Tuesday, May 5, 2009

How to Do Name Changes on Car Titles

When cars are bought from dealers, each dealer must prepare the titles and forward this information to the finance company. The finance company retains the title until the borrower pays off the balance. Upon selling the car to a new owner, the original owner must change the name on the title to transfer ownership to the buyer.

Instructions

    1

    Refer to the back of the car title and look for the section that pertains to ownership transfers.

    2

    Sign your name as the seller. Doing so indicates your willingness to transfer the title. Include the date and list the odometer reading.

    3

    List the sale price of the car. If selling the vehicle, include the purchase price on the back of the car title. Use a Bill of Sale or a Supplemental Information for Procurement of Title if there isn't adequate space on the title.

    4

    Ask the buyer to sign his name to the back of the car title indicating he is the new owner.

    5

    Submit the new title to your state's department of motor vehicles, DMV. Once you and the new car owner sign and date the title, the new owner must present the document to DMV, register the vehicle in his name and pay sales tax.

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