How to Sell a Car Part 2 - Completing the Sale

Once you have a qualified buyer lined up, you can get started with the legal process. Follow these next steps to learn more about how to complete the sale.                   

Sealing the deal. When meeting with the buyer, bring along all paperwork as well as any maintenance records or warranty information that applies to the vehicle. Remember that paperwork requirements vary by state, so be sure to consult your state’s DMV for all specific laws.

Car Bill of Sale. While not required in all states, a Car Bill of Sale is a good idea because it documents the terms and conditions of the sale in writing. It includes the purchase price, the VIN, the model and year of the vehicle, the warranty and odometer provisions, and the signed legal names and addresses of both the seller and the buyer and sometimes a notary. The Car Bill of Sale represents the transfer of the RIGHT to ownership; the vehicle's certificate of title represents ACTUAL ownership. Thus, this document and a certificate of title are needed to complete the transfer of the vehicle.

Title Transfer. A federal law now requires that in every state, the seller must provide the vehicle title and some form of odometer disclosure listing the vehicle's current mileage at the time of the sale. The vehicle title transfer usually involves signing and dating the back of the vehicle title. The buyer then needs to go to his state's DMV and apply for a title in his/her name.

Warranty Transfer. Make sure to transfer your warranty. This ensures that the buyer acknowledges and understands that s/he is accepting all future responsibility for the repair and maintenance of the vehicle.
Insurance cancellation. Once the sale is complete and your buyer has left with your car, contact your insurance company to have the vehicle removed from your policy.

If you plan to sell a car, you can find the Car Bill of Sale legal form at RocketLawyer.com. We provide you with a quick and easy way to create the document you need, and it’s free to try.

Laws on this topic may vary from state to state. This content is not meant to provide you with complete information and it is not intended to be legal or tax advice. It is recommended that you consult with your own attorney, accountant or other advisor regarding your specific situation.