Tag: cars

The Journey continues

In my previous post I led you through the forest that is prepping and getting your motor vehicle sold. I still have more to share on that score as the process can be complicated if you are not sure about the steps to take when actually making the transition.

For one thing, educating yourself about the process is key, especially as it relates to the requirements for transferring the vehicle as well as how you decide to free the vehicle from your lender (if necessary).

The first thing I was reminded of was the fact that there was a lien on my car because of the car loan I had on the vehicle. I still owed money on the vehicle from my lender, so that needed to be cleared BEFORE the car could be transferred.

Now let me explain an important, non-negotiable aspect of the buyer-seller relationship (which I learned in hindsight). Once you have identified a buyer, it is highly recommended that they pay you a deposit. In fact, if the buyer is really serious they will be willing to pay a deposit, and if not unfeasible, enough to cover the cost of the lien on the vehicle.

This helps in two ways, namely it ensures that you are not wasting your time, making a commitment to someone who does not intend to purchase your vehicle and also saves time by clearing the lien from your lender (in case this applies). Many persons choose to sell their vehicle after they’ve completed paying off the loan, so the lien requirement may not be an issue, nevertheless the deposit remains important.

Clear the Way

Once the lien is paid off from your lender, you will receive paperwork, which includes the motor vehicle certificate of title, to take to both the insurance company as well as the tax office.

Clear the lien with the insurance company and you’ll be good to go to the tax office where you will need to take the document showing that you have cleared the lien, the vehicle title and registration documents.

The motor vehicle transfer process is pretty simple. The seller will need to get the title stamped at the tax office before handover to the buyer. The traditional story about this process is that both buyer and seller visit the tax office at the same time. This is not necessary as the seller can begin the transfer process alone and simply hand over the documents to the buyer.

Once the title is stamped and handed over to the buyer, they are now free to start the process of registering the motor vehicle in their name and get their own registration plates and return the ones you own. Some insurance companies also require the certificate of fitness before providing insurance coverage.

Close the Deal

Before even getting to this stage, handing over copies of vehicle registration information to the buyer will be necessary, specifically if they need to acquire a loan to complete the transaction.

As the seller you will need to provide a pro-forma invoice and if the vehicle is imported, import and sale documents.

Once the buyer has possession of the vehicle, it’s time for you to cancel your own insurance to close out the deal. Transaction now complete you can now move on with your life, until of course, it’s time to do it again.

I found that the process is made easier if both parties are fully educated about the process. Both buyer and seller must be empowered and proactive in this regard in order to prevent unnecessary headaches.

So, did I miss anything?

Be inspired, Be informed, Be Glorious!

Kevin

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The Beginning

I recently completed what I consider one of the second most testing processes I have ever had to endure: selling my car in Jamaica. Other people may have had varying experiences with this and I acknowledge those. For a number of reasons the process was tedious, testing and downright annoying. What didn’t make the process easier was the lack of valuable information that could clarify the whole process for the novice seller or buyer.

Tax Administration Jamaica  has made a valiant attempt to provide some basic information on the steps necessary when completing a motor vehicle transaction, but in my opinion, it is lacking. What’s even more confusing is the fact that depending on the person you speak with when you call tax admin, you may receive contradictory information about the process.

So, where does it all begin?

Let’s talk a bit about my process when selling.

I bought my first car, 4 years ago, in what at the time appeared to be a very smooth and straight forward process. I, the needy pedestrian wanted to purchase a car that was dependable, inexpensive and a good buy. After visiting a few car marts and doing research online, I found MY car and started the process.

Fast forward to four years later and I was now ready to sell it and also come face to face with the fact that I do not consider myself a salesman. Nope, that’s not me, however the key thing I believe I had going for me was – a good car that was well maintained and would be a great buy for anyone who really wanted it.

Value it!

The first thing I did when I finally decided that my car needed to go was to give it a final servicing (as scheduled) and get any external body repairs done. In my case that meant a bit of spraying to cover some scratches and dents here and there.

One of the most important things I did came next. I decided to get my car valued by a certified valuation company. I chose this one because they seemed legit and were pretty accessible.

A valuation is important when selling a car because it gives you a justifiable basis for your pricing and I say justifiable because, you will get tested by people who approach you about your vehicle and want you to basically give it to them, at a loss. You will get two prices: the estimated value of the car and the forced sale value.

Armed with my valuation I now had a red line, meaning the force sale value was the amount I refused to go below in terms of my final sale price.

Once the car was valued I decided on where I was going to advertise and immediately, I chose online platforms, because based on my own experience, that’s the first place I looked for cars, when I started shopping. I also did a few print placements to let the world know about my car. I was quite confident and gave it a nice firm offer price, with price negotiable in bold letters.

The Response

Two things happened after my initial ad went public – calls trickled in with expressions of interest and I started getting sales calls from guys purportedly based in Japan who were trying to sell me cars, directly shipped from there.

What I noticed immediately about people who link you to buy your car is that not all expressions of interest are truly ‘interest’. Some people just want to call to ask you random questions about your car, or the more famous question – where is it located?

Be warned, ignore anyone who links you wanting to “purchase a car for their wife but due to work they can only meet at night to look at it.”  Absolutely NOT, and yes that did happen and the person in question had the audacity to follow up asking – “if I’m ever available.”

I made a point not to get attached to potential buyers and unless there was some kind of agreement, I refused to follow up.

Anyway, after about 7 weeks on the market, I finally found a buyer for my car, who gave me the price I believe, was in line with my expectations. This was after being sassed by people I don’t know who told me they were able to get better prices from other folks, or who wanted me to shave $100k off the value, just because they called and expressed an interest. STAND YOUR GROUND.

In part 2 I’ll tell you more about the process and  some of the more challenging aspects.

Be inspired, Be informed, Be Glorious!

Kevin

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