How to Sell a Car & Transfer the Title in Pennsylvania

Millions of vehicles are sold in the U.S. every year through private sales, meaning that individuals sell their vehicles to another party without involving a dealer. In some cases, owners can get a higher price for their vehicle by selling it themselves, as opposed to trading in the vehicle for cash on the price of a new vehicle. For residents of Pennsylvania, selling a vehicle to another individual involves transferring the title to the new owner so that a new title can be issued and the vehicle legally registered with the Pennsylvania Department of Transportation.

Instructions

1

Sell the vehicle to another party. Generally, this involves advertising the vehicle for sale in a local publication or online. Agree on terms for the sale with the buyer.

2

Prepare a bill of sale. The bill of sale certifies the date of the sale, the amount of the sale, the name and address of both parties and information about the vehicle, including the year, make, model and odometer reading. Many sellers choose to list the vehicle as being sold "as is," to avoid disputes about necessary repairs and the condition of the vehicle.

3

Locate your vehicle title. It is a good idea to keep your title in a safe, easily accessible place, such as a fireproof box or filing cabinet, so you can easily locate it.

4

Fill out the reverse side of the title with the buyer's name and address. You also will need to fill in exact mileage from the odometer.

5

Sign the title in the presence of a notary public. Only notarized titles are considered valid. The buyer also must sign the title and have it notarized.

6

Give the notarized title to the buyer. The buyer can then take the title to the local tag office to complete the title transfer process.

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Rules on Selling a Car With a Lost Title

All vehicles sold in the United States must come with a title. If you have lost the title, you should request a duplicate before selling the vehicle. Selling a car without the title does not allow the buyer to legally assume ownership. Duplicate titles must be requested through your state's motor vehicle department.

Features

To receive a duplicate title, you must fill an application at your motor vehicles division. Its website may also allow you to download and mail the forms for processing. As long as you prove that you are the current owner of the vehicle, a duplicate title can be mailed to you. On the application form, your name address must match the same on file with the motor vehicles division. A copy of your birth certificate and a valid driver's license may be required to certify your identity.

Considerations

In special circumstances, additional documentations may be required before a duplicate title is administered. For instance, if the owner of the vehicle has died and the title has been lost, a copy of the death certificate must be provided along with proof you are the spouse or next of kin. If you have power of attorney and have lost a title to the owner's car, the original signed power of attorney document must be brought for review.

Time Frame

Before you list the car for sale, you should have the duplicate title in your possession. It takes up to eight to 10 weeks for your state's motor vehicles division to mail the title. You must also pay any fees associated with the replacement of the title. Make sure that you let potential buyers know that the vehicle comes with a duplicate title and not the original title. Fill out the seller and buyer information on the duplicate title to transfer ownership to the buyer.

Significance

If there are liens on the vehicle, you will not be able to receive a duplicate title before selling the car. The liens must be settled with the lien holder before a new title can be released. The lien holder must prepare a letter on official company letterhead that states the lien against the vehicle has been satisfied and the title can be given to you.

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Can You Remove a Name From a Co-Signed Auto Loan?

Many times, a spouse, parent or close friend will co-sign an auto loan for another borrower to help the borrower qualify for the loan. A clear cut "yes" or "no" answer on whether or not a lender will drop a co-signer from a loan before it is paid off is not possible, as it is up to the individual lender to make that decision based on the circumstances specific to the loan, including the borrower's current financial standing and credit rating.

What Is An Auto Loan Co-Signer?

An auto loan is a binding contract that is drawn up between a lender and a borrower. If a borrower is considered high-risk, he can ask a third party to co-sign on the loan. A co-signer, or co-maker, is a person who signs a promissory note and legally assumes equal responsibility for an auto loan. Once all the parties agree to the terms and conditions of the auto loan, it is considered legal and binding.

Opt to Keep the Original Auto Loan

If you want to be removed as the co-signor, contact the lender by phone or write a formal letter requesting that your name be removed from the auto loan. The lender can approve or deny this request for any number of reasons. For example, if the other borrower has a higher credit score or has had an increase in income, you can argue that your attachment to the loan is no longer necessary, as the other borrower now qualifies for the loan on his own accord. Using this scenario, the original loan contract would stand, but your name would be removed and you would no longer be held financially responsible for the repayment of the loan.

Option to Refinance the Auto Loan

If a lender refuses to remove your name from the auto loan, and the other borrower has improved his financial strength to such a degree that he can refinance the auto loan without adding your name to the contract as a co-signer, you can ask to be dropped from the original loan. Through a process known as refinancing, the other borrower, if she agrees, can apply to refinance the auto loan under a new control and possibly at a lower interest rate.

Considerations

In most cases, you can take legal action against the other borrower on the auto loan if she has defaulted on the auto loan, refuses to repay the auto loan or has mislead you, the co-signer, in some way regarding her intention or ability to repay the auto loan amount. Contact a lawyer to make a determination about the merits of your request to force the sale of the car in a court of law.

Warning

A lender has a legal right to refuse any manipulation of an original auto loan contract. The credit worthiness of the other borrower will ultimately determine how the lender responds to your request to drop your name from the loan. Be prepared for the lender to say that the loan must be paid in full before any party can have his named "removed" from the loan.

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What to Know About Buying Salvaged Cars at Auctions

The term "salvaged car" can mean a number of different things, depending on who is using it. In the context of a used car auction, you need to determine exactly how the auctioneers are using the term, and decide whether to bid based on that information. Your main concern is that the car is in good condition, or at the very least that you know about any defects, and that the title is valid.

