What Documents Do You Need When You Sell Your Car
So youve done your research, set a price, took some nice photos and created an ad. Your car is sell-ready and youve been fielding buyers inquiries. Now its time to gather all the paperwork so you can finalize the transaction quickly when the right buyer comes along.
We put together a list of documents needed to sell your car. However keep in mind that each state has different requirements, so your local DMV really should be your best friend. In addition, in cases where you have still a lien on the vehicle, or if your buyer has financing, lenders will have additional requirements as well.
Probably the most important piece of document for the sale, as it denotes the right of ownership for the vehicle. If you still have a lien on your vehicle, then you will need to notify your lien holder about the pending sale. You will need to payoff the amount you owe before the title can be released to the new owner. In the rare cases that you might have misplaced your title, check with your DMV to apply for a duplicate and replace your lost title.
Bill of Sale
The bill of sale serves as a record detailing all the information of the transaction between the buyer and the seller. Depending on what state youre in, sometimes its not required, but even so we would recommend completing one to keep for your own records. You can always get a copy from your local DMV.
Release of Liability or Notice of Transfer
Sell By Auction Or Fixed
eBay Motors gives you different options for marketing your vehicle. With the auction-style listing format, buyers can bid on your vehicle with the sale going to the highest bidder.
The fixed-price format allows you to list your car at your chosen price, and the Best Offer feature allows buyers to submit their best offer in response to your selected starting price. Having these options available gives you flexibility in marketing your used car.
How To Avoid Scams And Fraud When Selling Your Car
The internet is a fantastic tool, but it can also invite scams and fraud, just as people can. If you have questions or suspect fraud or scams when selling a car yourself, please email . Or call the Fraud Prevention Team at 1-877-210-5209.
You can also check out our tips for avoiding scams and fraud.
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The 7 Best Marketplaces To Sell Your Used Car
When it comes to selling your used car there are so many options and ways to go about it that it can be confusing. Do you slap a sign in the window and cross your fingers that someone calls you on it? Do you go to CarMax and get offered way less than what it is worth? Or do you trade it to a dealer and lose more money?
All of these methods are viable, but if you choose to go about selling it on your own, there are a few places that make it easy. Selling a car by owner is the best way to get the most money for your car.
Selling a used car can be stressful, but it does not have to be. Heres a list of the best marketplaces to sell your used car.
is first on the list as my top pick. This is a great choice and alternative to using Craigslist as it is safer. Its easy and free to list and the seller has to post with their public profile. With Facebook you know exactly who you are buying from! Not only can you post your car in marketplace, but you can idd your listing to groups as well. This comes in handy. One example is if you are selling a Ford Mustang you can post it in a Mustang group, etc. Same goes for any other car. There are groups out there for basically everything.
Ebay is a great place to sell your car as millions of people search there every month. You can set a price for your listing or list it as an auction with a reserve. A reserve allows you to not sell unless the auction hits that price.
Maintain A Paper Trail
Its important to keep a paper trail when selling a car. At a dealership, the paperwork gets handled for you. When you sell a vehicle to an individual, its your responsibility to ensure the transfer gets dealt with properly. By doing the legwork upfront, it can eliminate hassles down the road.
Each state has different rules regarding proper title transfer, but most require that the seller and the buyer fill out paperwork to ensure the transfer is legal.
In many states, the seller signs the back of the existing title, along with the date, sales price, and exact odometer reading* before handing it over to the buyer. You should also make a copy of the signed title for your records.
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*An accurate odometer reading is critical when you sell. Once you sign off on the title, the odometer reading provides proof of the moment in time the car is no longer legally yours. Dont round it up the buyer could have an accident within two miles of the sale and claim that you are responsible.
Most states recommend that buyers and sellers complete a bill of sale along with a release of liability form to provide proof of the transfer and to protect the seller from any future tickets, violations, or other problems with the vehicle. DMV.org, a clearinghouse of all state DMVs, provides a sample Bill of Sale and Release of Liability information.
