What Paperwork Do I Need to Sell My Car Privately
You got a seller through private sale or are ready to list your car. Now you are wondering what paperwork do I need to sell my car privately prepared to finalize the deal and receive your funds.
We’ll provide everything you need to sell your car privately and legally transfer ownership to the new owner and additional documents to get your car to sell for more money.
Table of Contents
What Paperwork Do I Need to Sell My Car Privately
Required Documents to Sell Your Used Car
You will provide these documents to the new owner but always make copies of them to keep for yourself.
Car Title
The car’s title is a legal document proving the vehicle’s ownership. You must transfer ownership of the title to the buyer when you sell your vehicle.
The title should be in your possession if you own the car outright. No money is owed on the vehicle.
The process can vary slightly depending on your state, research, and ensure you follow the correct procedures. A clear title is vital for protecting yourself and ensuring a smooth sale.
Where to Obtain Car Title?
If you lose your car title, don’t worry! To get a duplicate title, contact your state’s Department of Motor Vehicle (DMV) and pay a small fee. They will provide you with a replacement.
Vehicle History Report
It provides a detailed overview of the vehicle’s past, including information on any accidents, repairs, service records, and title changes. The report contains data from different sources, including insurance companies, police reports, and the DMV.
A clean history record will give you more leverage on how much to sell your car than the average price.
- Title transfer
- Accident history
- Service and maintenance history
- Odometer reading
- Manufacture’s recall
- Registrations information
Where to Get a Vehicle History Report?
Obtain a vehicle history report online through any of the services below. The differences between them are some may provide more details on the report and varies in cost.
- CarFax
- AutoCheck
- National Motor Vehicle Title Information System (NMVTIS)
They will require your vehicle identification number (VIN). The VIN is located on the corner of the driver’s windshield dashboard or the door sticker when you open your driver’s door on the side gap.
Bill of Sale
A bill of sale is a legal written record of the transaction between you and the buyer. The document includes the purchase price, vehicle identification number (VIN), make and model of the car, and the transaction’s date and time. Both the buyer and seller must add their signature to finalize the sale.
The bill of sale protects you legally if any issues arise after the sale. It’s always important to ensure that both parties understand the agreement and that the bill of sale accurately reflects the transaction details.
Review everything on the bill of sale before signing off on it. Always check what your state is required on the bill of sale, as each state may vary.
Where to Obtain Bill of Sale?
A few resources you can obtain online or in person:
Department of Motor Vehicles (DMV) – Walk into your state’s local DMV for a pre-made copy or print it from their website. The easiest and simplest way to ensure all the bill of sale has everything that complies with your state.
Auto Insurance Providers – Your insurance provider may provide a template.
Online Legal Services – Online legal companies from LegalZoom or Rocket Lawyer can give you a customized template.
Search Online – Choose a template you found online that complies with your state laws on the bill of sale.
Odometer Disclosure
The odometer disclosure verifies the vehicle’s mileage or the number of miles at the time of sale. All states require an odometer disclosure statement for selling your car to a private party.
This document protects buyers from falsifying odometer readings, where sellers may reset the odometer to lower the mileage on the car. It gives them more leverage to sell the vehicle at a higher price.
Tampering with the odometer meter is a federal fraud and must be reported to local police.
Where to Obtain Odometer Disclosure?
Check your state’s DMV for a copy of the odometer disclosure. Some DMVs may not have odometer disclosures online and require you to collect one in person or contact them so they can mail one directly.
Release Liability
Another essential document to selling your car to a private party is the release liability document to protect yourself against any liability after selling your vehicle.
Should the sold car be involved in any accidents or, worse, parking tickets, you won’t be liable as the buyer owns the vehicle and is not registered under your name.
Where to Obtain Release of Liability
I’m sure you know where to obtain all your documents by now. Check with your local DMV office for this or the state’s DMV website for a copy.
Used Vehicle Warranty Documents
These documents go over the warranty details, including the terms and conditions, what is covered, and the duration of coverage. You must provide these documents to the buyer to ensure transparency and trust in the transaction.
In addition, having these documents readily available can help you negotiate a higher selling price as certain repairs or services are covered.
Familiarize yourself with the warranty terms and ensure they are accurately represented in your advertising and during the sale process. Doing so can ensure a smooth and successful transaction for you and the buyer.
- Full Coverage Warranties – Covers nearly all vehicle components similarly to bumper-to-bumper coverage.
