Buying a used car direct from owner

jebatdex

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jebatdex

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Guys

Im planning to buy a 2010 Toyota car direct from owner. Since this is my first time buying car, i tried to google for some info and found this: http://nextimelah.blogspot.com/2014/02/buying-used-car-in-malaysia-from-direct.html

If anyone has epxerience buying used car from owner, can you please advice since this writing is 2014, maybe some changes recently on the processes, or things that not covered by the writer of the blog. or maybe, if anyone can simply advise me point by point what should be done from checking my loan eligibility to getting the car key. Thanks in advance
 

6UE5t

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6UE5t

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Guys

Im planning to buy a 2010 Toyota car direct from owner. Since this is my first time buying car, i tried to google for some info and found this: http://nextimelah.blogspot.com/2014/02/buying-used-car-in-malaysia-from-direct.html

If anyone has epxerience buying used car from owner, can you please advice since this writing is 2014, maybe some changes recently on the processes, or things that not covered by the writer of the blog. or maybe, if anyone can simply advise me point by point what should be done from checking my loan eligibility to getting the car key. Thanks in advance
Well last month I just bought a car for my son direct from an owner. The process was pretty straight forward but I bought cash, so there's no loan application involved. My process was as follows:
1. After cross checking the car and the title, I bargain until we agree on the price.
2. I checked on any outstanding summons and inform the owner that she needs to settle those.
3. I paid a deposit of rm500 and get a receipt. I also asked for a copy of the owner IC, name card, and can also ask for full address if you did not go to the owner house when checking the car.
4. The owner arranged to pass puspakom inspection and settle all summons.
5. I checked online to ensure all summons settled.
6. I went to my bank to prepare a bank draft for the remaining balance of the price.
7. We met up around 8am at JPJ Wangsa Maju to do title transfer which she paid as well (around rm200 if not mistaken). So once I got the title, I gave her the bank draft and I took the car, finish. This last step was done in less than 30 mins.

If you apply for loan, if not mistaken after step 3 you need to apply for loan at the bank then from there the bank runner will help you settle coz the bank will need to collect the title. But not sure the details of that coz I never experienced that it before. Other members here surely would know better.
 
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Izso

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bro 6uest, you missed a few things. Anyway this is my own experience with cash buy between 2 strangers (myself and someone else).

  1. Once both parties are happy with the car viewing and price, deposit is paid to the seller to lock the price and get a receipt. Negotiate who should pay for the Puspakom inspection as well. Name transfers is cheap about RM30-35 iirc and the inspection is only a 4 point check. Ensure tint is stripped, brakes work, lights work and car is not a potong-and-weld car.

  2. Whoever is paying for Puspakom must call Puspakom to make an appointment first. There's a mobile Puspakom option but that's RM100 to go to your house to inspect for you. Buyer will need to make arrangements to pay the seller, whether bankdraft or cash transfer.

  3. Buyer will need to purchase his own insurance for the new car. This has to be done before going to JPJ and usually at the JPJ office there are multiple different insurance providers you can approach for quotations. Seller can simultaneously cancel his insurance for the car. Roadtax for the car does NOT need to be cancelled. Insurance companies will insist this be done before cancelling the policy - this is bullshit. If that office says that - go to another office that can cancel your policy for you without touching the roadtax.

  4. Seller goes to JPJ with buyers IC, car registration card and the Puspakom inspection pass letter and tell JPJ to change ownership for the car. Finger print needed to be registered on the JPJ system. The buyer does not necessarily need to be at the same JPJ and can followup within a week to accept the change of ownership but will need IC and Puspakom inspection pass letter too and new owner will need to pay for a new roadtax if expired else just continue using the existing roadtax. At this point the money needs to exchange hands. How you do that is up to you.
Selling to a used car dealer however is a tricky thing to do and make sure they issue a release ownership form to you otherwise you'll technically still own the car even if they drive the car around and get fines.
 

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Oh and take note - bank loan Puspakom inspection is very difficult to pass so make sure the car is tip-top condition. There'll be 22 different checks (as opposed to the 4 for the name change inspection) that range from handbrake efficiency to tint and glass clarity to brakes and even headlights dimness.
 

6UE5t

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bro 6uest, you missed a few things. Anyway this is my own experience with cash buy between 2 strangers (myself and someone else).

  1. Once both parties are happy with the car viewing and price, deposit is paid to the seller to lock the price and get a receipt. Negotiate who should pay for the Puspakom inspection as well. Name transfers is cheap about RM30-35 iirc and the inspection is only a 4 point check. Ensure tint is stripped, brakes work, lights work and car is not a potong-and-weld car.

  2. Whoever is paying for Puspakom must call Puspakom to make an appointment first. There's a mobile Puspakom option but that's RM100 to go to your house to inspect for you. Buyer will need to make arrangements to pay the seller, whether bankdraft or cash transfer.

  3. Buyer will need to purchase his own insurance for the new car. This has to be done before going to JPJ and usually at the JPJ office there are multiple different insurance providers you can approach for quotations. Seller can simultaneously cancel his insurance for the car. Roadtax for the car does NOT need to be cancelled. Insurance companies will insist this be done before cancelling the policy - this is bullshit. If that office says that - go to another office that can cancel your policy for you without touching the roadtax.

  4. Seller goes to JPJ with buyers IC, car registration card and the Puspakom inspection pass letter and tell JPJ to change ownership for the car. Finger print needed to be registered on the JPJ system. The buyer does not necessarily need to be at the same JPJ and can followup within a week to accept the change of ownership but will need IC and Puspakom inspection pass letter too and new owner will need to pay for a new roadtax if expired else just continue using the existing roadtax. At this point the money needs to exchange hands. How you do that is up to you.
Selling to a used car dealer however is a tricky thing to do and make sure they issue a release ownership form to you otherwise you'll technically still own the car even if they drive the car around and get fines.
Bro Izso, I think there are few things not quite correct in your explanation above as well.

