From 'Pre-loved' to Sold: How to Sell Your Used Car in Singapore

Selling your used car in Singapore might seem like a chore, whether you’re upgrading to a new model, relocating, or simply no longer need a vehicle.

While the process is generally straightforward, proper research and organised paperwork are key to a smooth sale and maximising your returns. For most sellers, the primary priorities are finding the right buyer through the most effective channels and accurately managing all necessary documents.

Where can I sell my used car?

When it comes to selling a used car in Singapore, you have several avenues to explore, each with its own set of advantages and disadvantages.

Selling directly to individual buyers through platforms like Carousell can potentially fetch you a higher price, as you cut out the middleman. However, this option requires more effort on your part, including listing, managing inquiries, arranging viewings, and handling negotiations.

Consignment dealers take your car and manage the entire selling process, from listing to negotiations. This offers convenience, but they will charge a commission on the final sale price, reducing your overall returns. This might make sense if you value your time and prefer a hands-off approach.

Used car marketplaces like SGCarMart aggregate listings from various used car dealers and individual sellers, providing a wide reach to potential buyers. You can list your car here directly or explore selling to a dealer listed on the platform.

If you're buying a newer car from an authorised dealer, trading in your existing vehicle can be a convenient option. However, trade-in values are typically lower than those obtained by selling directly, and this is often only a viable option for relatively new cars.

» Learn more: How you can sell your car online.

How do I sell my used car?

To prepare your used car for sale, follow these steps to simplify the process and get the best possible outcome.

1. Determine your car’s value

Before listing your car for sale, it’s essential to determine its current market value. You can estimate this using several tools available in Singapore:

• SGCarMart offers a valuation tool that provides an estimate based on your car’s make, model, and age.

• Getting quotes from used car dealers or consignment services can provide a realistic idea of what you might get for your car.

• The Land Transport Authority (LTA) offers a rebate calculator you can use to find out the COE and PARF rebates applicable to your used car upon deregistration, if it’s under ten years old. Both of these will affect the value of your car.

Remember that factors such as your car's mileage, its overall condition (both interior and exterior), the remaining balance on its COE, and its service history will all play a significant role in determining its final selling price.

2. Choose how you want to sell your car

When it comes to selling your car in Singapore, you have several avenues to explore, each with its own set of trade-offs. Understanding these differences is crucial for making informed decisions tailored to your individual needs and priorities.

Directly to a buyer

• Time to sell: Selling directly requires the most time, as you handle the entire process from start to finish, from listing to reaching a deal. It can take anywhere from weeks to months, depending on the process.

• Expected price: Selling directly often yields the highest price, as you can cut out the middleman and negotiate a higher price with the buyer. However, you also assume all risks and responsibilities involved in the sale.

• Fees and commissions: You primarily pay for advertising (like online listing fees), as you avoid third-party commissions.

• Effort required: This option requires the most effort, as you handle all aspects of the sale, including paperwork, negotiations, and the transaction itself.

Through a consignment dealer

• Time to sell: Consignment dealers handle the whole sales process for you (including listing, marketing and viewings). How quickly it sells depends on their network and demand for the model of your car, but it’s generally faster than selling directly to a buyer, but slower than if you were to trade it in.

• Expected price: Dealers take a commission for their services, which lowers the sale price you receive compared to selling directly

• Fees and commissions: Since consignment dealers operate on a commission basis, it's crucial to clarify their varying percentage or fixed fee beforehand.

• Effort required: This method requires less effort than selling directly. The dealer takes on the bulk of the work, saving you time and hassle.

To a used car marketplace

• Time to sell: Used car marketplaces typically offer a moderate to fast selling process, as dealers are motivated to quickly acquire vehicles for their inventory.

• Expected price: Dealers offer moderate to lower prices to ensure resale profits, resulting in typically lower offers compared to private buyers.

• Fees and commissions: Instead of a separate commission, the dealer's profit margin is already included in the price, which means you'll receive a reduced amount.

• Effort required: Selling to a dealer involves moderate effort. You bring your car for examination and agree on a price, while they handle the rest of the sale.

Via a trade-in 

• Time to sell: The quickest way to sell your old car is to trade it in when you buy a new vehicle.

• Expected price: Dealers prioritise new car sales and maximise their profit by offering lower trade-in values, resulting in the lowest return for you.

• Fees and commissions: There are no explicit fees or commissions. However, the lower trade-in value effectively serves as a cost.

• Effort required: Dealers handle the whole trade-in process, making it the most convenient way to sell your car.

3. Get your paperwork ready

Having the right documents on hand is crucial for a smooth and legally compliant car sale in Singapore. Here’s what you’ll typically need:

• NRIC or Singpass: Your personal identification for verification purposes.

• Vehicle log card: Accessible via the LTA’s OneMotoring website, this document provides the essential car details needed for selling in Singapore, including the registration number, chassis number, and COE expiry date.

• Service records and receipts: These documents show your car's maintenance history, assuring potential buyers that it’s in condition.

• Loan settlement letter (if the car is still under financing): To sell a used car with an outstanding loan, you must obtain a letter from the bank detailing the required settlement amount. 

• LTA transfer form (for direct sales): This form is required to transfer the title and registration of your car to the new owner when selling directly.

Having all these documents prepared in advance will help avoid any unnecessary delays in completing the sale.

4. Prepare your car and seal the deal

Making a good first impression is crucial when selling a car, so you should make the following preparations. 

Clean the interior and exterior thoroughly, for a clean car is significantly more appealing to potential buyers. This includes washing, waxing, vacuuming, and cleaning windows and upholstery, as a well-presented car suggests that it has been well-maintained. 

Address any minor issues, such as burnt-out lights, scratches, dents, or faulty wipers. Neglecting these issues can make the car appear less reliable and provide buyers with reasons to lower their offers. 

Take clear, well-lit photos for online listings. These are essential, as they allow potential buyers to accurately assess the car's condition and attract more serious inquiries.

After securing a potential buyer, the process involves several key stages: 

1. Negotiate a fair price with the buyer. 

2. Ensure all outstanding car loans are settled before transferring ownership of the car's title and registration.

3. If you’re selling the car directly to the buyer, meet with them in person at the LTA Customer Service Office or use the OneMotoring website’s online service to complete the transfer. 

4. Finally, once payment is received and the transfer is officially complete, hand over the car keys and all required documents to the buyer.

What if I want to scrap or export my car instead?

If you have an older car, one with a very short COE, or a vehicle with major mechanical issues, scrapping or exporting may be a better option than trying to sell it to someone else in Singapore. To scrap your car, you’d use the LTA’s Deregistration Service, apply for any PARF/COE rebates you're eligible for, and then send your car to an LTA-approved scrapyard. 

Exporting requires different steps with LTA and often involves working with export agents who can handle the necessary arrangements to export your used car overseas for sale.