Car Tips: A Complete Guide and Tips to Buying and Selling Used Car in Malaysia

Complete Guide to Buying and Selling Used Car in Malaysia 1
When I was selling my car back in August 2013, I was totally clueless on the proper step by step procedure in selling my car directly to direct buyer. I tried googling for more info but there wasn’t a complete guide and tips on what to lookout or what to be aware. After a painful and whirlwind experience, after many phone calls to my friend who used to sell used car, after a painstaking two and a half month in the process, I finally sent off my baby Jazz to the new owner just three weeks ago. Now, I am calm and I can properly pen down my experience as a guide to those that plan to sell or buy a used car directly. By directly means not going through any used car dealer or runner. This complete buying and selling used car guide will lean more to seller based on my experience but I will also weight in buyer experience based on what I know from my car’s new owner.


Step 1: To Sell/Buy Your Car To/From Direct Owner or Used Car Dealer?

Complete Guide to Buying and Selling Used Car in Malaysia 2
Photo credit –

The first thing you need to sit down and think properly is whether you want to sell or buy your car from used car dealer or sell it yourself to direct buyer. Are both different if you may ask? Yes both way is so much different.

Used Car
– Hassle-free (well, not really. Lots of things to be worried as well).

– Offer low resale value to seller.
– Seller in the risk of getting con.
– Worried on misused of car under your name after handing over the car. Used car dealer will only do the name of transfer after they sold the car. If they take a few months to finally sell the car means your car with your name will be driven around.
– Used car dealer adjusting the car total mileage to lower in order to sell the car off easier.

Direct Buyer
– Better resale value.
– You know who your buyer is.
– Hassle-free. Buyer to do everything.
– Only deliver the car after bank made full disbursement. Risk of getting con is low to zero.

– Buyer may pay a minimum booking fee and drag your time with excuses.
– Loan process might or might not take longer time, depending on buyer document.
– Need to do Puspakom inspection personally, but it was super fast, easy and cheaper to do personally than hiring a runner.


Step 2: Advertise Your Car

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There aren’t many buying and selling used car platform a few years ago except for Motor Trader, whom which I worked with for a few years and later on came, which soon became Malaysian favourite buying and selling site for almost everything. Now there’s plenty to choose from magazine to online classified site. Here’s the Top 2 car classified platform that I highly recommend.

(1) is probably the site for you to sell almost everything and anything. When Mudah started in Malaysia, they offer RM0 listing fee so more and more used car dealer place classified ad in it. Mudah then focus more on building their car classified section and now it is well-known for it’s fast sales. I wanted to sell my car in a hurry so I list it in Mudah for free. Only one free listing permitted for one user. However not everything is free though. If you need to edit, bump your listing or put it as feature, you will need to pay a fee. The ad will be in the site for two months before the system auto-delete it. I’ve received so many phone calls, whatsapps and sms from the listing in Mudah right until after I sent off my car to the new owner. Some are direct buyer offering ridiculous price, some just ask if it’s available for fun and some are simply curious on why I am selling my car that was in superb condition. I think these people are lack of friends to talk to LOL. There are also used car dealer eyeing on the site, calling you and offering you a used car dealer resale value. Also beware of conmen and fake used car dealer.

(2) Motor Trader Magazine
I wouldn’t recommend this magazine anymore simply because it doesn’t work at all. You paid RM60 for a single spot listing with 25 words in the magazine for two weeks. Motor Trader also offer free listing to their classified website for every ad placed in the print magazine. However do note that if you buy ads in their website, you will not get free spots in the print magazine. I did put in a single spot ad after the first buyer failed to get loan. Many years ago we’ve done a research on the efficacy of advertising in Motor Trader. Interested car buyer will not call the seller immediately after they see the ad in the magazine. They will monitor for at least a few issue before calling the seller. I only get calls after I sold my car. This theory proved our research previously.


Step 3: Car Viewing & Test Drive

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Photo credit –

After you’ve placed advertisement in your preferred buying and selling used car site, interested buyers will then made contact with you to view the car. Nowadays it is quite dangerous to do so regardless if you are a guy or a girl. I was extremely anxious and usually I bring the whole family (dad, mom, brother) along with me. Choose a place where you are familiar with and with crowd such as petrol station, shopping mall or the best is your house. Do not drive your car for viewing or test drive at night no matter what. Plan a short distant route that you are familiar with. Be extra careful if the interested party brought a whole group of guy friends. NEVER let the buyer test drive alone even though his own car is with you. I have a friend whose car was driven away in this manner.

If you are a buyer, prepare a small amount of cash with you when you go for car view and test drive, just in case you like what you see and you need to book it. The minimal amount you should pay for booking fee is RM1,000.

If you are a seller, prepare and bring along a photocopy of your car registration card (both side) along with an official receipt book just in case the interested buyer is making a booking fee on the spot. Ask for a minimum booking fee of RM1,000 and above, nothing lower than that. You might be told that used car dealer only accept RM500. Tell him/her that is used car and you are direct seller. It is different. Once the booking is made, make it clear to the buyer on the terms and conditions. Give the buyer a two weeks time frame to get the loan approve and done. Make it clear that booking fee is only refundable if the loan is not approved by various banks. Ask for a proof or bank officer contact so that you can confirm with them personally.


Step 4: Loan Application – Buyer

Complete Guide to Buying and Selling Used Car in Malaysia 5
Photo credit – Google

Determine the loan amount that you are applying for and start going around bank asking / bargaining for the best interest rate and loan duration. You can roughly estimate your monthly loan repayment amount by using this loan calculator by

Prepare along latest 3-months of payslip, latest KWSP statement, latest 3-months of bank statement where your salary is credited, photocopy of NRIC and driving licence together with the car’s photocopy of registration card. If you are involving a guarantor, prepare for a copy of NRIC, latest 3-months of payslip, latest KWSP statement and latest 3-months of bank statement where the salary is credited. The best is both buyer and guarantor present at the bank together.