During price nego, I just assume the puspakom and title transfers are all the seller costs and she also assume the same! Anyway I might have indicated to the seller that I will only spend exactly that certain amount for buying the car so maybe from there we both can assume anything else is the seller cost. :) Btw I also think puspakom inspection MUST be the seller responsibility because that is to ensure that the car is road worthy and sellable to begin with! So it's the seller responsibility to get it up to road worthy condition so it can be sold otherwise they cannot sell the car to begin with. So I owuld never agree to pay puspakom anyway because of this principle. As for title transfer, well maybe that's a bit grey area, can be negotiated if the seller doesn't want to bear the full cost, some may nego 50/50 but for me I didn't pay a cent.

Now for the payment, I don't think it's wise to do bank transfer especially if before the title transfer is done. It may happen that after you bank in the money, suddenly the seller doesn't do the transfer and run away! You need to prepare a bank draft for the seller's name but you'd still hold it until the title transfer is done and the key is handed over with the car in expected condition. This I think is the most fair payment method for both parties because it ensures that the seller cannot run away, and the buyer also will make the payment (coz the bank already blocked that fund for the bank draft under the seller's name).

Then for the insurance and road tax, you actually don't need to purchase insurance in advance before JPJ. How actually would you do that if you don't yet have the car title in your name? For my case, I buy insurance right after i got the title. The JPJ person also asked me if to terminate the road tax the next day which I & the seller agreed just to make a clean settlement. This allows me to still drive the car until the next day and to purchase a new road tax and insurance under my name already. So by the next day I already got both settled. Anyway for my case the previous road tax is about to expire anyway so no big deal to terminate it the next day. if your road tax is still long then I suppose you can refuse to terminate and just get an insurance if you want.

As for going to JPJ, I recommend just to go there together so can settle all fair and square right then and there including the payment using the bank draft method. If the seller goes alone then that's where there can be some risks in the process for both parties related to the payment settlement as I mentioned above. You want to buy the car in the quickest and safest way to settle everything and get your car, so why complicate things with letting the seller go alone to JPJ and all that?? Just make time and get it done quick, simple, fair and safe for both parties.

Honestly the above was my first buying experience from direct owner and it was a breeze, probably thanks to the seller also who were genuine, very friendly, and cooperative.
 

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Weird.. I didn't need to terminate anything on my road tax and the JPJ fella didn't ask me to do so either. But I agree with your bank and sales price comment.

And JPJ insisted I settle insurance before transfer of name. I did this just last year Sept bro.
 

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You must have ready insurance if you want to continue the road tax. Otherwise Jpj will cancel on the spot. There's no IFs
 

jebatdex

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ok thanks for all the input. in terms of bank loans for used car, i refer to this website ringgitplus, to figure out what bank gives the lowest interest rate. the order will be like this:
-Affin Bank (3%)
- AmBank (3.4%)
- CIMB (4%)
- Public Bank
etc

Is this something that I can rely on? Anyone here has experience making used car loan using Affin? For a 2010 car, how long i can make the loan? One of my friends said only up to 6 years, i dont know
 

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Weird.. I didn't need to terminate anything on my road tax and the JPJ fella didn't ask me to do so either. But I agree with your bank and sales price comment.

And JPJ insisted I settle insurance before transfer of name. I did this just last year Sept bro.
For my saga sale last year, I did not have to terminate road tax, just the insurance, and made up new insurance for the new owner. The owner could do it himself, but I did it for him since its quicker to be done in Kuala Lumpur and I was already on leave. I did this a few days before the actual title transfer at jpj.
 
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Looks like different JPJ manned by different people got different procedures.......lol
 

jebatdex

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Guys, when doing puspakom tint kene cabut. hehe... im thinking to use 3M tint for windscreen and cheaper tint for other glasses. Anyone knows official 3M dealer/outlet in JB, and how much 3M tint for windscreen only?
 

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Guys, when doing puspakom tint kene cabut. hehe... im thinking to use 3M tint for windscreen and cheaper tint for other glasses. Anyone knows official 3M dealer/outlet in JB, and how much 3M tint for windscreen only?
Expect 800-1000 for front windscreen. 3M is not smart tag friendly ya.. (assuming you choose the top of the range Crystalline)

not in JB so can't recommend anything
 

jebatdex

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i have surveyed two 3M tint shop, cheapest crystalline i get is RM850 and I guess a lower tier one ebony is RM400. so, only crystalline got problem with smart tag? ebony ok?
 

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i have surveyed two 3M tint shop, cheapest crystalline i get is RM850 and I guess a lower tier one ebony is RM400. so, only crystalline got problem with smart tag? ebony ok?
Dont know anyone using Ebony. Why do you want to insist on 3M anyway? There are cheaper and equally good tints out there. Unless you're looking for the mirror reflective look?
 

jebatdex

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Dont know anyone using Ebony. Why do you want to insist on 3M anyway? There are cheaper and equally good tints out there. Unless you're looking for the mirror reflective look?
Haha... coz i used to work for 3M, and I still think 3M is the best. What are the brands that cheaper and equally good? Please suggest so I can survey the price and consider them too.

Mirror reflective look is not what I am aiming for. I get quotation from one 3M authorized dealer in Kota Damansara, front mirror only RM700 for crystallaine. cheapest i get so far