Selling a used car

If you are selling a vehicle, you need to lodge a notice of disposal within 14 days of the sale.

Legislation and regulation

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What is a motor vehicle?

A vehicle which is constructed or adapted to carry passengers or goods over public roads is a motor vehicle. It does not matter whether it is registered or not.

On these pages, vehicles can refer to cars, motorcycles, scooters, trucks, caravans or trailers.

Important information

• When you sell a used car or motorcycle, you need to lodge a notice of disposal (NOD) within 14 days of the sale. You must do this even as a private seller.

• Do not sign any document that transfers ownership of your vehicle until you have received your payment or trade.

Ways to sell your vehicle

There are many ways you can sell your car. Each way of selling your vehicle has advantages and disadvantages. Use this information to help you decide which method is best for you.

Selling privately

You will often get the best price if you’re selling the car yourself, but it can be a time-consuming process.

Work out the market value of your vehicle. To do this, compare sales of similar models and vehicles in a similar condition. You can then place an advertisement on a website or in a publication.

• have proof you are entitled to sell the vehicle
• ensure the buyer is able to register the vehicle
• submit a notice of disposal within 14 days of the sale
• ensure there is no finance owing on the vehicle.

Trading in your vehicle

Trading in your old car for a new or used one at a dealership is often the easiest way to sell your car.

Trading in your car means you won’t have to advertise it or hold on to it for a long time while you try to find a buyer.

The downside to doing a trade-in is that you likely won’t get as much money as you would if you sold the vehicle privately.

If you do decide to do a trade-in, ask the dealer for a total price for you to trade in your car.

Selling to a recycler

If your vehicle is no longer roadworthy or in very bad condition, you can sell it to an auto recycler or wrecker. They can often arrange for your vehicle to be picked up and removed.

Consignment sale

Licensed dealers can sell vehicles on consignment. This is where the dealer is not the owner of the vehicle and the owners have left the vehicle with them to sell on their behalf. This provides dealers with the opportunity to sell vehicles supplied by both the public (consignor) and other dealers at little cost to the dealer (consignee).

Dealers are still required to comply with the requirements of the Motor Dealers and Repairers Act 2013 in relation to the sale of these vehicles. This includes having prescribed notices attached to the vehicles, providing dealer guarantees where applicable and providing a current RMS inspection report.

If you are selling a vehicle via consignment, the motor dealer must:

• have written consignment agreements between the two parties which includes
• name and address of both parties
• description of vehicle
• agreed price to be paid to consignor
• details of any encumbrance
• direction for disbursement of proceeds from sale
• the period of the agreement.
• have a trust account with a bank in NSW
• keep trust account audit records including
  • deposit book
  • receipt book
  • cashbook

  You should make sure:

  • that you sign and receive a copy of the consignment agreement and are aware of any charges that the dealer may ask
  • that your vehicle is covered by insurance while it is in the dealer’s care. Your own comprehensive insurance may not cover the vehicle if it’s damaged on a test drive by an unknown person. Dealers normally provide an insurance cover, sometimes at a cost
  • that you’re aware of what your vehicle is worth. Be realistic. Get trade-in prices from other dealers, Red Book and check current advertising. Do not be enticed by dealers who offer over-inflated sale prices in order to get your vehicle onto their lot
  • that you do not leave the vehicle and wait for the dealer to ring. Visit the dealer’s premises and ensure that the dealer is actively trying to sell the vehicle and that it’s not sitting in a dark corner of the yard with no exposure to potential buyers
  • that you take photos of the vehicle prior to the consignment and note the condition of tyres etc. If the vehicle is returned to the consumer at the end of the consignment period, carefully check the condition of the vehicle and bring any damage to the attention of the dealer.

  Notice of disposal

  When you sell your vehicle yourself, you will need to complete a notice of disposal (NOD) within 14 days of the date of sale.

  The notice is free to lodge, but if you are late in lodging it, a late lodgement fee may apply. You can lodge a NOD online or in person at a Service NSW centre.

  The NOD includes:

  • your name and signature
  • the vehicles’ registration number
  • date of sale
  • sale price
  • the details of the new owner.

  Lodging the notice of disposal will remove your name from the vehicle’s registration to ensure you are not responsible for any tolls or driving penalties issued to the new driver.

  Sometimes it's not possible to submit a notice of disposal online. You will need to submit a paper form if:

  • you are disposing of the vehicle on behalf of a company or organisation
  • you do not have a NSW Driver Licence or Photo Card
  • the new owner or operator does not have a NSW Driver Licence or
  • the buyer is an interstate motor dealer who does not have a NSW motor dealer licence number.

  After the sale

  Remove the e-tag from the vehicle and delete the registration number from your account to ensure you do not incur future bills.

  If you are selling number plates with your vehicle, you can transfer number plates.

  Selling as a motor vehicle dealer

  If you sell more than 4 vehicles in a 12 month period, you could be classified as carrying out business as a motor dealer.

  When you sell vehicles as a business, you need a motor dealer’s licence.