Car Consignment Agreement Checklist for Malaysian Sellers

The agreement should name the registered vehicle owner, the dealer's legal entity and the specific vehicle being offered. Use enough private identifying detail in the signed private document to distinguish the vehicle, but do not publish the owner's identity, full VIN, financing details or private contact information on a public sales page.

Specify whether the dealer is only permitted to advertise and coordinate viewings or may also negotiate, accept deposits and sign transaction documents on the owner's behalf. Written authority matters because a buyer may otherwise assume the dealer is the registered owner.

• Legal names and contact details of the contracting parties.
• Vehicle registration and identifying particulars in the private agreement.
• Marketing channels, photography and agreed representations about condition.
• Whether the dealer may negotiate, reserve or accept a buyer's deposit, and with what owner approval.

A useful contract does not rely on a vague 'best price' promise. Record the intended retail asking price, whether the seller has a minimum net-proceeds requirement, how any agreed commission is calculated and who approves promotional discounts or buyer counteroffers. State whether reconditioning, photography, inspections, transport and storage are included or separately chargeable.

Clarify who receives the buyer's payment, what happens to any deposit if the buyer withdraws, when an outstanding loan is paid off and when the owner receives cleared proceeds. A signed reconciliation statement should show every deduction rather than leaving fees to verbal discussion.

If the car is displayed at a showroom, agree to record its intake condition, mileage, fuel level, accessories and keys. Confirm where the vehicle may be parked, moved or test-driven; who authorizes a test drive; and what happens if it is damaged, stolen or receives a summons while in custody.

Do not assume an owner's existing motor policy covers every showroom or demonstration use. Check the actual insurer or takaful terms. The allocation of risk and any applicable insurance should be confirmed before delivery, not after an incident.

A practical appointment states when marketing begins, when performance will be reviewed, whether the arrangement is exclusive and how it can be ended. Discuss what happens if an owner finds a buyer independently or decides to keep the car. Cancellation charges, if any, should be explicit and reasonable enough to evaluate before signing.

The contract should explain return arrangements for an unsold vehicle, including collection appointment, condition report, keys, accessories and settlement of any approved unpaid expenses. If listing content remains online after the arrangement ends, there should be a process for prompt removal.

Malaysia's official vehicle-selling process includes checking transfer restrictions, applicable inspections, payment proof and JPJ ownership transfer. For private vehicles, PUSPAKOM describes an M.V.15 transfer-of-ownership inspection; financed purchases may also involve a B7 hire-purchase inspection. A consignment agreement does not replace official requirements.

Before closing, request copies or confirmation of the agreed sale receipt, settlement statement, loan release where applicable and the completed transfer. If legal or tax treatment is unclear for a complex company-owned or financed vehicle, obtain transaction-specific professional advice.