How to Sell Your Used Car Without Intermediaries and Calculate Source Retention

Quick answer: Selling your car directly allows you to control the price and avoid dealership commissions, but it makes you responsible for the paperwork. Before going to the transit authority, you must have a valid SOAT (mandatory insurance) and technical-mechanical inspection, be in good standing with the SIMIT, and have paid the source withholding tax (1% of the sale value for an individual when the vehicle is a fixed asset) established by the DIAN.

That is why more and more Colombians prefer to do business directly. According to active ads on Colombia Move (July 2026), the car category currently has 0 active posts and an offer 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 see cars and motorcycles available on Colombia Move — posting is completely free.

If you are going to take the step, here is the exact guide on what you must prepare to avoid getting tangled up with taxes or the transfer.

1. Document checklist before publishing your ad

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

• RUNT registration: Both you and the buyer must be actively registered with the RUNT.
• SOAT and Technical-Mechanical Inspection (RTM): They must be valid and uploaded to the system. You can verify their official status by entering the license plate on the RUNT portal.
• Clearance for fines (SIMIT): To proceed with the transfer, you must check for traffic tickets and payment agreements. Check your identification or the license plate on the SIMIT.
• Up-to-date taxes: Check the vehicle tax for the current year and previous years with the corresponding authority.
• Free of liens (prendas): If you bought the car with a loan and have already paid it off, make sure you have completed the lifting of the lien.

2. How to calculate the source 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), the DIAN establishes that the sale is subject to a 1% source withholding tax..

What value is it calculated on? The regulation indicates that it is 1% of the sale value (the commercial price at which you are selling the car). Be careful with this: although in practice some local transit offices may take commercial appraisal references when settling, it is not advisable to assume a single base for the whole country. Always verify the exact settlement with the corresponding transit authority.

This 1% must be paid before the sale (before registering the transfer). Payment proof may be required at the transit agency window or an authorized entity, such as the Ventanilla Única de Servicios in Bogotá.

3. The sales contract and the location of the transfer

The transfer of ownership procedure must be done before the transit authority where the vehicle is registered. If your car has Envigado plates, the procedure is filed in Envigado, regardless of whether you and the buyer live in Medellín.

In the sales contract, you must put in writing:

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

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 the money confirmed in your account. Confirm any check or transfer directly with the financial institution.

Also, if you deliver the car without completing the official transfer, you still appear as the owner before the authorities. Close the deal, confirm the funds, file the papers, and only when the process is underway, deliver the vehicle. If you want to dive deeper into how to filter fake profiles, check out 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 papers are 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 an empty supply of direct owners.

Frequently asked questions

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

For individuals who sell a fixed asset such as a vehicle, the withholding tax is 1% of the sale value. According to the DIAN consulted in July 2026, this value must be calculated and paid before carrying out the transfer.

❓ Does the buyer or the seller pay the withholding tax?

The obligation is associated with the individual seller who receives the income for their fixed asset. However, the parties may commercially agree on who assumes the economic cost within the negotiation; confirm your case with the 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 finalizing the transfer. Check the status on SIMIT and confirm with the transit authority what you must resolve before filing.

❓ Where can I post a used car without intermediaries?

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

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

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

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

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