The Art of Buying and Selling Used Cars: Navigating the Latest 2022 Procedures.

The process of buying and selling used cars has evolved, and with the latest regulations in 2022, it's essential to understand the new sequence of steps. Whether you're purchasing a used car from the same province or across provincial lines, here's the updated lowdown: paperwork, fees, registration, and license plates. It's a seamless process when you know the drill.

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Automobiles have become a popular and convenient means of transportation that many people love to use. Today, we will guide you through the procedures for buying and selling used cars according to the latest regulations in 2022.

1 Documents needed for buying and selling used cars

Documents needed for buying and selling used cars

In addition to the necessary money and fees, to ensure a smooth process of buying and selling used cars and avoid any troubles, both the buyer and the seller need to prepare the following documents:

  • Buyer: Identity Card or Citizen Identification Card; Household Registration Book.
  • Seller: Identity Card or Citizen Identification Card; Household Registration Book (it is recommended to have additional documents such as a certificate of marital status or marriage registration to prevent civil disputes after the completion of the transaction); Vehicle Registration Certificate; Vehicle Inspection Number; Vehicle Insurance (if any).

Additionally, there should be a sales contract signed and notarized by both parties.

For further reference: 

2 Types of fees to be paid when buying and selling used cars

As of now, in addition to the car price, the buyer of a used car also needs to prepare the following types of fees:

Types of fees to be paid when buying and selling used cars

  • Registration fee: Calculated using the formula “2% x Listed Price x Residual Value of the car” (where the residual value of the car is determined as a percentage and depends on the age of the vehicle).
  • Fee for changing the license plate number: If the change is made within the same province, the fee for a new license plate is 150,000 VND. However, if it is changed to a different province, the fee will vary depending on the location of purchase: 20,000,000 VND in Hanoi, 11,000,000 VND in Ho Chi Minh City; 1,000,000 VND in towns and cities, and 200,000 VND in other areas.
  • Inspection fee: 340,000 VND/time for used cars with less than 10 seats (including pickup trucks).
  • Road maintenance fee: 130,000 VND/month for vehicles with a capacity of 10 people or less.
  • Compulsory Civil Liability Insurance: 480,700 VND/year for non-commercial vehicles with a capacity of 6 people or less.

3 Procedures for buying and selling used cars

Procedures for buying and selling used cars in the same province

The procedures for buying and selling used cars in the same province will be carried out at the Traffic Police Department of the provincial-level Public Security, following these steps:

Step 1 The seller declares and submits the vehicle registration certificate within 7 days (if the license plate needs to be changed due to a 3 or 4-digit number or a different series, the seller must also submit the license plate).

Step 2 The buyer prepares a set of documents, including a vehicle registration application form, a sales contract, documents related to the transfer of ownership, tax payment documents, and a certificate of vehicle registration and license plate revocation (if the ownership transfer and registration are done in the same province, there is no need to submit the license plate).

Step 3 The buyer submits the above documents at the Traffic Police Department of the provincial-level Public Security or at designated vehicle registration points.

Step 4 The buyer pays the registration fee and receives a receipt for the new vehicle registration certificate.

After these procedures, the buyer will receive a new license plate number after the vehicle registration authority verifies the legitimacy of the submitted documents. The new vehicle registration certificate will be issued within 2 working days from the date of receiving the documents.

For further reference:  according to the regulations that you need to know

Procedures for buying and selling used cars in different provinces

In the case of buying and selling used cars in different provinces, the seller does not have to pay any fees. They will be provided with a set of documents for the transfer of ownership and vehicle relocation. The following steps should then be taken:

Step 1 The seller prepares a set of documents, including two declaration forms for the transfer of ownership and vehicle relocation, documents related to the transfer of ownership, the vehicle registration certificate, license plate, and documents from the buyer.

Step 2 The seller submits the documents at the reception desk and will receive the results at the office of the Traffic Police Department or designated vehicle registration points.

