Selling A Used Vehicle

---

If you sell your vehicle to an individual, you can get a better price for it than if you sell it to a dealership or trade it in.

• Determine the price you want. Check used-vehicle pricing guides such as the N.A.D.A. Official Used Car Guide or Kelley Blue Book to determine your vehicle’s retail value. Be honest about the vehicle’s condition as you review these guides.

• Gather paperwork. Locate your title or pink slip, the registration and your owner’s manual. Obtain the necessary information about how to transfer the title, registration and license plates so the sale will go smoothly.

• Collect maintenance records. A serious buyer will consider how well you have maintained your vehicle. Receipts from past maintenance will also help you prove mileage. Keep service stickers updated and change the oil just before you advertise. A tune-up will also ensure that buyers get a smooth test drive. But major repairs are probably not worth the cost.

• Make sure your vehicle passes all mandatory safety or smog tests. Otherwise, you must market your vehicle only to buyers who are willing to take the vehicle “as is” and who want to pay a lower price than you want.

• Detail your vehicle and take care of small mechanical problems. Buyers want to know that you care about your vehicle.

• Make sure your insurance covers prospective buyers who test drive your vehicle. As the owner, you share the liability for any accidents.

• Be cautious of vehicle thieves. Insist that you ride along during a test drive or mechanic’s inspection. If you are concerned for your safety, ask a friend to accompany you.

• Be honest about your vehicle. Most buyers understand that a used vehicle is not a perfect product. If the vehicle is in fair condition, do not describe it as “mint condition.” If you neglect to mention a known defect or problem, you will lose credibility and possibly the sale. Worse, if the sale takes place and the buyer believes the facts have been misrepresented, you could be subject to claims for deceptive trade practices acts in most states.

• Complete the legal documents. Contact your financial institution or other lender and clear the title if you have an existing vehicle loan. Supervise the transfer of the title in person at your local Department of Motor Vehicles (DMV).

  If you live in a state where the license plate goes with the vehicle, the vehicle is your responsibility until the pink slip, registration, fees, smog certificates and other documents, such as an odometer statement, required in your locality are received by the DMV and transferred to the buyer.

  Sign the title over to the buyer as soon as you receive full payment. Make sure the buyer applies for a new title in the buyer’s name. The buyer must also pay sales tax on the vehicle when the state issues a new title.

  You may also want to sign an affidavit of sale that states the buyer’s name and the sales price. In some cases, the state requires this affidavit. Even if it is not required by your state, you may want to complete an affidavit to ensure that your sale is completely documented.

• Cancel your insurance coverage on the vehicle you have sold after you transfer the title. Otherwise, the new owner will be driving under your insurance coverage.

Selling To A Dealership

Trading In

Some states allow you to deduct the price of your trade vehicle from the price of the new vehicle, then pay sales tax only on the difference instead of the full value of the new vehicle. This saves you money and helps you realize more value out of your used trade-in vehicle.

Donating To Charity