If you plan on selling your car to a private buyer, or if you are trading in your car at a dealership, there are a few specific documents you’ll need to have on hand. While the documentation requirements will vary from state to state, a few specific items may be required no matter where you’re selling your vehicle. In addition to the paperwork required in most states, we have compiled a list of suggested documents that may help you build credibility as a seller, help you find the best offer for your car, and sell your car faster. Read on to learn more about the documents to obtain when selling your car.
As mentioned above, the paperwork required to sell your vehicle to a private buyer or to a dealership will vary depending on the state in which you are selling your vehicle. However, a couple of documents should be provided to your buyer at the time of sale no matter where you’re located. If you’re not sure what documents are required in your state, you should be able to find this information by contacting or visiting your local Department of Motor Vehicles (DMV), or your state’s Department of Revenue or Department of Transportation, either in person or online. If you are having trouble finding your state’s website, you can also visit the IRS website to find a list of state government websites and resources.
Title
A vehicle’s title is arguably the most crucial document when selling your vehicle privately. The title represents your right to and proof of ownership over the vehicle and establishes you as the legal owner. When you sell a car privately, you are responsible for filling out the ownership transfer portion on the title. Some states may require the title to be notarized during a private sale. Check with your local DMV to find out if your state requires a notary to be present during a title transfer. If you had a loan on your vehicle and it was paid off, you will receive possession of your vehicle's title from the lender or bank, and may also receive a lien release if the title is not reissued. If your vehicle’s loan is not paid off, you will need to contact the bank or lender that possesses the title to inform them of the sale and receive the payoff amount on the loan. Before you can transfer the title to the new owner, you will have to pay off the remainder of the loan. If you can’t locate your vehicle’s title, or if your title is damaged, you will need to inquire with your state’s motor vehicle department to apply for a duplicate before selling your vehicle to a private buyer. Selling a vehicle without a title in most states is illegal, and will also prevent the next owner from being able to easily apply for a title or register the vehicle, so applying for a duplicate title if the vehicle is in your name can help maintain its value for future buyers.
Many states have titles that include tear-off sections that are intended to be retained by the seller. These serve as a transaction record once the title is no longer in your possession, and should be filled out and sent to your state Department of Revenue. This allows the DOR to recognize that you no longer own the vehicle so that you do not continue to pay property taxes going forward, even if the new owner does not title the vehicle after purchase.
It’s also important to note that if your title shows multiple owners (i.e. you and a spouse or a parent), all legal owners listed on the title must sign it for the transfer to be completed appropriately. This is not true of TOD (Transfer On Death) beneficiaries, but is a requirement for those listed as actual owners on the vehicle’s title.
Bill of Sale
While not all states require a bill of sale, providing one is still a good idea and a great way to document the vehicle transaction between you and the buyer. A bill of sale will thoroughly list the terms and conditions of the sale in writing, and a copy can be kept by both seller and buyer. Your state's local Motor Vehicle Department website might have a bill of sale form that you can download and fill out. You may also be able to customize the list of items included in your bill of sale. When filling out a bill of sale, it’s best to include the Vehicle Identification Number (VIN), purchase price, vehicle description, odometer reading, purchase and/or delivery date, and signatures of the buyer and seller. In some cases, depending on the transaction type or state, the bill of sale may also need to be notarized. If you’re not sure if your state requires a bill of sale document, inquire with your local DMV or visit your state’s motor vehicle department website for more information. It is often best practice to have a bill of sale filled out for any vehicle transaction, even if it is not needed, for your records.
Odometer Reading
The vehicle’s odometer reading indicates the number of miles a vehicle has traveled and is one of the key factors in determining the vehicle’s worth. It is required by federal law that all automobile sellers provide an accurate odometer reading to the buyer at the time of sale. Some states may allow the odometer reading to be included on the vehicle’s title, or be listed on the bill of sale. Others may require you to provide the buyer with a separate notarized form indicating the odometer reading. Check with your local DMV to learn more about your state's odometer reading requirements before selling your vehicle. It’s also important to keep in mind that older vehicles may have five-digit odometers, and though they are often excused from mileage requirements when titling the vehicle, these odometers may not reflect an accurate mileage if they have rolled over 100,000. If a vehicle title is transferred from one state to another, an ID/OD form may also need to be completed by the buyer at a certified state inspection station or by law enforcement to ensure the mileage on the vehicle is accurate to that listed on the title.
In addition to the documents required by law, there are a few other pieces of helpful information that can make the process of selling your car more efficient. This suggested paperwork can not only make the sale easier for both parties, but may also help you sell your car faster while increasing your credibility as a seller.
Warranty Information
Some vehicle warranties can be transferred when the vehicle’s ownership changes. If your vehicle is still under its new purchase or extended warranty, inspect your contract or contact your warranty provider to find out if it is transferable. If the warranty is transferable, it can add considerable value to your vehicle and is worth including in the sales description when selling. If it isn’t transferable, or if warranty coverage has lapsed, you should let the buyer know that your vehicle will be sold “as-is”, or with no warranty coverage.
Vehicle History Report
While it isn’t a requirement as a seller, providing a vehicle history report can increase interest in your car and may speed up the sale process. Vehicle history reports can provide buyers with extensive information about the car, including the number and locations of previous owners, damage or accident events, repairs, and recalls. It may be necessary to pay for this service, but a variety of companies now offer vehicle history reports. To receive a detailed history of your vehicle, visit the National Motor Vehicle Title Information System website or any variety of other history report providers and enter your vehicle's VIN.
Service and Maintenance Records
Providing potential buyers with statements or receipts that prove your vehicle’s routine service and maintenance needs have been met and completed regularly is a great way to provide peace of mind to a buyer. Whether you took your vehicle to an automotive shop, or completed the maintenance tasks yourself, providing a detailed and dated set of receipts or service summary shows your buyers that your vehicle has been maintained and taken care of properly. This can increase the value of your vehicle, especially if common part failures have already been addressed at the time of sale.
Owners Manual and Service Manual
While most manufacturer owners manuals can be obtained online, it’s still a good idea to sell your vehicle with the same physical copy of the owners manual that you were given when you purchased your car. Owners manuals are a great resource to keep in the glovebox in case of an emergency, and are beneficial to provide to your buyer at the time of sale. If you have any service manuals specific to your vehicle, it may also add value to include them in the sale since you likely won’t need them after it is sold.
If you are gifting your vehicle to another individual, or if you are donating your vehicle to a charity organization or other nonprofit, you will need a gift affidavit. A gift affidavit is a document stating that the vehicle is being given as a gift and is necessary to confirm that no payment is necessary or was taken. The person signing the affidavit is titled as the “affiant” or “donor”, and the person receiving the vehicle as a gift is the “recipient”. This is often necessary to prevent the recipient from having to pay taxes on the sale of the vehicle.
Collecting the recommended and suggested paperwork is only one of the steps needed in preparing to sell your vehicle. To learn more about how to get your vehicle ready to sell, check out our helpful article. O’Reilly Auto Parts carries all of the preparation products, parts, and tools you need to make sure your vehicle runs and looks its best for potential buyers. To learn more about selling and buying vehicles, visit our other useful How-To Hub resources.
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