Is it possible to deregister a car after selling it?

What is Trade-in?

Trade-in is a popular program provided by car dealerships for exchanging an old car for a new vehicle with an additional payment. The program is implemented according to the standard algorithm:

• A motorist who wants to become the owner of a new car contacts an official dealer and finds out under what conditions and for which models he can exchange.
• If the proposed option suits the client, he transfers his old car to the salon, enters into an agreement, pays the remaining amount and buys a new vehicle.
• The official dealer independently deals with the further sale of the car received from the owner.

The Trade-in service has several important advantages for the car owner:

1. saving time (you don’t have to look for a buyer yourself);
2. the opportunity to receive a discount on the purchase of a new vehicle (many car dealerships offer attractive conditions for program participants);
3. quick receipt of a vehicle (a motorist can return an old car and purchase a new car in one day);
4. possibility of lending (additional payment for the purchase is allowed at the expense of loan funds, while many banks reduce the interest rate on the loan);
5. legal validity of the transaction (the car owner can be sure that he will not be deceived).

The trade-in program has fewer disadvantages, but they are quite significant:

• limited selection of new cars (you can exchange the program not for every vehicle, but only for a limited number of models from the list established by the official dealer);
• repurchase of an old vehicle at a reduced price (the car dealership should benefit from the sale of your car, so the vehicle is purchased at a price below the market price).

Assessing all the advantages and disadvantages of the program, each car owner decides for himself whether it is worth using the services of official dealers.

What is a trade-in and why is it profitable?

Using the trade-in system, a car owner can change a car in one day. You will have to pay extra for a new one.

Price of a new car – cost of an old one = extra payment for a new car.

Replacing a vehicle may take just one day. The client arrives at the salon in one car and leaves in another, new one. The service is implemented by dealers and car showrooms to increase the number of cars sold.

The dealer diagnoses the car, analyzes similar ads on the Internet and announces the price. If the cost looks adequate to the owner, he signs the necessary documents. The cost of the old car is subtracted from the price of the new car and the client, after making an additional payment, buys a new car. By the way, it is not necessary to buy a new car; managers can also offer a used one.

The trade-in system appeared in the Russian Federation relatively recently.

Trading in your car with an additional payment for a new one is beneficial for a number of reasons:

1. Save time. There is no need to prepare a car for sale, look for a buyer, show the car, answer endless questions and enter into bidding. A potential buyer may not want to purchase the car after inspection, then he will have to look for another buyer/place an ad and wait to see who else wants to buy the car.
2. Attractive conditions for purchasing a new car. Many car dealerships offer good discounts or expensive gifts (for example, a set of winter tires) if the buyer uses the trade-in system.
3. No need to walk. Having sold an old car in the usual way, from hand to hand, a car enthusiast is unlikely to immediately buy a new one on the same day. This means that for some time he will join the ranks of pedestrians. Using the trade-in system, the driver is free from such inconveniences.
4. Car loan. You can purchase a car using the above system on credit. Many banks reduce the interest rate on the loan for such a purchase.
5. Legal purity of the purchase. Dealers thoroughly check that the car is not under arrest and is not the subject of a pledge. Both the salon’s reputation and earnings depend on this.
6. Possibility only to sell. If you don’t want to buy a new car through a dealership, you can limit yourself to only selling your old car.

However, it is worth remembering that the trade-in system has not only advantages, it is worth paying attention to significant disadvantages:

1. Underpricing. The salon finds buyers who take the car a little more expensive than the price for which the owner sold it. The salon takes the difference and makes money from it. It turns out that the owner himself could find buyers and keep this difference in value for himself. Dealers quote a price below the market price because they immediately deduct from it the costs of storing and selling the car.
2. Limited selection. Salon managers will persistently convince you to buy what they already have. Moreover, they can persistently persuade the client to buy the car that it is profitable for them to sell, and not the one that it is actually profitable for the client to buy. This can be partially avoided if you look at the car in advance and immediately contact an authorized dealer.
3. Possible disappointment in a new car. The showrooms have both new and used cars on display. There is a great risk of buying a car that has already been driven by someone with all the ensuing difficulties in the form of repairs. The salon does not overhaul used cars; this is not profitable for dealers.

