I bought a second hand car direct from seller. The seller is my friend of 20 years and he don't abuse his car so I felt safe to buy from him. He even pointed out to me where the dents were.
Basically the process is somewhat like this:
A. Settle the payment
B. Settle the insurance
Settling payment and settling insurance can be done in separate tracks, but both must be completed before the LTA transfer.
1. Agree upon the price.
2. Decide on how much u want to pay upfront and how much u want to borrow from bank.
3. Find a loan for the decided amt. You will need at least two separate days to go to the bank to sign docs. Pre-prepare all your docs, zap clearly both of your NRIC's as well as buyer's CPF statement or payslips. Go to bank sign docs or thumbprint the docs for application for loan.
4. Meanwhile, also check the road tax status of the car. If it is abt to expire, seller has to arrange for the car to be inspected and road tax renewed. IF YOU ARE BUYING A SECOND HAND OPC, INSPECTION AND RENEWAL OF ROAD TAX IS MANDATORY because they want to see that the screw is not tampered with. Obtain the new road tax disc if applicable.
5. Next, find an insurance package. This one involves only the buyer plus the details of the car AND the renewed road tax disc and letters. Make a trip to the insurance co to sign all application forms. Pre-prepare NRIC copy of buyer and all other gin bangs (road tax thingy etc) required before going down to save trips.
6. Wait a while for the policy to be approved. Insurance is paid at one shot - cannot monthly one. So prepare $1k+ minimum to pay at one shot. Only AFTER u pay the full annual fees will the insurance cert be given to you.
7. On the other track, wait about a week for bank to reply that it will "in principle" agree to give the loan. When this happens, both go to LTA at Sin Ming to do the transfer. You must bring along the insurance cert (plus photocopy) and the renewed road tax disc/letter. The transfer costs $500 ++ . Work out between buyer and seller who to foot this bill and how much to split. For me, my friend volunteered and footed the whole sum in compensation for the dents on the car. Then get the transfer completed letter and zap a few good copies. Buyer and seller each one copy, and one copy for the bank.
8. With the LTA transfer letter AND the insurance cert, go to bank and give them the stuff. The bank will take about 3 days to verify everything then issue the seller the cheque.
9. During this waiting-for-cheque period it is advisable for the buyer to arrange for farking if necessary. If buyer doesnt stay in condo or private property, it is likely to require a trip to HDB branch office to buy HDB season farking. It is advisable to check in advance availability of lots - availability isnt guranteed. HDB season farking must be paid in cash or nets for first month (or first 3 months, i forgot), before the GIRO application is approved. The other farking required is perhaps the one at workplace, if necessary.
10. When the seller receive the cheque, the buyer can then give the "deposit" in cash directly to seller. Seller then hands the car keys to buyer, plus any freebies the seller can give or want to give to the buyer (like free car fragrance lah, free cashcard with leftover amount lah, free leftover farking coupons lah etc etc). Buyer then sticks the season farking label(s), if any, on the car.
11. The buyer will then start paying for the instalments. Initial month must be paid by cash or nets because GIRO application takes a while.
12. Buyer then slaves for the car and any subsequent cars for the rest of his/her life.