Procedures for buying and selling used cars in different provinces

On the buyer’s side, the following procedures should be carried out at the destination province:

Step 1 The buyer prepares a set of documents, including a vehicle registration application form (Form 01), documents related to the transfer of ownership, tax payment documents, a certificate of vehicle registration and license plate revocation, documents from the previous owner, and a sales contract.

Step 2 The buyer submits the documents at the Traffic Police Department of the provincial-level Public Security and pays the registration fee as prescribed. They will then be issued a new license plate number, and the vehicle registration certificate will be provided within 2 working days.

For further reference:

4 Frequently Asked Questions when buying and selling used cars

Can I buy a used car without transferring the ownership?

Not transferring the ownership when buying a used car can lead to penalties

Transferring the ownership when buying a used car is mandatory. If one uses a used car without transferring the ownership, they may be subject to a fine ranging from 2,000,000 to 4,000,000 VND for individuals or 4,000,000 to 8,000,000 VND for organizations.

Can a power of attorney be used to transfer the ownership of a car?

A power of attorney cannot be used to transfer the ownership of a car

Since a power of attorney clearly states that “the authorized person can only own the vehicle after completing the registration and ownership transfer procedures”, it cannot be used for transferring the ownership. Additionally, until the registration is completed, the buyer is not allowed to sell the vehicle to another person.

Where should I submit the documents for vehicle registration?

Submit documents for vehicle registration at the office of the Traffic Police Department of the provincial-level Public Security

Frequently asked questions

When buying a used car, it’s important to do your research and be prepared. Check the car’s history report, such as CarFax or AutoCheck, to ensure it hasn’t been in any major accidents or suffered flood damage. Have a trusted mechanic inspect the car to identify any potential issues and assess the overall condition. Test drive the car to ensure it meets your expectations and preferences. Negotiate the price based on the car’s condition, mileage, and market value. Utilize online resources and guides to determine a fair price. When selling a used car, be transparent about the vehicle’s history and condition. Provide maintenance records and be prepared to answer questions about any repairs or issues. Present the car in a clean and well-maintained state, as first impressions matter. Consider offering a vehicle history report to potential buyers to build trust. Familiarize yourself with the latest regulations and procedures for your state, especially with the evolving digital processes and online platforms for car transactions.

Always be cautious and trust your instincts. Avoid deals that seem too good to be true. Never agree to wire money or use unconventional payment methods. Insist on meeting the seller at a safe, public location, and bring someone with you. Conduct a thorough inspection of the car, including checking for signs of tampering or odometer rollback. Verify the vehicle identification number (VIN) matches the one on the registration and insurance documents. Obtain a used car warranty or consider purchasing an extended warranty for added protection.

Give your car a thorough cleaning, inside and out. Consider having it professionally detailed to make it more presentable. Gather all the necessary documents, including the car’s title, maintenance records, and owner’s manual. Perform any necessary repairs or maintenance to ensure the car is in good working condition. Take high-quality photos of the vehicle from multiple angles, showcasing its features and condition. Create a compelling advertisement, highlighting the car’s best attributes, recent repairs or upgrades, and its unique selling points.

Utilize online valuation tools and resources, such as Kelley Blue Book, NADA Guides, or Edmunds. These tools consider factors like make, model, year, mileage, and condition to provide an estimated value. Compare prices of similar vehicles for sale in your area to get a sense of the market value. When selling, you can set a competitive price that attracts buyers while ensuring you get a fair return. When buying, these resources help you negotiate a fair deal and avoid overpaying.

Online platforms, such as dedicated car selling websites or apps, offer a wider reach and convenience. You can easily browse a variety of vehicles from the comfort of your home and compare prices. Digital processes often provide more transparency, as sellers can provide detailed information and photos, and buyers can access vehicle history reports and reviews. Many online platforms also offer secure payment options and facilitate the transfer of ownership, making the transaction smoother and safer for both parties.
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