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HomeCar TalkA Guide To Changing Car Ownership In Singapore: Key Points To Consider

A Guide To Changing Car Ownership In Singapore: Key Points To Consider

4 min read

Transferring car ownership in Singapore involves a process facilitated by the Land Transport Authority (LTA), but there are critical details to address to ensure a smooth transaction.

Whether you are buying or selling a vehicle, here are some key considerations you need to keep in mind.

Please note that this article does not cover light goods vehicles for hawkers and farmers, diplomatic vehicles, and foreigners who are not eligible for Singpass.

Understanding the Car Ownership Transfer Process (Seller and Buyer)
In Singapore, car ownership transfer must be completed via the OneMotoring portal. This applies to all private vehicle transactions, including direct sales, trade-ins, or dealer purchases. Both buyers and sellers must have valid Singpass accounts to access the system.

Key steps include:

  • Seller initiates the transfer by providing the vehicle registration details.
  • Buyer accepts the transfer request and makes payment for any associated fees.

The vehicle being transferred should not have any outstanding matters like loans or road tax arrears. It must be over three months from its registration if the vehicle is registered with a Category A or B Certificate of Entitlement (COE). Vehicles registered between four and six months may incur an additional levy by the buyer, applicable if the first COE paid is lower than the current COE at the time of transfer. This additional levy is the different between both amounts.

Transfers must be processed within seven working days upon completion of all formalities.

Verify Loan and Ownership Status (Seller and Buyer)

Before initiating the transfer, both parties should verify the vehicle’s status:

  • Loan clearance: Ensure the car loan is fully paid off or discuss with the bank if there’s an outstanding amount. The bank must release the loan before the transfer can be approved.
  • Ownership details: Check the vehicle registration certificate (VRC) or the vehicle log card for accurate ownership details. This can also be done via OneMotoring.
  • Sellers need to decide if you want to keep your car licence plate number before transferring.

Insurance Requirements (Seller and Buyer)

In Singapore, car insurance is mandatory. Buyers must secure insurance coverage before accepting ownership, covering the full period of the vehicle’s valid road tax:

  • Purchase a comprehensive policy in your name, tailored to your driving habits and needs.
  • Provide the insurance details during the transfer process on OneMotoring.

Sellers should inform their insurance company to cancel their policy after the transfer is completed.

Inspection and Road Tax (Seller)

Before completing the sale, confirm the following:

  • Inspection: Depending on the vehicle’s age at the point of sale, vehicles over three years old require a valid inspection certificate from any LTA-authorised inspection centre. Ensure the car has passed inspection within the required timeframe. The vehicle must also pass inspection before road tax can be renewed.
  • Road tax: Any outstanding road tax must be settled before the transfer. Sellers can check their road tax status on the LTA website.

Vehicle Condition and Background Check (Buyer)

Buyers should:

  • Inspect the vehicle for wear and tear, hidden damages, and overall condition. Engage a professional mechanic if needed. Automobile Association of Singapore has a comprehensive used care evaluation service.
  • Review the vehicle’s service and maintenance history for transparency.

Fees and Associated Costs (Buyer)

  • Transfer fee: A standard fee of $25 is payable by the buyer during the transfer process.
  • Additional costs: Depending on the age and type of vehicle, buyers may incur other costs such as COE renewal fees or ERP (Electronic Road Pricing) unit transfers.

COE Considerations (Buyer)

The Certificate of Entitlement (COE) is a major factor in the value of vehicles in Singapore. Buyers should:

  • Check the remaining COE tenure. Cars nearing the end of their COE may require renewal, which involves significant costs.
  • Calculate depreciation to evaluate whether the vehicle is worth the asking price.

Legal Documentation (Seller and Buyer)

Both parties should prepare the necessary documents:

  • Seller: VRC and proof of loan clearance.
  • Buyer: Valid insurance policy, identification documents, and payment receipt.

All parties should retain copies of the transaction details for future reference.

Timeline and Notifications (Seller and Buyer)

Once the transfer is successful:

  • Buyers receive the updated VRC via mail.
  • Sellers should ensure the vehicle is deregistered under their name and update their insurer to avoid liability.

Final Tips for Buyers and Sellers

For buyers, avoid impulsive purchases. Research market prices, compare deals, and factor in additional costs like COE or maintenance.

For sellers, be transparent about the vehicle’s condition and history to avoid disputes.

Changing car ownership in Singapore is a well-regulated process, but careful attention to details like loan clearance, COE status, and insurance requirements is essential. By adhering to the outlined steps and ensuring all documents are in order, buyers and sellers can achieve a hassle-free transaction.

AA Singapore Car Evaluation Service

If you need a thorough used car evaluation before buying one, consider Automobile Association of Singapore’s professional car evaluation service that includes Car Body Damage Detection, Suspension Assessment, and Brake Effectiveness, all in one assessment report. Visit the website or call 6748 9911 for more information.