- Powertrain Warranties – Covers only the engine, transmission, drive shafts, differentials, and drive wheels.
- Bumper-to-Bumper Warranties – Almost everything except for normal wear and tear and maintenance services are covered.
Always read the warranty’s fine print to verify what it covers and doesn’t.
As-Is Documentation
Without a used vehicle warranty, As-Is documentation can communicate the car’s current condition and help protect you from any future legal issues.
The document states that the buyer is purchasing the vehicle currently, with no guarantees or warranties regarding its condition. Disclose any issues or damage the car may have, including details such as the make, model, year, and current mileage.
Providing As-Is documentation sets fair expectations for the buyer and ensures a smoother selling process.
Optional Documents to Increase Car Value
Here are a couple of documents to help show a potential buyer your car is well maintained and negotiate on selling for a higher price. This paperwork is optional to sell your vehicle.
Maintenance Records
A well-documented history of routine maintenance will be instrumental in increasing your selling price, as potential buyers can see what you do to keep your car in the best condition.
You show buyers that you’ve taken good care of your vehicle, making them feel more confident purchasing from you. A bonus to this is keeping your owner’s manual in the glove box. Sure, you can look up the owner’s manual online, but it gives buyers more reassurance.
If you can’t provide a comprehensive service history record, this may put off potential buyers or negatively impact their willingness to pay a higher price. It’s okay if you do not have maintenance records.
Check if you have any maintenance records. That way, you’ll sell your car for more money. Trust me; it’ll pay off in the end!
Recent Repairs or Upgrades
Recent repairs and upgrades can give your vehicle the edge to attract more potential buyers and convince them to pay a premium price.
If you had invested in repairing your car by fixing mechanical issues, replacing worn parts, and giving it a fresh coat of paint. You will enhance its appearance and performance and demonstrate to potential buyers that you have maintained the vehicle well.
Upgrading your car’s features, such as installing new tires, updating the sound system, or repairing the engine, can give it a competitive advantage.
Moreover, buyers are often wary of purchasing a vehicle that requires significant repairs, so investing in recent upgrades can skyrocket the car’s value and make it easier to close a sale.
Finalizing the Sale
Now that you have all the documents ready to sell, we’ll cover the final details to finish the car sale.
State DMV Requirements
Review your state’s DMV information if there are any additional requirements to sell your car privately.
One example is that the California DMV requires a vehicle to pass the smog certification before selling the car. At the same time, other states may not need it. Or in various areas of states that require the emissions test documents.
Receiving Payments
Below are safe and secure ways to receive your payment after selling your car. We did not list digital payment platforms as they incur large fees, or buyers can dispute the transaction.
Cashier’s Check/ Money Order – The ideal way to receive payment is to have the buyer pay for the cashier’s check, and the bank or issuer guarantees the money. A safe way to confirm it’s not a counterfeit is to go with the buyer to their bank to ensure they purchase it. It’s common for a cashier’s check to be fake.
Wire Transfer – Money is a safe and convenient transfer from the buyer’s bank account to your account, but you must give your bank information. It can be risky to provide that information to a private buyer.
Escrow Service – An intermediary will hold the buyer’s money until the buyer receives the vehicle. Then escrow will release the funds to the seller. It will cost a fee for this service.
Cash – More ideal for low-price cars as you wouldn’t want to carry hundreds of dollars with you. It’s risky to be taking that much money for a car.
Always meet in public to make the purchase and bring a friend as a witness or inform someone where you are going before meeting.
Informing DMV
The last step to complete your car sale is to inform your state’s DMV. Every state will have its own procedure to tell them of your car sale. Check your state’s DMV website for more information on what they require to finish the deal.
Most will require the Notice of Transfer/ Release of Liability form and submit it online or by mail to the DMV within a few days of the sale date. Failure to do so could result in unwanted charges or even legal issues.
After that, you finally sell your car, and no legal issues will arise if your old vehicle is involved.
Closing Thoughts
Selling a car to a private buyer is quite a hassle and requires several documents.
It’s crucial to have all the paperwork for your vehicle to protect yourself as the seller and reassure potential buyers that the car they’re buying is in good condition.
By providing the required documents and any optional ones you have, you can ensure that you will receive top dollar for your car and close the sale promptly.
Now what if you have everything ready to sell your car, but it has a car loan? Read this article on How to Sell a Car with a Loan.
