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Buying or Selling a Car

Malaysia - Buying or Selling a Car

To own and drive in Malaysia the owner has a responsibility to ensure the car is roadworthy, insured and that the driver has the correct and legal license to operate the vehicle. All cars in Malaysia are right-hand drive.

Purchasing a car

The car assembly business is large in Malaysia and if you’re looking for a new car, then there is plenty of choice available. Car dealerships are dotted around the country and cars are advertised in local newspapers and online. There are also sole car dealerships available to purchase a new car from. If you choose a car dealership or a sole dealership, a down payment is usually required. This deposit is usually around 10 per cent of the car’s total cost excluding paperwork and other fees. If you buy privately then the payment process is usually a deposit followed by full payment. That’s between you and the seller.

To purchase a new car there is a list of documents which are required:

- A Malaysian or internationally recognized driving license
- Work permit if you are taking out car finance
- Passport
- Proof of income and computerized pay slips
- Employee’s Provident Fund document which can be acquired from the EPF office
- Bank statements from the last three months.

If a driver is under the age of 21-years old, a guarantor will be required. The guarantor must be either an employer or a Malaysian citizen and produce the following documents:

- The guarantor must produce his or her ID card
- Driving license
- Bank statements dated within the last three months
- Guarantor’s most recent pay slips.

The car dealership or the seller will handle all the registration documents and other legal requirements required including informing the Ministry of Road and Transport Authority.

If a car loan is taken out, then the seller or the finance company keeps the registration card until the loan is paid off. This will generate a tax disc for the vehicle which will be sent straight to the buyer providing the buyer has the car insured. A fee is charged for this by the seller. The cost of the road tax is factored into the loan repayments.

Buying a used car is a similar process as there are many used car dealerships. The process is a little quicker.

If you’re buying from a private seller, the paperwork is your responsibility. The Ministry of Road Transport Department will need to be contacted to procure the relevant forms:

- Inspection forms - Borang Semak TM3
- JPJK3 – Owner transfer form
- New ownership registration form
- New owner’s passport with a certified copy

You can check online that a car is offence-free and free from any finance deals.


Selling a car

There are various ways you can sell a car registered in Malaysia from new. You can advertise online, in car magazines or sell to a used car dealership. Selling a car to a used dealership is the easiest way although the price will be lower than that of a private sale. If you sell to a dealership then there will be a letter signed put together by the dealership which you will sign stating that you’re no longer responsible for the car. This letter should be stamped at a Commissioner of Oath or Stamping Office as proof. You should inform your insurance company that you’re no longer the registered owner. The dealer will then fill in the required forms and let the Road Transport Department know via the correct forms that the car has now transferred to him.

If you’re selling privately, then the buyer will deal with all the paperwork. The transfer of ownership forms and new owner’s registration form should be completed by the buyer. It is the buyer’s responsibility to ensure that all paperwork is completed and you should sign these documents as soon as possible. Once the new buyer has completed all the legal forms and you have signed the form stamped by the Commissioner of Oath, you are absolved of any responsibility in regards to the car.


Road traffic laws in Malaysia are very strict and there are high penalties to pay for car owners who are not in possession of the correct documents. When buying or selling a car, it’s important that the correct procedures are followed.

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