If you’re thinking about selling your car in New South Wales – whether privately, to a dealership, or as a company vehicle – it’s important to get the paperwork and preparation right. Selling a car isn’t just about finding a buyer; there are a few legal requirements and some smart optional steps that can help you get the best result with minimal stress. Here's what you need to know before handing over the keys.
1. Check your registration
If your car’s registration is about to expire, it might be worth renewing it. If you’d rather sell the car unregistered, you’ll need to provide extra documentation like a Vehicle Identification Number (VIN) verification. However, private buyers may be skeptical of buying without an up-to-date registration, and most dealers are unlikely to accept unregistered cars as trade-ins.
2. Clear any outstanding finance
If your car is under finance, you'll need to pay it off before selling or come to an arrangement with the buyer and your lender. Contact your financier to get a finance payout letter that outlines any outstanding balance and potential fees, and payment instructions with relevant bank details.
3. Consider a service or mechanical check
This isn’t legally required, but it could still be worth doing. Having a recent service record or a mechanical inspection report can help build trust with potential buyers by showing that the car has been well-maintained and taken care of.
While you’re at it, why not fix any small issues or give the car a clean? Don’t forget to remove any personal items from the car either. Fun fact: Carma’s buying team reports that the top two items that get left in the car after it’s sold to us are sunglasses and e-toll tags!
If you need any inspiration for car maintenance tips, check out these guides to the monthly car maintenance checks every driver should be doing or learn how to wash your car like a pro.
4. Gather the right documents and items
To legally sell a car in NSW, you’ll need to have a number of documents ready—whether you’re selling your own car or a company vehicle. Here's a checklist of what you’ll need:
- All car accessories / extras that belong to the car, all keys, service logbook and the manual.
- Current driver’s licence of the registered owner
- Finance payout letter (if applicable)
- PPSR check (optional but recommended): A Personal Property Securities Register (PPSR) check shows whether there’s finance owing on the car.
- Original invoice or bill of sale from when the vehicle was purchased. If this isn’t available, you’ll need at least two consecutive years of registration papers to show ownership for over 12 months.
- Bank statement letterhead to confirm account details
- Current registration papers: Digital copies are accepted and can be accessed via your state’s official app or downloaded online.
If the car is owned by a business, you’ll also need:
- Tax invoice including a breakdown of GST
- Proof that you’re authorised to sell on behalf of the company (e.g. director's authorisation letter)
- The company’s name must match the name on the registration documents
- You may also need to update the company’s asset register and ensure any GST or tax implications are handled properly
5. Finalise the sale
Once you’ve agreed on a price and proceed with a sale, here are your next steps:
- Write up a receipt: Include the buyer and seller’s details, the vehicle identification number (VIN), the date, and the price.
- Submit the notice of disposal: Do this as soon as the sale is completed to avoid being held liable for fines or infringements after the handover.
- Remove your e-tag and cancel any toll accounts tied to the car.
Quick note: rules vary between states
While this guide is written for NSW, rules and requirements can vary across Australia. For example, some states require a roadworthy certificate or safety certificate for every vehicle sale, while others don’t. If you’re selling a car registered in another state or moving interstate, it’s a good idea to check local requirements with your relevant transport authority.
Sell my car the easy way
From paperwork and registration to optional details like cleaning and servicing, the more thorough you are, the easier—and potentially more profitable—the process will be. Whether you’re selling privately, to a dealer, or on behalf of a business, taking these steps will help you be prepared at every step.
If you’re looking to sell your car, or just curious about how much your car could be worth, you’re actually in the right place. Selling your car to Carma means you’re selling with confidence, in a way that is fast, seamless and secure. Simply enter your car’s details in the online valuations form and we’ll be in touch with an offer. We’ll also prepare a checklist for you for your inspection, which are easily accessible at Carma’s inspection sites in Alexandria and Penrith. Start your journey here.