It would seem that there are more pros than cons, but each car owner decides for himself whether it is worth contacting dealerships and how to sell his car.

Is it necessary to deregister a vehicle?

An important question that worries motorists when handing over a car to Trade-in is whether the vehicle needs to be deregistered with the traffic police. Previously, every owner who sold a car through intermediaries was obliged to stop registering it. However, in November 2013, a new Administrative Regulation for the implementation of the state service for vehicle registration was adopted. As a result, today there is no need to deregister a car before putting it in for a trade-in.

IMPORTANT! It is important for a car owner participating in the Trade-in program to carefully read the terms of the contract being concluded, which must spell out all the nuances of selling the old car. Some car dealerships undertake to deregister the car.

The official dealer will not re-register the vehicle. This means that until the sale to the new owner, the owner of the car according to the documents will remain the previous owner, who will have to pay transport tax. In addition, there is a risk that the buyer of the vehicle will not re-register it in his name. In this case, the former owner will receive fines for violations that he did not commit.

Is trade-in profitable?

Statistics show that Russian car enthusiasts are still wary of selling their car under the Trade-in program. Meanwhile, the advantages of this method of selling an old car are much greater than the possible disadvantages.

• Firstly, this scheme completely frees the owner of an old car from the hassle and risks associated with selling it.
• Secondly, the high appraised value makes selling a used car not only quick, but also profitable;
• Thirdly, within the framework of the agreement under the Trade-in program, in one day you can both sell your old car and buy a new one;
• Fourthly, if there is a lack of funds to purchase a new car, you can get a loan for the required amount for a long period from bank representatives at the dealership center.

Among the few “disadvantages” of the Trade-in program, the impossibility of bargaining is usually mentioned if the car owner does not agree with the expert’s assessment. But often the owner is simply not able to adequately assess the cost of his time-tested car without special equipment used by an expert. That is why car enthusiasts who are accustomed to selling their cars on their own do not allow the lack of bargaining “under the hood”, which, by the way, is not always beneficial to the seller.

Another inconvenience associated with cooperation under the Trade-in program is that it is possible to purchase a new car to replace an old one at the same dealership, which means you will need to choose a car from a fairly limited range of vehicles. Therefore, before using the exchange service, select in advance the car that is suitable for you from those presented at this car dealership.

How to protect yourself from possible risks?

When concluding an agreement with an official dealer, the owner must pay attention to the presence of the following points in the agreement:

1. the period during which the car dealership undertakes to sell the vehicle;
2. indication of the person who will be responsible for the abandoned car (such a person may be the previous owner or the car dealership itself);
3. possibility of deregistration by representatives of the car dealership.

IMPORTANT! If the official dealer himself deregisters the car, the former owner will need to issue a power of attorney granting this right.

When can you contact the traffic police yourself?

After the vehicle is sold, the dealer is obliged to inform the former owner about this and give him a copy of the concluded sales agreement. Based on this document, after 10 days, the former owner can contact the traffic police and find out whether the car has been re-registered to the new owner.

If the car is still registered with the previous owner, he has the right to suspend the registration of the vehicle. To do this you need to provide the following documents:

• application in the prescribed form;
• civil passport identifying the applicant;
• purchase and sale agreement sent by the car dealership;
• agreement on the transfer of a car through the trade-in system;
• copies of the STS and PTS (it is recommended to make them before concluding a sales agreement).

Based on the application and provided documents, the registration of the vehicle will be suspended. Its subsequent renewal will be the responsibility of the new owner.

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When is it necessary to deregister a car?

