yourself with the essentials before you put that ‘for sale’ ad online or in the window of your car.
Amongst others, registration, finance and insurance documents needs to be provided to new owners so they can properly transfer and register the vehicle in their name. Remember: You will remain legally responsible for your car until you notify the department of transport of the sale and ownership is transferred successfully.



If your car have been paid off, obtain the proof of ownership documentation and a letter stating that the vehicle has not outstanding finance on it. Obtain this letter from the bank/financial institution after you have settled the vehicle finance.
Once a car is paid off, ownership is transferred from the bank to yourself, and the bank should issue your original ‘Registration Certificate’ to you. This should be proof enough that the car has been paid off. If the bank fails to issue the ‘Registration Certificate’ they remain the legal ‘Title Holder’ of the vehicle, even if they are not the owner. The ‘Registration Certificate’ should be requested from the Bank and can be registered directly into the name of the new owner, but it must be accompanied by the Copy of ID of the Bank’s Proxy, as well as the paid-up letter and ‘Change of Ownership’ form signed by Bank’s Proxy.


It is not a problem to sell a car even if you still have an outstanding finance on the vehicle, but it adds another step to the sales process. If the car you intend to sell still have outstanding finance, request a settlement letter from the financial institution where the vehicle is financed, and notify them of your intention to sell the car. The settlement letter will indicate the total outstanding loan amount and should also be presented to the buyer. The settlement letter is also a good indication that the car is not stolen.
Cars that are financed through a lease/residual agreement represent a different situation. If you want to transfer your current lease to a new owner, it is recommended that the current financial institution arrange the transfer to the new owner.
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