How to Sell a Car Without a Title

Selling a car without a title is tough.

Selling a car without a title is a bit tough because you must follow the law. By using these tips to sell your car without a title, you can realize your goal--whether that goal is to make profit or just to rid yourself of a lemon.

Instructions

1. Visit your state's department of motor vehicles (or department of public safety, depending on your state) and ask about the legalities involved in selling your car without a title. Certain procedures will have to be followed in order to transfer the ownership of your car.

2. Contact the car’s lender and find out if there is a lien on your car. This is the primary reason you wouldn't have a title. If a lien is on your car, you must have the car’s lender release the lien on your vehicle before you can legally transfer ownership. You may need to pay off a loan before the lender will release the lien.

3. Consult the buyer and make sure he or she is aware you do not have possession of the title. If money is owed on the car, the buyer can pay the lender so the lender can release the lien as a part of the overall transaction. You and the buyer can also agree to split the amount of the lien on the car.

4. Draw up a simple contract with the buyer. Include any warranties, payment details and other pertinent information.

5. Complete your transaction. At this point, any potential liens should be settled one way or another and you should have a title. After you have received payment from the buyer for the car and have signed over the title, your transaction is complete. Save a copy of the bill of sale or other receipt for your records.

References

• Car Buying Tips: How To Sell Your Used Car

Resources

• Read this Article in Spanish
• The Unofficial DMV Guide