Buyer Beware

The reason that you can get cars more cheaply at auctions is that they are less convenient and more risky than buying from a dealer. It is possible to get a great deal at an auction, but it's also possible to get badly burned if you are foolish and don't do your homework. Arrive at the auction early so that you can thoroughly inspect any cars that you are interested in. Policies at auction houses can vary widely, but most of them operate on a "buyer beware" policy and will not react sympathetically if you buy a car and then change your mind and try to get your money back.

Titles

Be sure that the title of any car you buy is valid. If the car has no title, don't buy it unless you are buying it for parts and don't intend to put it on the road. You may find that a car with no title or with an invalid title is impossible to register, and you will be left with a very expensive lawn ornament. If the auction house you are dealing with allows you to inspect titles or cars in advance of the auction, take advantage of this opportunity to do some research and make sure that everything is above board.

VIN Check

If you can inspect the vehicle ahead of time, be sure to write down the VIN. This is the Vehicle Identification Number, and can usually be found on a small plate that is attached to the dashboard under the windshield on the driver's side. A number of websites offer VIN checking services for a fee. If you have the VIN, you can find the history of the car, including when and where it was sold, how many people have owned it, and whether it has ever been wrecked, totaled or salvaged. This information can be invaluable in avoiding buying a headache.

You Get What You Pay For

Don't go to a car auction with the expectation that you will buy a pristine vehicle for 10 percent of its value. Car auctions are frequented by many people with experience in the field. If a car sells for very little money it's because they don't want it, and if they don't want it there's certainly a reason for that. If you are careful and pay attention, you can get a decent vehicle for less than you would pay a dealer, but, as in any other venue, the less you pay, the less car you will get.

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How to Refinance the Interest Rate on a Car Loan

Auto loan interest rates fluctuate almost as much as the weather; one week they're at an all-time high, while the next week may bring all-time lows. If you financed your vehicle with a higher interest rate loan, it may be possible to lower your payments and save on finance charges by refinancing.

Instructions

1

Contact your lender to receive a payoff quote on your existing auto loan. The payoff amount is how much you will need to borrow under a new loan to swap it over. Most lenders will grant you a payoff quote over the telephone, and some will let you access online.

2

Compare interest rates between banks. Always give your existing lender an opportunity to offer a lower rate. They want to keep your business and may be competitive with other banks. Get quotes from three to five auto lenders. Check with your local bank and with online banks. See the resources below for some online refinancing options.

3

Compare the terms of each refinance offer and make sure they fit within your budget. Just because an interest rate is lower doesn't mean the payment will be lower. The loan term can make a difference in payments. Decide what term (typically 36 to 60 months for refinancing) suits your needs.

4

Complete the financing by signing the new auto loan documents. Many lenders will require additional documentation before finalizing a loan, such as insurance verification and proof of income. Make sure you change the lienholder on your insurance policy to reflect the new loan if you have changed banks.

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How to Co-Sign a Lease for a Car

Car leasing companies consider the buyer's credit score to determine whether he qualifiesfor the lease and to set the terms of the agreement. If the buyer has a poor credit score, he may get approval for a lease if someone cosigns the lease. The cosigner accepts full responsibility to pay the amount owed on the lease if the primary borrower fails to make the required payments. This is not a responsibility to be taken lightly. The process is fairly simple, but the consequences could be severe.

Instructions

1

Discuss the monthly payment amount with the person who will be taking out the lease. Ask her if she has worked out a monthly budget that includes the lease payment, and, if you are concerned about her ability to pay, review the budget together to ensure that it is balanced.

2

Go together to the car dealership where you will sign the lease.

3

Provide your Social Security number so the leasing company can run a credit check. Your credit score will help determine the terms of the lease.

4

Provide information on your income along with any required documentation. The procedure varies from one company to another, but you might need to provide recent pay stubs or last year's tax return to prove you have enough income to support the lease payments.

5

Read the lease agreement carefully. Note the amount of the lease payments and how many years the lease lasts. Consider again whether it is a risk you are willing to take.

6

Complete all required paperwork, and sign the lease agreement.

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Problems You Face When Purchasing a Car

Purchasing a car is an exciting experience for most buyers. A new car oftentimes represents a new place in life where an upgrade to a better car is a reward for hard work and a job well done. But buyers can encounter a number of problems when purchasing a new or used car. The way that these problems are faced and resolved may have a direct impact on the purchase price of the car and the enjoyment that the car provides.

New vs. Used

One of the oldest dilemmas when purchasing a car is whether to buy a new car or a used car. Car buyers vary greatly on this topic, as some desire the dependability of a new car, while other buyers prefer the cost savings of a used car. The major problem when deciding between purchasing a new or used car is the issue of depreciation. A new car will lose 70 percent of its value over the first four years of its operating life. While many car buyers have no qualms about this, others prefer to purchase a car whose previous owner bore a large brunt of the vehicle's initial cost.

Financing

Most potential car buyers intend to purchase their new or used car by means of an installment loan. These loans require that the buyer have a relatively favorable credit history that is clear of major problems such as bankruptcy or repossession. Purchasing problems may occur if the loan applicant has a spotty credit history, resulting in a high interest rate or a loan application rejection. While there is nothing wrong with purchasing a car with an installment loan, some car buyers prefer to self-finance the purchase of a vehicle by saving money to purchase a car in full with cash. Dave Ramsey, a popular personal finance expert, recommends purchasing cars with cash and investing the amount that would have otherwise been spent on a car payment in a reputable mutual fund.

Vehicle History

Many car dealers sell automobiles that have a history of wrecks, floods, fires and other problems. Buyers that purchase these flawed cars can nearly guarantee that the car will have a major mechanical problem at some point in its operating life. Car buyers who are seeking to purchase a used car should always ask to see a vehicle history report on the car they may purchase. A vehicle history report will show vital information, such as insurance claims filed on the vehicle and police reports that will ensure that the car is not stolen property.

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