Selling your car can be an exciting and stressful thing. Whether you take your car to a dealer or sell it privately, there are steps you need to follow to ensure the sale is smooth. Here is everything you need to consider before signing the dotted line.
How to make sure you have everything you need when it comes time to see your vehicle.
Pink Slip
The title, also known as the pink slip, is essential when it comes to selling a car. While it might be possible in some areas to sell your vehicle without the title in hand, it is extraordinarily difficult and time-consuming.
The title contains vital information about the car, such as the car’s make, model, year, and VIN, or vehicle identification number. If there is still a lien on the vehicle, that will be marked on the title, as well. The lienholder will hold the title until the purchaser pays the car off.
If you are trading in a vehicle with payments left on it, the dealer should take the steps to pay off the loan and secure the title. However, if you are selling a car with payment left privately, you will need to reach out to the lienholder to clarify steps going forward.
Bill of Sale
There are many states that require a bill of sale to finalize the process. The bill of sale contains vital information like the VIN, a brief description of the vehicle, the date of sale, and the final purchase price. Both parties must sign the bill of sale before the car officially changes hands.
It is important to note this does not replace the title transfer. Rather, the bill of sale is more like a receipt. In states that require this document, you should be able to find a template on the DMV website to print off and fill out.
Vehicle History Report
When you trade your car in at a dealership that advertises “we buy cars“, you likely won’t need a history report. However, having one in hand gives you some ammunition if you get a low offer.
However, if you intend to sell your car privately, it is a smart idea to have the vehicle history report ready. This document gives information about when and where the car received service along with any accidents it was involved in. It is wise to print out the Carfax or Autocheck report before going into the sale.
Proof of Sale
Finally, there is one more document you might need to fill out after you successfully sell your car. Some states require a proof of sale receipt within a set number of days. This document may be called different things. One example is “Notice of Transfer and Release of Liability.” Check with your local DMV to see what you are responsible for filling out.
Get Ready to Sell Your Car
When you are ready to upgrade your vehicle, be sure to do the legwork before selling your current car. It would be a shame to do the work to line up a sale that falls through because you didn’t have everything you need. Spending some extra time in the beginning will make the entire process go more smoothly.
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