Essential Documents for Selling Your Vehicle: A Step-by-Step Guide
Download MP3If you're selling a motor vehicle, it's crucial to ensure all the required documents are correctly prepared and completed to transfer ownership smoothly. Here's what you need to know:
- Vehicle Title
- A government-issued document proving ownership and containing the VIN, year, make, and model.
- Ensure the title is signed in the correct location and includes the buyer's name and the sale date.
- Avoid leaving the title blank (open title) to prevent legal issues.
- Take a photo of the signed title (front and back) for your records.
- Bill of Sale
- Documents the terms of the sale, including the date, amount paid, and any conditions (e.g., "as is" or "for parts only").
- Some states require notarization; others accept handwritten bills.
- Create two copies—one for you and one for the buyer.
- Odometer Statement
- Federal law requires recording the odometer mileage at the time of sale.
- Note discrepancies (e.g., "True Mileage Unknown") to ensure accuracy.
- Lien Release
- If the vehicle has or had a lien, obtain a lien release from the financial institution.
- Without it, the title cannot transfer to the new owner.
- New Title Application
- Assist the buyer in completing this form for submission to the DMV.
- Pre-filled applications can simplify the process and prevent future issues.
- Notice of Sale (Bonus Tip)
- Some states allow sellers to notify the DMV of the sale to remove liability immediately.
- This can protect you if the buyer delays title transfer or the vehicle is involved in legal trouble post-sale.
Important Reminder
We’re not attorneys. For specific legal advice regarding title transfers, consult your local DMV or an automotive attorney.
We’re not attorneys. For specific legal advice regarding title transfers, consult your local DMV or an automotive attorney.
Key Takeaway
Ensure all paperwork is accurate and completed at the time of transfer to avoid liability or complications for both the buyer and seller.
Ensure all paperwork is accurate and completed at the time of transfer to avoid liability or complications for both the buyer and seller.
