Selling car by owner-- how to do it?

[disneybound31]

We have a car that is only a year old and have it FSBO--DH needs a truck for hauling purposes and we have a buyer already...do we need to write up our own contract? And what do we need to know from someone who has done this? We've just never done it before---TIA!!

 

[Poohbug]

If you do a search for selling a used car contracts, you can find a contract to print off. Then you just fill it out when you sell the car. Make sure you fill out two contracts or have a copy machine so each party gets a copy.

Make sure you fill out and sign the title and if you have a loan against it you will need to get a lein release.

You don't need a contract but it will protect you if the buyer takes their time registering the car under their name. If there is an accident, tickets, etc. a signed, dated contract can save you alot of headaches.

 

[arminnie]

When I sold my car in California the buyer and I both went to the office where titles are transferred. The car had no loan against it though. I would contact the holder of your loan if you have one as that would mean that you do not have clear title to transfer it on your own.

I would not transfer the title based on a personal check.

 

[Kies99]

I've sold 2 cars this way. You don't specify whether you have a loan on the car or not so I'm going to tell you what I did (I had no loans on my cars).

I and the buyer agreed on the price. I wrote up the most basic contract each time. I wrote my name, address and phone number as well as the information about the car (VIN, Mileage, Etc...). I then specified the buyers name, address and phone number and the agreed upon amount. We both signed it.

Both times the buyer paid cash (I agree with PP and say do not take check).

We then went to AAA and they handled the transfer there with no problem. We took old license plate off and the buyer got a new one from AAA and that was it.

Quite simple and painless on my side. Maybe a bit more painful on the buyers side as I believe they had to pay tax to the state through AAA, but quite a simple process really.

 

[Friendly Frog]

I never heard of removing the license plates?

 

[JB2K]

Try carsoup.com - your listing will come complete with contacts, etc.

As these things do vary by state, when I sold my car a few years ago, the buyer and I signed the title upon the sale and that made the transfer all legal.

 

[Disneyglobegirl]

I never heard of removing the license plates?

It depends on the state - in some states the original license plates stay with the vehicle when you sell it and in some states the seller removes the old plates and the buyer needs to register for new plates for the vehicle.

 

[dfchelbay]

I never heard of removing the license plates?

Yes that plate is registered to you, the owner of the car. You can transfer it to another car you purchase. The new owner of your car has to get their own plate. When they register the car, they have to show proof of insurance and the DMV will give them a plate if everything checks out, or they can transfer a valid plate they have already, (say from their prior car ) before they bought yours. That's how it is in this state.

 

[Friendly Frog]

Thanks! (We keep the plates here.)

 

[disneybound31]

If you do a search for selling a used car contracts, you can find a contract to print off. Then you just fill it out when you sell the car. Make sure you fill out two contracts or have a copy machine so each party gets a copy.

Make sure you fill out and sign the title and if you have a loan against it you will need to get a lein release.

You don't need a contract but it will protect you if the buyer takes their time registering the car under their name. If there is an accident, tickets, etc. a signed, dated contract can save you alot of headaches.

Very helpful! Thx!

 

[disneybound31]

OP here-- we do owe on the car- part of the reason for the uncertainty--I have never sold or traded a car before that I owed on. I figured I would not take a personal check, of course, the man would have to secure financing from bank or whatever, but we will not take a personal. Wouldn't it be a cashiers check from bank? At any rate, I am googling for those contracts as suggested...and any special wording I need to add about car being 'as-is' and will accept no 'buyers remorse' or anything? Car is perfect and with factory warranty still in play--only 1 year old and 5k miles--we drive it only locally on weekend. But I still don't want it back after it sells!!

 

[benolathe]

My suggestion would be to visit the website of your local Dept of Motor Vehicles to determine exactly what they require for you to license the vehicle. Ours states what information you need and even provides a form for you to use for the Bill of Sale.

 

[wmharley]

you can find the forms online, or sometimes even Word has templates.

Our county Tax Clerk, which handles registrations,etc, has the forms on their website.

Make copies of both forms, and have the buyer sign it and give them a copy.

Some folks give the title to the buyer, others mail it in themselves. i'd take the plates off, as they are ours in FL.

You can sell on Craigslist. I got a dozen hits within 3 hours of mine. 1st person who called actually bought it 2 weeks later (was waiting for insurance check).

 

[yoopermom]

I sold our motorhome recently, and our bank said NOT to accept any kind of payment except for cash. Cashier's checks/money orders are easily faked, and can even be stopped by the purchaser after leaving with your vehicle.

Cash is the only safe way.

Terri

 

[badblackpug]

Yes, only take cash and specify in your contract that the vehicle is being sold in "as is" condition and that no refunds will be given after the sale is final.

 

[disneybound31]

I sold our motorhome recently, and our bank said NOT to accept any kind of payment except for cash. Cashier's checks/money orders are easily faked, and can even be stopped by the purchaser after leaving with your vehicle.

Cash is the only safe way.

Terri

Okay, but how do you get a person to give you $15,000 in cash!?! Would they get a bank cashiers check from their bank of choice and then cash it out? I have never heard of this- accepting actual cash. Would you have to sit there and count forever?

Also, another poster mentioned craigs list- we actually tried this first and maybe it's because we are in a small town area, but we got NO hits. It's been up 3 months now with great concise description, all info included and pics. What are we doing wrong? Local guy at DH work seems likely to buy- is very interested and has looked at it twice.

 

[Poohbug]

Most bill of sale contracts for used vehicles will have "as is" already in it. If it doesn't you can add it and whatever else you feel is important.

Bank checks and money orders can be forged. I have always gotten cash for our used cars in the past but the sales price was only $5,000 not $15,000. The safest way to get your money would be to get cash or go with the buyer to his bank and get a bank check directly from his account. The chances are any checks the buyer brings will be legitimate but do you want to take the chance and lose $15,000?

BTW-the buyer for our truck paid $5,000 cash in twenties, tens, fives and ones. I am used to counting money working at a bank, but it will take a while. It will also take a while if you take all the cash and deposit it in your bank.

 

[arminnie]

I sold our motorhome recently, and our bank said NOT to accept any kind of payment except for cash. Cashier's checks/money orders are easily faked, and can even be stopped by the purchaser after leaving with your vehicle.

Cash is the only safe way.

Terri

I required cash for my sale, but it was a really old Honda so it was less then $4000. I sold my car to someone that worked for the same company that I did (Visa International). If he'd done anything underhanded at all he would have lost his job - but I still requested cash.