Selling a car can be a pain, anywhere in the world. Factor in the need to sell quickly and effectively because you’re moving home and the task becomes even more stressful! Here is a collection of information about selling (voluntarily or non-voluntarily) a used car in Malaysia, plus a selection of top tips, collected from our experience in doing this ourselves:

The documents you need

This information has been sourced from Jabatan Pengangkutan Jalan Malaysia (Road Transport Department Malaysia). 

Transfer of vehicle ownership is carried out under Section 13 of the Road Transport Act 1987, where the State RD Director must be informed of any transfer of vehicle ownership within 7 days.

Since June 2014, all vehicle ownership transfers can only be done via a biometric confirmation system. Transactions can happen without the need for the registered and new owners to be present at the counter (to conduct biometric confirmation) at the same time.

With the arrival of the system, ownership transfers can be done online, but users must first visit a JPJ counter to get a pin number and make a biometric confirmation.

1. Voluntary change of ownership

Individual Private Vehicle

• 2 copies of Checklist Form TM-1 (Pind.1/2012); TM-2
• 2 copies of form JPJK3 that has been completed and signed by the new owner; Borang JPJ K3A
• Original Vehicle Endorsement Certificate (JPJK2);
• Copy of registered owner’s and new owner’s identification documents using TM-AB (if not present during submission of application) * for individual and sole proprietor company category only; TM-AB
• Original and copy of identification document of representative (if application is submitted by representative).
• Letter/stub of ownership claim cancellation by the registered owner (other than e-Hakmilik);
• A valid Ownership Transfer Inspection Report by PUSPAKOM (www.puspakom.com.my) (other than motorcycle)

Private Vehicle of Sole / Partnership Company

• 2 copies of Checklist Form TM-1 (Pind.1/2012); TM-3
• 2 copies of form JPJK3 that has been completed and signed by the registered owner and the new owner; Borang JPJ K3A
• Original Vehicle Endorsement Certificate (JPJK2)
• Copy of registered owner’s and new owner’s identification documents using TM-AB (if not present during submission of application) * for individual and sole proprietor company category only; TM-AB
• Original and copy of identification document of representative (if application is submitted by representative)
• For partnership companies, agreement letter for the sale from all partners
• Copy of sole proprietorship/partnership company registration document
• 1 Form D (Business Registration Certificate); or
• 2 Business Licenses issued by the local authority (Sabah and Sarawak)
• Letter/stub of ownership claim cancellation by the registered owner (other than e-Hakmilik); and
• A valid Ownership Transfer Inspection Report by PUSPAKOM (www.puspakom.com.my) (other than motorcycles)

 Trade Vehicles of Private Limited / Limited Companies

• 2 copies of Checklist Form TM-1 (Pind.1/2012);  TM-1
• 2 copies of form JPJK3 that has been completed and signed by the registered owner and the new owner; *JPJK3 must be signed by a Director or General Manager or Company Secretary or other officers of the company; Borang JPJ K3
• Original Vehicle Endorsement Certificate (JPJK2)
• Copy of registered owner’s and new owner’s identification documents using TM-AB (if not present during submission of application) * for individual and sole proprietor company category only; TM-AB
• Original and copy of identification document of representative (if application is submitted by representative)
• Copy of Form 9 (Company Endorsement Certificate) or Form 13 (Name Transfer Certificate)
• Copy of Minute of Board of Director’s Meeting or Resolution for the sale of the vehicle; or Board of Director’s Resolution to grant authority to an appointed company officer to execute transfer of ownership transactions on any of the company’s vehicles; copies must be endorsed by the Company Secretary
• Original Initial Inspection Report PG11A / PG13B and relevant copies
• Permit cancellation letter or original vehicle owner transfer issued by LPKP or Tourism Ministry (if relevant)
• Original and copy of license approval letter or vehicle replacement approval letter from LPKP or Tourism Ministryatau Kementerian Pelancongan for new owner for goods vehicle and public transport (if relevant)
• Declaration of the type of goods transported in Form JPJK1 (for decontrolled vehicles)
• Letter/stub of ownership claim cancellation by the registered owner (other than e-Hakmilik)
• Exemption letter for Treasury (www.treasury.gov.my), MITI (www.miti.gov.my) or Customs (www.customs.gov.my) (if relevant)

2. Involuntary change of ownership

For a Reposessed Motorised Vehicle, subject of the Sale And Purchase Act 1967

• 2 copies of Checklist Form TM-2 (Pind.1/2012); TM-2
  2 copies of form JPJK3A that has been completed and signed by the new owner (officer of the financial institution); Borang JPJ K3A
• Original Vehicle Endorsement Certificate (JPJK2)
• Original and copy of representative’s identification document (if application is submitted by a representative)
• Copy of Form 9 (Company Registration Certificate) or Form 13 (Name Transfer Certificate)
• Copy of Schedule Four and Schedule Five that have been endorsed by an officer of the financial institution as stipulated under Sale and Purchase Act 1967
• A valid Ownership Transfer Inspection Report by PUSPAKOM (www.puspakom.com.my)

For a Registered Motorised Vehicle owner who passed away

• 2 copies of Checklist Form TM-3 (Pind.1/2009) TM-3
• 2 copies of JPJK3A that has been completed and signed by the new owner (estate recipient); Borang JPJ K3A
• Original Vehicle Endorsement Certificate (JPJK2).
• Copy of new owner’s identification document using TM-AB (if not present during submission of application) * for individual and sole proprietor company category only; TM-AB
• Original and copy of identification document of representative (if application is submitted by representative).
• Administrator/Ownership Verification Document:
  1. Court order; or
  2. Grant Letter of Probate; or
  3. Endorsement/Order by Amanah Raya Berhad; or
  4. Grant Letter of Administrator, Small Estate Office;
• A valid Ownership Transfer Inspection Report by PUSPAKOM (www.puspakom.com.my).

Tips and suggestions for selling your car in Malaysia

• Set aside at least one month to sell your car. This will allow ample time for paperwork processing and background checks – and even seemingly minor things like removing window tinting.
• ‘Cash on delivery’ (COD) arrangements should be your preferred settlement option, and should include concurrently the full settlement of any outstanding balance to the finance company.
• Upon delivery to the buyer, request a letter of indemnity that assumes responsibility for any traffic offence incurred after the transaction to protect yourself against any legal implications.
• For security reasons, always have a male present when selling your car, especially when advertised to the public.
• If someone wants to test drive your vehicle, demand they leave behind his or her ‘Identity Card’ and go along for the ride. Only allow a test drive if an estimated price is agreed upon, and when you feel comfortable.
• If a potential purchaser wants to test drive then obviously you should accompany them and its preferable if there is only one of them. When showing the car it’s advisable not to invite them to your place of residence unless you live in a secure apartment complex.
• The other disadvantage of selling your car is that if the buyer is looking for finance there may be delays in finalising the sale at a time when you are trying to wrap things up quickly before you leave the country.
• Selling through a dealer is usually a lot less hassle but it invariably means a lower price than for a private sale. A dealer can get you a good price, although you do pay a commission. They do take some of the stress out of it though!

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