The law in South Africa requires that you register a used car in your name within 21 days of taking ownership. If you don’t manage to do this within the prescribed time, you will be subject to fines and penalties on a scale determined by the amount of time your registration is overdue.
When buying a used car through a dealer, the roadworthy test, registration of the vehicle, and licensing will be taken care of by the dealer after you have made all the necessary details available. When buying a car in a private sale, you will be required to register the car yourself in your name. To complete this process, you must submit several documents to your local reporting authority.
What documentation do I need when buying a used car privately?
The most important document you need to secure is the registration form. You need to obtain this form, known as an RC1 or Certificate of Registration, from the seller. In addition, you should obtain copies of the seller’s ID document, proof of address, and proof of payment (an invoice) stating that you have paid for the car in full. Find out more about what documents are needed here.
Does the used car need a roadworthy certificate before being registered in the new owner’s name?
You may register a used car in your name without providing a roadworthy certificate. However, the traffic authority will only issue you a license for road use once a valid roadworthy certificate for the car has been presented to the licensing authority. Find out what the pros and cons of buying a car without a roadworthy certificate are here.
How do I obtain a roadworthy certificate for a privately bought used car?
There are private (but authorised by the National Traffic Authority) and public office Roadworthy testing centres around the country. You can find a testing station nearest to you by visiting the eNaTiS website at www.enatis.com. You should present your vehicle for testing in a roadworthy condition. If it fails on certain items, they should be rectified, and the vehicle re-submitted for testing.
You must submit the vehicle's registration document, identity document (ID) and the prescribed fee. You will be required to fill out a form known as an ACR (Application for Certification of Roadworthiness). Once the car has passed a roadworthy test, it is valid for a period of 60 days. Some private sellers offer their vehicles for sale with a valid roadworthy certificate, but this is not the norm these days.
What are the differences if the vehicle is paid for in cash or by a finance scheme?
- If you pay for the vehicle in cash (or via a certified cheque or bank transfer), then you become the owner and title holder.
- If you buy the vehicle with a finance scheme, the finance company is the title holder, and you are listed on the registration certificate only as the owner.
What is the difference between the owner and the title holder?
When the vehicle is financed, you are listed as the owner, but the finance company is the title holder until the car is fully paid for. Until this time arrives, the finance house will retain possession of the registration form, as this is the meaning of the term “title holder.” This system prevents someone from selling a vehicle before all financing charges have been settled with the finance house. A typical financing scheme ranges from 36 to 72 months, which may vary.
As the owner, you will receive motor vehicle licence renewal notices to your stated postal address on the registration form. This is why it is important to notify your licensing authority of any change in your personal status, should this occur, during the vehicle's ownership period.
