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Analytics Contract law June 11, 2018 4 min read

Buying and selling new and used cars: registration procedure, risks

Author
Your Lawyer

Buying and selling new and used cars has a number of legal nuances. In particular, concluding a contract, drawing up a general power of attorney with a receipt. How to properly register a car from a showroom and a used car, what are the advantages and risks of each method - further in the article.

Buying and selling new and used cars. Car from the showroom

A reliable and safe way to buy a vehicle is definitely a showroom. After all, the paperwork falls on the shoulders of the dealer. When you are going to buy a new car, the first thing you should do is decide on a car showroom. Then find out what kind of reputation it has - study customer reviews.

It's better to buy a car from a dealership at the end of the year or the beginning of the next. Usually, this is a period of discounts - 10-20%.

The process of buying a new car

Drawing up and signing a purchase and sale agreement is the basis of the procedure. Most salons have standard agreements. Therefore, before signing documents, it is worth studying them carefully. In particular, the agreement should have the following points:

  • car delivery terms;
  • the amount of the advance payment and the refund (if the customer refuses the purchase);
  • the model modification is fully specified.

How to arrange?

When buying a new car, you need to register it at the service center of the Ministry of Internal Affairs. To do this, you need a package of documents:

  • a contract with the seller's seal;
  • TIN;
  • passport;
  • receipt for payment for registration and a set of license plates.

In turn, the service center employees issue a registration certificate (technical passport). As well as a set of license plates. And after the car is registered, it is necessary to arrange compulsory insurance (CTP) within 3 days.

Car inspection. What to look for?

The first rule is to not sign any documents until you have checked the quality of the car. You should be especially careful with things like:

  • the car's equipment, whether it is a complete paintwork;
  • how locks and all car systems work (power windows, seat belts, etc.);
  • Are the lighting devices in working order (low and high beam, side lights);
  • engine operation, fluid level in tanks and oil level, etc.

Used car

It is convenient to buy or sell used cars through intermediaries (dealers). And also with the help of automotive websites. On them you can find a car not only from Ukraine, but also from Europe. Most often, customs-cleared cars are from Poland, Lithuania, Latvia, Germany, Hungary, Bulgaria, Slovakia, Romania, etc.

Registration of the purchase of a used car

The procedure for purchasing used cars in Ukraine is different. In particular, you can:

  • draw up a purchase and sale agreement through a notary;
  • draw up a contract with the help of a consignment shop;
  • draw up a notarized general power of attorney;
  • conclude a contract at the Ministry of Internal Affairs service center.

Purchase of a used car under a contract

The most reliable way is to conclude a purchase and sale agreement with a private or public notary. And to re-register the ownership of the vehicle, you do not need to deregister the car.

The main advantage of having a notary certificate is a guarantee of security. After all, the notary checks the documents and the absence of encumbrances on the car.

Car on request

If you issue a general power of attorney, you can benefit from savings. In addition, it will save time. But a significant disadvantage is the lack of transfer of property rights. As well as the possibility of risks in connection with the revocation of the power of attorney.

As for the consignment store, the purchase and sale agreement is drawn up according to the Procedure for Wholesale and Retail Trade in Transport.

What are the taxes (used cars)?

After the tax on the first sales of used cars in Ukraine was introduced, the only way to avoid taxation is a general power of attorney for the car. At the same time, the transaction is executed without re-registration of the car and a notary. It is better not to buy a used car with a technical passport. After all, the owner can easily deceive.

When reselling a vehicle from the current year, you can sell a truck, bus, trailer, or tractor by paying a tax rate of 5% of the cost.

How to re-register a car?

You can re-register the ownership of a car in 2018 with the help of the Ministry of Internal Affairs service center. In this case, the parties draw up a purchase and sale agreement individually. The agreement is drawn up in the presence of an employee of the center and certified with a seal. Next - re-registration to the new owner.

Trade in system. How to exchange a car?

With this system, you can exchange your old car for a new one, either used or with mileage.

The advantages of the trade-in program are:

  1. legally clear transaction (official dealers);
  2. will save time, because you can sell or buy a car in one showroom;
  3. get a discount on a new car;
  4. you can take out a loan (the amount for a used car is included in the down payment).

The disadvantages are:

  1. the salon deducts the costs of selling a used car;
  2. The trade-in system offers a limited selection of cars (buying a new car is only possible in one showroom, that is, where the exchange is made).

If you need legal support in the matter of buying and selling new and used cars, you can find information about consulting on the page Drafting Contracts.