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How to sell a car out of state:
Prepare paperwork required by both states
Agree upon a secure payment method
Sign Bill of Sale
Transfer Title
Arrange shipping or pickup
Cancel your insurance
Best Way to Sell a Car Out of State
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)
Personal Experience Selling Car to an Out of State Buyer
Several years ago, my wife’s brother Mike decided to sell his second car 2015 Honda Civic. The car was in excellent condition and only had 50,000 miles, so he listed it on eBay Motors for $11,000.
He had a few inquiries from out-of-state buyers in a few weeks, but most of them fell through. Others were a hassle:
One buyer wanted Mike to ship the car to them but did not want to arrange or pay for the shipping, which was not a fair deal.
Another buyer wanted to pay only after the car was shipped, which also seemed like a risky offer.
There were a few more interested buyers that looked suspicious and offered insecure payment methods.
Mike ended up selling the car for $8,500 to an out-of-state buyer willing to come and pick up the car in person and pay cash.
The sale went through relatively smoothly but took a lot of time and effort. From the day he listed the car online to the title transfer, more than 8 weeks have passed.
Looking back, it would have been a better decision to sell a car online, for example, to Peddle or Wheelzy, as their offer was close to what Mike got from a private buyer.
The Best Way to Sell a Car
Selling a car privately might seem like a good opportunity to sell your car for more cash, but there is huge competition, and private sales take time.
It is estimated that, on average, it takes 52 days to sell a car to a private buyer, and most shoppers will insist on negotiating and lowering the price anyways.
If you want to avoid the hassle of private sales, sell and get paid quickly, the best is to sell to online car-buying services like Peddle, Wheelzy or CarBrain.
1. 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 service that buys cars in all conditions:
Cars with no issues and in good condition
Cars with mechanical issues
Cars with high mileage
Flood or fire damaged cars
Car’s with missing parts
Non-running cars
And more
The selling process is quick: fill out an online form, accept the offer and schedule the cars’ pickup.
From the moment you accept the offer to the car’s pickup and payment will pass no more than 48 hours.
Recent Peeddle offers:
ModelYearMileageOfferToyota (Camry)2011150,000$2,225Volvo (S40)200137000$430Mercedes-Benz (560)199192000$1,930BMW (528)2008126,000$1,140Kia (Forte)2010145,000$635Honda (CR-V)201167000$2,930Ford (Explorer Sport Trac)2004145,000$1,170Oldsmobile (Alero)2004162,000$400Audi (A6)2006106,000$530
2. 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 operates similarly to Peddle, and the only difference is that they do not accept vehicles older than 1981 and don’t buy motorcycles, two-wheeled vehicles, ATVs, campers or RVs.
Wheelzy will provide you with a cash offer within 30 minutes and offers free towing and payment within 48 hours.
To get a cash offer, provide:
Car make and model
Year
Mileage
Zip code
Phone number
Recent Wheelzy offers:
ModelYearMileageConditionOfferHyundai (Tucson)2006200,000Doesn’t start$400Mercury (Sable Sedan)2003150,000Doesn’t start$225Mercedes-Benz (C)2001150,000Starts$222Ford (Edge)2010200,000Doesn’t start$1,200Ford (Flex)2009150,000Starts$1,000Lexus (RX)2002300,000Doesn’t start$750Chevrolet (Cobalt Sedan)2007200,000Doesn’t start$200Toyota (Corolla)2003250,000Drives$555BMW (528)2008250,000Drives$1,487
3. 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 another well-trusted company to sell your car online.
CarBrain buys cars in all conditions, mileage ranges and model types. They will send you a 7-day valid offer within 2 minutes, and after you accept, they will arrange the car’s inspection and pickup within 2 days.
To sell the car to CarBrain:
Enter your zip code
Enter VIN or add car details manually
Your contact details (name, email and phone number)
4. 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 is a well-trusted car-buying service that has been operating since 2012 and is one of the best ways to sell a car for cash.
You can get a free cash offer in just a couple of minutes. All you need to do is to enter your car’s VIN or license plate number.
Carvana offers free car tow service from your location if it’s within 100 miles of one of their hubs. If you are located further away, you can either take the car to the Carvana hub or pay extra for pickup.
Carvana will buy your car if:
It has no excessive damage.
It is in running condition.
Odometer is working.
It is 1992 or newer.
5. 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
CarGurus offers two ways to sell your car for cash: you can either list it on their website for $4.95 and sell to a private buyer or sell it to the CarGurus.
To get an instant cash offer you will need to provide the car’s VIN or license plate number and describe the condition.
CarGurus will send you the best offer from their dealer network in just two minutes, and you will be able to schedule the car’s pickup from your location free of charge.
CarGurus will make a payment via check or direct deposit within two business days and will take care of all the paperwork.
Documents You Need to Sell the Car Out of State
The list of required documents depends on two factors: the state you are selling from and the state you are selling to.
