The first thing you should do is check the car's service history to confirm the mileage stated by the seller. An independent source can ensure this, and that the car is in good running order. The Hong Kong Automobile Association offers this service (391 Nathan Road, Yau Ma Tei, Kowloon, Tel: 3583 3628)
To guard against being stuck with a seller's outstanding fixed penalty tickets, and to avoid being subject to a license suspension (if the former owner failed to disclose such information), we suggest applying to the Licensing Office for the relevant Certificate of Clearance, before initialising the actual transfer. The certificate is issued free of charge, remains valid for 72 hours, and is a good way to secure the transfer goes smoothly.
In Hong Kong it is mandatory to either own fully comprehensive motor insurance, or at the very least third-party insurance cover, for any person to drive a vehicle on the road. The punishment for ignoring the requirement for a compulsory third-party policy is a fine, up to 12 months in prison and a 1 to 3 year driving ban. Be aware that on the transfer of ownership, any third-party insurance policy under the name of the previous owner will no longer be in force. New owners must find suitable car insurance in their own name for the vehicle before applying for transfer of the vehicle’s ownership.
Insurance premiums are dependant on a number of factors, such as the make and model of car, engine capacity, and age amongst other details. Hong Kong also uses the No-Claims Discount (NCD) system. A 20 percent discount can be earned after one year without making any claims, which increases by 10 percent each year up to a maximum of 60 percent.
The following documents are required to secure insurance for a car:
To get a free, easy and quick quote just click here or call one of our insurance experts to have them guide you through the entire process at 3113 2112.
Before the transfer of ownership can take place, you as a buyer need to ask for a copy of the vehicle registration document from the owner. This copy can be sent to an insurance broker to generate a quote (based on the model, engine size, etc.), and a temporary insurance cover note can be issued to you. Make sure to take this on the day of the transfer, as it is a required document to finalise the Notice of Transfer, and you will be covered to drive your recently purchased car home.
Both the buyer and seller need to have signed and duly completed TD 25 forms (and here), as proof that the transferor and transferee agree to the transaction (who must also both declare the transaction price of car on the form). This is the Hong Kong Transport Department's Notice of Transfer of Ownership of a Vehicle form, and both an original from the new owner and a duplicate signed by the previous owner must be physically handed by both persons to a Licensing office within 72 hours of a change of ownership, along with these necessary documents:
Since the seller is required to submit their signed duplicate copy of the original form to a Licensing Office, we recommend completing the process together at the same time, to make sure potential complications (such as unpaid fees) can be avoided. A former owner should not hand over the original vehicle registration document to the new owner until the Transport Department has registered the transfer.
Arrange to go with the seller to one of the Hong Kong Licensing Offices
Submitting the Notice of Transfer does not mean that the transfer of ownership of a vehicle is complete. It will be approved when the vehicle registration document is issued to the new registered owner, and is specified with an effective date of transfer of ownership.
If you are considering buying a second-hand vehicle, contact the experts at Kwiksure today. We can help ensure you have coverage in place before you buy your vehicle.
Kwiksure has over 20 years of experience in the car insurance industry, comparing quotes from over 60 insurers in Hong Kong. Use our online quotation tool now to get a free car insurance quote!
The above information is for reference only. Kwiksure takes no responsibility for the accuracy and timeliness of the information. For the coverage, mode of compensation, benefit limit and premium levels of any specific insurance plan, please refer to the relevant policy terms.
Kwiksure is a licensed motor insurance brokerage company with over 20 years of experience in insurance. The company strives to simplify insurance and select the best insurance plans for customers that fit their budget and coverage needs.
Kwiksure provides a range of insurance products, including car insurance, motorcycle insurance, cross-border insurance between Hong Kong and Mainland China, home insurance, travel insurance, domestic helper insurance, and voluntary medical insurance. The team has been named "Best Car Insurance Broker" and "Outstanding Leadership Award" by various media outlets over the years.
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