Selling A Car in NSW: Your Legal Obligations & A Guide

selling a car in NSW

Selling a car in NSW is as easy as you might imagine. But that’s only if you are aware of the legal requirements and obligations put forward by the government. Once you fulfil that set of compulsory conditions, you can easily get cash for your car from the next owner.

This article will cover

Here, we have created a guide for you to refer to whenever you want to sell your car in NSW. So, without further ado, here are the obligations you have to fulfil:

Legal Documents Required to Sell a Vehicle in NSW

You must gather all the relevant documents before selling your car for cash and also ensure you present the after-sale papers to the new buyer. We’ll mention them to you in separate sections.

Before the Sale

When it comes to selling your vehicle in NSW, you need to show the following documents before sale:

Vehicle’s Certificate of Registration

This document shows that your car is legally registered with the authorities in your name.

Safety Inspection Report

This document, also sometimes referred to as a ‘pink slip’, can come in handy when selling a ‘light vehicle’ in NSW. It is renewed every 5 years through an Authorised Inspection Scheme (AIS) station, so make sure yours is current.

NSW Driver Licence

This is only for confirmation purposes so the buyer can match your name with the title on the car’s registration documents.

After the Sale

Once you have shown the documents and you have sold the car, the following documents need to be provided:

Sales Invoice

The sale invoice proves that you have sold your vehicle to the new owner, and it no longer belongs to you.

Notice of Disposal (NOD)

The Notice of Disposal (NOD) is a document that informs the authorities about the sale. They use this notice to remove your name from the vehicle’s ownership documents and add the new owner.

It is free to submit and compulsory, so do not be complacent and act within 14 days of the date of sale. If you pass the 14-day deadline, you might have to pay a fine.

The NOD can be submitted online or by visiting a NSW Service Centre in person.

What does the NOD contain?

The NOD has your name, signature, vehicle’s registration number, the date of sale, the sale price, and all the relevant details of the buyer.

Once you lodge the Notice of Disposal, you are exempt from any fees or fines that might be applied to the vehicle in the future.

Can’t submit NOD online?

You might be unable to submit a Notice of Disposal online for a few reasons. It only happens in exceptional cases where you have to take the conventional route and submit a form:

  1. You are selling a vehicle on behalf of a company or organisation
  2. You don’t have a NSW Driver’s Licence
  3. The buyer doesn’t possess a NSW Driver’s Licence
  4. You are selling your car to a motor dealer who doesn’t own an NSW motor dealer licence

Best places to sell your vehicle in NSW?

Wondering whether you can sell your car for cash in Sydney NSW? Yes, you can and that too to any person, company or organisation of your choice. Whoever can convert your car to cash in the shortest amount of time should be your best bet. But keep in mind that everything has positives and negatives, and you should always weigh your options before making your final decision.

Selling to a Private Buyer

Perhaps the most common option for selling your car is to find a private buyer. Now, who’s a private buyer? Well, a person like you who is looking to buy a car when you want to sell. In other words, someone who isn’t connected to a dealership or organisation.

This is the most hassle-free way of selling your vehicle and is highly recommended for those looking to get the full worth of their car. But before you decide any further, take a look at the advantages and disadvantages of privately selling your vehicle.


  • There are usually no middlemen, so you get the amount agreed upon by the purchaser.
  • The entire process of selling your car is easy since there aren’t many legal obligations to fulfil
  • If you have done your research, you can get the actual value of your car, and there is little chance of being lowballed into an unattractive offer.


  • If your car is in bad shape, it might not appeal to many people.
  • It is time-consuming to find a willing buyer to whom you can sell your car.
  • Your options are limited

Selling To A Dealership

The next best option is to sell your car to a dealership or use one of their trade-in deals to get rid of your old vehicle. The good thing with dealerships is that there are several of them in NSW, and it’s easy to compare them against each other. Plus, trade-in deals are one of the best ways to upgrade to a newer car, which is almost always the reason behind selling your old car in the first place.

Still unsure whether dealerships are the right choice for you? Take a look at the disadvantages and advantages of selling to a dealer.


  • You have the option to trade your old car for a new one.
  • No need to find buyers or post ads. Visit a dealership, show them your car and decide on a price to start the procedure.
  • The dealer informs you of the legal requirements, and some even take care of them for you (like helping you submit a Notice of Disposal)


  • You might not get the best offer for your vehicle.
  • If you are trading your car for a new one, the dealer might overstate the price of the new vehicle and understate the price of your car.

Selling to Car Wreckers

The third option is to consider selling your car to car wreckers. These guys buy all kinds of old, worn-out, damaged or written-off vehicles. The best part is that car recyclers pick up your car from your driveway and take it away. You only have to worry about presenting them with the legal documents; the rest is in their hands.


  • They accept cars in any physical condition (old, written-off, deregistered, water-damaged, etc.)
  • You get instant cash for unwanted cars
  • They remove your vehicle from the driveway, so no delivery costs for you


  • You might not get full value for your car
  • The price recyclers can offer you may vary depending on other factors, like the price of steel

Selling multiple cars in NSW

The NSW law books state that you cannot privately sell, buy or exchange more than 4 vehicles in a year. If you do so, you are classified as a motor vehicle dealer and need a valid business licence to operate as one.

If you don’t have a licence, the authorities initially fine you $5,500. They can also prosecute you and serve you a maximum penalty of $110,000 or both. You might also be asked to hand over any money earned through the sale/purchase of the vehicles. In other words, it is better to obtain a valid motor dealer licence from the government or avoid selling too many cars within a year.

However, some vehicles bypass this law, such as agricultural vehicles, quad bikes, Segways, battery-powered wheelchairs, and e-bicycles.

There you have it, a complete guide to selling your vehicle in NSW, which will make your car-related transactions a breeze. By now, you must have noted down all the legal documents one requires before and after selling a car, where you should sell your vehicle and what are the limitations when it comes to such things.

So, the next time you are looking to make some money by selling your broken car, use this information to your advantage.

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