What paperwork do I need to sell my used car?

[Nonbryan]

I have never sold a car before and I am looking for some insight. If the buyer wants to buy it on the spot, what type of forms, etc... constitutes a normal car deal? Is a cashier's check ok? Do I need to get their DL# and info?

 

[JohnnyM]

Sign the title over and keep a copy.

They will have to change the title, but you can file a form with the DMV that notifies them you've sold the car. This is very important to do.

Also, if you want, prepare a Bill of Sale. It's not a requirement to change the title but it's not a bad thing to have.

Keep copies of EVERYTHING. The forms you sign, his DL, his cashier's check, etc.

Also, with a cashier's check, I would probably take it to the bank before I accepted it.

 

[utmck]

How do taxes work if you are not selling the car just signing the title over to someone else? What about gift taxes?

 

[HatDaddy]

buyer pays the taxes when he registers the car with the state.

 

[utmck]

And if the car is being "given" to the new peson, how are the taxes taken care of then?

 

[Stuck_At_Work]

You need to be careful when you 'give' a gift like a car... because you are limited in how much you can gift during a year without being taxed. I think that number is 11 or 12k though, so if it is an older car, you should be ok.