I recently sold my Perodua Myvi here in Kota Kinabalu, Sabah.
To, perhaps, make somebody else’s life easier, here’s how I did it…
First, my scenario: I had a 5-year loan on my car, which was paid off last year. My car was just about 6 years old, with 80,000km on the clock, had been serviced regularly, and, a few ugly scrapes aside, had been in no major accidents.
The few parts that were replaced were all original Perodua parts. Everything was in perfect working order: the electric windows, air-con, power steerings and engine are all just about flawless.
1. Find a buyer
The key to finding a buyer in Kota Kinabalu is marketing. Lots of people want to buy a car, so you just have to tell them about it. I went the Mudah.Com.My route.
At first I used Mudah’s 1-free-car-ad-per-person option, starting with my preferred selling price, which I gradually dropped – each time deleting and re-placing the ad.
When I got a little more panicked, I opted to pay RM48 for an option which, once per day, moves your ad to the top of the pile. I eventually sold my car while using this option, but not sure it was because of this option.
The rate of enquiry was very slow, and to find a decent buyer took a lot longer than I anticipated. In hind-sight I should have started much earlier.
2. Get the Puspakom Certs for Your Car
The Puspakom certificates prove the roadworthiness of your car, are required by the banks and JPJ for the transfer of ownership, and are valid for a month. So, it’s a good idea to get them when you put your car on the market, so as to avoid delay when you find a buyer.
The place to do this at is called Puspakom, and in Kota Kinabalu it’s located on the Kolombong / Lintas Highway and is open Mon – Fri (and some Saturdays) from 08:00 – 17:00.
You need to take money (RM30 for the B5 Form and RM60 for the B7), your IC / Passport, the original car registration card and, of course, your car.
I arrived at Puspakom at 7:35am on a Thursday and was about 10th in line, and walked out at 10am with both certificates. You only need B5 (Transfer of Ownership Inspection) if it’s a cash sale, but if the buyer is getting a loan from a bank, the bank requires B7 (Hire Purchase Inspection).
You can make an appointment by calling Puspakom ahead, but to be honest, nobody ever referred to an appointment, so it didn’t make a difference. It’s best arrive and get in the queue as early as possible.
Don’t join the commercial vehicle queue – there is a special one for private vehicles. Ask somebody if you’re not sure and avoid wasting your time in the wrong queue.
There’s a little coffee shop in the back corner of the property, which you will eventually pass while queueing. They sell a few basic breakfast options, water and soft drinks.
You have to fill in a few forms when you get close to the inspection point, but it’s pretty straight forward. Just follow what the inspectors tell you – the inspections are super quick, it’s the waiting in line that’s tedious.
3. Bank Loan
If you’re buyer is getting a bank loan, you, as the seller, have to supply your buyer with a few basics to enable an easy bank-loan application.
The bank needs copies of your IC or Passport, Driver’s License and Vehicle Registration card. Optionally, Puspakom forms B5 & B7 will make a valuable addition, but is not strictly required for the loan approval.
The seller has to take copies of their IC and last 3 months’ pay slips.
Of the banks, Public Bank will give up to 85% loan, but other banks like Maybank will give up to 90% loan for cars 8 years old and younger – so the buyer has to be prepared to pay the bank a cash deposit of 10 – 15% of your selling price.
Keep your car on the market even while people apply for loans. The loan process takes only a few days, but there are no guarantees that a loan application will lead to sale and in the meantime you might miss more potential buyers.
Top Tip: In spite of me thinking my car had been paid off since October 2011, I never paid, and was never made aware to pay, the RM35 ‘termination’ fee, which basically is a little admin fee closing my Hire Purchase account.
Because of this, when the new buyer’s bank checked the ownership of my car, it said Maybank was still the owner and thus the sale was halted. I had to go to Maybank first to pay the RM35 termination fee for them to issue an E Batal (stoporder?) and an electronic action to JPJ (Road Transport Department), which transfered the car to my name.
So, make sure your car is in fact in your name before you try and sell it.
Usually, I guess, you would cancel your insurance and get the pro rata refund. I decided to transfer my insurance to the buyer as an added perk, which was a waste of time as a) nobody puts actual value on it, and b) it comes with a lot more hassle.
The bank and JPJ requires insurance for the car, so eventually they will be made aware of this, but informing them of this will enable arrangement of the insurance before hand and could potentially save another day or two of waiting.
So because there was a bankloan involved, the bank sends their runner to do the JPJ transfer, which saves both me the seller and the buyer some hassle.
If you do a cash sale, the buyer might have to accompany you to the JPJ so that you can fill out the forms and sign the required ones in front of officers there. And then, you’re done.
In the end I gave the buyer, who was very supportive and was involved with the process from the start, the car early, and I got my money from the bank a few days later.
Sale concluded. And now I’m carless.
The entire process took me just shy of 2 months.
However, the person who eventually bought my car found me on December 17 and I had the money from the sale in my account on December 28, which could have been faster had it not been for the public holidays in between.
I had to take time off from work only twice: once for the Puspakom checks and once to sign the docs at the bank.
All said, it was relatively painless.