Quick Answer
The list of required paperwork depends on the state you are selling your car, but a Certificate of Title, the legal proof of ownership, is the essential, universally required document.
Some states, in addition to the title, require to provide the bill of sale, valid emissions test and car registration documents.
It is also recommended to have a VIN check, service records and owner’s manual, as these can help you prove the car’s value and get a better deal.
StatusDocument:Document:Document:Required in All StatesCertificate of TitleOdometer ReadingRelease Of LiabilityRequired in Some StatesBill of SaleRegistration TagEmissions TestOptional PaperworkVin CheckService RecordsOwner’s Manual
Paperless Way to Sell a Car
Peddle
Get your free offer instantly via online form or call on (855) 925 4302
$0 fees + you don’t have to pay for towing – Peddle will take care of it
Get paid in check during the pick up for any car (damaged, junk, wrecked)
Wheelzy
Quick car evaluation without the hassle – sell your car within 30 min
Choose a convenient date and time for free pick-up, as soon as next day
Get cash in hand the same day the Wheelzy agent picks up your car
CarBrain
Get an offer within 2 minutes and sell your damaged car within 24 hours
Free vehicle towing and no fees to getting rid of your damaged car
The tow truck driver will arrive with your check (nationwide service)
Required Paperwork in All States When Selling Privately:
Certificate of Title
The car title is a legal document issued by the state government that proves the ownership of the vehicle and allows you to transfer ownership to a buyer.
All states, despite the method of selling or payment, require this document. You should keep this document in a safe place, along with your most important documents, and never in the gloves department to prevent it from being lost, damaged or stolen.
In Case of Lost Car Title
If you lost your Certificate of Title, you will need to apply for a duplicate title at the local DMV.
Before applying for a title duplicate, you will need to provide the following:
Car’s make, model, and year
VIN number
License number
Typically it takes 15 to 30 days to receive a new title.
If you are selling a car that is 20 or more years old, a bill of sale might be used instead of a Certificate of Title in some states.
Jump to: Bill of Sale
In the Case of the Financed Car
If your car is financed, and you lose the title, you need to contact the company that helped you finance the vehicle. Lenders are legal owners until the car is paid off and should have a copy of the certificate.
Keep in mind that selling a car with a loan privately can be tricky, and it is best to pay off your debt before selling. If you can not do that, I suggest considering selling your car to Wheelzy.
Wheelzy is a similar company to Peddle, but the difference is that it allows you to sell the financed car more easily. Plus, the whole process will take 2 days at most, and they will take care of all the paperwork for you.
Wheelzy Summary
Wheelzy stores are open 7 days a weekGet offer in minutes – (855) 510-1108Free towing of your car from your locationInstant payment via cash or check
Odometer Reading
The Truth in Mileage Act or odometer reading is required by federal law. The seller of a motor vehicle must provide an exact odometer disclosure to the buyer at the time of sale and transfer of ownership.
Providing incorrect mileage is unlawful, and you can even be charged with up to 3 years in prison.
It is the seller’s responsibility, so make sure to provide exact readings on the day of the ownership transfer. These readings must be provided on the designated section “Odometer Reading” on the back side of the title document.
Reporting the odometer mileage reading is encouraged but not mandatory:
For vehicles 10 years old or older
For commercial vehicles with a gross vehicle weight above 16,000 pounds
For non-motorized vehicles
Release Of Liability
Filling out the Release of liability form is required in all states. This document is a legal agreement between buyer and seller, where the buyer refuses the right to hold the seller responsible for potential damages after the sale is completed.
If you fail to sign the form, you might be accountable for the following:
Paying for parking tickets
Paying for speeding tickets
Taking responsibility for traffic violations
Taking responsibility for criminal actions associated with the vehicle
Taking responsibility for hit-and-run accidents
Most states allow you to submit the release of liability form online or via mail, but you may have to visit the DMV office in person to complete the paperwork.
You will be asked to provide the following information:
Your name and contact information
Buyer’s name and contact information
Car’s license plate number
Car’s make, model, year, and color
VIN number
Odometer readings at the time of the sale
The date of the title transfer
Required Paperwork in Some States When Selling Privately:
Bill Of Sale
Some states also require a bill of sale to transfer ownership of the vehicle. But even if it is not required, I suggest having it as it might help to close the deal more smoothly.
