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Do I Need a Motor Vehicle Bill of Sale?

In some states, it is mandatory that all individuals taking part in the sale/purchase of an automobile carry out a bill of sale. Other states may not require the execution of this agreement, but it is still suggested to fulfill it as having a physical record on hand can be very beneficial. The buyer may present the document to the DMV to disclose the purchase price and pay the necessary sales tax when registering the vehicle. The seller should also retain a copy as it can provide evidence that they are no longer liable for the vehicle.

How to Privately Sell a Used Car

If you want to sell your used car, there may be some things you should consider. Many times, people feel timid at the thought of marketing and selling their own car and instead sell their vehicle to a dealer. The truth is that dealerships typically undercut the value of your car so that they can make a substantial profit. So, we have created a step-by-step process showing how you can sell your vehicle privately for the best price.

Step 1 – Pricing the Vehicle

The first thing that will need to be addressed is the price. What is the vehicle worth? The most popular way of figuring this is by using Kelly Blue Book. You can look up your car’s value by providing information such as the vehicle details, condition, and any extra features it may have. Once you input all the necessary information, KBB will calculate the vehicle’s value. They provide a “Trade-in Value” and “Private Party Value” (you may notice that the PPV is higher than what you would get for a trade-in).

Step 2 – Collecting the Paperwork

When you’re preparing to sell your car, having all the vehicle’s paperwork readily available is important. A missing title can take days or weeks to receive a duplicate copy from the state. That’s why it is essential to collect the necessary documentation before meeting with potential buyers. Be sure to gather the following paperwork:

• Bill of Sale (2 blank copies for each party to complete upon transfer)
• Certificate of Title
• Current Registration
• Receipts for Repairs and Maintenance
• Inspection Certificates
• Vehicle Warranty Information
• Odometer Disclosure Statement
• Vehicle History Report

Step 3 – Advertising Your Vehicle

Once you have established your vehicle’s worth and have all the necessary paperwork at your fingertips, it’s time to list the vehicle for sale. In the past, people were limited to only a few different types of advertising outlets. The standard used to be posting an ad to a local newspaper or magazine or putting a “for sale” sign on the car and parking it along a busy street. Luckily, today, the internet enables us to reach a far greater audience by using some of the classified ad websites that we have at our disposal. Some user-friendly websites that are great for advertising automobiles would be:

• AutoTrader – One of the most popular websites specifically catering to the online sale and purchase of automobiles.
• eBay Motors – The website “eBay” contains its own motor vehicle division dedicated to selling cars and trucks.
• CraigsList – Advertise to local buyers by going to the “for sale” section and posting under “cars+trucks”.

Step 4 – Coordinate a Meeting with a Potential Buyer

After posting your ad, it is only a matter of time before you start receiving emails and calls regarding your vehicle. Be prepared to answer any questions concerning the car. If the inquiring party is interested, schedule an appointment to meet at a specific time and place to show them the vehicle. Be sure to thoroughly clean the vehicle inside and out before the encounter, ensuring it is in top-notch condition. At the showing, allow the interested party to inspect the car and be sure to disclose any pertinent details related to the vehicle. (Note: Sometimes, a buyer will request a pre-purchase inspection before committing to any type of sale.)

Step 5 – Coming to an Agreement

If interested in purchasing the vehicle, the buyer and seller should discuss how the transaction will unfold. Sometimes, the buyer is willing to pay the full listing price, which makes it easy for the seller, but a lot of times, the buyer will want a discount on the initial asking price (keep this in mind when pricing your vehicle; it is always good to have a little wiggle room for negotiations). The seller accepts the offer, proposes a counteroffer, or declines the bid. If both parties agree on the price, they must deliberate on what form of payment will be used to exchange the vehicle.

Step 6 – Method of Payment

An important aspect of how the exchange transpires involves the payment the buyer will provide to the seller. The best options include the following:

• Cash – This is the safest option for the seller.
• Certified or Cashier’s Check – The second best option to cash. Although these 2 types of checks are guaranteed by the bank, there is still potential for fraud. To ensure that the check is legitimate, it is suggested that you meet the buyer at the bank that issued the check to confirm that it is valid.
• Personal Check – You should only accept this payment method if you stipulate that you will only transfer the vehicle once the check clears. You may also meet the buyer at his or her bank to cash the check.

You will want a receipt for the transaction to tie in the sale. Both parties should complete and sign a copy of the bill of sale to store in their vehicle’s files.

Motor Vehicle Bill of Sale Form