Step 5: Letter Of Undertaking

Complete Guide to Buying and Selling Used Car in Malaysia 7
Photo credit – Google

Buyer will need to keep track with the bank officer from time to time on the loan application process and to find out if the loan is approved or rejected. Once the loan is approved, bank will prepare a Letter Of Undertaking (LOU). If the buyer hand you (the seller) the LOU himself, do call or walk-in to the branch where the loan is applied to check on the authenticity of the letter. Public Bank said they only give verbal approval to buyer and they don’t give out LOU to seller, which is a total obnoxious so I personally walk-in to the bank, demand for a LOU and have a chat with the bank officer.


Step 6: Puspakom Inspection – Seller

Complete Guide to Buying and Selling Used Car in Malaysia 6
As a part of the new rule of buying and selling used car in Malaysia, all cars are required to undergo a Puspakom inspection. You may find the list of inspection centre at this link. Make a call to your nearest Puspakom centre to make an appointment. If you don’t you will not be able to do your inspection as they are quite occupied everyday.

Most bank will ask for a Hire Purchase Inspection (B7), some bank don’t. B7 was introduced in June 2011 and was made compulsory under the law, in an effort to protect buyers of used vehicles from buying illegal or unroadworthy vehicles. Any individual or organisation applying for a loan to purchase a used vehicle will need to show that the vehicle has undergone a Hire Purchase Inspection by producing a B7 report issued by Puspakom. This inspection includes 18 specific checks, a combination of identity checks and physical checks. Besides B7 you are also required to do a mandatory Transfer Of Ownership (B5) inspection which will be required by JPJ when transferring ownership of vehicle. Be early than your actual appointment time. Most people is not punctual so you get to go in earlier and come out in no time. Once you are there, you need to tell the police officer at the front entrance that you are there to do a B5 and B7. Bring along your original copy of registration card, fill in a form and make payment at the counter. B7 cost RM60 while B5 cost only RM30. Both are to be under the expense of the buyer but you can also choose to absorb the cost. I was in and out Puspakom in less than an hour :D. Why need to pay for runner when you can do it yourself?


Step 7: Termination of Current Road Tax and Insurance – Seller

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Photo credit – Star Motoring

Another new rule implemented by JPJ for buying and selling used car since September 2013 is that car owner (seller) will need to walk-in to any JPJ branch to cancel existing road tax together with the original copy of the registration card and original road tax. Bear in mind that after this step your car is no longer valid on the road. Make sure you only do this when you already gotten your new vehicle or you have a spare car to drive. Ask for a road tax termination form, fill in and take a number. JPJ officer will then do a cancellation on your registration card, update into the system and attach the road tax to the form for submission. There will be refund of the balance depending if you want to claim it or not.

After road tax termination is done, walk-in to your insurance office and do a termination for your existing car insurance. Officer will then check on the validity of your road tax from JPJ website. Once it is confirmed that you have terminated the road tax, officer will proceed to cancel your existing car insurance. You will get back a pro-rate refund of the insurance, if any. Check with your insurance office on their refund process. Mine took just a few days through online transfer.


Step 8: Deposit, New Car Insurance, Signing Loan Agreement & Transfer Of Ownership

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Photo credit –

This will be the last few steps in the whole buying and selling used car process. After you’ve done this, you (seller) can start preparing your car for hand over. I will elaborate more below separately for easier reference.

(1) Deposit – Buyer
Another new rule implemented to buying and selling used car in Malaysia is that you (the seller) will no longer need to accept deposit for the sale of your car. If you insist so, you will need to hand over to the bank the full deposit amount that you received earlier. This is because bank will need to reimburse the seller the full purchase amount of the car, not the loan amount. By right booking fee received earlier also will need to hand back to the bank unless the buyer mentioned that he/she bought the car at the amount after deducted booking fee amount. For example I sold my car for RM40,000. I received a booking fee of RM1,000. My buyer said he don’t want to trouble me to refund the RM1,000 to the bank so he told the bank that he bought the car for RM39,000. Buyer will need to do a bank draft for the deposit, in my case it’s RM6,000 and hand over to the bank.

(2) New Car Insurance – Buyer
After seller cancelled the existing road tax and insurance, buyer will be able to purchase a new car insurance under his/her name. A photocopy of the cover note / e-policy will need to be hand over to the bank as well.

(3) Signing The Loan Agreement – Buyer, Guarantor and Seller
Buyer together with his/her guarantor (if any) are required to sign on the loan agreement to officiate everything and to proceed with the next process. This can be done at the bank or bank officer will arrange with the buyer on a convenient place and time. Seller is also advisable to present to sign on the Transfer Of Ownership and other relevant forms required.

(4) Transfer Of Ownership (As of October 2013)
My car was probably one of the last few batch that managed to do over-the-counter Transfer Of Ownership so I can’t tell you much on the new mySIKAP that was implemented from 1st November 2013 onwards. You don’t have to do this personally because the bank will use their own runner to do the document submission to JPJ. The cost for everything would be about RM450. Buyer will need to do a bank draft and hand to the bank officer. Usually this will take one day or two days the maximum. My case was a special one because I was told by Public Bank that their priority is used car dealer and not walk-in/direct customer so usually this type of case will take one long week. Mind you other bank only take a day max. But because mySIKAP was implemented a day after the bank submitted for Transfer Of Ownership, the process took near to three weeks.

If buyer and seller insist of doing it personally at JPJ, just go to the counter and ask for Borang Tukar Milik Kenderaan and queue number. Both buyer and seller will need to prepare photocopy of NRIC front and back, cut the NRIC out and stick onto the form. After you’ve done filling in, just walk over to the officer that are responsible to check the details and document, get the verification signature and stamping and wait for your interview turn and pay :). That’s the process that I know before mySIKAP.


