Stuurman

We have just sold our car bought with the MM2H visa and this was the procedure we had to follow in January/February 2015:

First you have to go to the customs office on the mainland. There you need to fill in a form to get permission to sell your car and a quotation of the tax you have to pay. There are some stories that for cars above 5 years old you don't have to pay. This is not true ours was almost six years and the car of a friend who sold his as well was over seven years old, we both had to pay tax. The will call you when the assessment is done, you have to come in again to collect the letter and pay the tax. In our case it took almost 4 weeks to get this part of the paperwork done, we had to pay about 19% of the tax reduction on our 6 year old car, about 5200RM.
Google coordinates for the customs office: 5.393789, 100.399550

Second you need to do a transfer of ownership inspection at a Puspakom inspection station. You need to make an appointment for that. There are 3 stations in Penang state but they seem to be very busy this time of the year and it can take up to a week to get an appointment. We went to the one near Taiping where we could go next day. The inspection is very simple they actually only check if chassis number and motorblok number are the same as on your car registration papers. The one other thing they look at is your window tinting, if that is not in compliance with JPJ regulation they will rip it out. Ours was fine so no trouble there but we saw bins full of window foil. The price for the inspection is 30RM and takes about an hour to complete.
Puspakom website: PUSPAKOM Sdn Bhd
Google coordinates of the Taiping puspakom station: 4.834777, 100.700927

Now you can go to a JPJ office to transfer ownership.
You will need the tax letter + receipt of payment, the Puspakom inspection report, the passport you used to register your car (if you have renewed your passport in between you also need your current passport) and at JPJ you need to fill in some forms to transfer the car to the new owner. Take the whole bunch to the counter and it will be processed on the spot, this part took us less then 15 minutes.

All in all buying a new car is still cheaper with the visa then without but I don't think if would have known in 2009 what I know now I would have bought a new car.
Plenty of good occasions for sale without the bureaucratic hassle when buying and selling.

JC3

Very helpful post. Many thanks Stuurman.

JC3

bakedbean

Ditto.

Great info. Thanks Stuurman

bakedbean

Stuurman, reading your excellent instructions from earlier this year. May I presume that first you need to find a buyer before you start the above proceedings?

If it's not too personal a question, did you find a buyer privately or sell to a car dealer?

We are planning on selling Mr bb's MM2H car in August. It will be just 5 years old then. We expect to pay some tax of course.

Really not sure how we can "physically" do the above procedures I'm thinking about talking with Honda in Georgetown where we bought it, in case they can do all procedures for us OR go through a MM2H agent to pull some strings. Alter Domus seems to be good for fixing things that others cannot do. Also wondering if our property agent might be able to help somehow.... she seems to have some experiences with MM2H cars I think.

Any thoughts on the above?

Stuurman

Yes we had a buyer, a second hand car shop on the mainland, but I see no reason why you couldn't do the tax assessment without having one. However the duty is calculated by the time you had the car in your possession. For a 5 year old car I would estimate you have to pay back approx. 25% of the original tax reduction you got. I have no idea if they would add VAT to that amount now, we sold the car well before April 1st. As for the inspection at Puspakom, you don't have to do that in person. The buyer of the car offered to do that for us but I decided to do it myself for the experience

If you are interested in the contact details of the second hand car dealer we used you know how to find me. He offered a much better price BTW then the Hyundai dealer where we bought our car.

bakedbean

Thanks for that info

So I think, at least in theory, find buyer first. I have a friend who may (or may not) be interested to buy, so will probably try that route first. Anyway best to wait till August I guess.

I wonder if Customs actually has to see the car. At the moment I have a problem getting the car anywhere, as the seller is not able to drive the car, nor sign any forms. Need to get my head around this.

Stuurman

No they don't need to see the car. As for paperwork if I recollect well we had to show them car papers, passport that was used to buy the car, current passport and original letter from tax office that gave us the tax reduction when we bought the car. Keep in mind it takes several weeks to get the assessment done, in our case it took almost 4.

InVinoVeritas

I think Roselind at Alter Domus would be a good call to make, BB. You could at least discuss without any obligation to use them

bakedbean

Yes, that's an option IVV. I need to think this through.

Andrew and Corinne

Yes, very useful, thanks.
Does anyone have any experience of selling a vehcle which they imported under MM2H rules?
Thanks, Andrew.

InVinoVeritas

Welcome to the forum, Andrew and Corinne. There have been some previous post about this so have a bash at doing a forum search first. It's on the right of the horizontal blue bar, just after you select the Malaysia forum.

bakedbean

Of course, events have changed/moved on since my last post under this topic, so Mr bb's MM2H car is now in the process of being sold via the executors of his will.

Just to confirm. Yes, there sure is tax to pay if car is over 5 years. It's a Honda Accord bought 5 and a half years ago under MM2H. I have just been asked for a payment of more than RM 11,000. Hmmm.

JC3

Hi BB,

In Stuurman's post above he says he had to "repay about 19% of the tax reduction on our 6 year old car".

I reckon you probably originally saved about 34% of the purchase price for your Honda Accord, so about RM50,000. Multiply that RM50,000 by 19% and you get RM9,500. Given that your car is not quite as old as Stuurman's at the point of re-sale, sadly the RM11,000 sounds about right.

Still horrible though, eh?
It must be time for Cold Storage to stock up with some more Fat Bird Sauvignon Blanc.

JC3

bakedbean

Strangely enough I was in Cold Storage the other day and bumped into another forum member with spouse who suggested I buy some Fat Bird, so I did Forum members are full of good recommendations.

Gunnar45

A Honda Accord 2.0 from 2010 sells today @ appr. RM 70-75000:-
(Search 1687 New & Used Honda Accord Cars for Sale Malaysia - Carlist.my - Page 15)
Leaves after the payment of remaining tax appr. RM 63000:- net.

The MM2H price 2010 was appr. RM 100 000:-, meaning there has been a value loss of RM37000:-

The ordinary price 2010 was appr. RM130000:- so with a sales price of RM 75000:-, the value loss would be RM 55000:-

So I think the tax free deal with repayment of some of the tax at sale would still be the better deal.
Plus that putting the RM30000:- saved on the car purchase in an FD @3.5% interest would have given RM 5500:-