More than 46,000 new and used automobiles are sold to individuals and families every day via businesses in the United States, but that doesn’t account for a robust private sales market. Selling your car yourself has numerous benefits, but if you don’t attend to the legal details involved in the process, you could negate those benefits by creating future hassle for yourself. Find out more about the legal requirements for selling your vehicle below, including a printable auto bill of sale.
Why Sell Your Car Yourself?
If you want to get rid of an automobile, you typically have a few options. You can trade it in for a newer model at a dealership, sell it for cash to a dealership or other business, or sell it yourself to another individual. All these methods come with pros and cons, but the biggest benefit of selling the car yourself is that you will likely get more money for it.
When you sell the car yourself, you can get closer to the blue book value of the car. If you sell it to a business, the business pays you much less than the actual value because it must build in a profit. Cutting out the “middle man” can leave more money for you.
Hilbert Hill/UnsplashWhat Documents Do You Need to Legally Sell Your Car?
But selling a car yourself does mean you need to pay attention to details other than the price you’re able to get. For example, you need to have all of the right documentation to ensure the sale is legal and binding. Here’s a quick look at some of the documents you might need.
- Records showing maintenance or history of the vehicle. This isn’t a legal requirement so much as it’s a marketing requirement. If you took care of the vehicle and it doesn’t have an accident history, it could be more valuable to buyers than a vehicle that is less pristine. These documents can help you get a better price for your car.
- Documentation about any transferable warranty. Not all vehicle warranties transfer, but if yours does, that’s another potential price booster for the sale. Ensure you have the documents proving this and instructions for the buyer on any steps necessary to transfer the warranty to their name.
- An odometer disclosure. If you’re selling a vehicle that is less than 10 years old, you must comply with the federal law regarding odometer disclosure. States may require something more specific, so check with your department or bureau of motor vehicles to find out what the exact requirements are for your area. But at minimum, you must provide the mileage of the odometer at the time of the sale in writing to the buyer. You must also provide a written disclosure if the odometer reading isn’t accurate due to malfunction or damage.
Parker Coffman/Unsplash- The title of the vehicle. Legal transfer of a vehicle requires legal transfer of a title. While the process varies by state — again, check with your local DMV/BMV — you typically need to sign the back of the title over to the buyer. The buyer then takes the title to the DMV/BMV to get a new copy in his or her name. In many cases, the back of the title also includes a space for odometer disclosures, so you can handle two paperwork requirements at once.
- A written bill of sale. State and federal law don’t stipulate that you need a written bill of sale in all cases, but it’s a good idea to document the purchase. The bill of sale acts as an official receipt that can be used later for a variety of purposes, including for tax purposes or proving that the money you received was in return for the value of the vehicle. You can type the vehicle bill of sale free-form or use a printable vehicle bill of sale form. Typically, information that’s good to include on a bill of sale for a car includes:
- A description of the vehicle, including make, model, color and any unique factors such as damage or upgrades
- The odometer disclosure
- How much was paid
- The date of the sale
- Any details about the delivery if you’re arranging one separate from the date of sale
- Signatures of the buyer and seller
- Signature of a notary public if you want to have the document legally witnessed by a third party, though this may not be required
Stephen Goldberg/UnsplashFully documenting the sale of your vehicle is one of the best ways to protect yourself legally when transferring the ownership of a car, truck or other vehicle. Taking the time to complete a printable vehicle bill of sale and get it signed can help you prove everything about the transaction if you need to in the future, so it’s worth the extra time it takes.
But you should also follow simple common sense practices and ethics when selling a car yourself. For example, be honest when you advertise a vehicle and don’t try to cover up concerns about the car. You can sell a car as-is and document that you don’t accept any returns, but it’s not a good idea to sell a car based on a dishonest description.