Step 9: Car Delivery & Collection

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Photo credit – Daily Credit Motoring

Once the Transfer Of Ownership document is returned back to the bank, the bank officer will process and send to disbursement department. If you opted for online bank transfer, you should be able to receive the full amount immediately on the same day. For my case there’s two different payment – RM6,000 and RM33,000. If it’s cheque, the bank will take a longer time to prepare and send to you so pray hard that the bank chosen by your car buyer is also a bank that you have an account with 🙂

Once you have received the full car sale payment, it is time to bid farewell to your car. Prior before this day I make sure I wash and vacuum the car and even send my car to my cousin brother who happen to own a car workshop for one last check. I found some issue with the engine mounting and change everything for RM700 under my own cost. A day before I deliver my car to the new buyer, the battery died and so I changed that as well for RM200 under my own cost again.

Do not be stingy in sharing on the previous car maintenance work done. Take time to explain to your new car buyer on the feature of the car as well as a brief on things you have installed for the car like audio system, brake paddle lock, security feature and so on.

As for me, I took one memorable photo with my beloved and stand in the middle of the street, looking on as the happy new owner drove my car away. It was tough for me as the car has always been my dream car (it still is!) and I’ve been driving the car for 7 years, caring for it as if it’s my flesh and blood.

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Hope this complete step by step guide to buying and selling used car in Malaysia will be useful for you one day. It is not as tough as it looks like. All you need to do is to find out which are the proper steps and procedure in doing so. I managed to sell my car myself, so why can’t you? 😉

(…To be updated from time to time)


114 thoughts on “Car Tips: A Complete Guide and Tips to Buying and Selling Used Car in Malaysia

  1. Thank you for a complete guide. My mom is thinking to sell her car. We have no idea how and what to do. It’s quite the tedious but not that complicated either 🙂

    1. Glad you find the lengthy guide useful ;). Now is the right time to sell off you car because (1) it’s a new year, (2) 2nd hand car value will be much more lower later on.

  2. You’re my kinda girl – beauty and auto rolled into one beautiful lady! Paul Tan is your boss? That’s so cool. Lol. Well not that I know him personally or idolize him, but I do enjoy reading his views on cars. He wrote in simple English which made it palatable in my case. Of course, if I read his reviews long enough, there will be car terminologies and jargons as well. Buying a second hand car can be exciting and stressful, depending on the type of person we are. If we enjoy saving the used car dealer cost, we can try to deal directly with the seller but we have to make sure we bring along someone who knows about cars interiors and engine etc. The running around from one government agency to another and banks to get the loan can be trying, again, it depends on how much time we can allocate. Or best of all, purchase a new car if we can afford it. Great tips that you have shared from your personal experience. Kudos girl! I hope your previous car has found a loving and great owner like you!

    1. I have a fair share of love towards automotive having been in the scene since I was 18 years old, from in-car entertainment to modification to street racing to drag race to drift. Just everything auto related. Paul Tan is my boss until end of Jan 2014 :P. He’s like the idol for bloggers because he started with just blogging and now it is Malaysia’s first automotive news and review website. Imagine starting it alone and now we are about 40 people 😀
      I’ve bought and drove two used car before. Both purchase is quite hassle free. Maybe that time the rules and regulation is not as complicated as it is now. It’s not that hard, buyer need to just go to the bank for the loan and then insurance. That’s all. Seller only need to go to Puspakom for inspection and the rest bank will do it.

      I was desperate for a guide three months ago. There’s none and that agitate me very much. So I decided to do one after I sell off the car. I am well aware that Street Love is a beauty blog but it’s a good platform for me to spread the guide out 😀

      1. Writing on a variety of topics in the blog is good. May the new year bring new frontier for you to conquer dear girl! Haha, this post is community service to many people out there who are clueless on steps to purchasing a second hand car. Your post have enlightened and served as info pack to many of us, particularly girls and perhaps their boyfriends or husbands too 🙂

        Salute Paul Tan 🙂 I love cars but do not deep dive into the industry. I used to read the motor section in The Star during my schooling days, about 16-17 and back then, I swear I could remember the torque and engine specs of cars! I was very fond of the details because I am an analytical person. Then I stopped reading newspaper when I went to Form 6 and then uni. These days, I read blogs mostly and over the years, have lost touch on CKD, CBU and direct shift gearbox etc.

        1. I can be very random sometimes :D. I still don’t like to write about cars because I’m clueless in that but when the creative bug hit, I can write. When I do it’s more like an experience sharing like this guide.
          Seriously I still don’t quite get all the torque and engine specs. I couldn’t be bothered since I’m not motoring journalist muahahaha.

  3. Thanks for taking the trouble to write. Your advice has been informative and helpful. If there are more people like you, the world will be a much better place.

    1. Hi Christine. That would be buyer. I think you missed the sentence after RM450 – “Buyer will need to do a bank draft and hand to the bank officer” 😀

  4. Very good guide. I am in the process of selling my car too. The difference is that the buyer is from outstation, thus I cannot do this walk-in to the bank for LOU or be present for Transfer of Ownership signing. Do you have suggestion for me? Thanks.

    1. Thanks Sue. Oh that’s easy. This guide is actually based on previous process before JPJ implemented the current new system – mySIKAP.
      If you need the copy of LOU, just call the bank officer and ask him to email or fax to you. Some people thought this is so not necessary but my friend who is doing buying and selling used car told me this is to prevent any fraud. Just make sure LOU is from the said bank, the bank officer you speak to is really from the bank (call their office number) and so on. This is because you need to hand-over your car’s original copy of Registration Card and signed on some documents releasing you from any liability. As for me, that include change of ownership.

      The new Transfer of Ownership is all done online through mySIKAP by Sistem Tukar Milik Sukarela (STMSR). You can read all about the transaction at this link 😀

      1. Hi Fiona,

        Thank you for sharing such detailed information with everyone. I am helping a friend to sell her car. You mentioned you have a friend who is buying and selling cars – is it possible to get his/her contact details as we don’t want to go through a car dealer (company). How do we find out who are the people (agents) like your friend who do this – my internet search has not resulted in much information. Thank you!

