Selling a car for cash is a common practice in Australia. Whether the vehicle is running or not, many people choose this method to remove old, unused, or damaged cars from their property. While the idea may seem simple, there are several legal steps that need to be followed to make sure everything is done properly.
In this blog, we will cover the legal requirements you must meet before handing over your vehicle in exchange for cash. These steps help protect both the buyer and the seller. Following the correct process can also prevent fines, legal issues, or disputes in the future.
Proof of Ownership
The first legal requirement when selling a car is proving that the vehicle belongs to you. This can be done by showing the car’s registration certificate or any other document that lists your name as the owner. In most states and territories, you will also need to present a valid photo ID, such as a driver’s licence.
If your name is not listed on the registration, the sale may not be accepted. This rule helps prevent stolen cars from being passed on without the real owner’s knowledge.
In some situations, people sell cars on behalf of a family member or business. If that is the case, make sure to carry a signed letter or authorisation from the registered owner. Otherwise, the buyer may refuse to go ahead with the transaction.
Registration Status
Before selling your car for cash, check whether the registration is still active. If the car is still registered, you might be entitled to a refund for the remaining period. Most states allow owners to claim back the unused portion of the registration after submitting a disposal notice.
If the registration has already expired, then the car will likely be treated as an unregistered vehicle. In that case, the new owner must organise a tow or transport service, since driving an unregistered car on public roads is against the law.
It is always a good idea to notify the relevant road authority, such as VicRoads, Service NSW, or the Department of Transport and Main Roads in Queensland, about the sale.
Transfer of Ownership
One of the most important steps in the sale is completing the transfer of ownership. This process records that the vehicle no longer belongs to you. Each state and territory in Australia has its own method for this, but it often involves a disposal notice or a transfer form.
In New South Wales, for example, sellers must complete the Notice of Disposal through Service NSW within 14 days of the sale. In Victoria, a similar process is handled by VicRoads.
If you skip this step, you might still be held responsible for fines, tolls, or accidents involving the car. This can become a serious problem, especially if the new owner does not re-register the vehicle.
Sale Receipt
Always provide a written receipt when selling your car for cash. This serves as a record of the transaction and protects both parties. The receipt should include:
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Full name and contact details of buyer and seller
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Vehicle identification number (VIN)
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Licence plate number
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Sale amount
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Date of transaction
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Signatures from both parties
Some sellers also include a statement saying the vehicle is being sold “as is” with no warranties, especially if the car is not in working condition. This can help prevent complaints later.
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Roadworthy Certificate
In some states, selling a registered vehicle requires a valid roadworthy certificate. This document shows that the car meets safety standards and is fit for use on public roads. In Victoria and Queensland, for example, you usually need this certificate before selling a registered vehicle.
If the car is being sold for parts or scrap and will not be driven again, a roadworthy certificate may not be necessary. However, the rules vary depending on location and registration status. Always check the latest guidelines from your local road authority.
Number Plate Handling
When a car is sold for cash, especially if it is no longer running or is being dismantled, you might need to remove the number plates before the vehicle is taken. In some states, you are required to return the plates to the road authority, especially if the registration is cancelled.
If you leave the plates on the vehicle without notifying the sale, they could be misused, and you may be held responsible. It is better to remove the plates, submit a cancellation form if needed, and keep a record of the whole process.
Environmental Responsibilities
Disposing of a vehicle involves more than just handing over the keys. If the car is being taken to a wrecking yard or scrap facility, it is important that the company follows environmental laws. They must handle fluids, batteries, tyres, and metal parts according to recycling guidelines.
One practical way to manage this step is by dealing with local businesses that understand these rules. For example, people looking to remove damaged vehicles in Sydney often contact car wreckers Sydney NSW. These services are familiar with the local regulations and make sure the vehicles are taken apart safely. It gives sellers peace of mind, knowing that their car will not cause harm after it leaves their property.
Common Mistakes to Avoid
Here are a few errors people make when selling their car for cash:
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Forgetting to cancel registration
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Not completing a disposal notice
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Leaving personal items inside the car
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Not removing toll tags or stickers
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Failing to get a written receipt
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Handing over the car without confirming the buyer’s identity
Avoiding these mistakes helps the process go more smoothly and keeps you protected under the law.
Final Thoughts
Selling your car for cash is legal and common, but it still involves a few steps that should not be skipped. Make sure you have the right documents, notify the road authority, and remove any personal belongings before the car is collected.
Following the rules protects your rights as a seller and ensures there are no problems after the sale is completed. Whether the vehicle is sold to a private buyer, a collector, or a scrap yard, these steps help make the process safe, legal, and smooth from start to finish.
