Getting Paid for Your Car

Closing the Sale and Getting Paid for your Used Car

Cash is best, but if the buyer insists on a check, make sure it is a cashier’s or certified check only. Do not accept a personal check, and insist on payment in full. Do not accept an installment plan.

Make out a bill of sale with copies for both of you. The bill of sale should include: the names, addresses and phone numbers of the buyer and seller; the vehicle’s make, model, year, Vehicle Identification Number (VIN) and mileage; the full sale price and how it was paid; and a statement that notes that the car was sold in “as is” condition without any guarantee or warranty unless you have arranged otherwise. Both of you need to sign and date the bill of sale.

You may also want to make sure the title and registration is transfered at the time of sale. If the title or registration is not transfered, you may be still be liable for the car, if it is in an accident.

The rules vary from state to state, but you typically have to go to the local motor vehicle office and transfer the title to the buyer. Some states may allow this to be done by mail. Fill out any other governmental forms required, such as smog certificates, Lemon Law certification and so on.

Finally, cancel your insurance on the car, and remove the plates and registration tags. Then turn the keys over to the new owner, and kiss your old car goodbye.

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