Forms for Selling a Car

• There are various reasons why people decide to sell cars. Sometimes, people sell cars because they have too many vehicles. Other times, it is because they want a new car, and they think they can get more money from an individual buyer than the dealer's trade in value. Whatever the reason, when you sell a car, you are transferring an asset of value to another party. Because of the potential legal implications involved with the transfer of property, there are a few forms involved.

Title

• The Farlex Legal Dictionary defines the title as the evidence that gives full ownership and claim to a piece of property. A car's title is signed by both the buyer and the seller. The buyer of the vehicle takes the title to the motor vehicle department as proof that he purchased it. The motor vehicle department usually will keep the signed title and mail the buyer a new copy containing his information.

Bill of Sale

• A bill of sale contains the details of the transaction such as the buyer's name and address, seller's name and address and the date and time of the transaction. It also contains information about the vehicle such as the year, make, model, VIN (vehicle identification number) and the selling price, according to the autocrisis.com website. The buyer and seller sign the bill of sale at the time of sale. A bill of sale is used when you are purchasing a used car, not a new car. Also, not all states require a bill of sale to transfer ownership of the vehicle.

Inspection Certificate

• Some states require a safety or emissions inspection at a certified inspection station to transfer title of a vehicle. Safety inspections are usually performed by licensed mechanics; and emissions inspections are usually performed at specific state facilities. If your state requires inspection, either the buyer or the seller must have the car inspected before it can be registered. The inspection certificate must be brought to the motor vehicle department at the time of registration.

CarFax Report

• If you are selling a car, you may want to have a CarFax report prepared for prospective buyers. People are often wary when buying a used car. Having a CarFax report available for a buyer might put him at ease. The report contains information regarding the history of the vehicle you are selling such as the amount of times your car's airbag has been deployed (to indicate accident history), the number of owners your car has had and your car's service and inspection records. Having proof of your vehicle's history might make it easier to sell.