Selling a car might seem straightforward—you list it, find a buyer, agree on a price, and hand over the keys. But in Melbourne, like the rest of Victoria, there are important legal steps you need to follow to make sure the sale is smooth, legal, and protects both you and the buyer.
Skipping or ignoring these steps can lead to problems down the track, including liability for accidents or fines. Whether you’re selling a well-maintained sedan or an old ute for scrap, here’s a clear guide to the legal requirements when selling a car in Melbourne.
1. Confirm You Are the Legal Owner
Before you sell, make sure you’re the registered owner of the vehicle. Check the registration papers or VicRoads online services to confirm the vehicle is in your name. If it’s a company car or leased vehicle, you may need permission or additional paperwork.
Only the registered owner or an authorised agent can legally sell a car.
2. Gather Important Documents
Having all the right paperwork ready will speed up the sale and avoid confusion. Key documents include:
- Certificate of Registration (rego papers)
- Roadworthy Certificate (RWC) – Required for most private sales in Victoria
- Proof of identity – Driver’s licence or other ID
- Service and maintenance records (optional, but helps build buyer confidence)
- Sale contract or receipt – To document the transaction
3. Obtain a Roadworthy Certificate (RWC)
In Victoria, a Roadworthy Certificate is legally required if you’re selling a registered vehicle privately. It confirms that the car meets minimum safety standards at the time of sale.
You can get an RWC from an authorised inspection station or mechanic. Keep in mind: The certificate is valid for 30 days from the inspection date, so timing is important.
If you sell the car to a licensed motor trader or scrap it, an RWC may not be required.
4. Complete a Notice of Disposal
One of the most critical legal steps is notifying VicRoads that you’ve sold or disposed of the vehicle. This protects you from liability for anything the new owner does with the car after the sale.
You can submit the Notice of Disposal online via the VicRoads website or complete a paper form and send it in. It’s best to do this immediately after the sale.
You’ll need to provide:
- Vehicle registration number
- Buyer’s details (name and address)
- Date of sale
- Your details as the seller
Once submitted, VicRoads updates their records and you’re no longer responsible for the vehicle.
5. Transfer of Ownership
While the Notice of Disposal protects you, the buyer also needs to transfer the registration into their name within 14 days of purchase.
As the seller, you should encourage or assist the buyer to complete this transfer at VicRoads to ensure everything is legal and above board.
If you’re selling through a dealership or cash-for-cars service, they often handle the transfer process for you.
6. Write a Clear Sale Agreement or Receipt
It’s always wise to document the sale with a written contract or receipt. Include:
- Buyer and seller names and contact details
- Vehicle details (make, model, year, VIN, registration number)
- Sale price
- Date of sale
- Any conditions (sold as-is, known defects, etc.)
- Signatures of both parties
This protects both sides and serves as proof of the transaction if disputes arise.
7. Cancel Your Insurance
Once you’ve sold the car and completed the Notice of Disposal, contact your insurance company to cancel or transfer your policy. This avoids paying for coverage on a vehicle you no longer own.
8. What If You’re Selling a Non-Running or Scrap Vehicle?
If your car is no longer roadworthy or you’re selling it for scrap:
- You don’t need a Roadworthy Certificate.
- You still must complete the Notice of Disposal.
- Use a reputable cash-for-cars or wrecking service.
- Keep records of the transaction, including the removal date and payment.
Real-Life Tip: Avoid Common Pitfalls
Many sellers forget to submit the Notice of Disposal, leaving them liable for speeding fines or accidents after the sale. Others don’t provide an RWC when required, which can delay the sale or cause legal issues.
Make sure to tick every box, follow the legal steps, and keep copies of everything.
Selling Your Car the Right Way
Selling a car in Melbourne doesn’t have to be complicated if you follow the legal steps. From confirming ownership to submitting the Notice of Disposal, these simple actions protect you and the buyer and keep everything above board.
If you’re looking for a fast and hassle-free way to sell, especially for older or damaged vehicles, consider using a trusted cash-for-cars service. They often handle all the paperwork and legal requirements for you, so you can get paid quickly without the stress.
Got a vehicle to sell? Contact us today for a free quote and expert assistance.
If you are in Springvale, and looking to sell your car or get cash for trucks, below is the best way to visit us.
Eastern Cash For Cars
720 High St Rd, Glen Waverley, VIC 3150
(03) 7035 7830
www.easterncashforcars.com.au
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