Buying and selling a used car, truck, or SUV can be a challenge. There are a lot more concerns about the vehicle being in good running condition and handling paperwork correctly. If you’re selling a used vehicle, one of the most important things is to transfer liability to another person by signing over the title properly. This step is particularly important because without an appropriately filled out title there can be questions about whether the car is actually yours to sell or not.
The process of signing over a car title has several steps that you may not be aware of if you only have experience purchasing a vehicle through a dealership. Normally, when you buy a new car from a lot, the dealership will take the leadership and handle most of the paperwork. When you are selling the car yourself, however, this title transfer must be taken care of by the buyer and seller. Having the title transferred correctly means that the seller is no longer responsible for the vehicle and all car obligations are handed over to the new owner.
When you’re privately buying or selling a used car, follow these tips to make sure you get the process done right.
Locate the Current Title
Hopefully you know where the title is, but if you don’t you need to locate it because you can’t legally sell the car without it. If the title has been lost or damaged, you can apply for a new title to be issued to you by the Department of Motor Vehicles for a fee.
Fill in the Correct VIN
Make sure the vehicle identification number (VIN) that is written on the title matches the VIN located on the vehicle’s windshield. It can be very problematic to try and register a vehicle that has mismatched VIN numbers. For this reason, it is also very important for you to confirm that the title and vehicle have the same VIN before purchasing an automobile.
Sale Details
When the title is being changed for a used car, you should also make sure to fill in all the details in a bill of sale. Your bill of sale should include how much was paid for the car, the date of the transaction, and the signatures of both buyer and seller.
Accurate Odometer Reading
Another detail you should make sure matches is the mileage on the odometer. Discrepancies in mileage shown on the vehicle’s odometer and the title may indicate that the odometer has been altered. For instance, if the odometer is lower than the original title, someone may be trying to scam you.
Correct Signatures
Both the buyer and seller need to add their signatures to the appropriate line on the title. Make sure you read all the fine print before signing on the correct line.
Make Sure There Aren’t Outstanding Fees
Before buying a used car, check with the DMV to make sure the current owner has no liens on the car that is being sold. They need to be paid before the title can be transferred to a new owner.
Double Check Everything
Lastly, no matter how tedious or annoying it is for seller or buyer, it is extremely important to double and even triple check that all the details of the title and vehicle are accurate. Not taking the time to do this could lead to major issues down the road.
Save yourself the trouble of additional hassles. Take all these steps when signing over the title on a vehicle. Make sure to check the website of your local DMV to make sure you are handling the process correctly.
