I Want to Sell My Car for Cash
“I want to sell my car for cash, what do I do? What are the pitfalls and what paperwork do I need?”
In this post, we aim to help you find the easiest way to sell your car for cash.
What should I know when I sell my car for cash?
While cash can mean physical cash, it can also mean an EFT payment, deposit or a bank-guaranteed cheque.
It is not always necessary to advertise that the sale will be a cash sale, but this must be communicated to the buyer from the start.
What are the ways to sell my car for cash?
- You will sell directly to the buyer, which means better financial outcomes.
- With this type of sale, there will be security concerns. You may come across timewasters, extra paperwork and financial worries.
- Middleman sales are wholesalers who buy cars for cash.
- This is perfect for when you are looking to get rid of your car quickly and conveniently.
- These buyers on-sell most or all of those vehicles to other car dealers. The middleman adds an extra layer of cost, which means that you will not get the best price out of the deal.
- This is a pretty quick way to sell your car, and the price is transparent.
- The price is not usually the best you can get, as most buyers are car dealers, and the auctioneers also charge large fees. The vehicle also needs to be present at the auction, which could be an admin problem.
What are the pros and cons when I sell my car for cash?
While there are not many cons, you should always wait for the full payment before giving the keys to the buyer, as you do not want to be scammed in this way.
The main con of a cash sale lies in depositing a large amount of cash at the bank. A cash deposit of R25 000+ will cause the bank to show concern, but this can easily be resolved by stating that the cash comes from a personal asset sale.
In terms of tax, you might again be questioned about the large deposit you have made, but the same applies. You should simply state that this is from a personal asset sale and you will not be required to pay any tax on the deposit.
What paperwork do I need to sell my car for cash?
- Identification: This can be a copy of your licence or ID document. Make sure you have a copy of yours and the buyer’s.
- Proof of ownership certificate: You will only have this document when you have already paid your car in full. This is usually accompanied by a letter from the bank confirming that the car is indeed yours. If you still owe money on your car, you will not have this letter and will need to contact your financial institution to obtain the letter.
- Settlement letter: This letter will only be needed if you still owe money on the car. The letter will state how much you still owe.
- Notification of change of ownership: Also called the NCO form, this form can be downloaded online or is available at your local traffic department. Both the buyer and the seller’s signatures are required on this form, and the buyer also needs a copy of your original form. The Department of Transport should also be sent a copy of the NCO form.
- Vehicle Registration Certificate: The buyer of the car will need the original Vehicle Registration Certificate, and you as the seller will need to hold onto a copy.
- Proof of sale: This is the receipt that shows the date, the amount paid, the make and model of the car being sold, the car registration, and the car’s VIN number. The proof of sale will also include the names and contact details of both the buyer and seller. Both parties should also have their own copies of this document.
- RWC (Roadworthy Certificate): When selling your car, the buyer of the car will need to receive the RWC within 21 days of the sale going through for registration purposes. If you do not have an RWC, you will need to take the car to a testing station for this certification.
- Service history and receipts: You must hand over everything regarding the service history and any documents you might have relating to the car’s service warranty.