What to do before selling your car
Prepare to sell your car with these 7 smart tips to increase value and smooth the process.
Selling a car privately can be a daunting task, especially if you don’t know the various state-by-state requirements for selling a car legally.
Although not required in some states, AutoTrader says it’s a good idea for prospective car buyers to have their cars and trucks inspected by “a qualified and licensed mechanic of their choice.”
The buyer must pay for this inspection, but both parties must agree when and where the inspection will be conducted.
Also, if there is any abnormality with the vehicle after the inspection, be sure to obtain an inspection report.
How to sell a car privately? Find maintenance records
Gather the car’s maintenance records, owner’s manual, and any other documents found around the car.
Providing buyers with comprehensive maintenance records gives them confidence that their vehicle’s upkeep is transparent.
Using a vehicle history reporting platform like CarFax or AutoCheck can simplify this process.
The most important document to include when selling is the title certificate. To officially sell a car, the seller must transfer its ownership to the buyer.
If there is a lien on the title, the creditor “must waive any interest in the vehicle before selling it,” Autotrader said. You must receive a certificate of ownership for your vehicle by paying it off or obtaining a lien release.
If that document is lost, stolen, or damaged, you can obtain a replacement document for a small fee at your local DMV.
Create a vehicle sales invoice using an online platform
Although some states require a bill of sale, Autotrader said it’s still wise to obtain one. You can simplify the process by using a platform like LegalZoom that offers sales statement templates.
Starting in 2021, the National Highway Traffic Safety Administration (NHTSA) began expanding odometer exposure requirements for model years. Initially, odometer disclosure was not required for vehicles older than 10 years, but starting in 2021, that number has gradually increased each year.
For example, to sell a vehicle in 2025 without the required odometer disclosure, the vehicle’s model year must be at least 15 years old.
How to gift a car
Whether through death, inheritance, or gifting, transferring a car to another name can be complicated.
If you gift a car to a relative, the beneficiary must file the paperwork at a DMV office. Check your local DMV website for the required forms.
To inherit a car, you may need to submit an inheritance affidavit stating the ownership of the car.
In some states, a notary public must be present to sign. Many requirements for transferring a car vary by state, so contact your local DMV for more information.
Remove license plate and cancel insurance
Please be sure to remove existing license plates before final sale.
“Failure to do so could result in the purchaser being liable for violations after taking possession of the vehicle,” Autotrader said.
Additionally, vehicle insurance must be canceled in a timely manner after the plates are removed, as the seller risks paying insurance on a car that is not owned.