        1. Hi Prema, my friend no longer is in the automotive business. I am afraid you have to find other agents to do so. Motor Trader can be a good source to do so.

  5. Hi Fiona,

    Thanks for the useful article.

    I’m in the middle of selling mine and my sister’s car. The problem is, is that possible to sell on behalf of my sister? I heard that about the new rule regarding the thumbprint things(the car’s owner has to scan the thumbprint at JPJ), but is it already implemented for the individual private car?

    Thanks in advance.

    1. Hi cal,

      Thanks for dropping by. Yes, the thumbprint thing is already implemented for individual private car. That’s the new system mySIKAP. Somehow now that the system is already stable, it is much easier to buy and sell car personally than the time where everything was manual. I think you can sell on behalf of your sister. Just need to check with JPJ on necessary documents for your sister to sign 😀

      1. Thanks for the super prompt reply. Currently my sister is living in other country, does she need to provide letter of authorization for selling on behalf of her? What if the JPJ need her thumbprint?

        1. No problem. Cal, here’s a FAQ article on mySIKAP. It will give you all the necessary info and steps in change of ownership 🙂 . Basically mySIKAP does not require both owner to present at JPJ office. It’s all done online.

  6. Hi Fiona,

    Thanks for your information. It’s really helpful. I have some questions to get your advice. Is there any difference to sell a Company register car? How about company register used car which is still under bank loan? As the ownership of the car still belong to seller’s bank, what is the further step i need to do? Thanks

    1. Hi Miko,

      I’m glad the information is helpful. I’m not so sure about selling company registered car though. Sorry!
      Usually for vehicle that are still on bank loan, seller will need to settle the loan first. The best is to check with the bank’s hire purchase department on the procedure 🙂

  7. Hi Fiona!

    Just to get some advice from u. Hope you don’t mind.

    Currently, I’m driving a Perodua Alza 1.5 SE which I bought in the mid of April 2014. And that moment I was still staying with my parents in Johor. But now I stay and work in Melaka, meaning my parents they don’t have a proper mode of transportation to move around. It’s either they walk to the desired destination or took up the public transport if they destination is really far.

    I really hope I can buy another car for them to use on day to day basis. Unfortunately, both of my parents aren’t working, that means definitely they don’t have a pay slip. So, they can never really get a bank loan.

    My monthly income after deductions will be approx. RM2200, and my current loan installment is RM600.

    So, here’s the catch. Will I be eligible to get another bank loan to buy a used car priced approx RM20k? And I am willing to pay a minimum of RM10k as a down payment up front. Hope u can help me out in this in the quickest possible time.


    1. Hi vshnu,

      No I don’t mind at all. I only hope I’m able to help 😀
      Based on your situation, the bank will take into consideration of any other commitment that you have such as house loan, spouse support and so on. And based on your monthly income after deduction and also with your current car loan, I think there shouldn’t be any problem to get a RM10k loan. However since I’m not working in a bank, I couldn’t speak for them. Each bank operate differently. The good news is, even if you do ran into a problem, the most the bank will do is to ask you for a guarantor. Meaning you will get the loan. Just that you need to get someone with good financial to be your guarantor.

      Hope this helps.

  8. Hi Fiona,

    Came across your comprehensive article on the process of buying/selling private vehicle and enjoyed reading through as it is really informative. I’m currently in the same process as a seller and just wanted to seek your advise based on your experience:

    1. Was your car fully paid by the time you sold your car? I’ve just cleared my outstanding loan with the bank and now awaiting the Hak Milik Batal to be issued – question is once you have this doc, what did you do with it? Do you go to JPJ to register it under your name?
    2. After sending to Puspakom, did you immediately cancel your road tax and motor insurance?
    3. After Puspakom, you indicated that the buyer & seller will need be present for the signing of the loan agreement and the transfer of ownership documents. Are these transfer of ownership documents you’re referring related to the ones to be submitted to JPJ? Because in my case, I’m going with the buyer to JPJ to initiate the transfer of ownership – is this the same thing?
    4. Once the transfer of ownership is done, I’m assuming that there’s a receipt/stamped document to prove that the transfer is done. From here, the buyer will pass it to his banker so that they can process the reimbursement to me?
    5. Prior to the transfer of ownership – is there any documents that you sign (e.g. Letter of Undertaking or any docs) that would protect you as I see that the reimbursement only happens after the transfer of ownership is done.

    Will very much appreciate your advise.

    1. Hi LL,

      Thanks. I’m happy to hear it’s informative for you and congratulations on selling your car yourself 🙂 . Here’s my answer to your questions.

      1) My car was fully paid before I sold my car. The bank will give you a letter saying you’ve fully paid the loan for safekeeping. The car IS ALREADY under your name when you bought it. There is no need to go JPJ and register it. Technically that has been done when you bought the car.
      2) You only cancel your road tax and insurance AFTER the buyer’s loan approved. Otherwise you won’t be able to drive the car anymore if the buyer back out / loan rejected.
      3) This is meant for the time before mySIKAP came on board. I’ve already stated that the change of ownership step for my case is only based on the time before 1st November 2013 (mySIKAP effective date). If I’m not mistake, the Borang is no longer needed. I’m not so sure which document needed for the new system as my time was just right before the new system. You can refer to this link for more info
      4) Yes. For my case, it was all done by the runner hired by the buyer’s bank. All I do is to call the bank and to check if the documents are back to the bank for reimbursement.
      5) The bank will require you to present and sign a few forms and letter releasing you from any liabilities. Letter of Undertaking is a letter from the bank stating the loan has approved.

      All these will be advised by the buyer’s bank officer. Normally they will give you a call to arrange for a meet up to sign documents. mySIKAP will require both buyer and seller to be present at JPJ office to do the transfer of ownership.

      Hope this helps.

