Should You Pay First or Transfer Ownership First When Buying or Selling a Used Car?
2 Answers
When buying or selling a used car, it is advisable to pay first and then proceed with the ownership transfer, and try to avoid transactions with unfamiliar individuals. The procedures and precautions for used car transactions are as follows: Transfer Acceptance Procedures: Required materials include the Motor Vehicle Registration, Transfer, and Cancellation Form, Transfer Application Form, Inspection Record Form, original registration certificate, original driving license, original owner's ID card, original license plate number, vehicle photos, and the transfer invoice from the trading market. The owner should bring the relevant documents back to the local vehicle management office where the vehicle is to be registered, submit them as required, and complete the vehicle registration procedures. Precautions: The documents belong to the vehicle itself, as the license plate number will change after the transfer. Since the vehicle changes ownership, the driving license must be replaced, and the old driving license becomes invalid. Therefore, the new owner must obtain the new driving license.
I've sold used cars several times, and each time I follow this procedure: It's best for both parties to sign a simple agreement first, with the buyer paying a small deposit—around 10% of the car's price—to show genuine interest. Then, schedule a time to go together to the DMV to complete the transfer process. During the transfer, the buyer pays the remaining balance in full. This method is quite secure because if I receive the full payment and the buyer delays the transfer, the responsibility still falls on me. Conversely, if the transfer is completed but the buyer doesn't pay, my loss is even greater. Once, my neighbor didn’t follow this sequence and received the full payment upfront. Later, the buyer got into an accident with that old car, and my neighbor was still held liable. So, I recommend using WeChat or Alipay transfers for records, and having a third-party friend witness the transaction is even better—this makes it easier to prove in case of disputes. Safety comes first in the entire process; don’t cut corners and risk mistakes.
