- Each state has a unique set of laws for selling used vehicles. For example, one state may require sellers to provide buyers with valid registrations while others make this optional. To learn the unique laws in your state, contact your local Department of Motor Vehicles, or a similar agency, for help. You may also find information at DMV.org.
- You'll need to transfer your title to the new owner when you sell your used car. This typically involves filling in the back of the vehicle title and having the buyer do so as well. Usually, you'll need to sign the title in front of a notary public. Be very careful with completing this information. In some states, your title may be invalid if mistakes are made, and you'll have to request a duplicate title.
- Curbstoning is selling a car that is parked on the street, away from your home or place of business, either as an unlicensed dealer or as a dealer pretending to be a private seller. Often, people do this so that they can sell multiple cars without getting a dealer's license. Parking the car away from a place of contact may help to make them more difficult to track down if something goes wrong with the car or the authorities want to find them. According to Carfax, many states have laws against this practice.
- Don't try to make a business out of selling used cars or even earn a part-time income without obtaining a dealership license. Many states have laws in place for those selling more than a couple of cars each year. If you try to circumvent this law, you may be subject to penalties. You may even need to obtain a license to be a salesperson for a licensed dealer, depending on where you live.
- In many states, you'll have to provide a bill of sale. Usually, this doesn't have to be anything fancy. It should be a receipt for the sale that includes the exact sale price of the car. Give the original to the buyer and keep a copy for your records.
