How to Sell a Car to a Private Party Using an Installment Plan
A private sale is often more profitable than trading your vehicle to the dealership, but unfortunately it requires some additional work. This is especially the case if you are willing to allow the private party to pay with installments. Installment details must also be included in the paperwork, making the process slightly different then a normal used car sale.
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Instructions
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Determine the fair market value and advertise Determine the fair market value of the vehicle and place it on the market. You can use websites such as Kelly Blue Book or Edmunds to help you determine fair market value based upon year, make, model and condition. Once you decide on a price, advertise your car. Utilize signs, word of mouth and websites.
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Prepare the paperwork Prepare the required documentation. Once you've found a buyer and agreed to allow installments, you must correctly prepare the paperwork to ensure you will receive full payment. A normal bill of sale is required that includes purchase price, mileage, year, make, model, VIN and notification the car is sold "as is." When allowing installments, you must also include the terms of the installment plan: number of installments, monthly amount and more. Don't forget about interest charges and late payment fees. All parties must sign and date the document: buyer, seller and two additional witnesses. It must also be notarized.
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Transfer the title to the new owner. Fill out the mileage and damage report on the back of the title. Record yourself as the lienholder until the buyer pays in full. Both parties will sign and date the title to complete the transfer.
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Surrender your license plates to avoid liability Remove your license plate and registration sticker and hand over the keys. Surrender your plates or transfer them to your new vehicle to release you from all future liability.
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Issue a Lien Release Form once the vehicle is paid in full. You can download a free release form from a number of legal form websites. Once the loan is paid in full, the buyer can request a new title from the DMV, removing the lienholder from the title.
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- Photo Credit classy car for sale image by itsallgood from Fotolia.com for sale sign image by jcpjr from Fotolia.com Hand and document at the meeting image by Dmitry Goygel-Sokol from Fotolia.com ky license plate image by timur1970 from Fotolia.com
