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