Selling your car, at Jabatan Pengangkutan Jalan, Malaysia

I discovered a new rule where you are able to "cancel" the roadtax of the car you want to sell, and thus, the new owner has to buy new road tax. The procedure?

Road tax expires Dec 31 2015.
Selling the car on July 31 2015.


Scenario 1



1. If you sell the car before the road tax expires, and you want to cancel the road tax, take off the road tax sticker from your car, keep it properly and show it to JPJ.
2. JPJ will take the road tax sticker, and issue you a receipt. Keep this receipt.
3. The new owner buys new insurance for the vehicle starting from the date you make the vehicle transfer. 
4. The new owner will need to buy new road tax starting from the date of the transfer.
5. Head to your insurance company (the one you used to insure the car) and tell them you want to cancel the insurance. Show the receipt.
6. You will then get a confirmation slip from your insurance company that you have cancelled the road tax and insurance from the car you are selling.
7. You may then use the insurance, to insure a new car that you are buying and keep the NCD (No claims discount).
*After 5 years of not using this insurance, the NCD will be 0%.

Scenario 2

You do not want to cancel the road tax. The transfer of ownership will continue as normal, and the new owner of the vehicle, will then need to renew the road tax on Dec 31 2015.