Transfer Car Ownership in Singapore in 5 Easy Steps
Whether you’re buying or selling a preloved car, or passing your car on to a family member or friend, before the keys get handed over, one important step you can’t miss out on is the vehicle ownership transfer.
Note that whenever a vehicle changes hands, this vehicle transfer of ownership must take place within 7 days.
Considering that there are some crucial steps you need to take before you even get to the part of the actual vehicle ownership transfer procedure, it’s good to become well-versed in the complete transfer process.
In this handy guide, we’ll walk you through transferring car ownership in Singapore — pre-transfer requisites, step-by-step instructions, vehicle transfer fees, mandatory car insurance requirements, and some helpful tips to make things as smooth and stress-free as possible!
When Do You Need to Transfer Car Ownership?
Essentially, being a car’s registered owner means that everything related to the car is attached to you, including car insurance, road tax, traffic offences, parking fines, and maintenance.
So if you are no longer going to be legally responsible for these things for a car, and someone else is taking over these responsibilities, then a vehicle ownership transfer is in order.
Vehicle transfer situations include:
- Buying or selling a used car
- Transferring a vehicle to a family member or friend
- Gifting a car
- Inheriting a vehicle
- Company-to-individual or individual-to-company transfer
- Vehicle ownership changes due to separation, divorce, or legal reasons
When is an Ownership Change Not Required?
Interestingly, there are situations in which you are not the principal driver of the car, and others may drive it more than you do. However, the car still remains under your name and your care. If that’s the case, no ownership change is needed.
You don’t need to transfer ownership if:
- Family members or friends drive your car
- Your car is being loaned out to another driver for any period of time
- You are driving a company car — the car remains registered to the company
- You are driving somebody else’s car while yours is being repaired
In the above situations, valid car insurance (which includes other drivers) and authorisation is still necessary, but an ownership transfer is not.
3 Mandatory Prerequisites for a Car Ownership Change
Before you can successfully transfer car ownership in Singapore, there are a few mandatory prerequisites that must be in place. Skipping any of these could delay the process or result in the transfer being rejected.
1. The Car Must Be Paid Up
Did you purchase your car on a hire-purchase agreement? As long as the car is still being paid off via a car loan, a vehicle ownership transfer is not possible. You’ll need to finish paying off the full loan first, and then contact your bank or financing company to make sure it’s cleared and that they deregister their interest in the car with LTA before you can begin the transfer process.
3 Ways to Pay Up Your Car Loan
Option 1: Pay the Loan in Full
Option 2: Buyer Pays Off the Loan
- Buyer and seller agree on purchase price
- Buyer pays outstanding loan directly to finance company
- Buyer pays any additional amount agreed upon directly to seller
- This arrangement requires mutual trust
Option 3: Dealer Pays Off the Loan
- A car dealership or consignment agent can handle the sale process between two individuals
- They can settle the loan on the seller’s behalf, using the buyer’s funds or their own
- There are some administrative or commission fees involved, but it may be the safer option for private sales
- This is the most common option when “trading in” your car for a newer model
2. All Outstanding Fees Must Be Settled
As the current registered owner of the vehicle, you must settle all outstanding road tax, ERP fines, parking fines, or other vehicle-related fees. Since you won’t be able to proceed with the transfer if anything is unpaid, it’s best to check beforehand, rather than rely on memory. You can easily check and pay any outstanding amounts via OneMotoring.
Note: Some cars may need to pass a mandatory inspection before their road tax can be renewed. If one is due, the seller should complete the inspection at an LTA-Authorised Vehicle Inspection Centre before initiating the ownership transfer to avoid delays.
3. Valid Car Insurance Must Be Set Up
The new owner must set up valid car insurance under their own name, that starts before or on the date of the vehicle ownership transfer.
FAQ: Car Insurance for Ownership Transfer
1. Does the new owner need to already have car insurance for the new car even before the transfer takes place?
✅ Yes. The new owner must already have a valid motor insurance policy in their name that starts on or before the date of the transfer. LTA will not allow the transfer to proceed otherwise.
2. Can the existing owner's insurance be transferred to the new owner?
❌ No. Motor insurance policies in Singapore are not transferable between individuals. The buyer must purchase a new insurance policy under their own name.
3. Does the new insurance need to be from the same insurance company as the old insurance policy?
❌ No. The new owner is free to purchase their own car insurance policy from any valid insurance company in Singapore, according to their personal preference.
4. Does the new type of insurance coverage have to match that of the old insurance coverage?
❌ No. A minimum of Third-Party Only (TPO) coverage is required, and the new owner may choose to upgrade to a more comprehensive coverage — or not.
5. Can the new owner purchase a car insurance policy without even owning the car yet?
✅ Yes. All you need to apply for a car insurance policy are the car’s details and your own personal information.
6. Does the new owner need to provide proof of the new car insurance policy in order to do the ownership transfer?
❌ No. Once the new car insurance policy is in force, the insurance company will ensure that LTA’s records are updated. No physical documentation proof is required.
7. Will I Be Able to Hold Onto My No-Claim Discount (NCD)?
✅ Yes. You should contact your insurance company to either apply for your existing NCD from a previous car (new owner) or retain your NCD for future use (seller). This is especially useful if you’re already enjoying NCD 60, the highest NCD in Singapore!
5 Steps to Transferring Car Ownership
1. Preparation
Both the seller and new owner should have already agreed on the date of ownership transfer. Both parties should also have valid Singpass. If either party is not eligible for Singpass, then you’ll have to personally complete the ownership transfer at LTA’s counter instead.
2. Initiate the Transfer Online
The seller should initiate the transfer request via the OneMotoring website → Digital Services → Transfer Vehicle
3. Accept the Transfer Online
The new owner will receive an SMS notification of a pending ownership transfer. They can easily do this by logging into their OneMotoring account within 5 calendar days to confirm the acceptance. If the transaction is not confirmed after 5 calendar days, it will be automatically cancelled. Valid car insurance must already be activated at this point.
4. Pay the Transfer Fee
The new owner will need to pay the transfer fee of $25 via OneMotoring. You might need to pay additional levy if the car is 4 - 6 months from its registration and is registered with a Category A or B COE.
5. Vehicle Ownership Transfer Successful
The system would have been updated accordingly and both parties should receive an SMS notification upon the completion of the successful online transaction.
Tips for a Smooth Vehicle Ownership Transfer
- Buyers can refer to this SAFE checklist from the Consumer Association of Singapore (CASE) on what to look out for when purchasing a pre-loved vehicle
- If you love your current vehicle registration number, make sure you submit the application to retain it ahead of time before initiating the ownership transfer. Otherwise, the number will automatically move with the car to the new owner.
- Always double-check the accuracy of the information you’re filling in before submitting. Try not to make any mistakes because there is no way to make amendments once submitted — you will need to cancel your initial application and submit a new one.
- Take screenshots of each stage of the process as proof
- View the status of your transaction at any point on the OneMotoring website
- Complete the whole ownership transfer process within 7 days to avoid late fees!
- Remember to update any vehicle-related arrangements such as season parking, insurance details, and road tax accordingly
- Watch LTA’s cute little video explaining how to transfer your car ownership!