Countrywide required documents:
Certificate of Title
Odometer readings
Release of Liability form
Documents required by some states:
Bill of sale (i.e., Louisiana, Montana, West Virginia, Pennsylvania)
Valid emissions test (i.e., California, Georgia, Ohio, Nevada, Colorado)
Valid car registration (i.e., Arizona, Florida, Indiana, Nebraska)
Important note: Louisiana, Maryland, Nebraska, New Hampshire, Montana, and West Virginia required the Bill of Sale to be notarized.
For example, if you live in Tennessee and decide to sell your car to a state buyer, you are not required to have a valid emissions test upon sale, but if you decide to sell the same car to a buyer from California, this test is obligatory.
This requirement might add extra expenses:
DocumentPriceBill of Sale$15-$50Emissions test$10-$40Registration tag$10-$150
* All fees vary depending on the state and might change depending on your county or car type.
How to Transfer Title When Selling a Car Out of State?
1. Sign the Certificate of Title – add your name and signature on the title’s section with the comment “Seller’s Signature”.
2. Add odometer readings – at the odometer reading section, add the car mileage on the day you transfer the title.
3. Add sales price – required by some states (e.e., California, Massachusetts, New York, Pennsylvania, Rhode Island)
3. Send Title to the buyer – if you are not meeting the buyer in person, you must send the title via mail. After the buyer signs the Certificate of Title, he will be able to register the vehicle at the local DMV.
Some states require the Certificate of Title to be signed by both seller and buyer in front of the notary. In this case, the in-person title transfer is inevitable.
States that require notarized titles:
Montana
Arizona
Oklahoma
Ohio
North Carolina
Pennsylvania
Important note: You must sign the original Certificate of Title. Copies are not allowed. Sign with blue or black ink only.
Pros and Cons of Selling Car Out of State
Analyze the advantages and disadvantages of selling the car to an out-of-state buyer to assess risks and make a better decision.
Pros of Selling a Car Out of State:
Potentially higher price – if your model or overall market situation is better in another state, you can get a better offer
More potential buyers – selling out of state will expose you to a wider pool of buyers, making it easier to sell
Cons of Selling Car Out of State:
Shipping hassle – unless the buyer comes to pick up the car in person, you will be responsible for taking care of the car’s transportation, which might lead to extra hassle and fees.
Negotiations – it is highly likely that the buyer will try to lower the price due to transportation and paperwork hassle. Moreover, his goal will be to buy cheaper than in his state.
Paperwork – if your and the buyer’s states have different paperwork requirements, you will need to prepare documentation. This means extra time and fees.
Safety – selling the car to an out-of-state buyer exposes you to potential scam schemes.
How to Protect Yourself When Selling a Car Out of State?
Selling your car to an out-of-state buyer can be financially rewarding, but it is not without risks. Get familiar with potential scam schemes and tips to protect yourself.
Use trusted platforms – eBay has various seller protection policies ensuring secure payments and monitoring scam activities or false damage claims.
Choose a secure payment method – accept only trusted payment options: cash, escrow payment or bank transfer. However, fraud is still possible, so it is advised to transfer the title and schedule shipping only after receiving the payment.
Sign Bill of Sale – this document protects both seller and buyer. The buyer has legal proof that payment took action, and the seller gets freed of any liability on the car.
Do a background check on the buyer – you can access public records to check for any criminal history, property ownership, and bankruptcy filings. This can help you to evaluate their financial stability and whether they are likely to be a reliable buyer.
Participate in test drive – do not let the buyer drive alone to avoid theft.
Most popular scams to be aware of when selling a car:
Fake check: you might be paid with a forged check that will bounce when you try to cash it. In this case, you can end up with no car and money. Cashiers’ checks are accounted as a safe payment method being hard to forge.
Overpayment Scam: buyer will send you a check for more than the agreed-upon price of the car and then ask you to return the difference to them in cash or wire transfer. However, the check will eventually bounce, and you will be out of the money you sent to the scammer.
Falsified payment confirmations: buyer will send you an email containing a falsified or altered receipt or money transfer confirmation that shows that the buyer has paid for the car. However, the receipt or confirmation is fake, and the buyer has not actually paid for the car.
Asking to cover shipping costs: buyer will ask you to pay upfront for transportation or shipping costs for the car and promise to reimburse you for the costs. However, they never return the money.
Asking for personal information: buyer will ask you to provide your personal information, such as your Social Security number, driver’s license number, or bank account information. They will then use this information to commit identity theft or other crimes.
Steps to Sell Car Out Of State
To ensure the private sale and deal with out-of-state buyers is legal and successfully completed, you will need to make a few extra steps.
Verify the Buyer’s Identity
Ask a potential buyer to provide a copy of their ID card or driver’s license to confirm that personal details match with the signed documents. If the buyer refuses to provide his personal details, it might be a sign of a potential scam.
Choose Secure Payment Method
The safest payment method when selling a car privately is cash, a certified cashier’s check or a money order.
You only should transfer the title to the new owner after the transaction is completed and confirmed by your bank.
Sign Bill of Sale
The Bill of sale will provide protection for both you and the buyer and will ensure a smooth transaction and title transfer.
