Vote It Up When Selling a Car

elling a car privately is a fairly simply process, but it is one with legal requirements that must be followed in order to protect both buyer and seller. Always go along on the test drive and never invite strangers into your home. Meet potential buyers in a public place whenever possible and always have someone with you when showing the car.

5 Comments

  1. VoteItUp on February 22, 2016 at 5:11 pm

    I lost my title. Do I have to get another one before I sell the car?

    Yes. In order to sell a car, you must generally be able to prove that it is yours to sell. Even junkyards and recycling facilities require you to provide your title if you plan on scrapping the car. You can request a duplicate title for the lost one from your state’s DMV.

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  2. VoteItUp on February 22, 2016 at 5:11 pm

    Can I let my insurance lapse if I plan on selling the car?

    It is wise to keep insurance on a vehicle until you sell it. Even if you’re no longer driving the car, you want it to be covered while potential buyers are test driving it. If the car isn’t drive-able, you shouldn’t risk a tree limb falling on it or other damage occurring while it’s parked, since this damage will lower the potential sale price.

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  3. VoteItUp on February 22, 2016 at 5:11 pm

    How do I know what the car is worth?

    There are guides such as the Kelly Blue Book and the NADA Guide that determine the value of different car models each year. These resources are available online and take into account a car’s features, condition and mileage to determine a value. You can also look at your local Craigslist to see what similar cars are selling for in your area or take a look at online auction sites for similar makes and models.

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  4. VoteItUp on February 22, 2016 at 5:12 pm

    Must I be present for the title transfer?

    This depends where you live. In some states, both the buyer and the seller must appear together before a notary. In others, it is acceptable for a seller to simply sign the title when selling the car. The buyer can then take the signed title to a notary and transfer it into his name. It is best to avoid this practice, however, or you take the risk that the buyer never gets around to transferring the title. In that case, the car will be traced back to you if there is an accident or problem, and you could be held liable.

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  5. VoteItUp on February 22, 2016 at 5:12 pm

    Can I accept payments?

    As a general rule, it is best to get cash up front and be paid in full when you sell a car. If you are selling to someone you trust enough to allow payments, make sure you draft a payment term agreement on paper and have it signed by both parties. It is also important to have yourself listed as a lien holder on the title. That way, you can take the car back if the buyer defaults on the payments. Once the payments are all completed, you can simply sign off on the lien.

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