States that require a Bill of Sale when selling a car:
Louisiana
Maryland
Montana
Nebraska
New Hampshire
West Virginia
Pennsylvania
Some states that accept bills of sale for old cars instead of titles:
Vermont – 15 years or older
Nevada – 13 years or older
New Hampshire – 24 or older
Georgia – 20 years or older
Iowa – 25 years or older
Connecticut – 20 years or older
Massachusetts – 33 years or older
Louisiana – 25 years or older
Registration Tag
A valid registration tag is required for all vehicles that intend to drive on public roads. If you fail to register your car or drive with an expired registration, you might get a fine ranging from $100 to $200.
The registration tag is linked to the owner instead of the vehicle, so you must remove it when transferring the title.
If your registration is expired, there might be some issues. For example, you will only be able to offer a test drive if it is arranged on private land. Additionally, buyers might be suspicious of possible unpaid tickets and late registration fines. Moreover, some states require active registration to complete the sale of a car legally.
Some states that require an active registration tag:
Arizona
Florida
Indiana
Massachusetts
Nebraska
Emissions Test
Some states require to provide a valid emissions test before transferring title ownership. Emissions inspection usually takes about 20 minutes, and prices vary from $10 to $30.
If the car fails inspection, you can still sell it, but the buyer possibly won’t be able to register such a car. To avoid a dispute between you and the buyer, you need to disclose the issue in the bill of sale, stating the issue and that you are selling it “as it is” or “non-operational”.
States that require sellers to provide valid emissions tests:
California
Arizona
Ohio
Georgia
Rhode Island
New Jersey
North Caroline
Massachusetts
Missouri
Nevada
Colorado
Mississippi
Optional Paperwork When Selling Privately:
Vin Check
A vehicle history report, or VIN check, contains a range of information on a car, including previous owners, odometer readings, open recalls and damage, accidents or repairs.
A VIN check will help you prove your car’s value, as buyers are looking for some good reasons why they should pay the requested amount for your car.
The car report is sourced from:
Government agencies
DMV
Police departments
Junk and salvage yards
Insurance companies
Manufacturers
Car dealerships
Auto recyclers
Auto auctions
Law enforcement agencies
Collision repair facilities
To get a detailed VIN report, I suggest using carVertical. The report costs only $18.56, uses the latest data, has a money-back guarantee and is one of the most reliable VIN check providers.
The carVertical report includes:
Service data and report costs
Mileage rollbacks
Damage history
Foults history
Ownership history
carVertical Summary
Provides accurate resultsOnly uses updated dataCharges are reasonableUses a blockchain-based damage-proof report
Service Records
Having your service records on hand when selling your car privately is a real game-changer. This will show how well you’ve taken care of your car, giving your buyer confidence that the vehicle is worth their hard-earned cash.
This history outlines all the maintenance and repairs your car’s ever had, like:
Oil changes
Tire rotations
Brake replacements
Changed parts
This can give you an edge in negotiations, support a higher asking price, and even be the deciding factor that seals the deal.
Owner’s Manual
The owner’s manual provides the next owner with all the ins and outs of the vehicle – how to use all the features, recommended maintenance schedules, and so on. This book can be a lifesaver, especially for first-time car owners.
By including the owner’s manual, you’re showing potential buyers that you’ve cared for your car and giving them a head start in understanding and maintaining it. It can also boost your car’s appeal and its resale value.
If you lost or never got the owner’s manual in the first place, I suggest searching for car manuals online. You can purchase manuals and deliver them by mail within 5 weeks or simply provide your buyer with the link.
Tips When Selling Privately
Selling a car privately can be a rewarding but challenging task. Here are some tips, with detailed explanations, to help you get the best deal:
Clean and Detail Your Car: First impressions matter. A clean and well-maintained car can fetch a higher price. Wash your car, clean the interior, engine bay, and trunk. Take out any unnecessary items.
I suggest buying a new air freshener, especially if you used to smoke in the car.