It is necessary to deregister a car from the traffic police only in two cases:

1. when disposing of a vehicle;
2. when exporting it outside the Russian Federation for a long period.

To terminate the registration of a vehicle, you must contact the traffic police and provide the appropriate application, as well as:

• the applicant's civil passport;
• vehicle passport (PTS);
• vehicle registration certificate (VRC);
• MTPL insurance policy;
• documents confirming the basis for deregistration.

IMPORTANT! When recycling, you will need to submit a certificate of scrapping of the vehicle to the traffic police. If the vehicle is sold to a foreign citizen and exported outside the Russian Federation, the set of documents must be accompanied by a purchase and sale agreement, transit insurance and a notarized translation of the foreign citizen’s passport.

There is no state fee for deregistration of a vehicle due to disposal. If the car is exported abroad, you will need to pay a mandatory fee of 1,600 rubles for obtaining transit license plates.

What is a certificate of deregistration?

A certificate of deregistration of the car with the traffic police confirms the fact that the vehicle is no longer registered with the previous owner.

This document may be required in several cases:

1. the car was stolen, and after an unsuccessful search the owner deregistered it;
2. the car was taken to the territory of another state;
3. the car has been scrapped;
4. the vehicle has been sold or re-registered to another person.

You may also need a certificate to submit it to the tax service and stop paying transport tax.

IMPORTANT! You can receive a certificate of deregistration during a personal visit to the traffic police department, or using an electronic application sent through the State Services portal.

Grounds for refusal to deregister

Having figured out how to deregister a car sold under a sales contract, you need to know that in some situations the request is denied. The State Traffic Inspectorate gives an answer based on the submitted documents, but if they do not comply with the requirements of the law, it does not even consider them.

The obstacles to providing the service are the following:

• The information in the application or form is incorrect.
• The papers are fake.
• There is no confirmation of the car’s certification or the legality of its presence in Russia.
• There is a ban on any actions with transport or civil arrest.
• The vehicle has been stolen or parts of it have been stolen.

A refusal is also granted if there are errors, omissions or other errors when filling out the application. Then the State Traffic Inspectorate explains what violations were committed and how to correct them.

Deregistration of a car is available not only to the buyer, but also to the seller if the other party has violated the deadlines established by law. To do this, he needs to come to the nearest branch, present documents and write an application. If there are no obstacles to performing the action, the service will be provided.

How to check if a car is deregistered?

So that the motorist can be calm and confident that he is no longer listed as the owner of the car, you can check whether the car has been deregistered. There are several ways to do this.

• On a personal visit to the traffic police. It is necessary to prepare an application addressed to the head of the regional traffic police department, attaching copies of documents for the vehicle. The traffic police has the right to respond to the applicant within 30 days.
• On the official website of the traffic police. Using the capabilities of the Internet resource will be much easier and faster. All you need to do is go to the official website of the traffic police, selecting “Car check” in the “Services” section. In the field that appears, you must enter the VIN number of the car, after which the user will have access to information about all registrations that have ever been carried out by the owners of the vehicle.
• On the State Services portal. In the services section, select “Vehicle registration”. Next, go to the category “Preparation of documents for purchasing, leasing and changing data about the owner”, and then - “Changing data about the owner of a vehicle”. Here the user needs to fill out a standard application form and submit it. After some time, the applicant will receive a response with information about the re-registration of the vehicle.

Consequences of driving a vehicle after deregistration

If a car is deregistered, its subsequent use is illegal. For driving a car without registration, a fine ranges from 500 to 800 rubles. In case of repeated violation, the driver may face a monetary penalty of 5,000 rubles, or deprivation of rights for up to three months.

To be sure that the car is deregistered after sale to a new owner, the former owner is recommended to independently monitor this issue. If the re-registration rules are violated, the previous owner has every right to contact the traffic police and deregister the vehicle. Further restoration of registration will be handled by the new owner of the car.