8. Finalize the Sale!

Make sure you check the laws governing the sale of a car with the Department of Motor Vehicles in the country where you live. Most of the information is available on the official website. It’s very important to limit your liability when selling a car, so once you get the money from the sale ask for a cashier’s check, sign the car’s title to the new owner and record the reading on the odometer.

In case the bank is holding the title of your car and you still owe the bank money, you should finalize the sale at that bank.  So, once the bank paid the loan balance and the money have been transfered, you can sign the title over to the new owner. In case the bank holds the title, go with the buyer to the DMV to get a temporary operating permit which will be based on a bill of sale. After you pay off the balance of the loan with the proceeds from the sale of the car, send it along with the title by mail to the new owner. Then, you should sign it over to him and finally the sale is complete. At the end contact your insurance agent to cancel your policy on the car.

9. What to do after you sold the car!

The car that you already sold can even break down, but no warranty is provided. In most states in the US, the condition of a used car which is put for sale is considered as is, with all faults. So you don’t have any obligation to refund the money to the buyer of the car or pay in case it needs to be repaired.