Buying or selling a used car in Malaysia is not just about agreeing on a price and handing over the keys.
You also need to make sure the car ownership transfer is completed properly, the required documents are ready, the vehicle passes the necessary inspection and the buyer has the right insurance coverage.
If you are buying or selling a used car for the first time, the process can feel confusing.
What documents does the seller need? Does the buyer need new insurance? Is a PUSPAKOM inspection compulsory? What happens if the car is still under a bank loan?
This guide covers the documents needed to buy or sell a used car in Malaysia, including the PUSPAKOM inspection and JPJ ownership transfer process.
Quick checklist: Documents needed to buy or sell a used car
Here is a simple overview of what both parties should prepare:
| Seller | Buyer |
|---|---|
| MyKad / identification document | MyKad / identification document |
| Vehicle Ownership Certificate (VOC) / vehicle ownership details | New car insurance or takaful |
| PUSPAKOM transfer inspection | PUSPAKOM inspection result |
| Loan settlement documents, if applicable | Payment for applicable fees |
| Sales and Purchase Agreement | Ownership transfer documents |
| Other supporting documents, if required | Proof of payment |
The exact documents can depend on the type of owner and vehicle.
For a normal private individual-to-individual transaction, JPJ states that the registered owner and new owner must attend in person for biometric fingerprint verification.
Documents needed by the seller
If you are selling your used car, prepare these documents and complete the necessary checks before handing the vehicle over.
1. MyKad or Identification Document
The seller needs to provide the required identification document for the ownership transfer.
For a Malaysian individual, this is normally the MyKad.
JPJ states that both the registered owner and new owner of a privately owned individual vehicle need to bring their identification documents, such as MyKad, MyPR, MyTentera or passport, depending on their status.
For a normal individual-to-individual sale, both parties also need to attend personally for biometric verification.
2. Vehicle Ownership Certificate (VOC)
The vehicle’s ownership information is another important part of the transaction.
The old term “car grant” or “geran kereta” is still commonly used, but the current ownership document is the Vehicle Ownership Certificate (VOC).
Before selling the car, make sure the vehicle details and registered owner’s information are correct.
If there is an issue with the ownership record, settle it before proceeding with the sale.
3. PUSPAKOM Transfer of Ownership Inspection
A private vehicle needs to undergo a Transfer of Ownership Inspection at PUSPAKOM before the ownership transfer.
Many Malaysians still call this the B5 inspection, but PUSPAKOM currently refers to it as the Transfer of Ownership Inspection (MV15).
The inspection checks important vehicle details, including the vehicle’s identity and signs of issues such as cut-and-join work.
PUSPAKOM states that this inspection is mandatory for private vehicles before ownership is transferred. The current inspection fee is RM30.
You can check the latest requirements on the PUSPAKOM Transfer of Ownership Inspection page.
4. Loan Settlement Documents, If the Car Is Still Under Financing
If the car is still under a bank or financial institution loan, check the loan status before agreeing to the sale.
A pending financial institution ownership claim can prevent a voluntary ownership transfer.
JPJ lists a pending financial institution ownership claim among the restrictions that can prevent a voluntary transfer.
If your car is still financed, contact your bank to confirm the settlement process and make sure the relevant claim has been released before completing the ownership transfer.
5. Sales and Purchase Agreement
A Sales and Purchase Agreement is not simply a JPJ form, but it is highly recommended for a used-car transaction.
It gives both the buyer and seller a written record of what was agreed.
The agreement can include:
- Vehicle registration number
- Agreed selling price
- Deposit amount
- Payment date
- Vehicle condition
- Known defects
- PUSPAKOM inspection responsibility
- JPJ transfer responsibility
- Handover date
- Any other agreed conditions
This can help prevent misunderstandings after the sale.
Documents needed by the buyer
The buyer also needs to prepare several things before taking ownership of the used car.
1. MyKad or Identification Document
The buyer needs to bring the required identification document for the ownership transfer.
For a Malaysian individual, this is normally the MyKad.
For a private individual-to-individual transfer, the buyer also needs to attend JPJ personally for biometric verification.
2. New Car Insurance or Takaful
One of the most important things for a used-car buyer is arranging insurance or takaful under the new owner’s details.
Do not simply assume that the seller’s insurance can continue under your name.