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Post Your Adand What Not To Include
This part is pretty easy, but keep a couple of things out of your ad: Your address, your phone number and any personal information. You may want to consider opening an email account just for this sale and use a gender-neutral name. Even if you open an email account with a name like Jeep4Sale, the name on the account still comes up in the recipients mailbox. Since my name is Scotty, its a nice protection barrierpeople dont expect a woman .
How Much Should I Ask For My Car
This is one of the hardest parts of selling a used car. Most people don’t know where to start when it comes to pricing. First, check out free appraisal tools on the internet. Compare the value of your vehicle as listed on multiple sites. Be realistic when evaluating the condition of your car. Here are some sites that may help:
The bottom line is this: Know the lowest amount you will accept for your car before you start negotiating with buyers.
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Best Websites To Sell A Car Online To Maximize Your Profit
The coronavirus pandemic changed just about everything in 2020, and the used car market was no exception. During this time, used car sales soared all over the U.S., as people were more sensitive to the cost of buying new cars and also looking to avoid mass transportation.
There are a million different reasons you might be thinking about selling your car, whether youre ready to trade it in for a newer model or if youre looking to start driving a more eco-friendly option.
What are the best online car selling sites? Lets take a look at 12 of the most popular places to sell your car online.
The market size of used cars is projected to reachUSD 1,969.72 billionby 2028. One of the reasons second-hand cars are in demand is the exponential financial recession that’s shrinking the market for newer vehicles.This means youve got a good chance of selling your car and getting some good money from the sale. And that’s especially true when you work with one of the best used car sites in the industry.
To sell your car for the best price possible, accuracy is key. Provide us with basic information about your car including its make and model, year, mileage, engine size, and after-market accessories. The more detailed you are about your vehicle and its condition, the fairer the dealer quote you’ll receive. Nexus car dealers use this information to give you accurate car sales offers worth your time and investment.
Offer Multiple Payment Options
Electronic payments like Venmo, Zelle, and PayPal are more common than ever if youre selling a vehicle online. However, its best to check the terms of payment limits for the service you plan to use. Easy payment options can help finalize a cash sale before the buyer has second thoughts. The faster you get the buyers money, the more quickly you complete the deal.
Some sellers prefer cash transactions. So, it can help to be open to other options, including cashiers checks.
With Kelley Blue Books Instant Cash Offer, you can get a fine-tuned amount at a participating dealer and use it toward the purchase of another car.
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Reply To Inquiriesexcept The Crackpots
You can ignore them. Try to filter out the earnest inquiries, some of which can, due to English-as-a-second langue issues, sound crackpot-y even when they are earnest. Reply promptly, answer questions honestly and send more photos if requested. This is where you should know what price youll accept, a location for meeting a prospective buyer and what payment process youll require for the transaction. For more on that keep reading.
Ways To Protect Yourself When Selling A Car
Selling your car yourself can be easy and profitable, especially if you start with an online ad on Kelley Blue Book. Even so, youll want to keep some essential things top of mind. Use our simple steps to help protect you and make the process go smoothly.
The below isnt an exhaustive list of everything involved in your sales transaction, as each sale is different. But its the top things youll want to know to stay prepared for most, if not all, of the possibilities. Be sure to check the laws and regulations in your particular state.
Use our jump ahead links to get to the section you need:
Meeting Your Prospective Buyer
Of course bring a friend, though its probably most helpful if that person stays in his car so that the buyer knows youre protected but doesnt feel outnumbered. Let the buyer look the car over and answer her questions. If she wants to take a test drive, great! Take a photo of her drivers license and be sure your insurance will protect you in case of an accident .
The Way It Should Be: Vroom
This is how manufacturers would love to sell new cars, if dealer franchise laws allowed it. Vroom escapes those restrictions by exclusively selling used cars , conducting the whole transaction online. You buy the car through their site, they handle the paperwork and deliver it anywhere in the lower 48. Theyll even give you a quote on your trade-in and pick up your old car when they drop off the one you bought. But what about the test drive? Youve got a week, or 250 miles, to make sure everything you hoped it would be.
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If You Want A Lot Of Eyeballs To See Your Listing: Cargurus
CarGurus is said to be the most visited online car marketplace in the U.S. Listing on this site is $5. CarGurus has been around for a while now and their site looks a lot like the other big players. Itll let buyers know about where cars stand compared to others on price, though, so be careful about your list price.