  9. Hi guys,

    An interesting point is that I heard that there is a new ruling from the banks that (if you still have loan outstanding with banks) you need to settle the outstanding loan with the bank before you can sell the car. This is unlike previous practice where the buyer can apply for the loan and then if approved there will be a bank to bank settlement made, before the e-batal can be obtained and car ofifcially transferred. Is this true? What if the loan balance is too hight e.g. for expensive cars, some individuals can’t possibly settle 100% of the outstanding before selling. Usually for high value transactions, the buyers bank loan is needed to knock off the sellers outstanding.

    1. Yes, that has always been the practise as far as I know. Seller will need to settle the loan first, not bank-to-bank settlement. I’m not sure about the part where seller is unable to settle the car loan. You will need to check with the bank on this matter as my transaction doesn’t involve loan settlement.

  10. Hi Fiona,

    My buyer will apply for a loand and the bank requires ‘Proforma Invoice’, did you provide the same to your buyer? May I have a sample so I would know what are the important details to include?


    1. Hi Jo,

      Oh this is something new. No. I did not provide a Proforma Invoice to the buyer. Did you speak to the bank officer directly? You need to know why and what it is for. If the reason is valid, just Google for a sample of the said invoice will do.

      1. Hi Fiona,

        Thanks for your reply. I will call the bank tomorrow to get further info on this. I only saw this is one of their requirements at their website.


  11. Hi Fiona,

    Really appreciate your effort in writing up and sharing those information for us.

    Is there any challenge for me to get around 10k loan from bank if i opt for direct seller instead of dealer? Reason is i am an expatresiding here since 2 year and planning to buy a second hand car for daily use .My monthly salary is around 7k wid no other loan currently ongoing under my name.

    Thanks 4 your much awaited response in advance…cheers 🙂

    1. Hello! Thanks and I hope it’s informative for you.

      Monthly salary of 7k with no other loan definitely will not have any problem with getting a 10k loan for sure. With 7k you can get even 70k loan! lol

  12. Hi there Fiona,

    I really appreciate for posting. Same as your case. I was having problems finding a guide to buy a second hand car.
    Here’s my question. Mind to tell me how long did this whole process of selling your car?
    And how long did it take the bank to credit the money of the car that you sold?
    Thank you in advance.


    1. Hi Adrian, it took slightly more than a month for the whole process because JPJ was offline for the launch of mySIKAP at the critical time when I was to do the name transfer.
      If you read Step 9: Car Delivery & Collection, I stated there that once the Transfer Of Ownership document is returned back to the bank, the bank officer will process and send to disbursement department. If you opted for online bank transfer, you should be able to receive the full amount immediately on the same day.

  13. Hi Fiona

    I came across your blog when I googled “how to sell car private Malaysia” and I’m so glad I did. I enjoyed reading your posts and TQ so much for sharing this Guide, very clear and simple to understand. Keep up the good work and your sharing!

    Would you know whether Seller can go do Puspakom inspection prior to finalizing on a Buyer? So that process can complete even faster.


    1. Hi Shar, thank you so much for the compliments 🙂

      Step 6: Puspakom Inspection – Seller is for the seller. I thought I can repeat it here. Yes, you can go to Puspakom yourself. Actually I would prefer if the Seller go themself. I did it myself, twice. The reason is you hold the original copy of registration card. If you engage a runner or you want the Buyer to do it, you will need to hand over the card to them. I don’t know about you but I don’t feel secure about it. That is why Step 6 I put as seller part 🙂

      Hope this helps.

      1. Ok…I’m in Fiji and buying second-hand Toyota Hi-Lux from Malaysia for US$9,450. Dealer says this includes delivery to Fiji, is there any way to check on dealership or authenticity?? (Don’t want to get conned)

        Payment is US$500 deposit through, 1 month to check vehicle (mechanic, driving etc) after receiving in Fiji (6 days delivery), then pay the balance…

        Advice appreciated…BTW I have the Malaysian company registration certificate (emailed to me)

        1. You can either Google them up to see if there is any bad reviews on them or you can get someone n Malaysia to do a background check on them. That is the way I know. I’m not sure what is the proper way since I’m not a professional in this matter. Sorry that I can’t be a much help.

  14. Hi Fiona. In step 6 Puspakom Inspection, you said “bring along the original copy of registration card”. What if my RC is till with the bank?

    Thanks for providing such a complete guide. It’s awesome!

    1. Hi Soo, just get your card from the bank! Easy peasy. But of course in order to sell your car AND get the card you will need to settle all outstanding loan. Do consult with your bank on early settlement. Good luck 😀

  15. Hi Fiona,

    Your blog really helps a lot in this new system of selling a car in Malaysia; almost like seating for a pHD exam. Thanks for sharing.

    I reside in Australia and wanna sell my Peug 308T in KL. I understand that there is lots of stuff that i needed to be present physically but its pretty imposible. So my question is, can i write a letter of authorisation letter for my Faher-In-Law to act on my behalf? And if so what are other procedures that needed me to be present physically at first?, coz i can do all those before i leave again in 2weeks time. The car is fully paid and basically needed a buyer thats all.

    thank you so much

    1. Hi Ivan,

      You are so right. I wanted to cry my eye balls out when I needed to sell my car off myself because I wouldn’t want to loss 10k for selling it to any 2nd hand car dealer. Hmmm I am not so sure on your situation but as far as I know, JPJ had changed all transfer of ownership to online aka mySIKAP. With mySIKAP both buyer and seller need not to be present at JPJ office. All you need to do is to apply for the ID access. You can read all about it at this link Voluntary Ownership Transfer System. This means you can sell the car off even if you’re back to Australia 😀 . I’ve also found some info on 3rd party helping in the process Not sure if that still applies after the new mySIKAP implementation though.

