One would think that selling their car would be an easy task, however in Ohio; you may feel overwhelmed by the requirements. Everything from the laws to the required forms, you may end up spending precious time that you can’t afford. No matter how old your car is or its current condition, there is nothing that can stand in your way if you are confident that you’ll achieve a sale. You have already started the process of selling your car by “thinking about it”, now you need to start the work that gets it sold.
For those of you who believe that your vehicle falls into a whole different category, then you should reach out to the Ohio BMV to obtain clarification.
Your best bet to successfully having your car sold in Ohio is to have it all planned out ahead of time and following these four tips.
- Ensure Adequate Coverage of Insurance
Before test driving, ensure that the car has at least the minimum insurance required in order for others to test drive the vehicle. The last thing that you need to know is that your vehicle got pulled over and impounded! This is especially true if the buyer has no insurance as they drive your car. This is why you need to be diligent throughout the car sale right from the start of the transaction.
- Current Car Tags Must Be Removed
For you to sell your car, you must remove the current tags, registration, and license plates from the car. Make sure that you have the proof of sale and then have the plates removed before going to the nearest BMV for the temporary tags. For buyers who live outside of Ohio, they will need to furnish their driver’s license and social security number. Once these are presented they can obtain their temporary tag so that they can get back home to register it. The price for a temporary tag is currently under $20.
Another good reason to have the current tags removed is to protect the seller. This is done through the beginning stages of title transfer and as a temporary tag is issued. As part of this transfer, the seller’s name is removed first from the database as owner. This releases the seller from all liability. So whatever happens to the car is no longer in your hands. So if the car is involved in a hit and run, bank heist, or any other type of crime, you can relax knowing that the police will not be hunting you down.
- Ensure that No-risk Payment is Made
Selling your used cars in Eaton Ohio should be hassle-free and simple and not full of stress or worry. This is particularly true when it comes to payment. In order to eliminate any possibilities of anxiety, it is highly recommended that cash be the only form of payment to accept. With a cash payment you have no risks of getting swindled or having a rubber check coming back to haunt you. Of course, there will always be risk involved with cash if you have not made it to the bank yet, especially when you’re carrying it around with you. A great idea that alleviates that worry is to conduct the financial transaction within the bank itself. All you have to do is tell the buyer to meet you at your bank to complete the sale.
As far as a check is concerned, they are ill-advised. However, if they are adamant that their check is trustworthy, they should have no problem waiting a few more days until it clears the bank prior to continuing with the title transfer. Just like we saw with carrying around cash, if the buyer insists on it have them meet you at the bank so they can cash the check. You can then be able to receive a bank check or cash. Keep an eye out though, because if the buyer frowns upon any of those ideas, then you need to void the transaction and look for other potential buyers.
Having a bank check issued to you for the amount is a great way for payment other than cash. However, you should be weary of this method if you receive it directly from the buyer. The reason is due to the potential fraud involved. With today’s technology and the internet, anyone can search online and create anything fake. If this is the case, then detecting it may not occur until well after the fact.
To avoid this, just agree to meet them at the bank to cash it. That way the bank can confirm its authenticity. If the bank has their doubts concerning the entire transaction, you will have your proof in hand to show the bank that it is the payment for selling your vehicle.
If all else fails, you can just go through your own personal attorney who can initiate an escrow. Then, as it sits there, your attorney will then begin the verification of funds. Once the funds have been verified the title can then be released and payment is made.
- Complete the Vehicle Purchase and Titling
Being a seller requires you to completely fill in your information on the reverse side of your vehicle’s title. Information needed for completion includes:
- The date of sale or transfer
- The buyer name and contact information
- Vehicle purchase price
- Verification and witness of vehicle mileage by a notary
Keep in mind that the odometer must be verified by both seller and buyer prior to any transfer occurring. This verification ensures that it is accurate as well as information being filled out completely. Doing this check will prevent any delays or possible voiding of the sale completely.
At the time of sale, the title remains in the name of the seller, up until full transfer has been made into the name of the buyer. After full transfer has been completed, the Ohio BMV issues the car title in the purchaser’s name. Things to keep in mind:
- All taxes, including use and sales, must be paid on top of the original selling price
- Transfers must be completed within 30 days from the time of the car sale to avoid any late penalties assessed by Ohio.
- Ensure that all parties involved are present. An exception to this is a POA that has been notarized.
- Buy and seller must disclose identifying information including SSN
- In the case of a temporary 45-day tag, the owner needs to have it prior to any vehicle transfer can take place
- After a car title is created for used cars in Eaton Ohio, the new owner is required to obtain a new set of license plates for Ohio
- If a vehicle lien exists, then the lien holder must be specified in the title. A fee will be assessed for that.
Now that you have all of the title information filled in, the buyer will need to take it to the nearest BMV along with the following:
- Form BMV 3774: application for vehicle title.
- All fees for the title transfer in the form of a check or money order.
- Current and valid forms of identification. If you are unsure of what type of identification is acceptable, the county clerk has a list available.
- Separate payment for use and sales tax based on the sale’s price. If you need to know the rate, you can easily check online.
- If a vehicle is bought from out-of-state and brought to Ohio, it must include an inspection of the VIN. This inspection can be conducted at any Ohio deputy registrar office.