Can You Transfer Unused Road Tax to Your New Car After Selling Your Old Car?

Can You Transfer Unused Road Tax to Your New Car After Selling Your Old Car?

Nabil FarhanNabil Farhan· · 3 min read
Last reviewed

Have you sold your old car and bought a new one? If the road tax on your old car is still valid, you may be wondering whether the remaining period can be transferred to your new vehicle.

The remaining road tax cannot be transferred directly to another vehicle. However, you can check with the Road Transport Department (JPJ) whether you qualify to cancel the old vehicle’s Motor Vehicle Licence (LKM) and apply for a refund of eligible fees.

Can You Use Your Old Road Tax for Your New Car?

No. Road tax, also known as LKM, is registered to a specific vehicle and cannot simply be used for another car.

If the road tax on your old car is still valid after the sale, check JPJ’s cancellation and refund procedure. You will then need to arrange road tax separately for your new car based on its registration details and valid insurance coverage.

SituationWhat should you do?
Your old car has been sold and its road tax is still validCheck your eligibility for cancellation and a refund with JPJ
You want to use the remaining road-tax value for your new carApply for a refund if eligible, then arrange road tax separately
Your old road tax has expiredThere is no remaining valid period to refund
Your new car does not have road tax yetEnsure valid insurance and complete the required LKM application or renewal before driving

How Do You Apply for a Road Tax Refund After Selling Your Car?

If you want to recover eligible road-tax fees after selling your car, follow JPJ’s LKM cancellation procedure.

  1. Make sure the ownership transfer is complete. Keep your sale documents and proof of the ownership transfer.
  2. Prepare the required documents. These may include JPJ Form K6, identification documents, vehicle details and bank account information for the refund.
  3. Check the LKM document requirements. JPJ may require the cancelled road-tax disc or other supporting documents, depending on your circumstances and how the transaction was handled.
  4. Submit your application to JPJ. Cancellation and refund applications can be made at JPJ state offices, branches or UTC offices that provide vehicle licensing services.
  5. Wait for the application outcome. Any approved refund is subject to eligibility and JPJ’s calculation.

JPJ’s published procedure sets a minimum refund amount of RM5. Check the latest document requirements and instructions in the official JPJ procedure for LKM cancellation and refunds.

Can You Transfer Your Old Car Insurance Too?

Insurance and road tax are separate matters. Selling your car does not necessarily cancel your insurance policy automatically.

Contact your insurer to find out how to cancel your old policy and whether you qualify for a refund. If you have bought a new car, you can also ask about transferring your No Claim Discount (NCD), subject to the applicable conditions.

For more information about policy cancellation and refunds, read BJAK’s guide on how to cancel car insurance.

What Should You Do After Selling Your Car?

Use this checklist to manage the process more easily:

  • Make sure the vehicle ownership transfer is complete.
  • Check the old road-tax status and your refund eligibility.
  • Contact your insurer to arrange the old policy and NCD.
  • Arrange valid insurance for your new car.
  • Handle the new car’s road tax separately before driving.

Conclusion

Unused road tax from your old car cannot be transferred directly to your new vehicle. However, if the road tax is still valid, you can check your eligibility for cancellation and a refund with JPJ.

After that, arrange insurance and road tax for your new car separately to make sure everything is valid before you drive.

Frequently asked questions

Can I transfer my old car's road tax to my new car?

No. Road tax is registered to a specific vehicle. You can check whether you qualify for a refund on your old road tax with JPJ and arrange road tax for your new car separately.

Can I get a refund if my road tax still has several months remaining?

You can apply for cancellation and a refund if you meet JPJ’s requirements. The approved amount depends on the applicable rules and calculation.

What is the minimum road-tax refund amount?

JPJ’s published procedure sets the minimum refund amount at RM5.

Do I also need to cancel my old car insurance?

If you have sold your car, contact your insurer to arrange the old policy. Insurance cancellation and road-tax cancellation are separate processes.

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