The Legal Side of Your Used Car Sale

Learn the Laws of Your State

This step is important for buyers as well as sellers as each has related responsibilities.

• Each state has different laws concerning your responsibilities when selling a car. Some of these may include smog certification and odometer statements.
• To learn about your responsibilities regarding title transfer deadlines, etc., visit your local Department of Motor Vehicle Office. Buyers that do not transfer the title within the specified time frame may be subject to fines and/or citations.

Review Your Title Before You Advertise

• Make sure that you have the title in hand before you attempt to sell your used car.
• You should also be sure that the title is clear. For example, have you forgotten any title loans or are there any other complications that would stand in the way of a sale?

Have Copies of All Documents On Hand

• Anything you intend to provide to the driver should be available at the time of sale.
  • This includes service records (you may want to make copies for yourself in case future problems arise with the sale)
  • The original title.
  • Bill of sale
  • The Owner’s Manual
  • Contracts or warranties, if provided. If not, a statement that the car is sold as is.