How Do I Get My Car Ready For Sale
To get the best price for your car, follow the below:
- Complete repairs – Servicing small items – such as fluids, brakes, light bulbs, air in tires, windshield cracks, dents, or scratches – can help you get more money for your vehicle. Be sure to retain receipts of repair to show buyers what work’s been done.
- Clean it – While it may seem obvious, many sellers skip or marginally follow this step. A clean, waxed, and fresh smelling car is most appealing to buyers. So, pay attention to both the car’s interior and exterior. Clean out the glove box and trunk. Wipe down all surfaces, especially cup holders. Vacuum thoroughly, and remember to remove all bumper stickers as well as the residue they leave behind.
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Screening Potential Buyers 101
If you do a good job screening buyers before you meet them face to face, selling your car will go much more smoothly. Listing your car on Craigslist, Facebook Marketplace or Autotrader will bring emails, text messages and calls from interested parties. Use your intuition to spot anything suspicious about these potential buyers:
How To Safely Sell A Car In A Few Simple Steps
Selling your car on your own instead of to a dealership can be a good deal especially if your car has high value.
Selling your car on your own instead of to a dealership can seem scary, but it doesn’t have to be. If you do your homework, it might actually work out better for you. This is especially true if the vehicle you plan to sell has a high value. Below are some tips to help you along the way.
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If You Want To List For Free: Craigslist
We all know the horror stories that come with Craigslist, where scams and suspicious schemes are all around. Still, the website can help you out big time if you know how to avoid the bad stuff.
The biggest advantage here is the price of entry: $0. You can make the post look however youd like and include a ton of photos without paying extra. Selling a car locally is always easier, but that can also be a downside with Craigslist, since youre missing out on most of the national audience unless someone searches outside of their area.
Target Specific Groups Of Potential Buyers
Facebook users sometimes form groups to discuss topics that are of common interest to them. Facebook Marketplace allows you to list your car publicly to everyone on Facebook, but you can also post a private listing to one or more of the sites groups.
A private group listing allows you to pitch your car to a specific audience, which can be valuable if you have a vehicle thats popular with a niche group of potential buyers. For example, if youre selling a used Mazda Miata sought after by collectors, you could use Facebook Marketplace to post a listing in a private group made up of Miata enthusiasts.
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Gather The Maintenance Records
When selling a car to a private party, it helps to provide proof of maintenance and service records. If you live in a state that requires emissions tests, have copies of the most recent test on hand. These records may be a hassle to collect, but proving that you faithfully maintained the vehicle may allow you to increase how much you can charge. It may also be easier to find a buyer.
Canât find proof that you got the transmission replaced? Call the mechanic and ask them for a copy. Some mechanics, especially major chains and dealerships, may keep copies of the receipts.
Also, mention any upgrades or customizations youâve added to the vehicle to increase its value.
Get Your Used Vehicle Ready For Sale
Before advertising your vehicle for sale, it helps to make sure it’s buyer-ready. That can mean doing things like:
- Cleaning the vehicle inside and out
- Making minor repairs
- Replacing worn tires
- Having a mechanic inspect the vehicle to check for any major issues
You’ll want to keep the cost of things like cleaning and repairs in mind if you’re hoping to bank the most profit possible from the sale. Cleaning is something you could do yourself, for example, which can save a little money. But if there’s a major repair needed, consider whether you want to pay for it yourself or pass that cost on to the next owner.
Of course, you’ll need to be transparent and let the buyer know up front if any repairs are necessary.
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What Is The Safest Way To Sell A Car Privately
If youd rather do a one-on-one transaction when you sell a used car rather than sell a car online, its important to limit your risk and conduct the sale in a way that safeguards you from loss.
The smartest way to sell a car privately is to conduct business with the buyer at their bank. This way, you can ensure they have the needed funds and arent left in a lurch looking for payment. Also, dont give up the title for the car until the full payment has been received. If the transaction is pending through a third-party service like PayPal or CashApp, wait until the funds deposit in your account before you hand over the paperwork.