We are bombarded with adverts about selling unwanted goods online. There are hundreds of websites dedicated to selling items such as cameras, cell phones, shoes, clothes, microwaves and cars, the list goes on and on. They all claim to be easy, take a picture, set a price, post it, and then boom, instant cash! Last week, someone phoned me and asked what steps and risks are involved when selling a car online. His concern was with liability of accident damage, money transfers and change of ownership.
I’ve put together a list of what those who are looking at buying or selling a car privately will need to do. I contacted a reputable motoring finance house for the details.
What the buyer needs to do:
Find and select the car of your dreams then apply for finance. Most finance applications can be done online. You’ll most likely need to supply them with the following:
•A copy of your green bar-coded ID
•A valid driver’s licence (South African or International)
•Proof of income (your most recent payslip or a three-month bank statement)
•Proof of residential address
•Confirmation of insurance
•The buyer is liable for paying the fees to facilitate the transaction and register the vehicle in the buyer's name as owner and your finance provider’s name as titleholder.
•They will normally send a representative who will meet with the buyer to sign certain documents and to view the original documents that were faxed or e-mailed to them as required by Fica. The buyer must provide a clear copy of his or her ID for registration purposes.
•The finance representative will only register the vehicle. The buyer is responsible for obtaining his or her own licence disc.
A private sale takes about 14 days to complete. So have everything that you need on hand. Don’t waste time with having to first go and find all the documents.
What the seller needs to do:
The finance firm that I contacted offers a feature called TitleGuard. This benefit will up the sales process. Find out if your preferred finance firm offers a similar benefit.
To TitleGuard your vehicle they will most likely need the following:
•A copy of the vehicle’s current NaTis certificate in the name of the seller.
•A copy of the vehicle’s current licence disc or a receipt for it.
•Conclusive proof of payment.
•A valid roadworthy certificate and a 101-point technical inspection from an authorised technical centre such as Dekra or Bosch. The seller bears this cost.
•The completed and signed TitleGuard invoice and a Terms and Conditions document.
•Your banking details and a cancelled cheque or bank statement confirming the details. Payment will not be made into a third-party account.
•A copy of the seller's South Africa bar-coded ID.
If the seller is a company they will need to supply:
•A tax invoice on a company letterhead
•Resolution authorising the sale of the asset
•Company registration documents.
Payment procedure: Payment will only be made once the buyer has entered into a valid agreement and the financer has received all the required documents from both the buyer and the seller.
Settlement: TitleGuard will make payment directly to the financer and the balance will be paid to the seller.
Paid up vehicle: TitleGuard will settle the seller directly upon receipt of the original NaTis registration document.
As for insuring a vehicle, both the seller and buyer need to inform their preferred insurance companies about the transaction. If you are the buyer, do some shopping around. Find the best possible insurance premium with the best benefits. Do your research. As a seller you need to inform the insurance company that the vehicle is being sold and they will, more than likely, request specific documentation from you.
So yes, it is easy to buy and sell a car online and no, you don’t need to have the cold hard cash in your hand. Most vehicle finance firms will help you to buy your dream car privately. All you need to do is supply them with the required information and make known to all parties involved of the process, such as your insurance company. I do hope this information has helped you in some way, or another.