What are the types of paperwork you need to have in order to sell your car in an auction in the Philippines?
- Original Certificate of Registration
- Official Receipt
- Absolute Deed of Sale
- Transfer of Title
- Original LTO License Plate
- Endorsement from the Insurance Company
- Motor Vehicle Clearance from PNP-HGP
- Maintenance Records
If you are interested in selling your vehicle at a car auction in the Philippines, you will need to prepare a variety of paperwork in order to seamlessly transfer car ownership to the winning bidder. Most of these documents are in connection with government bodies that take note of vehicles within the country and its owners. Having a complete collection of this important paperwork will also make your vehicle more attractive to potential bidders.
Does the amount of paperwork to transfer car ownership seem daunting? Fear not, as this article will list down all types of paperwork you will need as well as each of its importance.
Original Certificate of Registration
In order to prove to interested bidders that your car is registered at the Land Transportation Office (LTO), you will need to present either the original or a certified copy of the Original Certificate of Registration. Besides this certificate, you will also need to prepare other official forms and receipts.
Another important document that you will need to present is an original copy of an Official Receipt that you would have gotten after paying the Motor Vehicle User’s Charge. This type of document confirms to the bidder that the vehicle is currently registered. You will also need to prepare documents that will be presented after the bid has been won.
Absolute Deed of Sale
After you have found the perfect bidder who will become the new owner of your vehicle, you will need to present them with an Absolute Deed of Sale. This document is important as it finalizes the sales transaction. Here is the information that this important document needs to have:
- Purchase Price and Sales Price
- Vehicle Year, Make, and Model
- Buyer & Seller Name and Contact Information
- Date Of Sale
- Other Information You Deem Necessary
Transfer of Title
The Transfer of Title is not necessarily a required document, but it could help you in case any legal matters arise. If your vehicle is already with its new owner but you are still in the process of legally transferring ownership from one party to another, you could get involved if ever they get into a car accident. In order not to be found liable, invest in the services of an attorney in order to include the right information in your Transfer of Title.
Original LTO License Plate
Ensure that you have registered license plates as LTO has a “No Registration, No Travel” policy. This is because only official LTO license plates are allowed to be used on the road. Using plates that are not official-issue is prohibited by law. If you have a customized LTO plate, you will need to give the new buyer a document entitled Authority to Use Customized Plate. Besides your license plates, another thing that you will be passing on to the new buyer is your insurance.
Endorsement from the Insurance Company
In terms of car insurance, it is important that you attain an endorsement from your respective insurance company. This document should state that the new owner will be the one in charge of paying the insurance premium starting from the final date of sale. Another type of endorsement that you will need to get is from the PNP-HPG.
Motor Vehicle Clearance from PNP-HPG
Motor Vehicle Clearance from the Philippine National Police (PNP) and the Highway Patrol Group (HPG) is needed in order to prove that your vehicle was obtained legally and that it has not been involved in any type of criminal activity. This also guarantees that your vehicle is free from any court case or accidents. Ensure the safety of your vehicle for potential bidders by always having this important document at hand. If you have ever been in an accident while using the vehicle you will be selling, it would be ideal for you to take note of how the mechanics fixed it in order to have well-detailed maintenance records.
Besides official documents, you should also have maintenance records in order to take note of any changes or repairs done to the vehicle. This is in order to give interested buyers the right information as they look into your vehicle. Having a detailed list can also help you sell your vehicle faster and at your most preferred price. Keep your car well-maintained in order to make it more appealing during a car auction. Honesty is deeply appreciated by buyers looking to find the perfect car for them.
These are the key types of paperwork that you will need in order to sell your car in an auction in the Philippines. Make sure that you keep a detailed and organized list with you at all times in order to answer any questions bidders may have.
Be prepared to sell your vehicle at a car auction in the Philippines by making sure you have every single one of these important documents. Each type of paperwork has its own importance in relation to its specific governing body. Whether it be in terms of accountability during an accident or just to keep a note of the cars in the country. Give your vehicle the best chances of being bought by an excited bidder by preparing the appropriate paperwork.