Additionally, if you want to get the higher price, I suggest changing worn-out details, such as floor mats, which cost you $10 to $50.
Set a Competitive Price: The best way to check the market value is via Kelley Blue Book. Using a free online tool, you will need to add your car details, such as model, year, mileage and condition and will get a suggested price range.
Set your price slightly above the current market value but still in the ballpark of a good deal. If no interested buyers contact you in a few weeks’ time, lower the price a bit.
Advertise Effectively: Post your ad on various platforms, including online car-selling sites like eBay Motors and AutoTrader.
Be sure to take high-quality photos from different angles and provide a detailed description of your car’s condition.
Keep the Season in Mind: Timing can significantly impact the sale of your used car. Generally, demand surges before the launch of a new model year, which typically happens in the fall. Therefore, selling earlier in the year could be beneficial. Many folks begin their car hunt anticipating summer road trips and family vacations. Plus, it’s the time of year when tax refunds start rolling in, and holiday shopping has yet to claim a chunk of disposable income.
Moreover, the appeal of certain types of vehicles is that they can be seasonally driven. Think convertibles, sports cars, and high-capacity vehicles – they often find eager buyers in the spring and summer when the weather’s perfect for road adventures. On the other hand, vehicles equipped with four-wheel or all-wheel drive tend to be more popular in the autumn and winter months, when drivers are gearing up for potentially challenging weather conditions.
Do You Pay Taxes When You Sell A Car Privately?
If you will need to pay, taxes depends on the sale price. If you sold your car for less than you initially paid, it means you incurred a capital loss, and IRS imposed any tax obligation on you.
If you sold your car for more than you initially paid, IRS would consider this a capital gain, and you’ll be required to pay taxes based on the profit realized.
The capital gain tax rate depends on your income level, the time you owned the car, and the capital gain you’ve realized.
Sales tax associated with the purchase of a vehicle is the responsibility of the buyer, not the seller, so you do not have to pay it.
How To Protect Yourself When Selling A Car Privately?
Your safety and protection are paramount when selling a car privately. Always take precautions to ensure you’re conducting a secure and legitimate transaction.
Check the Buyer’s Identity: Ask for identification before you arrange a test drive. This helps prevent theft and helps hold the right person accountable if there’s an accident during the test drive.
Don’t Share Personal Information: Keep your home address, bank account details, and other personal information confidential. Only share information necessary for the sale at the time of title transfer.
Use a Safe Payment Method: Cashier’s checks, money orders, escrow services, or bank transfers can protect you from fraud. Avoiding personal checks or promises to pay at a later date.
Meet in a Public Place: When showing the car or meeting for payment, choose a busy public place during daylight hours for safety.
Document Everything: Record all interactions and agreements with the buyer. This is especially important for payment arrangements and the terms of the sale.
Create a Bill of Sale: Prepare a bill of sale for both parties to sign once the transaction is complete. It should include details of the car, the sale price, and the car’s condition at the time of sale.
Best Ways to Sell a Car
Peddle
Peddle Summary
Sell used, damaged or junk car nationwideGet instant quote on (855) 925 4302Free towing within 48 hours after offerReceive payment upon car collection
Peddle is a popular online car-buying service that offers a quick and easy way to sell your car without paperwork hassle.
To sell a car to Peddle, you only need to provide your ID or driver’s license and the car’s title with odometer readings.
Cars you can sell to Peddle:
New cars in perfect condition
Old cars in poor condition
Accident damaged cars
Fire or flood-damaged cars
Non-running cars
Car with missing parts
Cars with exterior or interior damage
Carw with broken engine or transmission
Cars with excessive mileage
To get an instant cash offer, fill out an online form and provide your car’s make, model, year, mileage and description condition.
Peddle offers a free pick-up service within 48 hours of the offer acceptance and will take care of the paperwork for you.
Wheelzy
Wheelzy Summary
Wheelzy stores are open 7 days a weekGet offer in minutes – (855) 510-1108Free towing of your car from your locationInstant payment via cash or check
Wheelzy is a car buying service that buys cars in all condition as long as you can provide clean car title.
