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Selling your car can be a complicated process, except when you take the time to
prepare yourself. With a little upfront preparation you'll find it's easier than
you think and a way to get the most value for your car with minimal hassle.
One of the most important tasks when preparing to sell a car is to make sure you
have all your paperwork together before you even consider posting your vehicle for
sale. This will ensure that you can easily and legally transfer your ownership to
the buyer.
Title
Your title is your certificate of ownership and should be kept somewhere safe (e.g.
safety deposit box or fire resistant safe). If you still have an outstanding loan
then your financial institution has possession of the title and you will need to
contact them prior to posting your vehicle to obtain your pay-off and discuss what
procedures to follow once you sell the vehicle to obtain the title for the new buyer.
* You never want to give the title to the buyer until the buyer's funds are securely
in your possession
If you owe money on the vehicle, it's best to disclose that information in your
ad, since it could take some time to receive the title and complete the transaction
with the buyer.
Whether you own the vehicle outright or you are still making payments, the process
of selling and transferring vehicle ownership varies by state. It usually involves
filling in the information on the back of the title, then signing and dating it.
The buyer is then responsible to complete the transaction by going to their state's
Department of Motor Vehicles and apply for a title in their name.
Select the State below and click on Go button to get more information from your
State's DMV website.
Warranty Information
If you purchased and extended service contract or mechanical breakdown insurance
and it is still active, you might be able to transfer the policy to the buyer (check
the policy and call the carrier to ensure this service is available). This will
usually add value for the buyer and make your vehicle a more desirable purchase
over a similar vehicle with no extended coverage. Make sure you have the policy
in hand, including phone number for the carrier so that the buyer can easily transfer
the policy into their name.
Maintenance Information & Records
The more information you have available on how you maintained and serviced your
vehicle over its lifetime under your care the better. Anything you have done to
maintain your vehicle will add value to the buyer, just make sure you have the actual
written records to prove you claim or it will have the reverse affect on the value
of your statement “This is a one owner vehicle that was maintained to the highest
standards” or something similar. If you no longer have the actual records but know
where you had the service performed you can try and contact them to obtain copies.
Vehicle History Report
More buyers are utilizing these reports to ensure the vehicle they are considering
was not involved in any major accidents, etc. It is to your advantage to know what
these reports say about your vehicle before you post your listing. Whether you run
the report prior to posting or not, make sure to include your VIN (vehicle identification
number) in your ad, this helps ensure the validity of you sale and allows the buyer
to obtain a copy of one of these reports for themselves. It is to your benefit to
make sure that you fully disclose any major repairs or accidents in your listing.
Click here to access the vehicle history report page
Odometer disclosure
The Truth in Mileage Act of 1986 (a federal law) requires the seller of a vehicle
to provide an odometer disclosure to the buyer at the time of sale or transfer of
ownership.
It varies by state on how this has to be accomplished and we highly suggest that
you check your states DMV website to get a full understanding of these requirements
and any required forms.
Select the State below and click on Go button to get more information from your
State's DMV website.
AS-IS Discloser
Even if the vehicle has an existing warranty or extended coverage you should still
make it clear to the buyer in writing that they are purchasing the vehicle from
you in an As-Is condition. You want to ensure that the buyer understands and acknowledges
that they are accepting full responsibility for the repair and maintenance of the
vehicle at the time of vehicle delivery.
There is no law that says a private seller is required to provide any warranty on
a vehicle they are selling, it makes sense to ensure that the buyer understands
this and acknowledges it in writing.
Bill of Sale
This is not required, but always a good idea to document the terms and conditions
of the sales arrangement between both parties in writing. If there is a dispute
after the sale has been transacted, you will have a signed document that can help
absolve you of any liability.
Click here to print a generic bill of sale with AS-IS disclosure
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