Your policy should reflect the correct:
- Vehicle registration number
- Vehicle details
- Policyholder name
- Identification number
- Coverage period
- Type of coverage
BJAK currently provides used car insurance options and allows users to compare car insurance quotes from participating insurers and takaful operators.
If you are buying a second-hand car, it is a good idea to arrange the insurance details early so there is no unnecessary delay during the ownership transfer.
3. PUSPAKOM Inspection Result
The buyer should make sure the required Transfer of Ownership Inspection has been completed.
PUSPAKOM states that the inspection is mandatory for private vehicles before ownership is transferred.
If the vehicle does not pass the inspection, the relevant issue needs to be resolved before the transfer can proceed.
4. Money for the Related Fees
The buyer should also prepare money for the applicable costs involved in the transaction.
These may include:
- PUSPAKOM inspection
- JPJ ownership transfer
- Insurance or takaful
- Road tax, if applicable
- Repairs required after inspection
For the PUSPAKOM Transfer of Ownership Inspection, the current listed fee is RM30.
For JPJ fees, check the latest official rate before completing the transaction rather than relying on an old used-car article.
How to transfer used car ownership in Malaysia
Once you have the documents ready, the process generally looks like this.
Step 1: Check the Car’s Status
Before paying the seller, check whether there are any issues that could prevent the ownership transfer.
This is especially important if you are buying directly from an individual.
JPJ’s voluntary ownership transfer requirements include conditions such as having no pending financial institution ownership claim or other restrictions that prevent the transfer.
If the seller still has an outstanding loan, ask them to settle the relevant financing issue before proceeding.
Step 2: Agree on the Selling Price
Once you have checked the vehicle, agree on the price and payment terms.
It is better to put the agreement in writing.
A simple Sales and Purchase Agreement can record the agreed price, deposit, vehicle condition and handover arrangements.
Step 3: Complete the PUSPAKOM Inspection
The vehicle needs to undergo the Transfer of Ownership Inspection.
PUSPAKOM requires the vehicle’s Registration Card or VOC for this inspection and currently lists the fee at RM30.
The inspection helps verify that the vehicle’s identity and relevant details match the records.
Step 4: Arrange the Buyer’s Insurance
The buyer should arrange the appropriate insurance or takaful.
This is particularly important because the insurance details should match the new registered owner and vehicle.
You can compare car insurance quotes through BJAK and review the available coverage before choosing a policy.
Step 5: Complete the JPJ Ownership Transfer
For a normal private individual-to-individual transfer, both the registered owner and new owner need to attend JPJ personally for biometric fingerprint verification.
The relevant ownership transfer documents also need to be completed.
JPJ provides the JPJK3 voluntary ownership transfer form for this purpose.
Step 6: Check the New Ownership Record
Once the transfer is completed, the buyer should check that the vehicle is registered under their name.
This is an important final step.
Do not assume that the transaction is complete simply because the payment has been made.
Do you need the original car grant?
This is one of the most common questions when buying or selling a used car.
The term “geran kereta” is still widely used in Malaysia, but the current ownership document is the Vehicle Ownership Certificate (VOC).
JPJ’s ownership-transfer guidance includes the vehicle ownership information and the required identification documents as part of the transfer process.
If you are unsure whether you need a physical document for your particular transaction, check the latest JPJ requirements before going to the counter.
Can you sell a car that still has a bank loan?
You should resolve the outstanding financing issue before completing the ownership transfer.
A vehicle with a pending financial institution ownership claim may be subject to restrictions that prevent the voluntary transfer.
JPJ specifically lists a pending financial institution ownership claim as one of the restrictions for voluntary ownership transfer.
If you are the seller:
- Check your outstanding loan.
- Contact the bank or financing company.
- Confirm the settlement amount.
- Complete the settlement process.
- Make sure the relevant ownership claim has been released.
- Proceed with the ownership transfer.
If you are the buyer, do not assume that paying the seller means the bank issue has automatically been resolved.
What if the used car has outstanding issues?
Before buying a used car, check more than just its physical condition.
You should also check whether there are outstanding issues that could affect the ownership transfer.
These may include:
- Pending financing claims
- Blacklist restrictions
- Unresolved registration issues
- Other restrictions recorded by the relevant authorities
JPJ states that certain restrictions can prevent a voluntary ownership transfer.
This is why it is better to check the vehicle’s status before making the full payment.
Should you check the used car before buying?
Yes.
Documents are important, but they are only one part of buying a used car.
