How to Sell Your Used Car Without Intermediaries and Calculate Source Withholding Tax

Quick answer: Selling your car directly allows you to control the price and avoid dealership commission, but it makes you responsible for the paperwork. Before going to the traffic authority, you must have a valid SOAT and technical-mechanical inspection, be up to date in the SIMIT, and have paid the withholding tax (1% on the alienation value for an individual when the vehicle is a fixed asset) established by DIAN.

That is why more and more Colombians prefer to do business directly. According to active listings on Colombia Move (July 2026), the cars category currently has 0 active listings and a supply gap score of 88. In other words, the category is empty and needs inventory from owners willing to sell without intermediaries. If you want to see real options right now, you can view available cars and motorcycles on Colombia Move — posting is completely free.

If you are going to take the step, here is the exact guide on what you need to prepare so you do not get tangled up with taxes or the transfer.

1. Document checklist before posting your listing

A serious buyer will ask you technical and legal questions in the first five minutes of conversation. If you hesitate, the deal falls through. Before taking the first photo of the car, review this list:

• RUNT Registration: Both you and the buyer must be actively registered in RUNT.
• SOAT and Technical-Mechanical Review (RTM): They must be valid and uploaded in the system. You can verify their official status by entering the license plate on the RUNT portal.
• Fines clearance (SIMIT): To proceed with the transfer, you must check summons and payment agreements. Check your ID or license plate on SIMIT.
• Taxes up to date: Check the current year and previous years' vehicle tax with the corresponding authority.
• Free of liens: If you got the car with a loan and have already paid it off, make sure you have lifted the lien.

2. How to calculate the withholding tax (The famous 1%)

This is the point where many private sellers get confused. When an individual sells a fixed asset (such as a motor vehicle), DIAN establishes that the sale is subject to a 1% withholding tax.

What value is it calculated on? The regulation indicates that it is 1% of the alienation value (the commercial price for which you are selling the car). Watch out for this: although in practice some local traffic offices may take commercial appraisal references when liquidating, it is not advisable to assume a single base for the entire country. Always verify the exact settlement with the corresponding traffic agency.

This 1% must be paid before the alienation (before registering the transfer). Proof of payment may be required at the window of the traffic agency or authorized entity, such as the Single Window of Services in Bogota.

3. The bill of sale and the place of transfer

The ownership transfer process must be done before the traffic agency where the vehicle is registered. If your car has license plates from Envigado, the process is filed in Envigado, regardless of whether you and the buyer live in Medellin.

In the bill of sale, you must leave in writing:

• The exact price and method of payment (transfer, manager's check).
• Who assumes the transfer costs and how the withholding tax will be handled financially, whose obligation is associated with the individual seller in this scenario.
• The exact delivery date of the vehicle.

4. Security: When to hand over the keys

The golden rule when selling without intermediaries is simple: do not hand over the car, the keys, or sign an open transfer without having confirmed the money in your account. Confirm any check or transfer directly with the financial institution.

In addition, if you hand over the car without doing the official transfer, you still appear as the owner before the authorities. Close the deal, confirm the funds, file the paperwork and, only when the process is underway, hand over the vehicle. If you want to dive deeper into how to filter fake profiles, check our guide on how to sell a used car without scams.

5. Create an ad that attracts real buyers

A good ad saves you many useless conversations. Take photos during the day, clean the car inside and out, and be honest in the description. Mention the actual mileage, if it has paint details, when the SOAT expires, and if the paperwork is ready for immediate transfer.

If you have everything in order, you can explore the vehicles section and take advantage of the fact that there is currently a supply vacuum of direct owners.

Frequently asked questions

❓ How much is the withholding tax when selling a used car?

For individuals selling a fixed asset such as a vehicle, the withholding is 1% on the alienation value. According to DIAN consulted in July 2026, this value must be settled and paid before carrying out the transfer.

❓ Is the withholding tax paid by the buyer or the seller?

The obligation is associated with the individual seller who receives the income for their fixed asset. However, the parties can commercially agree on who assumes the economic cost within the negotiation; confirm your case with DIAN or an accountant.

❓ Can I sell my car if it has pending fines?

You can negotiate the sale, but pending fines or obligations may prevent you from finishing the transfer. Check the status in SIMIT and confirm with the traffic agency what you must rectify before filing.

❓ Where can I post a used car without intermediaries?

You can use classified platforms, social media groups, or direct sale marketplaces. On any channel, post real photos, paperwork status, city, mileage, and transfer conditions to filter better.

❓ What documents must the seller have ready before showing the car?

Have ready the RUNT registration, valid SOAT and technical-mechanical review if applicable, registration card, SIMIT inquiry, taxes up to date, and the lien release if the car was pledged.

❓ Is it safe to hand over the car before the transfer?

It is not recommended. If you hand over the vehicle without registering the transfer, you still appear as the owner before the authorities; confirm the payment, sign the contract, and route the procedure before handing over keys and car.

❓ Does the transfer have a fixed national fee?

No. Transfer fees vary depending on the traffic authority, the type of vehicle, and the date. Check the current local rate directly with the entity where the car is registered.