  16. Hey cute sister,

    We just want o buy a used car now and we ask for the blue card, the seller says no more blue card in use, but ink registration jpj with the car plate number,

    he wanted us to pay a few deposit amount so tha he can council the advert, then he will need to take the care for inspection at the jpj office …..

    are all this steps true:

  17. hi Fiona,

    i m in the mist of arranging to sell the car by myself as the dealer was quoted me supre LOW rate.
    I have a question, if the buyer intend to pay cash for full amount, what will be the procedure i need to go thru.
    Once i got the deposit, i need to go Puspakom for inspection, and proceed to cancel my registration n roadtax?

    many thanks

    1. Hi Skye, If I’m not mistaken (I never deal cash payment before)…yes. That’s the procedure before doing the ownership transfer. But the sequence should be Puspakom > cancel roadtax > cancel insurance > transfer of ownership. You cannot cancel roadtax without cancelling the insurance.

  18. Hi Fiona,

    Thanks for the complete guidance in your blog. Now I have succeeded to sell the car by myself with following all the guides in your blog.

    Your info is so useful and the procedures are elaborated clear enough in every phase. At the end, I have a smooth process throughout the trade.

    Thank you.

    1. Hi Chang,
      Yay!! You’ve just saved a few hundred ringgit! 😀 . I’m glad my not-so-automotive story telling guide managed to help you. Coffee on you lol!

  19. Hi Fiona, thks for good sharing..

    If can advise me…

    Last year, I had full settlement with Public Bank for my Alza(2010) for about RM31,000.

    Now, I would like to use some money about the RM30,000.

    I think I cant refinance the car under my name(or the process is difficult?) so I am thinking to sell it to my brother.
    I will still use the car but under my brother name. Any additional charges involves in the change process?
    I heard about “tendang bola” cost… appreciate ur advise.

    1. Hi Ken, if it’s related to what I’ve posted in this blog post, you can ask here. If it’s anything else besides that, I won’t be able to help as I’m not working in a used car industry. Bear in mind I’m just a normal car buyer / driver like yourself and everyone here 🙂

  20. Hi Fiona. I found your post by accident but it was really really stated well and helpful to me. I bookmarked this page and would read again and again until I entirely understand.
    Although still feeling hard to sell my car as I am foreigner, your story encouraged me a lot. I just wanted to appreciate if you could recognize some people got highly cheered by you!

    And I have two questions, should I settle all loan amount before I sell it? I hope to sell before I renew insurance and road-tax but still have loan about 14000 RM and not enough quick cash to settle now…then I cannot sell it unless I ask to booking fee first to buyer?(if then, how they trust me? should make it via Maybank?)

    and another question is, how much is insurance refund rate? they count refund by each month(i.e. if insurance amount is 12000, I request refund after 3 months, then they give about 9000 RM about?)

    1. Hi Jay,

      Thank you for taking time to read and comment.

      Here’s answering your questions:
      1) Yes, you must settle all outstanding loan to the bank otherwise you won’t be able to sell it. Booking fee is still not enough to settle your 14k balance. No one will pay that much of booking.
      2) Insurance refund will be pro-rated by the number of days. Insurance company will calculate for you when you walk in for cancellation. I won’t be worried about this too much.

  21. Hi Fiona, your article is really useful. I am almost at final stage of selling my car to a direct owner who applys loan from HLBB. The bank refuse to give any black & white document or anything to mention that the total car sale payment will be credited to me once the transfer of ownership is done. Is this the same for your case too? How did you ensure bank will reimburse the correct amount to you after transfer of ownership?

    1. Hi Ng, I’m glad to hear it has been useful to you 🙂
      There will not be any black and white document mentioning they will credit the payment to you because they will do the transaction directly in no time. Once you found out that the transfer of ownership is done, just make a call to the reimbursement department (not sure the real name) and ask when will the payment be made AND then check your bank. Mine was instant.

  22. Hi Fiona,
    I am not sure if you could provide any advice to me on my case.

    Recently, I traded in my old car to a second hand car dealer and the ownership was transferred on the spot using online system (Sistem Tukar Milik Sementara). Then, the dealer sent my old car to Puspakom for B5 inspection. The inspection result failed because the car was cut and joined (kereta potong).

    I wasn’t aware the car is a kereta potong. I bought it new. My car was involved in an accident 10 years ago. I suspect it was cut and joined by the magat workshop without my knowledge.

    With the failed inspection, does that mean the ownership transfer which was done using the online system earlier is not valid anymore? Is the car still under my name or under the dealer name?

    The dealer kept saying the car is still under his name which doesn’t make sense to me because the inspection had failed.

    And the dealer wanted me to refund the money to him. I am ready to refund him provided the car is still under my name and I get back my old car and the car registration card.

    Any advise is greatly appreciated. Thank you

    1. Hi Jerry,

      I am so sorry to hear the difficulties that you had especially the part where the car workshop joined your car. The thing is, you should push for Puspakom inspection before even proceeding with the ownership transfer. If the dealer insist that the car is under his name, why should you refund to him? Unless he can proof it at JPJ that the car ownership transfer failed and the car’s name is yours, then only you refund to him.

      My suggestion would be, go to JPJ and get a clarification on this. Do you have a photocopy of your car’s registration card? Bring that and head to JPJ. Tell the officer your story and they will be able to check on the system with regards to the ownership.

      Hope this helps. And do let me know the outcome of this ok? Good luck Jerry 🙂

  23. Hii Fiona,

    Any advice regarding process of buying from dealers.

    Also please let me know what will be procedures for foreigners to buy a car.


    1. Hi Jahan, buying from dealer is pretty straight forward. The dealer will do everything for you. I do not know the procedure for foreigners to buy a car.


  24. Hi Fiona, thank you for sharing the usefull tips. I believe we Malaysia dont have much info to refer to especially when we wan to sell our car.

    I have coupe of questions to ask. Im planning to sell my car (bought less 2 years). Im also planning to sell to used car dealer as i prefer hassle free in term of getting buyer for my car. My question are: 1) used car dealer cannot do full settlement for my car and they need about 1month to do so. How can i avoid from being cheated by used car dealer? Is there any form of agreement that can secure us from being cheated? Or perhaps you can share the process to sell car to used car dealer. Thanks ya!

