Selling a car that is still under financing in Malaysia can be a tricky process, but it’s entirely possible with the right steps. Whether you're looking to upgrade your vehicle or simply want to sell it off, understanding the proper procedures can help you avoid unnecessary delays and potential financial pitfalls.

In this guide, we’ll break down how to sell a car on financing in Malaysia, ensuring a smooth and hassle-free transaction.

Can You Sell a Car on Financing in Malaysia?

Yes, you can sell a car that is still under financing, but you must first settle the outstanding loan or transfer the financing to the buyer (if applicable). Since the vehicle is technically owned by the bank until the loan is fully paid, proper documentation and approval from the bank are required.

Step 1: Check Your Loan Balance & Settlement Amount

Before listing your car for sale, contact your bank or lender to:

✅ Get the outstanding loan balance (the remaining amount you owe).

✅ Request a settlement letter, which states how much needs to be paid to clear the loan early.

✅ Check if there are early settlement penalties (some banks charge a fee for paying off loans early).

💡 Tip: If your outstanding balance is higher than the car’s market value, you may need to top up the difference when selling.

Step 2: Determine Your Car’s Market Value

It’s important to know the current market value of your car to price it correctly. You can:

✔️ Check online car marketplaces like Mudah, Carlist, or Mobee to compare similar listings.

✔️ Use Mobee’s free car valuation tool to get an accurate price based on market demand.

✔️ Consult a used car dealer for an on-the-spot offer.

💡 Tip: If your car’s market value is lower than your outstanding loan, consider negotiating with your bank for better settlement terms or refinancing options.

Step 3: Find a Buyer (Private Sale vs Dealer Sale)

Once you know your car’s value and outstanding loan amount, you have two options:

1. Sell to a Private Buyer (Higher Price, More Steps)

If you want to sell at a higher price, you can list your car on online platforms and find a direct buyer. However, selling to a private buyer means you’ll need to settle the loan first before transferring ownership.

✅ Steps:

1. Agree on the price with the buyer.
2. Collect a deposit (commonly 5-10% of the car price).
3. Use the deposit to help settle the loan with the bank.
4. Once settled, obtain the Release Letter from the bank (proof that the car is fully paid off).
5. Proceed with ownership transfer at JPJ.

⚠️ Challenges:

1. You must have enough cash or rely on the buyer’s deposit to clear the loan before transferring ownership.
2. Some buyers may not want to pay a deposit without immediate ownership transfer.

2. Sell through Mobee Cars (Fastest & Easiest Option)

If you need a quick and hassle-free sale, selling your financed car to Mobee Cars is the best option. Mobee can help:

✅ Settle your loan directly with the bank.

✅ Handle the paperwork and ownership transfer.

✅ Offer an instant price based on market value.

💡 Tip: Using Mobee eliminates the risk of dealing with untrustworthy buyers and ensures that your loan is settled correctly.

Step 4: Settle Your Loan & Obtain a Release Letter

Once you have found a buyer and agreed on a price:

✔️ Pay off the outstanding loan to the bank.

✔️ Obtain a Release Letter (Surat Pelepasan Hak Milik) from the bank.

✔️ The bank will remove its ownership from JPJ’s system (e-Hakmilik release).

🔹 Important: Until the bank releases ownership, the car cannot be legally transferred to a new owner.

Step 5: Transfer Ownership at JPJ

Once the bank has released the car’s ownership:

✅ Seller and buyer must go to JPJ (Jabatan Pengangkutan Jalan) to complete the transfer.

✅ Buyer needs to purchase insurance before the transfer.

✅ JPJ will issue a new Vehicle Ownership Certificate (VOC) to the new owner.

Selling a Financed Car? Let Mobee Help!

Selling a financed car in Malaysia can be complicated, but Mobee makes it simple!

✔️ Get an instant car valuation for FREE.

✔️ Sell directly to trusted dealers for a quick and easy loan settlement.

✔️ No hassle with paperwork – we handle everything for you.

💡 Get started today! Visit my.mobeecars.com to sell your financed car hassle-free.

Final Thoughts

Selling a car on financing in Malaysia is possible, but it requires careful planning. Whether you choose to sell to a private buyer or a dealer, the key steps include:

✅ Checking your outstanding loan.

✅ Pricing your car correctly.

✅ Finding the right buyer.

✅ Settling the loan before transferring ownership.

If you want a fast and secure sale, selling through Mobee Cars Malaysia ensures that your car loan is settled properly while getting the best price in the market.