A misstep when selling your car in Virginia could leave you with liability for the new buyer's mistakes. Therefore, it is important to carefully follow the administrative rules that the Virginia Department of Motor Vehicles has established for selling used cars. Although you should be aware of the rules before selling your car to a dealer, they are especially important for private party sales because the seller is likely unaware of the rules.
Car Title
The seller must turn over the car title to the buyer at the time of the sale. If you have a lien on your car, you must get it removed before making the sale by contacting your lender. Once you have a clear title, fill out the name and address of the buyer, the vehicle's current odometer reading and the date of the sale in Section A of the vehicle title. Sign the title and ensure that the buyer also signs it.
Indicate Purchase Price
The buyer will need to pay sales tax on the vehicle, so it is your responsibility as the seller to provide a bill of sale that lists the purchase price. At the time of publication, the sales tax was 3 percent of the purchase price. The simplest option is to write the sale price in the appropriate space on Section A of the car title, which can be used as a bill of sale. Alternately, you can either fill out the Affidavit for Procurement of Title for a car that is less than five years old or write your own bill of sale for a car that is more than five years old. The bill of sale needs to have the buyer's and seller's signatures and list the vehicle identification number (VIN), the date of the sale, the purchase price and the vehicle's make, model, color and year.
License Plates
The license plates belong to the owner, not the car itself. When you sell your car, take off the license plates rather than letting the buyer drive away with them. Removing the plates protects you from liability for traffic infractions the buyer commits. You do not need to return the plates to the Virginia Department of Motor Vehicles. You can keep them, destroy them or transfer them to a different vehicle that you own. If you transfer them, contact the Department of Motor Vehicles to update the registration.
Notifications
Notify the Virginia Department of Motor Vehicles as soon as you sell your car. You can call (804) 497-7100, visit a branch office or log in to the Virginia DMV website to submit a notification online. After you have notified the DMV, contact your auto insurance company to cancel the insurance on the car or transfer it to your new car. If you cancel the insurance before you notify the DMV that you sold the car, you could have your license suspended for owning an uninsured vehicle.
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