How to Sell a Car Legally
There are several ways you can sell a car legally, from putting the vehicle up for sale in an online auction to trading it in for value at a local car dealership. It all depends on how much money you want to make on the resale. By selling a car legally to a private party, you are likely to get more cash than by trading the automobile for another one.
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Instructions
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Pay off your car before selling it. This ensures that the lien holder will transfer the vehicle title to your name in the state you live in. This way you can provide the buyer of your car with a legal and clear vehicle title.
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Use local auto sales magazines and websites to advertise your vehicle to potential interested buyers. Include as much information as possible including mileage, accessories, upgrades like power locks and windows, cosmetic blemishes such as chipped paint, asking price and a contact phone number. Most private parties selling used cars will take out ads with Auto Trader or auction off their vehicles on web auction sites (see Resources below).
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Negotiate the transaction and delivery of the vehicle once you have found a buyer. Make sure you get paid with a money order or a cashier's check, as well as completing a bill of sale, so you have documented proof that you are selling the car to a private party. The bill of sale should include the names and addresses of all parties involved, the amount of the sale and the date of the title transfer.
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Trade your card in. An easier way to sell a car legally is to simply trade it in when buying a new automobile. This option is the smoothest way to sell your vehicle legally while obtaining credit for a new automobile.
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Tips & Warnings
The vehicle identification number connects the car to the last registered owner so you want to make sure the buyer retitles the vehicle following the sale. You can also add an odometer statement to the transaction that is signed and dated by the buyer and seller to provide additional proof of transfer.