Selling to Wheelzy is a quick and straightforward process which will take you no more than 10 minutes:
Get an instant offer (up to 5 mins) – provide the car’s details and describe the condition.
Schedule car pickup (instantly) – when you accept the offer, arrange the date when Wheelzy representatives can pick up the car (for free).
Transfer the title and accept payment – at the time of the car’s pickup, Wheelzy representative will inspect the car, ask you to sign the title and pay you on the spot.
Wheelzy offers free car pickup within 48 hours and will pay at the time of car’s inspection by check or cash.
CarBrain
CarBrain Summary
Get an online offer within 2 minutesGet cash for your car in under 48 hoursCarBrain buys cars in over 7 conditionsUp to 7 days to accept CarBrain’s offer
CarBrain is an online car-buying company where you can sell your used or new car for free.
By filling out an application form with your accurate car information, CarBrain will provide you with a free online quote for your car within minutes.
After accepting your offer, CarBrain will pick up your car for free and pay you within 48 hours of accepting your offer.
Bbenefits of selling your car to CarBrain:
Quick turnaround time
Free instant cash offer online
Safe payment method
No paperwork hassle
Carvana
Carvana Summary
Get an online quote within 2 minutesFree pickup wtihin 100 miles of a hubOffer valid for 7 days or 250 more milesHaggle-free process to sell your car
Carvana has been buying used cars since 2012 and is well known and trusted company.
You can get an instant cash offer online, schedule a free pickup, and get paid within 2-3 business days. Carvana offers a 7-day money-back guarantee, so you can be sure you’re getting a fair price.
Here are some of the benefits of selling your car to Carvana:
Convenience: You don’t have to worry about meeting with potential buyers or haggling over the price.
Speed: You can get your car picked up and paid for within 2-3 business days.
Fairness: Carvana offers a 7-day money-back guarantee, so you can be sure you’re getting a fair price.
Peace of mind: Carvana is a reputable company with a good track record.
CarGurus
CarGurus Summary
Receive payment within 3 working daysFind out the market value of your carList your car for sale in under 5 minutesUp to $75,000 in protection for your sale
The process of elling your car to CarGurus is a quick and easy. All you need to do is enter some basic information about your car, such as the VIN, mileage, and condition.
CarGurus will then give you an instant cash offer. Aaccept the offer and schedule time for company to pick up your car and pay you on the spot.
Here are some additional benefits of selling your car to CarGurus:
You can get an instant cash offer, so you know how much you’ll be paid before you sell your car.
You can schedule a pickup time that’s convenient for you.
You’ll be paid within three working days.
You don’t need to worry about paperwork – CarGurus will take care of that.
People Also Asked
How Do I Replace A Lost Title?
If you lost your car title, you must complete an “Application for a Duplicate Title at your local DMV. You will need to provide your ID or driver’s license, VIN number, and the make and model of the car.
Duplicate title fees vary from state to state and range between $5 to $60. It takes 7-10 business days for a duplicate to be delivered. If you receive the title by mail, it can take up to 30 days.
Requesting an urgent procedure is possible, but expect to pay additional fees.
How To Sell A Car Without Title?
The certificate of Title is required by all states when selling a car. If you don’t have this document, contact the previous owner and arrange a title transfer to your name.
If you are selling an old car, you might be an exception and be able to complete the sale with only a bill of sale.
How To Sell a Car With A Loan Privately?
To sell a financed car privately, you must pay off the loan first. If you can not do that, you can set your selling price at least as high as the payoff amount and use the buyer’s payment to clear your loan directly.
Once the loan is completely paid off, you can transfer the title to the new owner. Inform the buyer of such a situation before agreeing to proceed with the sale.
Who Pays The Sar Sale Tax When Selling A Car Privately?
Sale tax is an obligation of the buyer. Seller only needs to pay capital gain tax if the car was sold for a higher value than initially paid.
How To Sell A Car Privately For Cash Safely?
When selling a car, selecting a secure payment method that minimizes the risk of fraud is crucial.
Generally safe payment methods:
Cash
Cashier’s Check
Money Order
Escrow Service
Wire Transfer
Generally unsafe payment methods:
Personal Checks
Third-Party Checks
Installment Payments
Out-of-country Transactions