What Paperwork Do I Need To Sell My Car?
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You’ve decided to get rid of your car. And whether you’re trading it in, selling it to a car buying service, or putting it up for sale, you’ll need the proper documents to make this happen. So, asking, “What Paperwork Do I Need To Sell My Car?” is only natural.
With this in mind, we’ve put together an overview of what records and information you need for a smooth transaction. For simplicity, we’ve sorted things into three areas of importance: must-have, should-have, and nice-to-have.
However, always check with your state’s department of motor vehicles (DMV) to determine what documentation is required versus what’s recommended. In addition, some states mandate specific forms to be used while others are less stringent. And still, some DMVs specify how to sign certain documents, such as the bill of sale and the title. For example, Louisiana, Maryland, Montana, New Hampshire, and West Virginia require a notary public to witness both parties signing a bill of sale.
Must-Have Documents: What Paperwork Do I Need To Sell My Car?
Certificate of Title
A title confirms who owns a particular vehicle. With limited exceptions (such as with an older car in some states), this document is an essential part of any vehicle transaction. Noting what’s required in your state, you would sign over the title to the new owner. Some DMVs may need additional information to be added to the title (like the car’s mileage). And most will void a title certificate if it has been defaced or filled with crossed-out handwritten errors.
If your car still has an outstanding loan, the finance company or bank will hold the title. For dealer trade-ins or purchases by a car buying firm, these companies will handle the title transfer after paying off the loan. If you’re selling the vehicle through a private transaction, you’ll need to find out the payoff amount and settle this before being able to sign over the title to the buyer. In these cases, it’s always a good idea to advise a prospective buyer that there’s still an outstanding loan and the title transfer may take several days.
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Bill of Sale
While not required in every state, a bill of sale should be part of every private-party transaction (a dealer or professional car buyer will provide this as well). A bill of sale details all the terms of sale as well information about the car: this document can prevent any misunderstandings and protect both the buyer and seller. Here’s a sample bill of sale, but your state may require a specific form. Typical bill of sale details include:
- Vehicle description (make, model, year, color, and vehicle identification number/VIN)
- Odometer details (the mileage on the car at the time of sale)
- Seller information (name, address, and phone number)
- Buyer information (name, address, and phone number)
- Purchase price (including the form of payment—cash, check, etc.)
- Delivery/Sale date
- Signatures of the buyer and seller
- Signature of the notary public (if required)
Should-Have Documents: What Paperwork Do I Need To Sell My Car?
As-Is Warranty Disclosure
Other than selling a car with existing warranty coverage (when applicable), it’s vital to inform the buyer that you’re selling the car as-is. Meaning there are no implied or specific warranties about the vehicle’s condition or suitability for use. Most states mandate dealers to formalize this disclosure in the sale agreement (or provide a minimum warranty), but, generally, private sellers aren’t required to do so.
However, having both parties sign an as-is disclosure can save you, the seller, from potential headaches down the road. In short, the disclosure makes the buyer acknowledge they are responsible for all future repairs and service for the car. If your state allows a non-specific bill of sale, then it may be easiest to incorporate as-is language in that document. Here’s a sample to review. Otherwise, you can easily create a separate as-is disclosure agreement for both parties to sign.
Odometer Disclosure Statement
Federal law requires the sellers of newer vehicles (less than ten years old) to provide a mileage disclosure statement. Car dealers include this as part of their required paperwork, but private sellers may have some flexibility in presenting this information. Most states permit a car’s mileage to be recorded in either the bill of sale or the title certificate. But, some DMVs require these details to be in a separate document.
A typical odometer disclosure statement includes:
- The vehicle’s make, model, year, and VIN
- The seller’s address and signature
- The buyer’s address and signature
- The mileage at the time of the sale
- A notary public’s signature (if required)
Importantly, an odometer disclosure must make a note of any mileage discrepancies. This situation can occur if the odometer is broken, has been replaced, or otherwise doesn’t reflect the car’s actual mileage.
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Nice-to-Have Documents: What Paperwork Do I Need To Sell My Car?
Warranty Records
By all means, if the car you’re selling has a transferable warranty, then share this information with a prospective purchaser (and hand over the document to the buyer). This will increase the vehicle’s value and enhance buyer confidence. Importantly, don’t assume that an active warranty can be transferred to a new owner. Check the warranty document. And, also confirm if there’s a transfer fee.
Vehicle History Report
Private sellers are typically not under any obligation to provide a vehicle history report, such as what you can get from CARFAX or AutoCheck. But, offering such information can go a long way in putting the buyer at ease and demonstrating your goodwill. At the very least, providing the VIN before the sale will enable prospective buyers to look up these details for themselves.
In addition, having your car’s history report can also reveal any surprise information before it becomes an issue with a buyer. Examples include whether the vehicle has been in an accident or differences with the mileage.
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Maintenance Records
Like with the history report, sellers are not required to provide maintenance records. However, doing so can show that the car has been well cared for (or not) and confirm what essential repairs have been performed. The better condition your vehicle is in, the more it’s worth, and the more confident a buyer will feel about the car. And while a dealer or car buying service may not care about service records, presenting this information can’t hurt the offer you’ll receive.
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