The Easiest And Cheapest Way To Sell Your Car If It Has An Existing Hire Purchase Loan

The term ‘cash is king’ couldn’t be more true than when selling your car but how to get the cash?

Let’s say you sell your car, and the buyer agrees to pay for the vehicle in cash, the entire process is so much easier. The buyer simply pays the agreed amount to the seller; next comes a simple Puspakom (B5) Ownership Transfer inspection, then to the nearest Road Transport Department branch to transfer the ownership of said vehicle and the keys are handed over. 

The total cost, just RM130. RM30 for the inspection, and RM100 for the ownership transfer.

Image Credit: JPJ Malaysia (FB)

However, the process is more tedious when the buyer requires a loan to purchase your car. Now the financial institutions get involved with the deal.

The banks will require the more extensive Puspakom (B7) Hire Purchase Inspection Report - an additional cost of RM60, over the standard B5, not to mention, this normally takes more time. The buyer, on the other hand, would by now have had to obtain approvals for his/her own Hire Purchase loan arrangements, there’s more paperwork involved as well since now another bank is paying off your bank before the deal can go through. Note, however, that this is an ideal case where the sale sum is more than that of the balance of the loan.

But what if the agreed sum of sale is not enough to cover the outstanding loan sum?

For instance, you have agreed to sell your car to your prospective buyer for RM45,000 – but the balance of the Hire Purchase loan for your vehicle is actually RM50k. This is where it gets very tiresome to sell your car.

For starters, you would have to top-up an extra RM5k just to sell your car.

However, there are still some sellers who don’t mind the loss in view of upgrading/changing their vehicle depending on their respective requirements. Hence, if you decide to top-up your own cash to sell your car – you would have to make the aforementioned top-up payments to your bank, get the relevant loan settlement and release paperwork, and have them sent to the buyer’s bank for processing before the deal can be concluded – but there’s a catch!

It’s almost IMPOSSIBLE to do the aforementioned now.

Simply because certain lender banks would require the outstanding loan amount to be settled in full by the BORROWER before the car can be released and sold to the buyer.

This means YOU foot the bill for your loan first and then the buyer’s bank pays you back. In keeping with our above example – that means you pay the RM50k!

Therefore, unless you have that kind of disposable cash lying around, you are pretty much out of options, unless you head to a used car dealer. The same is true even if you sell your car for RM50k, but have an outstanding loan amount of RM40k – the seller still has to settle the outstanding sum to his/her lender bank.

Now, a used car dealer will normally offer a trade-in value of 15-25 percent lower than the prevalent market values simply because they have the capacity to make the full settlement, and also because they know sellers have very limited options at this point.

Also, the used car dealers will have a salvo of processing charges, which will normally be charged towards the buyer as part of the deal amount. These may include:

• Invoice fee
• Processing fee
• Agreement fee
• JPJ fee
• Puspakom fee
• E-Auto fee
• Servicing
• Service charge

Total charge: RM4,000-RM5,000.

It’s worthy to note that this is not even a car from their inventory, they’re merely acting as a broker for the seller and buyer.

Now, however, sellers have a new option with Carlist.my’s Essential Services program. The Essential Services program was envisioned as a further service to private sellers who would like to sell their cars, but don’t have the resources or experience to successfully complete the deal.

All the private seller/buyer has to do is get in touch with our team, provide the relevant info and one-time service payments for a hassle-free sale of their car to another private buyer. The Essential Services Program takes care of the following for the buyer:

• Buyer & Seller Agreement 
• Puspakom Inspection (B5 & B7)
• JPJ Ownership Transfer (Car Registration Card)
• Hire Purchase - Loan Submission 
• Insurance Quote & Cover Note (Excluding Insurance Premium)
• Issuance of Road Tax (Excluding Road Tax Amount)

The buyer simply pays RM1,200 (now for a limited time at just RM900) - RM200 Non-refundable advance payment and RM700 to be paid off only once your loan is approved.

As for the seller, there is a charge of RM500 for the Loan Settlement Handling process, meaning Carlist.my will handle the remaining loan settlement charges and paperwork for your car once the buyer’s loan has been approved.

It's worthy to note that there is NO other service like the Carlist.my Essential Services program, especially at those rates. 

Another option for sellers who wish to sell their cars is through the CarlistBid auction service. CarlistBid conducts weekly auctions with over 1500 of its Trusted Dealers (with great track records) to get the best possible rates for your car.

We have a proven track record at selling a variety of vehicles at higher prices than prevailing market values. CarlistBid is by far the fastest, safest, and most transparent way of selling your vehicle.