Before agreeing to the purchase, check:
Vehicle condition
Look at the engine, gearbox, brakes, tyres, suspension, air conditioning and electrical systems.
Accident history
Look for signs of major accident repairs or structural damage.
Chassis and engine numbers
Make sure the numbers match the vehicle records and inspection details.
Mileage
Check whether the mileage appears reasonable for the vehicle’s age and condition.
Ownership history
Find out how many previous owners the vehicle has had, where possible.
Loan status
Make sure there is no unresolved financing issue that could prevent the transfer.
Insurance cost
Get an insurance quotation before finalising your budget.
The price of the car is not your only expense. You may also need to budget for insurance, road tax, inspection and repairs.
What happens to the seller’s car insurance after selling?
Once you sell your vehicle, don’t simply assume that the insurance automatically transfers to the buyer.
The buyer should arrange their own appropriate coverage.
If you are the seller, you may also want to check whether you are eligible to cancel the existing policy and what happens to your remaining premium and NCD.
BJAK explains that insurance cancellation after selling a vehicle depends on the insurer or takaful operator’s policy terms, and supporting documents such as sale or transfer documents may be required.
If you have an existing NCD, check the rules before cancelling or buying another policy because your NCD may be relevant to your next vehicle.
Used car buying & selling FAQ
What documents do I need to sell a used car?
For a normal private sale, the seller should prepare the required identification document, vehicle ownership information and any documents needed to resolve financing or other restrictions.
The vehicle must also complete the required PUSPAKOM ownership-transfer inspection.
What documents do I need to buy a used car?
The buyer should prepare their identification document, arrange the appropriate insurance or takaful and complete the required ownership-transfer process with the seller.
Is PUSPAKOM inspection mandatory when selling a used car?
For private vehicles, yes. PUSPAKOM states that a Transfer of Ownership Inspection is required before the ownership transfer.
Is the PUSPAKOM B5 inspection still called B5?
Many people still use the term B5 inspection, but PUSPAKOM’s current terminology is Transfer of Ownership Inspection (MV15).
How much is the PUSPAKOM ownership transfer inspection?
PUSPAKOM currently lists the Transfer of Ownership Inspection fee at RM30.
Who pays for the PUSPAKOM inspection?
The buyer and seller can agree between themselves who pays.
If you are using a Sales and Purchase Agreement, state clearly who is responsible for the inspection cost.
Do both buyer and seller need to go to JPJ?
For a privately owned vehicle being transferred between individuals, JPJ states that both the registered owner and new owner must attend personally for biometric fingerprint verification.
Can I buy insurance before the ownership transfer is completed?
Yes, insurance arrangements can be made around the ownership-transfer process, but make sure the policy details and registered-owner information are correct.
BJAK notes that used-car insurance can be arranged even when the JPJ ownership transfer has not yet been completed, but the policy should match the registered owner’s details.
Can I transfer ownership if the car still has a bank loan?
You generally need to resolve the financial institution’s ownership claim first.
A pending financial institution ownership claim is listed by JPJ as a restriction on voluntary ownership transfer.
Is a Sales and Purchase Agreement compulsory?
It is not the same as the JPJ ownership-transfer documents, but it is highly recommended.
It gives both parties written proof of the agreed price, payment terms and vehicle condition.
Used car buying checklist
Before you hand over your money or keys, use this checklist.
For the seller
- MyKad / identification document ready
- Vehicle ownership information available
- Loan settled, if applicable
- Financial institution claim released
- PUSPAKOM inspection completed
- Sales and Purchase Agreement prepared
- Payment terms agreed
- Handover date agreed
For the buyer
- Seller’s ownership checked
- Vehicle condition inspected
- Loan/financial claim checked
- PUSPAKOM inspection completed
- Insurance/takaful arranged
- MyKad / identification document ready
- Payment documented
- JPJ ownership transfer completed
- New ownership record checked
Buying a usedcCar? Don’t forget your insurance
Getting the ownership transfer right is important, but don’t forget about insurance.
Once you become the new owner, make sure the vehicle is properly insured under your details and that the coverage matches how you use the car.
If you’re buying a second-hand car, you can compare car insurance quotes with BJAK and review available coverage from participating insurers and takaful operators.
Taking care of the documents, PUSPAKOM inspection, JPJ transfer and insurance from the start can make the used-car buying process much smoother.
