Selling a Car to a Local

I have a Y plate and a local wanted to buy the car and switch to a Japanese plate. He suggested to go to his/her mechanic shop to drop off the car and go do the de-registration process at JVSO (Camp Foster) with His/her required documents.
He/she mentioned that her/his shop can do the transfer of title and issue the Kanji plate… Is that right? Don't you do all that at the LTO (Land Transportation Office)?

Also, should I request the money once I drop off the car and remove the Y plates? Or it's safe to do so after the title transfer and Kanji plate install?

I already met with them, and have them drive the car, they seemed very friendly couple (not Japanese), but foreign students with local student ID and Driving licence.

I'm new to this, I appreciate all input to make it safe and scam free….

Thank you all!

by Kimochero

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