    1. Hi Kamarul. Thanks for dropping by and I’m glad you find the tips useful 😛 . I agree with you. I couldn’t find a guide when I wanted to sell my car personally and I vowed to write one after I successfully sold mine.

      Regarding to your question.
      Used car dealer usually need to do full settlement in order to “own” the car. There is no way for you to ensure if they will not cheat you or ran away etc within the one month. The good news is, they will not be able to do transfer of ownership if they did not make full settlement. However, there are also cases that car dealer is still able to get away with cars that does not own by them.
      You can do an agreement for them to sign but make sure you can use it against the car dealer if anything happens. Sometimes sneaky car dealer could also deny signing the agreement.

      I’ve only sold my car once to car dealer. It was my first car, a Proton Satria. I remember the process was quite simple back then and I kept following up with my loan bank to ensure they have fully settle it.

      Have you consider selling the car back to the new car seller/dealer where you bought your new car from?

  25. Hi Fiona,

    I am thinking to sell my car by myself with the standard reason – Used Car dealer want a bigger pie for their own.
    After read thru your guide and it’s really really helpful so I have a better understanding on the processes.

    Just one thing I would like to seek for your advise, what if I want my existing car number back? As I am considering to get a new car, with my old number plate on it, how should I do in these case.

    Kindly advise.

    Thanks much,

  26. Hi, I just want to ask about insurance transfer from seller to buyer, Is it possible to do and how much it cost to transfer insurance to the buyer because i deal with the private car owner and he said the insurance is valid till to march 2016, let me know in this regard?


  27. Lovely piece of advice Fiona.
    I am in the midst of selling my car to a buyer thru HP.
    In brief, Buyer’s loan approved–> puspakomb5,b7 done–>buyer’s bank settled my loan–>balance(selling price is more than contra settlement) is with buyer’s bank.
    My HP bank sent me e-batal aftrr loan settlement. Going to JPJ on monday for transfer of ownership.
    The buyer wants to take my car to his homebranch bank (he’s from melaka and im in KL) for inspection and he said that the balance will be disbursed after the bank’s inspection. My queries are:
    1)should I let him take the car after transfer of ownership but before bank settled the balance.
    2)what about new insurance under buyer’s name? Can he drive the car under my insurance or he has to get a new one.
    3) when and how do I cancel my road tax and insurance.

    1. Thank you EmmEss 🙂 . I hope it helps you to sell your car.

      That is so weird. The bank should do the inspection at the time when they are processing the loan application. It shouldn’t be after the transfer of ownership. If you refer to Step 9: Car Delivery & Collection, the bank will process the disbursement after the transfer of ownership is done. So by right they should process the payment right away.

      As for the insurance, I’ve covered it in Step 7: Termination of Current Road Tax and Insurance – Seller. This step should be done after Puspakom BUT only when the buyer confirmed that his loan is approved. Then the new buyer should do the insurance and road tax. Therefore he shouldn’t be driving the car under your name.


  28. Hi, this blog is very good, so informative. We need more bloggers like you.

    I recently decided to purchase a car but it is from Johor (I live in KL). I have submitted all my documents for loan processing by a runner in Johor. The seller still has a loan with bank A and I have requested to take up a HP loan with bank A as well to simplify the process. The process based on my understanding is as such:

    1. Loan approval (can be signed in KL, bank will courier documents down)
    2. Puspakom inspection (by runner)
    3. Undertaking letter (Can I sign this in KL too or do I need to by physically present in Johor?)
    4. JPJ transfer (Do I need to go to Johor for this or can be done separately? As in me in KL and seller in Johor)
    5. Car Insurance + Road Tax

    I need a clearer understanding of things as to minimize the trips I will need to make to Johor for this transaction. Also, in which step am I clear to take the car back?

    1. Hi Aaron,

      Thanks! Hope it helps.

      Let me try to answer your questions as buying a car from other states is new to me 🙂

      Depends on the bank, undertaking letter doesn’t need to be signed. For my case it’s Public Bank. They actually stop issuing LOU to seller and I have to call up the bank to request for a copy. And that also not a formal type of letter. So do check with your bank if they need you to sign LOU. I’m sure they can courier this down to the bank near you for signatory if they need to.

      As for JPJ transfer, you can do this via online 😉 . You can read all about the transaction at this link.

      You are clear to drive the car back when the bank disburse the payment to seller. However all this is also up to the seller and how you negotiate with him/her. I only deliver my car to the new buyer after I received the full payment 🙂

  29. I am about to buy a used car directly from the car owner. I plan to buy it by cash. Would like to know what are the main differences compare to your guidelines stated?

    1. Yours would be far more simpler process. Seller / you to do the Puspakom inspection, seller to cancel road tax and insurance, both of you to be present at JPJ for transfer of ownership, then you are to get new road tax and insurance. That’s it.

  30. Hi Fiona,

    I also like you can’t let go my car after 7 years with me.. Im buying a new car then I trade in my car to a used car dealer.. May I know that do I need to sign the k 1 form for registration of the new car or the sales person can go ahead without my agreement or sign?
    I decided do not sell my old car to the used car.. But he said cannot already is now under their name.. But the card still in my hand … Can this be reverse ?

  31. Hi Fiona ,

    I am same like you selling my 7 years baby… The situation is like this….
    I am buying a new car and trade in the car to used car dealer that the car sales person intro.
    May I know do I personally need to sign the k 1 form for the new car registration ? Or they can go ahead on behalf of me without my sign and agreement ?
    And now I decided do not want to sell to used car dealer, but he said cannot they already transfer the name to them… Is that true ?

    Thank you

  32. Hi fiona,

    The new car sales person never ask me sign anything…
    May I know if did tumb print mean Must sell to them already ? But I did not sign anything.

