If you're selling your car have a look at our guide so you don't miss anything and you're able to get as much money as possible.
10 February 2014
| Last updated on 28 June 2017
There are many different forums on which one can advertise a used car for sale in Hong Kong. Firstly a car can be sold to a used car dealer, while the seller may not receive as much money for this transaction as he might if he sells privately. Other ways in which expats sell their cars is through the use of expat forums and notice boards in supermarkets in the area where the car is being sold. Below is some important information regarding the transfer of ownership from the Hong Kong Transport Department.
Within 72 hours on the change of ownership of a vehicle, a notice of transfer on form TD 25 must be lodged with the Transport Department licensing office, as proof that the transferor and transferee agree to the transaction. As required by law, the new owner should deliver the original of the notice to the Transport Department, and the former owner the duplicate. There were cases in which transferees failed to take this procedure, thus, no transfer is registered and the vehicle remains registered in the name of the former owner, to whom all fixed penalty tickets are sent. Therefore, it is advisable that the former owner should call at the licensing office together with the new owner to hand in both portions of the notice of transfer (duly completed and signed) so as to effect the transfer immediately. A former owner should not hand over the vehicle registration document to the new owner until the Transport Department has registered the transfer. The new owner's original identification documents should be produced.
When applying for transfer of ownership, the former owner and the new owner should also declare the transaction price of the motor vehicle on form TD 25. If the declared transaction price is greater than the last taxable value, the value of exempted accessories (if any), the value of unexpired portion of a warranty other than a manufacturer's warranty (if any) plus the first registration tax paid, the former owner should apply to the Hong Kong Licensing Office on application form TD 468 for approval and should pay the additional tax before the transfer of ownership is effected.
It is equally important for a prospective transferee to ensure that there are no outstanding penalties or possible licence suspension in respect of the vehicle. There are numerous cases whereby a transferee finds himself legally liable to payment of fixed penalty tickets, or the vehicle licence is suspended because the former owner has failed to disclose such information. To guard against this, a new owner is advised before acquiring a vehicle to apply to a licensing office for the relevant Certificate of Clearance. The Certificate, issued free of charge, is valid for 72 hours and certifies that the vehicle is free of outstanding penalties and is not liable to licence suspension.
