Paperwork on selling a car?

[Texas97]

this is my 1st time to sell a car. the lien is at the bank; not in my name.

so when i find a buyer, should i get him to come with me to the bank to cash his cashier's check and then give him the title?

do i need to do anything else with the title or can i do it all at the bank?

also, do i need to report this as "income" for income tax?


Texas97

 

[Baboso]

Your bank will have to release their lien on the title. They will want the loan paid off before they do this. Cashiers check or other certified funds or funds drawn on an account at that bank will be needed if you expect to get the bank to release their lien that day.

You shouldn't have to report it as income or a capital gain, unless you have been depreciating the vehicle for income tax purposes. It is usually a non-event for income tax purposes.

 

[Texas97]

yeah, i was planning on telling the buyer that we had to go to the bank together with the cashier's check to get the lien.

someone mentioned that i need to send $5 to the state to do something to the title afterwards??? what is this?

 

[TexasEd]

1. Go to the state website and download the forms for the sale. I think there were two I needed in 2002.

2. Call your bank branch and tell them you plan to sell so they can get the title sent to them in advance. This saves a lot of headaches. They can give you the title at the same time you give them the money.

3. Make sure you mail in the seller disclosure form from #1 above to the state in case your buyer takes a long time to get it registered in their name. You don't want the state still thinking you are the owner if there is a wreck with your old vehicle.