About Documents Needed to Sell a Car

First, you will obviously need the title to your vehicle. If you still owe money on your vehicle, and have a lien on the title, it is still possible to sell the vehicle. You can contact your bank or credit union and obtain an unsecured personal loan to pay off the lien on the vehicle and have the title released. Or, you can sell the vehicle with the lien in place, but you must make sure to let the buyer know that you will have to pay off the lien before the title can be released. You will need to fill out the back of the title with the sale information.

You will also need a bill of sale. You can find a simple bill of sale on the Internet, or you can draw up your own. You will need to include the date of the sale, the seller's name and address, the buyer's name and address and a description of the vehicle that is being sold. The vehicle description will include make, model, year, vehicle identification number (VIN) and mileage. You will also want to add any extra terms that you and the buyer have agreed on, such as how long the seller has to transfer the title to the buyer if there is still a lien on the vehicle. The Bill of Sale should be signed by both the seller and the buyer, and at least two witnesses.

You may also want to draw up a sales contract which spells out the terms of the sale of the vehicle. The Bill of Sale is a simple, brief contract, but if there are any complicated issues, you'll want a full contract. You can do this yourself, but you may want to seek the services of a licensed attorney, to make sure you are fully covered under the laws of your state. Spending a small amount of money to have an attorney check your work now can save you a lot of time (and possibly money) in the future.

In some states, you may be required to have these documents notarized by a Notary Public. Notaries are located at all state, county and city buildings, as well as at many banks and libraries. You can contact your Secretary of State or similar office to find the name of a Notary Public near you. The Notary may charge a minimal fee of around $5 to notarize your document, but this small fee can save you thousands of dollars in legal fees if there were to ever be a problem with the sale of the vehicle.

There may be other documents required by your state, as laws pertaining to sale of private property vary from state to state. You may want to check with a licensed attorney, your local Bureau of Motor Vehicles or your State's Secretary of State to make sure that you have all of your documents in order before the sale.