Comprehensive Step By Step Guide: How to Sell Your Car On Carousell

1. If the buyer asks for a test drive

This can be a major worry from your (the seller's) perspective, but don’t worry - the potential buyer would need to bear the responsibility during the test drive. Use Carousell’s indemnity form before the test drive begins.

You are strongly advised to accompany the buyer during the test drive. Should there be any questions brought up by the buyer, try your best to provide an answer. Get back to him / her if you need time to dig up more information after the drive.

If you are not comfortable with someone else driving the vehicle, inform the buyer that he / she is allowed to test only after the buyer commits to the purchase.

2. If the buyer asks to check the car's condition

New to this? Here are some general key pointers for you:

• Agree to a car inspection by the buyer preferably in the day, or at a place with good lighting especially if the viewing is conducted at night.
• Allow the potential buyer to start the car and check for any error codes. If the “Check Engine Light” sign pops up, have them fixed before letting the buyer check again.
• Allow the buyer to check the interior, especially the seats and steering wheel. Show the car’s mileage, and explain to the buyer, if possible, how you have been using the car all this while. Eg: only for school runs, mostly highway driving, etc.
• Let the buyer check the car’s exterior too. If it has gone through an accident, inform the buyer and explain in detail what exactly happened. Sure, this could drive the price down having learnt that panels have been replaced, but trust is built. Assure the buyer that receipts are in place for any repair works.
• Allow the buyer to check the engine bay too. If there are signs of oil leaks, get a mechanic to have it checked before arranging for another viewing with the buyer.
• During the test drive, it’s good practice to inform the buyer that he/she should turn off the music (and even air conditioner) at some point, and listen closely for any squeaks, creaks or hissing noises from within and around the cabin. Not only does this build trust with any potential buyer, we’re sure any complaints after the transaction will be minimised.

3. Price negotiations

Once the test drive is complete, if the car's condition has been inspected and the buyer wishes to proceed with the next step, it’s time to talk about the price. Allow the buyer to say what price he/she is comfortable to transact at.

If the price is right and agreed between both parties, a deposit will be placed by the buyer to secure this deal.

If you feel like paperwork is a hassle, drop us your details here and assistance in the form of agreements and paperwork, car loans, motor insurance and transferring of ownership can be conducted.

4. Seal the deal

To proceed with the sale, both you and the buyer would need to document the Vehicle Sale and Purchase Agreement with this form. Double check that all the details provided on the form are correct as this is a legally binding agreement.

Take a deposit from the buyer as a ‘reservation fee’ and issue a payment receipt. Decide on what is a comfortable deposit amount and inform the buyer accordingly. The market rate for a used car deposit can range from S$500 to S$5,000, depending on the type and price of the car.

5. Apply for car loan

If you have an existing car loan, request for your outstanding balance from your financial institution. The outstanding balance has to be cleared before the change of ownership.

If you require help for the settlement of the loan, feel free to reach out to Revo Financial, one of Carousell’s subsidiaries – they’ll give you a competitive quote and a seamless experience.

6. Apply for car insurance

You should inform his / her insurance partner once the handover date is set. This is so he / she can possibly get back some prorated amount from the premium paid, if the full year is not up yet.

7. Place your downpayment

You should now receive the downpayment (less deposit) from the buyer. Do inform the buyer on the preferred method of receiving the funds – eg. bank transfer / PayNow.

Similar to the deposit payment, you need to issue the buyer a receipt once he / she receives the funds for the downpayment.

8. Settle the balance payment

You will be getting the full amount from the sale of his / her car – be it from the buyer if there is no loan, or from the buyer’s financial institution’s disbursement.

9. Transfer of ownership

On the same day of the full settlement of the existing loan, you will need to activate a transfer of ownership here via OneMotoring. Coordinate this transfer with the buyer.

Note that logging into OneMotoring would require a SingPass/CorpPass with 2FA Authentication.

Do note that vehicle numbers can only be retained before the transfer, so do check in with the buyer on this aspect. If you would like to delegate this step, drop your details here.

10. Schedule your handover

Prepare your car for handover! Remember to remove all your personal items and do a final check before meeting the buyer.

Before handing the car over to the buyer, do get this form filled and signed by both parties.

Now that you’ve sold your car, you might require help finding your next car. Carousell’s car-buying personal assistant would be happy to help!

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Selling your car? Whatever the reason, caryousell@carousell, sell your car at the highest price today.