Roadworthy vs Licence Disc When Selling a Car in South Africa: Who Does What?

Overview: roadworthy certificate and licence disc explained

When selling a vehicle in South Africa, buyers and sellers commonly ask whether a roadworthy certificate (RWC) or a valid licence disc is required to complete the transaction. The two documents serve different purposes: a roadworthy certificate confirms a vehicle meets minimum safety and roadworthiness standards for transfer, while the licence disc (or vehicle licence) shows that licensing fees are paid for the current period. Understanding which is needed, who arranges it and how each affects transfer, taxation and deregistration reduces delays and legal risk.

Key differences at a glance

• Roadworthy certificate: issued after a mechanical and safety inspection by an accredited tester. Often required by buyers and by many licensing authorities for transfer.
• Licence disc: proof of paid licensing (vehicle licence) for a specific period; it does not replace a safety inspection.

Who usually provides the roadworthy and who keeps the licence disc?

Practices vary across private sales, dealer transactions and trade-ins. Private buyers commonly ask a seller to provide a current roadworthy certificate before transfer; some buyers accept vehicles with known faults but adjust the sale terms. Licence discs are technically valid until expiry and typically remain with the vehicle until the licence is renewed by the registered owner or transferred during the licensing process. If the vehicle is written-off, non-running or damaged, documentation and disclosure are particularly important.

When to sell vs repair: a practical approach

Deciding whether to repair a vehicle to obtain a roadworthy, or to sell it as-is, depends on the repair bill, the remaining market value and personal circumstances (time, access to transport, or outstanding finance). Below is a simple estimate-style table to help weigh repair costs against likely retained value after spending on repairs. These figures are illustrative for South Africa and should be treated as estimates rather than guarantees.

Example: if a repair will cost R18 000 and the likely uplift in market value is uncertain, many owners choose to sell as-is to avoid further expense and delay. Fleet owners sometimes opt to sell multiple non-running vehicles in bulk rather than investing per-unit repairs. For options that accept vehicles in any condition, see this resource on selling damaged or non-running vehicles Sell Damaged Cars and Sell Non-Running Car.

Damage types and typical impact on offers

How the process works and legal & paperwork considerations in South Africa

In most provinces, transfer of ownership at the licensing department requires specific documentation: an application for transfer signed by seller and buyer, ID copies, proof of payment of outstanding fines or licences where applicable, and often a roadworthy certificate if the vehicle is being licensed or the licensing authority requests one. Licence discs are no longer physically issued in the same way in some provinces (the system and practice vary), but proof of paid vehicle licence and tax history remain important for a clean transfer. If the vehicle is under finance, the bank or finance house remains the registered owner until the debt is settled - disclose this and follow the lender's process for settlement and deregistration.

Practical checklist when selling

• Confirm whether the buyer or your local licensing office requires a current roadworthy certificate for transfer.
• Gather ID, service history, outstanding finance details and any accident reports.
• If the licence disc has expired, be transparent about dates and payments - buyers will check municipal or provincial records.
• If selling to a company that buys damaged cars, ask whether they handle deregistration and settlement of finance.

For an overview of how a specialist buyer manages the collection, paperwork and payment when buying a damaged or non-running vehicle, see our About/How it works page About / How it works and the company homepage Sell Your Damaged Car.

Tips to maximise a smooth sale without unnecessary repair

• Full disclosure: list known defects, outstanding finance, and accident history. Transparent sellers build trust and reduce post-sale disputes.
• If time allows, obtain quotes for key repairs and compare repair cost versus expected uplift in saleability using the repair-cost table above.
• For non-running, written-off or flood-damaged vehicles, consider specialist nationwide buyers who offer free towing and paperwork handling - this avoids local towing costs and complex deregistration steps.
• Keep copies of all transfer paperwork and request proof of deregistration or ownership change once the sale completes.

What happens after collection and final transfer

After a sale where the buyer collects the vehicle, a reputable buyer should provide written confirmation of receipt, complete transfer documents, and, where applicable, arrange deregistration or settlement with the finance house. If a roadworthy was supplied for transfer, the new owner will use it to finalise licensing where required. Keep records: proof of payment, signed transfer forms and, if applicable, a settlement statement from a finance provider. If you discover post-sale that finance remained unpaid, contact your lender and the buyer immediately to resolve-early disclosure helps avoid legal exposure.

Final notes and South Africa context

Provincial differences, variations in eNATIS processing times and municipal practices mean there is no single nationwide rule for every case. Where speed and simplicity matter-especially for accident-damaged, non-running or salvage vehicles-using a specialist buyer that provides free towing, handles paperwork and assists with deregistration can reduce risk and administrative burden. If the vehicle is still under finance, get lender instructions in writing before transfer. For more on selling non-running vehicles and what specialist buyers accept, review our Sell Non-Running Car and Sell Damaged Cars pages Sell Non-Running Car and Sell Damaged Cars.

Sources

• AA South Africa - Roadworthiness and vehicle checks
• South African Government - Motor vehicle licensing services
• Arrive Alive - Roadworthy testing information for South Africa