Risks of a Used Car Transaction: Vehicle Ownership [ Updated 2025 ]

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Selling a car—whether online or offline—sounds easy, right? Snap a few pictures, list it, find a buyer, and the deal is done. But if you don’t handle ownership transfer properly, you could face serious financial and legal headaches.

Let’s break down the biggest risks and how to avoid them.

1. Your Name is Still on the Car? Big Problem

You sold your car, got the money, and moved on. But if the buyer never transfers ownership, you’re still legally responsible for that vehicle. If it gets caught by a traffic camera in Malaysia, the fine is on you. If it gets into an accident, your insurance (insurance kereta) could still be liable.

How to avoid it: Always verify with JPJ that the ownership transfer is complete before finalizing the sale.

2. Fake Bank Transfers & Payment Scams

You find a buyer, agree on a price, and they claim to have transferred the money. But when you check your account, there’s nothing there. Scammers often use fake receipts or “pending” transactions to trick sellers into handing over their car.

How to avoid it: Only accept payment via verified bank transfer or cash. Never release the car until the money is confirmed in your account.

3. The Buyer Skips Insurance – You Pay the Price

Once you sell a car in Malaysia, it needs new insurance under the buyer’s name. If they skip this step and get into an accident, insurance loopholes might leave you legally responsible—especially if your name is still in the system.

How to avoid it: Cancel your insurance policy immediately after selling and confirm the buyer has new coverage.

4. Hidden Costs That Reduce Your Profit

Selling a car isn’t just about getting the highest offer. Many sellers forget about additional costs such as:

• Road tax refunds (if applicable)
• Service history transparency
• Malaysia petrol price fluctuations affecting car value
• Scrap car costs if the vehicle is no longer roadworthy

How to avoid it: Get an instant valuation and factor in all costs before selling.

Sell Your Car the Smart Way – No Risks, No Regrets

Avoid ownership transfer issues, insurance problems, and jual kereta terpakai scams by using a secure platform.

Download the Motorist App today and get a free car valuation. Sell your car online with instant offers, secure transfers, and a hassle-free process.

Sell car Malaysia the right way—because one mistake could cost you more than you think.

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