How to Sell a Car Privately: Paperwork Step by Step
The paperwork for selling a car to another person, in order, so the sale is safe for the seller and the buyer.
Selling a car yourself can bring in more money than a trade-in, and the paperwork is not hard if you take it in order. Rules differ by state, so treat this as the usual path, and check your state's motor vehicle office for anything special.
Before you list it
- Find your title. The title proves you own the car. If you still owe money on it, the lender holds the title or has a claim on it, and you will need to pay off the loan to sell it cleanly.
- Gather the records. Repair records and the owner's manual make a buyer feel good about paying your price.
- Check the VIN. The 17-character Vehicle Identification Number is on the dashboard near the windshield and on the title. They must match.
When you have a buyer
- Agree on the price and how it will be paid. For a large amount, a cashier's check or bank transfer is safer than cash. Meet at the buyer's bank if you can.
- Fill in a bill of sale. Write the year, make, model, VIN, mileage, price, and date. Say if the car is sold "as is." Both of you sign, and each keeps a copy.
- Record the mileage. Write down what the odometer reads on the day of the sale. Federal law requires the mileage to be stated when the title is transferred.
- Sign over the title. Follow the instructions on the back of the title or your state's transfer form. Do it only when you are paid.
After the sale
- Tell the state you sold it. Many states have a form for this, sometimes called a notice of transfer or release of liability. It protects you if the new owner gets tickets or has an accident before registering the car.
- Cancel or move your insurance once the car is no longer yours.
- Take your license plates off if your state says they stay with the seller.
- The buyer registers the car in their name within the time your state allows.
Staying safe
- Never hand over the car or the title before you have the money in hand.
- Be careful with checks from people you do not know. Ask the bank to confirm a cashier's check.
- Do not leave your personal papers or garage door opener in the car.