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Are you buying a car? Is it from a Direct Owner? Are you doing it all by yourself and not sure of what paperwork is needed? Owning a car in Singapore is super-pricey. One has to think wisely, weigh all the pros and cons before buying a car. If you do not wish to have any middlemen and willing to do the entire paperwork. We are here for you, at the most needed hour.

With our expertise in the used car field, we have prepared a few but very effective tips for you, to guide you on how to complete the transaction in a smooth manner.

The pros of this type of transaction are that you can negotiate directly with the seller and no commissions or cut-offs need to be given to the dealers. Whereas the cons are that the entire process is tedious and time-consuming. If you do not have experience in buying a car, all the paperwork that is needed will exasperate you.

1. Indemnity Form

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Before buying the car, you should assess the condition of the car not only by viewing it but also by taking it for a test drive. When you take it for a test drive any unforeseen damage might happen to the car. As you are the prospective buyer, you are responsible for any accidents or any sort of damage that might happen to the car during the test drive. The seller is not responsible in any way for the liabilities that occur during the test drive.

So, make sure that before going for the test drive itself the ‘Indemnity Form’ has to be filled up. This form compensates/indemnifies the seller for the damages that happen during the test drive.

2. Sales Agreement Form

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After the test drive, if you are satisfied with the condition of the car and willing to buy it. Then, this is the time for you and the seller to agree on the price of the car, any deposit to be given, date of delivery, and the other Terms and Conditions. Make sure that whatever you both discuss, include them in the ‘Sales Agreement Form’. Both parties should sign the ‘SAF’.

Request the seller to issue a receipt as proof for the deposit that you have given. This avoids any future misunderstandings between the two parties.

3. Apply for Car Loan

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Generally, the car prices in Singapore are very high, everyone approaches a Bank or a Financial Institution for car financing. With the recent developments in digital technology, by sitting comfortably at home you can apply for your car loan at the Bank. Once you upload all the necessary documents your loan will be approved in less than a week. Interest rates are also low over a loan tenure of 7 years. You also apply for ‘Motor Insurance Policy’ as it’s needed along with other documents during the vehicle ownership transfer.

Some sellers may ask you to show them any of these documents just to double-check that the loan and insurance are approved.

Outstanding Loans

If the seller still has any outstanding payments on the car. Talk to him clearly to clear off the outstanding loan and once it’s done, then only proceed for the vehicle ownership transfer. If needed, ask him to show the Bank documents as proof that the loan has been cleared off.

4. Vehicle Ownership Transfer

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Once the seller’s car loan is paid in full. The ownership of the vehicle can be done now. By using their Singpass with 2FA Authentication, both the seller and the buyer should log into OneMotoring. Keep in mind that, LTA will be charging a transfer fee during this process. As the seller has to transfer the ownership, he should begin the transaction, within 5 working days it has to be accepted by the buyer on OneMotoring. Transferring the vehicle ownership is completed with the acceptance of the buyer on OneMotoring. Make sure to clear off any outstanding balancing on the car. Pay him by cash or cheque and also take a receipt from the seller as proof that all the payment has been made in full.

 

5. Hand-Over Form

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After the entire paperwork and ownership transfer, now it’s time for hand over. Prepare a Hand-Over Form, which states that you, the buyer of the car is hereafter entirely responsible for any liabilities and damages to the vehicle. Once it is signed, the car is handed over to you.

Now, you have become the owner of the car bought from a direct owner.

We at BRZE, have helped many to buy their dream cars. Should you have any further information or guidance, please feel free to contact our friendly staff at BRZE who will happily guide you with their expertise. We do the entire paperwork and make the entire process convenient for you. To save your time and get good value for your money, Contact us at BRZE today.

 

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