Buying a Used Car in Malaysia

Information on how to buy or sell a used car in Malaysia, with information about getting a car roadworthy and the documents needed...

There are many used car dealerships and individuals who advertise their cars for sale in local newspapers or magazines. There are also a number of online resources which include:

Car magazines, which advertise used cars and dealerships, are available at book shops and newsstands throughout Malaysia. Most magazines have a list of used car prices which are categorised according to model and also by dealership. These magazines are all available in English.

The process of buying a used car depends on whether the car is being bought from a dealer or from a private seller.

If a car is being bought from a dealer, the process is similar to that of buying a new car. The exceptions are the transfer document and loan interest rates. The dealer does the paperwork, and the owner collects the car when it is done.

If a car is being bought from a private seller, then the paperwork has to be done by the buyer.

The following documents and procedures are needed for the purchase and transfer of a used car:

  • Transfer forms from the Road Transport Department:
    • Inspection form - Borang Semak TM3
    • Owner transfer form JPJK3
    • New ownership certification form TM-AB, which is needed if the new owner is not present at the Road Transport Department personally and a dealer does the transfer documentation
  • New owner's passport, original and certified photocopy, which can be certified by a Road Transport Department officer
  • PUSPAKOM Sdn Bhd carries out an inspection to certify a car's roadworthiness and issues a K5 certificate. The certificate is required by the Road Transport Department for transfer of the vehicle's ownership
  • Proof of insurance

All forms must be handed in at the nearest Road Transport office with a fee for processing, which can take from one to three days.

When buying from a private seller, check that the seller does not have any traffic offences. A check for traffic offences can be done at major traffic police stations by providing the number plate details.

Car Registration Card

Whenever a vehicle is bought in Malaysia, the buyer receives a car registration card. This is a blue card which gives the name and details of the owner and the car. Road tax renewal is registered on this card as well.

If a car is bought with a loan, this car registration card is kept by the finance company until the loan is settled by the buyer. Road tax renewal is done by the finance company provided the buyer pays for the insurance and the cost of the road tax, plus a small fee for the finance company to process the document. A new road tax disc is then sent to the buyer.

Selling a Car in Malaysia

The easiest way to sell a used car in Malaysia is to a used car dealer, who does all the paperwork and pays cash. The price offered by the dealer is significantly lower than market value, because the dealer resells the car. When a car is sold, the seller should inform the Road Transport Department and Traffic Police Headquarters in writing that the car has been sold and is no longer in the seller's name. The insurance company should also be informed so that, in the event of an accident, there is no claim made against the seller.

The buyer should sign a letter which states that the seller is no longer responsible for any accidents or traffic offences. The letter has to be stamped at a Commissioner of Oath or Stamping Office to make it legal.