Even in this electronic age, you’ll still need some good old-fashioned paperwork to complete the sale of your car. Here’s a checklist of what you should have ready so you can officially close the deal:
Warranty Documentation
If you’re transferring the remainder of a vehicle warranty to the new owner, have the original warranty documentation in hand. Include contact information for the warranty provider so the buyer can readily get the balance of the warranty put in their name.
“As Is” Documentation
In addition to transferring a warranty, make it clear, in writing, that there are no implied warranties when you sell your used car. This ensures the buyer accepts responsibility for the future repairs and maintenance of the vehicle.
Odometer Disclosure
The Truth in Mileage Act, a federal law, requires the seller of a motor vehicle to provide an odometer disclosure to the buyer at the time of sale or transfer of ownership. This applies to all motor vehicles less than 10 years old and weighing up to 12,000 pounds. In some states, providing the current mileage reading on the vehicle title is acceptable.
In others, you must obtain a separate form. Check with your state’s motor vehicle department to find out what requirements you must adhere to.
The odometer disclosure typically includes:
- Year, make, model, and vehicle identification number (VIN)
- Buyer’s name and address
- Buyer’s signature
- Seller’s signature
- Current vehicle mileage at the time of sale or transfer of ownership
- Notary public’s signature/seal (typically available at courthouses and banks)
Title
If you already have the vehicle title, you simply need to sign it over to the new owner.
If you’re still paying for the car you’re selling, you need to obtain the title from the lienholder (usually a bank). Learn more about transferring ownership and getting the title for your car.
Transferring vehicle ownership varies by state. Typically, it involves signing and dating the back of the vehicle title. The buyer then needs to go to his state’s motor vehicle department and apply for a new title.
Get more information from your state’s motor vehicle department
Bill of Sale
While only required in some states, a bill of sale is a good idea because it documents the terms and conditions of the sale in writing. It confirms, but is not limited to:
- Vehicle description
- Odometer disclosure
- Purchase price
- Delivery date
- Signatures of buyer, seller, and notary public
If there is a dispute after the fact, you will have a signed, notarized bill of sale that can help absolve you of liability.
Check with your state’s motor vehicle department to determine whether you must have a bill of sale.
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