Situations may arise where you elect to sell a car instead of trading it in for a new model. You may need to raise extra cash, or maybe you just don't need the vehicle any longer. When selling your car privately, there are certain requirements you'll need to meet to facilitate the transaction.
Obtaining Paperwork
You will need to obtain all paperwork associated with your vehicle, including the title, registration and maintenance and repair documentation. With the increasing demand from buyers who want to see vehicle inspection reports, it also may be necessary to obtain a report from a company such as Carfax. This provides the buyer with information about the vehicle's accident and ownership history.
Determining Price
Before you can sell your vehicle, you need to determine its market value. Resources such as Kelley Blue Book and Auto Trader can help you establish the vehicle's fair market value, which you can use as the basis for your asking price. Knowing your vehicle's true value also can help you in the negotiation process with potential buyers.
Bill of Sale
In many states, after locating a buyer who agrees to purchase the vehicle, you need to complete a bill of sale. A typical bill of sale includes information such as the names of the buyer and seller, the vehicle identification number, date, make and model and selling price. Be sure to contact your state's Department of Motor Vehicles for state-specific instructions.
Finalizing the Deal
When you complete the bill of sale, you need to finalize the deal. In most cases, this will involve transferring the title with the aid of a notary public or equivalent official. Cancel your insurance coverage on the vehicle immediately to prevent any future liability.
Notifying the Bank
If you still owe money on your vehicle, make arrangements with your bank to obtain the title. If feasible, meet the buyer at your bank so he can pay off the loan balance. The bank can then sign the title over to the buyer to complete the sale.
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