Automobiles have long been proven to be very useful to people—to the point that it is almost being treated as a necessity by many. Those in possession of such complex machines can leverage their lifestyles by putting it to smart use. Typically, vehicles are utilized for personal matters, and one of its primary uses is for day-to-day leisure transportation, hence the upsurge of various personal and family car models. But apart from private use, vehicles are also widely utilized for business or commercial purposes. Since automobiles are long-lasting goods, its value remains promising even when it is not in its brand new condition. Car selling, a known practice among owners, is a wise step for those who are looking to upgrade or dispose of their cars but still want to benefit from it before doing so. There are different ways to sell your car but before you proceed with the selling process, make sure to go over the important factors that need to be considered such as the right price point and proper documentation before putting your vehicle up for sale.
Who can I sell my car or commercial vehicle to?
If you have recently posted your car online, regardless if it is a used car or a new car, you might have received some offers from potential buyers. Although it is tempting to hand over your vehicle to just about anyone who gives a good purchase price for your car, you can only transact with allowed car buyers. To ensure a smooth transaction and an absolutely hassle-free sale process, verify that you are only communicating with legitimate buyers:
If I want to sell my car (Singapore-based): If it is cars you’re selling, you can deal with anyone residing in Singapore that has a valid ID and a valid motor insurance.
If I want to sell my commercial vehicle (Singapore-based): If you’re selling your commercial vehicle, only registered businesses in Singapore can purchase it from you.
Which method can I use to sell my car or commercial vehicle?
There are various ways to sell cars: through a dealer, through direct selling, or through a consignment agent. Direct owners have the option to choose which method suits their needs the most. Every method displays varying sets of pros and cons, each one carrying a certain uniqueness that may eventually be the deciding factor for car sellers. If you want to sell your car immediately, knowing your preferences and non-negotiables is crucial. Once you already know which method will work best for you, the process will become much simpler and faster.
Here are the different methods that you can opt for when selling your private or commercial vehicle:
Via a Car Dealer
Car dealers are knowledgeable experts in the industry because they specialize in various brands they sell. Car dealers can assist owners that are looking to sell their vehicles and even help out buyers that want to get a car loan. Just like any other method, expect that there will be advantages and disadvantages since you are involving a third-party individual to ease out your selling experience.
Selling your vehicle via a car dealer means you won’t have to go through too much trouble since used car dealers will usually help you out with the documentation, providing a hassle-free sale process for both you and your buyer. They also have greater expertise in your vehicle so they would know how to market it in order to attract buyers.
You will need to do your own research to ensure that the car dealer you’re engaging with is selling your vehicle at a good asking price. If you choose to sell your vehicle via a car dealer, see to it that you’re communicating with those that have a CaseTrust-SVTA accreditation. If you engage with an accredited dealer, rest assured that the practices they will do are in compliance with the law. It will also be a smart step to consult people you trust, such as your friends or relatives, who have also sold their cars before. This will urge you to check your vehicle’s value depreciation and help you decide which car dealer to go with when selling your car.
By Direct Selling to End Consumer
Direct selling is simply finding your vehicle a new owner without the help of any individual or institution. From attracting buyers to securing documentation, the car owner independently deals with the entire sale process until the vehicle is sold. In this method, there is only the seller and the end consumer. If you’re opting to sell your vehicle directly, you will need to do all of the leg work before you can close your sale.
One of the best advantages of selling your car to the end consumer is making more money. Direct selling means lesser fees since there is no other person involved in the sale. Commissions take up a noticeable chunk of the selling price so being able to directly sell your vehicle to the new owner will give you an advantage of getting the highest offer.
If you’re selling your car directly to the buyer, you will have to be familiar with all the necessary documentation which might take lots of time and effort on your end. Since there is no assistance from a third-party agent, you will need to do the negotiation yourself in order to fetch a good price. Aside from that, the seller will also accompany the potential buyers during the test drives which can be time-consuming. Driving attention to the vehicle can also be challenging as you will have to do the listing of your own advertisements online.
Selling Through a Consignment Agent
In this setup, the seller will provide the vehicle to be sold to the consignment agent but the ownership will remain with the seller unless it has already been sold. This method allows you to retain your ownership of the car until the entire selling process is already completed by the consignment agent. Automotive consignment is a helpful method but just like the others, it also has its pros and cons.
Consignment agents will help you with the documentation of your sale so you can have a hassle-free selling experience. If you’re running your deal through a consignment agent, you may also fetch the best price for your car or commercial vehicle since they have better expertise in the field.
Naturally, a part of the sale price will have to go to your consignment agent. These agents will take a cut from the selling price either at a flat fee or a rate of 1% of the amount. Also, if you are a busy person, you may find it taxing to go to the showroom whenever there is an interested buyer since in most instances, consignment agents involve the seller in the process whenever possible.
Things to take note of before selling your vehicle
Before you place your vehicle out in the market, make sure that you are well aware of all the important things you need to accomplish before the sale:
- Any outstanding loans and insurances that are tied to the vehicle should be settled. When the seller hands it over to the new buyer, the vehicle should be free from any arrears. To know more about car loans, check out Think One Credit.
- Singapore-registered car owners are required by the law to annually update their vehicle’s road tax so every car should have a valid road tax before it gets sold.
- When connecting with potential buyers, see to it that they have already secured their insurance policy. To avoid any issues, be sure to check if the insurance policy of the new owner is active.
- Pre-sale, all necessary documents should already be arranged. Before dealing with the buyer, prepare the vehicle registration because it must be transferred within 7 days of giving the possession to the new owner.
- For commercial vehicles, there is the ETS or Early Turnover Scheme (ETS)—an effort made by Singapore’s government to better the country’s air quality; the program’s objective is to replace vehicles that have already exceeded its ideal life span. By doing so, the percentage of eco-friendly automobiles that are in the stream of Singapore’s traffic will increase, effectively eliminating harsh pollutants that are coming from broken-down cars. Eligible owners won’t have to bid for a new COE and will instead enjoy a discounted Prevailing Quota Premium (PQP) for the exchanged vehicle. If your vehicle is a commercial one, be sure to check if you are eligible for the program. Through ETS, vehicle owners who are qualified can receive incentives and benefits by turning over their old commercial units so they can get a newer, cleaner model.
Car selling shouldn’t be too complicated. If you want to have your vehicle listed for sale, you may do so anytime but be sure to follow all necessary guidelines. Since you already know who to entertain and transact with, the only thing left to do is to wisely choose your preferred method of selling. Vehicles are priced high because it is a valuable possession so always ensure that you, the car dealer, and the buyer are clear with the agreed price before proceeding. Even though the process is simple, it can still be confusing to some so if you’re not familiar with the process, reach out to Think One and receive an attractive selling price for your vehicle.
What happens if you need to drive after selling your vehicle? Think One offers vehicle leasing services at affordable prices with various vehicle models for your selection!