Different macroeconomics have influenced vehicle prices to increase, leading South Africans to look for alternatives such as selling and buying cars privately, rather than through dealerships to try to secure a better deal.
Besides what is happening economically, many buyers are comfortable with browsing online and shopping around, often opting for direct connections with sellers.
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This trend makes understanding the correct process for transferring car ownership increasingly important.
Ernest North, co-founder of insurance company Naked says it is a legal requirement to notify the registering authority of any ownership changes within 21 days, failure to do so can leave the seller on the hook for traffic violations or accidents involving the vehicle long after the sale.
He adds that dealerships would usually handle these types of admin tasks, but when everything is done privately, it is important for private buyers and sellers to manage the process themselves.
He says the responsibility of the seller is to ensure that the vehicle is no longer legally in their name, this is to prevent any future liabilities, such as fines.
While the buyer is responsible for completing the transfer, “they must take the required documents to the licensing office, submit the Registration and Licensing of Motor Vehicle (RLV) form, and pay the transfer and licensing fees to register the vehicle in their name”.
North says it is important for both the seller and buyer to gather their documents for everything to go smoothly.
The seller:
The buyer:
The necessary forms can be found on the Natis website.
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“Technically the seller and buyer have separate responsibilities to submit different documents during the transfer process,” adds North.
When the car is being registered at the same licensing department, it often makes sense for the buyer to submit all the documents at the local licensing department in one visit. The buyer will also need:
“The licensing department will do the rest, including changing ownership, checking if the car is roadworthy, and issuing a new vehicle registration certificate in the new owner’s name.”
He adds that the seller must remember to cancel the insurance on the car to avoid paying for cover that is no longer needed. While the new owner would need to update their own insurance policy to cover the new car they just bought.
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