Selling a Car Person to Person...

[Guest stovepipe]

My father is getting ready to sell his car to a girl at his office. Is there anything that needs to do beyond taking the money, filling out the buyer and seller part on the back of the title, creating some sort of bill of sale, and cancelling his insurance?

[56FordGuy]

That's all I've ever done.

[Reservoir Dog]

... filling out the buyer and seller part on the back of the title, creating some sort of bill of sale, and cancelling his insurance

All of those, and be sure he removes the license plate from the car.

[Guest uofmeet]

Yup, what they said^^^^

[Westwindmike]

I never did a BOS. Just fill out the back of the title.

[Magiccarpetrides]

It never hurts to do a bill of sale, make ABSOLUTELY sure he signs the back of the title just as its printed on the front....if it says CAT R WALL on the front he needs to sign it just like that. Also either leave the odometer section blank or check and verify the exact miles. Also DO NOT check the boxes that are near the odometer part as this will screw up the title.

[Westwindmike]

MCR,

What about filling in the amount the car sold for? Any negatives to not filling that in at time of sale?

[monkeylizard]

That's an ethical grey area. The county clerk requires an amount to be filled in, so someone will have to put it in there to register the car. The only question is how much. Taxes are paid on the amount entered in the field and it's supposed to be the amount of the transaction. To put in a lower amount is a form of tax evasion.

I don't have a TN title with me, but who should enter the amount would depend on where it's located on the title. On some states it's in the block marked as "Seller". In others' it's in a general area by the odometer reading.

I know in the collector car world, that's often left blank by the seller. The buyer puts in whatever they want. The county clerk doesn't know if a '39 Plymouth is worth the $1,500 written on the back of the title, or the $45,000 that was actually paid for it since it's been hot rodded.

It's legally wrong, but ethically gray, depending on one's view of taxation. some would say the gub'ment got their cut when the car was sold new. Why should they get more when it changes hands a second time? Especially on collector cars that may change hands dozens of times.

My only tip is for doing this...don't lowball it too much. Even a county clerk knows that a used 2008 BMW is worth more than $500.

Edited April 22, 2010 by monkeylizard

[DavidM]

Just a thought. Disclosure. It is a good idea to disclose (in writing) a statement of anything you might need to divuldge to a new owner. Things like "by signing below, you acknowledge I have made you aware that this vehicle was involved in a wreck......". That sort of thing. Just to CYA. If you do this, there is nothing wrong with adding a statement like "No warranties are implied or expressed....blah, blah". Yeah, that sounds a little far fetched, but a handshake doesn't always mean what it used to. My two cents.

[Smith]

Just a thought. Disclosure. It is a good idea to disclose (in writing) a statement of anything you might need to divuldge to a new owner. Things like "by signing below, you acknowledge I have made you aware that this vehicle was involved in a wreck......". That sort of thing. Just to CYA. If you do this, there is nothing wrong with adding a statement like "No warranties are implied or expressed....blah, blah". Yeah, that sounds a little far fetched, but a handshake doesn't always mean what it used to. My two cents.

Any used sale FTF is "as is" unless specifically noted at exchange. The buying party has no recourse without an expressed or implied warranty from the seller. Including anything not necessary opens more doors than it closes. The caveat is a known issue not disclosed. Again something the buyer must prove.

[Guest stovepipe]

Thanks guy's, you've been a big help!!

[Guest mustangdave]

Get MONEY...not a check...even IF you know the person well. Avoids an embarrassing moment a couple days down the road when you approach the other party and tell em..."hey your check BOUNCED."

[Magiccarpetrides]

Get MONEY...not a check...even IF you know the person well. Avoids an embarrassing moment a couple days down the road when you approach the other party and tell em..."hey your check BOUNCED."

Or a cashiers check from any reputable bank is also fine.

Filling in the selling amount is strictly up to you, but make sure you warn the buyer that the State of TN is starting to crack down hard on people not paying the proper amount of sales tax...and if it looks too low most county clerks will tell you to come back with a bill of sale.

[Guest coldblackwind]

Make sure you actually clean the car out. Pretty sure I left 3 cds in the cd changer in my mustang when I sold it. I miss those cds.