  33. Hi fiona,

    I do not know wat document… is used car ask me to put , was that possible for selling my car ? If yes but only tumb print also mean I must sell my car ?

    Thank u

    1. You have to find out from the used car dealer what is that that you had thumb print on. At this point of time it is hard for me to tell you what to do unfortunately as you personally have no idea what document was that. Go over to check with the used car?

  34. Hi Fiona,

    What a great guide for direct selling/buying a car! I really appreciate your effort here!

    I am planning to sell my 9 year Proton Iswara Car next month for between RM5-7K. Hopefully can get cash term buyer. Will definitely re-visiting your blog for reference later. Wish me luck!

    1. Hi Anas,

      Thanks 🙂 . When I wrote the guide, I had a hard time finding a complete step by step guide so I told myself that I will write one after I sold my car successfully.
      All the best with the sale Anas! It will be an interesting experience, emotional one for me.

      Good luck!

  35. Hi Fiona, thanks for the guide. Im selling my car to a buyer now, and the process until letter of undertaking & load agreement. Next step is puspakom inspection on next Tuesday. But I still have few questions.

    1. When exactly do I need to go jpj personally to cancel my roadtax and insurance? Here’s my doubt below:

    – After puspakom inspection & car service if any ? Cos without roadtax, I can’t drive it to service centre anyway.
    – Before passing B5 and B7 reports to bank? Does this affect the steps?

    2. I’m selling my car at 100k, but buyer applied loan and used selling price as 95k which is fine for me cos i will get 5k from him. Now, in this case, the buyer is paying 15k to bank by cheque & getting loan 80k and I still have 40k loan balance with the bank. So in this case, that 15k buyer paid to bank is not refundable to buyer right? It is actually a downpayment of the selling car price to bank since the car is under bank’s? Because I’m worry if the that 15k is refundable, that means the bank will only give me back 40k which is buyer’s loan amount 80k MINUS 40k my loan with the bank, in fact I need to get 55k from bank right?

    3. The bank said to us that their runner will do jpj for us which is transfer of ownership. Bank’s runner will take buyer & seller together to JPJ and do all the process. After finish transfer of ownership, do I need to pass the car to buyer then OR still keep the car until Bank’s disbursement full amount to me? We are using same bank but different branch only.

    Kindly thank you for your guide & hope you give me some advise based on my senarios above & your experience of selling your car.


    1. Hi Nick,

      Here’s the answers to your questions.
      1. As I explained in my Step 7: Termination of Current Road Tax and Insurance – Seller, it is right after buyer’s loan approval. Common sense wise, you have to do what’s necessary that needed you to drive the car BEFORE the cancellation. In your case you have to go service centre before that. Of course 😀 . When the loan approved, the bank officer will call you to ask for every other documents such as B5 and B7. It doesn’t affect the steps. Just as long as when the bank need the documents.

      2. You will get back the 15k. The procedure now is that seller no longer can accept any booking/deposit in cash from buyer. Buyer will need to hand over the money to the bank and the bank will disburse all back to the seller when the transaction completed. In you case you will get back 55k after deduction of 40k balance loan, provided you have the agreement with the bank saying to direct settlement using the money.

      3. Yes, both buyer and seller will need to be present at JPJ to complete the transfer of ownership. After that, you can choose to give the car to the buyer or not. I would suggest to tell the buyer to wait for the bank disbursement first because anything can happen. The problem is, bank will only process the disbursement AFTER transfer of ownership. The good news is, it will only take 1 day using bank transfer (if your bank account is the same as buyer’s bank) 😀

      Good luck!

  36. Hi
    i am shahid from pakistan i need some information from your company i would buy the one car from Malaysia K L maybe i will come next few month Malaysia for job so plz tell how me buy any car from Malaysia.

    Thanks and best regard.

    Shahid from Pakistan

  37. Hi Fiona, I found your blog post while searching for used car guide online.

    May I know if there is any way we can know that the seller (car owner) is the first owner/original owner of the car (meaning he/she bought the new car directly from the car sales centre previously) and he did not buy used car from someone else.

    Some seller will say the are the only owner of the car (first owner) but how do we verify that?

    Do let me know if you have any idea..thx

      1. Hi Fiona,

        If the seller report the lost of registration card and make a new one at JPJ, the name printed will show the current owner’s name and details, not the first owner (i.e original owner of the vehicle). I did for my brother last few months at JPJ Petaing Jaya as my bro misplaced his registration card.

        I am not exactly sure if there is any other way but probably the only option I can think of is to visit the nearest JPJ office to check the ownership record, I am sure JPJ has the record in their system. The only problem is I am not sure if JPJ is willing to release the info or not . May be they will just say it is confidential info…then that’s too bad. 🙁

        1. Hi Ben,

          Did the seller provide you with a brand new card? If that is the case, yes going to JPJ is the only option. If the seller is sincere in proving his/her car is the first hand car, he/she will have to get the info for you at least or go with you.

          1. Hi Mirul, yes you can. The existing car owner need to cancel road tax anyway. Please refer to the part where I talk about cancelling car insurance and road tax.

  38. Thank you for such an excellent and informative post.

    Btw, as asked before, but which I am still not clear, if I still have balance loan with my bank and I want to sell my car, I will have to settle the amount with the bank first before selling? Or can buyer bank deal with my bank to settle the balance amount? I was also wondering if the balance is still a large amount, then how would it be possible?

    Also, will the transfer of ownership be problematic if I have unsettled traffic police summon or it does not matter?

    Appreciate your input.

    Thank you.

    1. Usually all the balance loan issue your bank will advise you but what I heard was the buyer’s bank can deal with your bank. The whole process, whether it is impossible or not etc I cannot answer you as I did not go through this process. If I were you I wouldn’t worry too much. Bank has all the answer.

      Of course it will be problematic if you have unsettled traffic summons especially the police lol. You need to settle all the outstanding eventually. The buyer will get you to settle it no matter what.

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