What Documents Do You Need When You Are Selling Your Car to Another Person?
- Selling your car to a private party can help you maximize your profit because you eliminate the dealer. It is important to provide the buyer with the documents to facilitate the sale; if you have never sold a vehicle, you may not be aware of them. Although requirements vary from state to state, there are some standard documents you need to sell a car.
- A vehicle title is legal proof of ownership. When you sell a car, you transfer the title of the car to the new owner. The title is necessary for the buyer to register the car in her name. The process for transferring a title differs from state to state. In most cases the seller needs to complete the required information on the title such as the names of both parties, date, odometer reading and sale price. You and the buyer will need to sign the title to complete the transfer.
- Your proof of current registration makes it easier for the buyer to register the car. It is possible to sell a car without registration, the process is more complicated. The seller may also become suspicious that something is wrong with the vehicle or outstanding tickets are holding the registration.
- Some states require sellers to provide smog and emissions certification in an effort to reduce air pollutants. The car must be registered to be tested. You can bring the vehicle to a state-authorized emission test center for certification. The tests are performed based on year, make and model of the vehicle.
- A bill of sale is a legal document you create that transfers the title of the vehicle to the new owner. The bill of sales acts as a sales receipt. It is used to provide legal protection for you and the buyer. The document must contain pertinent details of the sale such as the buyer and seller's full legal name, physical address of both parties, description of the car, vehicle identification number and the purchase price. The buyer and seller must sign and date the bill of sale. The document may need to be notarized, depending on the state. You and the buyer should retain a copy.