Add a condition that you are selling the car “as it is” to avoid any claims or complaints after the title transfer.
You can create and downlod Bill of Sale templates online for free.
Sign the Documents
If you are selling out of state, the title transaction and other necessary paperwork will likely be dealt with online or via mail.
To complete the transaction smoothly and ensure there is no data mismatch causing problems in the future, carefully check the entered data on the documents before sending them to the buyer.
Sign Release of Liability Form
A signed release of liability form will guarantee the title transfer process is legally completed, payment is secured, and you are no longer responsible for the vehicle.
If you fail to sign it, you might be held accountable for new owner violations, such as speeding, unlawful parking, etc.
Schedule Pickup
If the buyer is picking up the car in person and hasn’t registered a car in a new state, he is responsible for obtaining a temporary tag to be able to drive the vehicle from state to state.
Example: if the buyer is picking up a car from Texas to drive to California, he should visit DMV in Texas and get a temporary tag. Usually, they last 30 to 90 days or can be issued for a single day.
If the buyer isn’t present to pick up the car, the method of transportation and the responsible person should be disclosed in the purchase agreement.
Usually, transportation is arranged and paid for by the buyer.
Cancel Your Insurance
You should cancel your insurance as soon as the vehicle is sold and the title has been transferred to the new owner.
This is because you are no longer legally responsible for the car, and you could be held liable if the new owner causes an accident while driving the car.
Selling Financed Car Out Of State
If you have a loan on your car, you still can sell it, but depending on the left payoff amount, state regulations and the overall economic situation process can include additional steps and require more time.
Selling Financed Car Out Of State Privately
Selling a car that is still under finance to an individual can be a somewhat complex process. In this case, you have two options:
Pay off the remaining loan before selling.
Use sell money to pay off the loan.
If you can’t pay off the loan, you can ask the buyer if he agrees to pay you first and wait until the lienholder releases the title.
Until the title is released, you won’t be able to transfer it to the buyer’s name.
To protect the buyer, offer to sign the bill of sale to prove the transaction was made.
Selling Financed Car to Out Of State Dealership
If you find an out-of-state dealership that is willing to buy your financed car and pays you more than the in-state dealer offers, make sure you know your equity status.
If you owe less money than the car’s worth: If the outstanding balance on your car loan is less than the car’s market value, the dealership will typically pay off the loan and give you the difference between the car’s value and the amount owed on the loan. This can be termed as “positive equity.”
If you owe more than the car is worth: If the outstanding balance on your car loan is more than the car’s market value, this is commonly referred to as being “upside-down” or “underwater” on your loan. In such cases, you will typically need to pay the difference between the loan balance and the car’s value to the lender to clear the loan.
Before selling to dealership:
Check dealer’s reputation – read online reviews to find out if this dealership can be trusted.
Check for hidden fees – before signing any documents, find out if there are no hidden fees, for example, transportation, transaction or paperwork fees.
Check payment process – confirm payment method and how long it will take.
FAQ
Can I sell a car without a Title?
Selling a car without a title is illegal in all states. If you lost the document, you must apply for Duplicate Title.
If you never got the document, you must contact the previous owner to transfer it to your name or provide a Bill of Sale to DMV to prove your ownership.
How to price a car when selling out of state?
Browse similar car listings on eBay Motors and Autotrader
Use Kelley Blue Book car’s value calculator
Count the cost of shipping
Prepare to negotiate
Payment methods to avoid when selling a car out of state
When selling a car out of state, you must be extra careful about the payment methods you accept. Several payment methods are more risky than others, and you should avoid them to protect yourself from scams.
Unsafe payment methods:
Personal checks: the most common form of payment for car sales, but they are also the riskiest. Personal checks can be easily faked, and there is no guarantee that the funds will clear your bank.
Money orders: be counterfeited, and there is always the risk that the money order will be lost or stolen in transit.
Wire transfers: a fast and convenient way to send money, but they are also one of the most common ways that scammers get their victims’ money. Wire transfers are irreversible, so if you send money to a scammer, you will never get it back.
How long it takes to sell a car out of state?
Selling a car out of state can take anywhere from a few days to several weeks or even months.
Time and process depend on the following:
Market demand
Car price
Condition of the car
Paperwork
Transportation
It’s essential to be patient and to communicate effectively with potential buyers to facilitate a smooth and successful sale.
Do I Need to Pay Taxes When Selling a Car Out of State
In most states, the seller is responsible for providing and paying for required paperwork, such as an emissions test certificate or renewing car registration.
If the state requires documents to be notarized, associated costs are allocated depending on the agreement between the buyer and seller, ranging from one party covering all costs to costs being split between both parties.
Sales tax is always paid by the buyer, not the seller.
FeeResponsibleTitle transferBuyerRegistration tagBuyerDocument processingBuyerSales taxBuyerEmissions testVaries by stateSafety inspectionVaries by stateCapital gains taxSeller
However, if you sell your car for more than you have paid for it you can be eligible for paying capital gain tax. The tax rate depends on your income and how long you owned the vehicle.