5/18/11

FAQ for Selling a Car

You'll usually receive more money for your car by selling it to a private party, as opposed to trading it in. While the concept of selling a car might be simple, there are details that many people do not understand until they do it. There are many questions that you might need to ask along the way.
  • Payment Methods

    • One of the most common issues when selling a car is knowing what type of payment methods to accept. As a general rule, you should only accept cash or a cashier's check. You shouldn't take a personal check unless the buyer will let you keep the car and the title while the check clears. You could also use an escrow agent, which allows the buyer to pay the agent, then the escrow agent pays you later.

    Value

    • Another issue is determining the car's value. The best place to start is the Kelley Blue Book. This resource includes the current market value of every available used car. You can look up the make and model of your car as well as look at specific features that you may have added. Charge a little lower than this value if you want to sell the car quickly.

    Title

    • When you sell your car, you must transfer your title to the buyer. Depending on your state's laws, you may have to go through the Department of Motor Vehicles or the State Revenue Office. Either of these entities will have a basic form for you to fill out. You may have to pay a fee, then the title to the car will be transferred to the buyer.

    License Plates

    • When you sell your car, you can keep the license plates if you wish. With this process, you will simply need to fill out another form with the Department of Motor Vehicles or State Revenue Office and pay another fee. Then you can transfer the plates from your old car to a new vehicle. You do not necessarily need to do this until you acquire your new vehicle.

    Considerations

    • Allow potential buyers to inspect your car before they make an offer. If they ask to test drive the car, ride along with them. If you simply give your car keys to a stranger, she could take off in the car.

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