Looking to buy a new car? This is how you transfer ownership of your old car

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The transfer of vehicle ownership is typically considered a tedious and time-consuming process. Oftentimes, most car owners will face this when they must sell their existing car or purchase a new car from another private seller.

Now if you’re trading in your vehicle for a new one, owners are typically spared of this issue because the used/new car dealer purchases your vehicle and will temporarily transfer ownership of your vehicle to the company (usually) before it is sold to another buyer.

Sellers typically have to perform a Transfer of Ownership when they have to sell their existing car to another private buyer

But what if you choose to sell it yourself? Well, it’s good to know that the process isn’t as drawn out as you may think, and comprises just three basic steps, which can save you hundreds, versus using an agent (or runner) to do it for you.

Step 1: Get your car inspected

The Puspakom inspection can take between 2 – 4 hours to complete

Selling your car or transferring ownership of any car first requires the vehicle to be inspected by Puspakom. Puspakom is an independent party that protects buyers from purchasing an illegal or unroadworthy vehicle. There are two main types of inspection related to transfer of ownership

Puspakom B5 inspection: No outstanding finance on the vehicle. B5 inspection is a pre-requisite for ownership transfer. Involves checking the car’s engine, chassis number, and undercarriage as well as ensuring window tint levels conform to JPJ standards.

Cost: RM 30.00

Puspakom B7 inspection: An additional inspection if the vehicle has outstanding Hire Purchase financing or the new buyer plans on obtaining a loan to purchase the vehicle from you. The Puspakom B7 is a more comprehensive inspection of the vehicle which includes critical features tests, emissions, suspension, rolling road and brake tests.

Cost: RM 60.00

Once your vehicle passes the required Puspakom tests, it is deemed eligible for transfer to a new owner. Sellers can opt to take their cars directly to a Puspakom branch or have the Puspakom mobile inspection unit come to them.

Mobile inspection cost: RM 100 (excluding B5 inspection charges)

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The Puspakom officer will scan the appointment QR code just before the inspection begins

In both cases, appointments and payments are made online. Once payments have been made, you will receive an email from Puspakom which highlights the vehicle and appointment details, along with a QR code that is scanned by the officer prior to the inspection.

Note, you can also take a vehicle for the Puspakom inspection on behalf of someone else, simply fill in the additional details during the online booking process.

The inspection results are mailed to you

The B5 inspection report is generated and emailed to you within minutes after the inspection is complete. The B7 inspection report is typically generated after a few hours.

Step 2: Seller authorises the transfer of ownership

For Step 2, the vehicle owner/seller must appear in person at any branch of the Road Transport Department (JPJ) to authorise the Voluntary Change of Ownership of the vehicle. Here’s a step-by-step rundown:

  • Download the JPJeQ app on your smart device
  • Visit the counter and request for the JPJ K3 form
  • Use the JPJeQ app to scan the QR code (typically near the main counter)
  • Get your queue number and wait your turn
  • While waiting, fill in the JPJ K3 form with the relevant details of the seller and buyer
  • Once at the counter, pass the completed JPJ K3, vehicle Registration Card and IC
  • The seller’s details are verified and will be asked for his/her thumbprint
  • Once the process is complete, the seller will be given a receipt
The QR code can only be scanned using the JPJ EQ app

Note that the buyer and seller can be in different branches/states or come to JPJ together or at different times. However, only the seller can initiate the process of transfer. The receipt has a validity of 7 days (inclusive non-working days), hence the buyer will need to complete the transfer within the stipulated timeframe.

Once the e-Batal JPJ is issued, the car’s registration card will be updated or a new one printed for the owner. Image 

Also, be advised that you may have to complete the e-Batal JPJ procedure prior to transferring ownership of your vehicle (especially if you’re selling your car after settling its Hire Purchase loan). The e-Batal JPJ basically confirms that all outstanding hire purchase payments have been cleared with the bank. To do this, you have to obtain a release letter from your banking institution and present it to JPJ. 

Step 3: Buyer completes the transfer of ownership.

Bring by the physical receipt or have an image stored on your smart device when going to JPJ

The steps are pretty much the same for the buyer. Of course, it’s ideal for the seller and buyer to meet at JPJ together.

However, if the buyer plans to go at a different time and/or location, the seller simply needs to send an image of the receipt to the buyer for safekeeping.

Once the buyer/new owner of the vehicle completes the thumbprint process, he/she will receiev a new Vehicle Registration card as the vehicle’s new owner. 

JPJ Transfer of Ownership cost: RM 100

Conclusion

Once the new owner receives a new Vehicle Registration card, the process is complete

As you can see, the Transfer or Ownership of your vehicle need not be the tedious process some make it out to be, but just requires some planning and knowledge of what to do.

The total cost for the Transfer of Ownership costs approximately RM 130, versus upwards of RM 400 if an agent or runner does it for you. However, note that this article only covers the basic voluntary transfer of ownership process.

For the transfer of vehicles that have outstanding financing on the vehicle, the process is quite a bit tougher. Primarily because of the financing paperwork requirements, and the lead time it takes to obtain said approvals and agreements from the banks or lenders before the ownership transfer process can be started.

In cases like this, Carsome remains the most transparent and hassle-free way of selling your car. Leave it to the experts at Carsome to offer you a fair price on your existing vehicle, sort out all the financing and paperwork, and get you behind the wheel of your new ride in record time.

Source: Looking to buy a new car? This is how you transfer ownership of your old car

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