Buying a car from a private seller: paperwork explained

Purchasing a vehicle from a dealership will, most of the time, be effortless as the salesperson and administrative staff have all the paperwork on hand and knows exactly what to do. What if you wanted to purchase a vehicle from a private seller? We explain what paperwork you need to complete the transaction.

Published: 16 August 2023, 08:45 Estimated Reading Time: 3 minutes Photo Grid

While individuals can sometimes get a bargain by purchasing a used vehicle from a private seller, it is much riskier. If something goes wrong, they do not enjoy the same protection provided by the consumer protection act when buying from a dealership. There is also the risk that the vehicle is a write-off that has been fixed or, even worse, a stolen vehicle.

When purchasing a vehicle from a private seller, you will have to invest a considerable amount of time to check the vehicle over and ensure all the paperwork is in order. But if you are considering selling your car quickly and easily with our Instant Offer tool and want to find a new or used model on AutoTrader from a private seller. Here is what you need to conclude the transaction.

Related: What to do if you lose your car’s registration documents

Pre-inspection

In order to ensure that you can trust both the vehicle and the seller, there are a few questions you need to ask before you even schedule a viewing. First, confirm if the seller is the owner of the vehicle or not. Next, ask about the vehicle history, such as for how long the current owner has had the vehicle and if there are any service records for this period.

While it is important to ask questions such as what the mileage is or the overall condition of the vehicle and whether it has been in an accident, it is also important to ask if the vehicle is still under finance or whether the license is still up to date. Once the seller has provided you with the answers, you can compare that information with what you find during the inspection process to determine if the seller is honest.

If you find mismatched paint or that the license has expired, and the seller says that it hasn't been in an accident or has a valid license, it is best to move on and keep looking for another vehicle, as the seller could be hiding more about the vehicle's condition or history.

Sales agreement

A sales agreement is basically a proof of purchase. On the document, the seller and buyer agree to a price as well as terms such as existing faults or exclusions on the vehicle. The document needs to be signed by both parties as well as witnesses for each party. This document can come in handy should you want to approach the ombudsman after the transaction or you need to provide proof of purchase.

Notification of change of ownership

Once you and the vehicle owner have agreed on the terms as well as the price, the owner needs to complete the notification of change of ownership form. The yellow form should be submitted to the Department of Transport by the seller to inform the department of the change of ownership. Only after the form is submitted will you be able to re-register the used or pre-owned vehicle in your name.

Roadworthiness certificate

Once you have the vehicle in your possession, you will need to obtain a roadworthiness certificate at your nearest vehicle testing facility. As The name implies, the vehicle testing facility will test the vehicle to ensure it meets the minimum requirements for roadworthiness as stipulated by the law. The certificate, which is only valid for 21 days, needs to be submitted with your vehicle registration application at the Department of Transport. To obtain the certificate, you will require your identification document, the vehicle's current registration certificate, a completed application for roadworthiness certificate form and the fee associated with the testing.

Vehicle registration

Once you have obtained all the documents listed above, you will have to visit a vehicle registration authority close to you. Here you will submit the following documents to get the vehicle registered in your name:

- Your personal identification document

- The vehicle's current registration certificate

- The roadworthy certificate

- Proof of purchase

- A valid motor vehicle licence disc. Also, ensure that all outstanding fees are up to date.

- The completed application form for registering and licencing a motor vehicle (RLV – Blue form)

- Application fee, the fee depends on the province in which it is registered

Ryno Fourie Ryno started his career capturing press images of the latest and greatest vehicles which have subsequently adorned the covers and pages of prominent motoring titles locally and internationally. After a short stint as a photography lecturer, he once again joined the automotive industry as a sub-editor and photographer for a local publication, however, currently, you will find him spending most of his time in the studio creating written, video, and photography content as part of the AutoTrader content team. View News & Reviews