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PUT YOUR PAPERS IN ORDER Here's a checklist of paperwork to get together:
Take advantage of our selling checklist, so you don't miss anything important. Where oh where has my title gone? —This may sound stupid, but go find your title right now. Some of us are organized and some aren't, so make sure you have your title in hand, even if you're a filing genius. What's a title? —A title to a vehicle is the legal document showing ownership. It contains a Vehicle Identification Number that MUST match the number on the windshield plate. If the vehicle has more than one owner and the names are joined by "AND", both owners must sign the document for a sale to be legal. Okay, I lost my title. Now what? —You cannot sell the car without it. Complete an application for Duplicate Title with your state's Motor Vehicle Department. You will typically need the Vehicle ID number, license plate number and a signed explanation of the circumstances of the lost title. If you are not the registered and legal owner of record (i.e. it's still in the previous owner's name), you will need a notarized releasing signature from that individual. Branded titles —Certain vehicles must have their title "branded" disclosing history about the car. If your vehicle was used as a taxi, rebuilt from salvage, bought back as a "Lemon," imported without required equipment or damaged by flood, you are required to fill out a disclosure statement. I financed my car, now what? —If you financed your car through a bank, credit union or dealer, the lender is listed as the LIENHOLDER on the title. When your final payment is paid, the lienholder will mail you the title with the lien released, a signature releasing the full ownership to you. How do I get clear title to the car? —The lender's lien remains on record with the Motor Vehicle Division unless you apply for a clear title. You should do this soon after receiving the released title from the lender. In some states it is required within 30 days. What if I lose the lien-released title? — If, for any reason, the released title becomes lost, the lien would still be on record with the state. A notarized lien release by the original lienholder would be required before a clear duplicate title can be issued, delaying the sale of the vehicle. Even worse, if you discover that the lender has gone out of business, getting a lien release and clear title becomes a difficult process. What if my car's not paid off yet? —You can still sell it, but you need to talk to your lender about your options. A local bank might require you and the buyer to come into the bank branch to complete the deal. In one scenario, the buyer pays the bank the entire sale amount and the bank reimburses you for the amount remaining after the loan balance has been satisfied. The title will be signed over by the bank to the buyer. My lender is out of state —With an out-of-state lender, first talk with your lender to discuss the arrangements. At the time of sale, the buyer will make the financial transaction directly with the lender. Give the buyer a contact name, phone number and loan number. Upon receipt of funds, the lender will sign the title over to the buyer and mail. If the buyer is also financing his deal, ultimately, the two lenders will have to facilitate the transaction. Can I sell my leased car? Breaking the lease —The general rule of thumb is to stay with a lease to its full term. The system is rigged to penalize you if you bail out early. Obviously, if you're in the middle of a lease for a Miata and now need a minvan for newborn twins, you might consider selling the car. Or, the leasing dealer might let you upgrade to leasing a bigger car. When to sell —If the market value of the car exceeds the residual plus penalties for breaking the lease, selling the car might allow you to buy your way out of the lease. Check your contract to determine the flexibility of your situation. Two signatures, please —If your title has you and your spouse, or you and your mom —typically joined with "AND" —your vehicle is jointly owned. Both owners must sign the title documents for a sale to be legal. If "OR" or "AND/OR" joins the name, either owner can sign the title document as seller of the vehicle. The Bill of Sale should also be signed (and notarized if required) if jointly owned. Suppose your co-owner mom lives in out of state or an ex-spouse is still listed on the title, you will need their signatures before the car can be sold. What if a co-owner has died? —To sell a jointly-owned vehicle with the word "OR" between the names, the sole survivor can sign the back of the title as seller. If the title is in the deceased registrant's name only, or if the word "AND" appears between the names, the executor of the estate must sign as a seller. A copy of the court appointment papers should accompany the title transfer application. Check with your Motor Vehicle Division for details. As an original owner, you can attest to a vehicle's complete history —ownership, maintenance, damage repair etc. But, if you bought the car from a used lot, that history is a mystery. There could have been one previous owner or seven. The car could even have been rebuilt from two cars. A Carfax Vehicle History Report can uncover multiple owners, rental use, salvage history, odometer fraud and major damage from flood, fires or accidents. If you're uncertain of your car's history, you can order a Carfax report here. Having a clean report in hand can give buyers added confidence in your vehicle. In most cases, sellers living in smog emission areas are required to have a current emission sticker or certificate prior to selling. (Check with your state to check your requirements.) In California, a certificate good for 90 days must be obtained and given to the buyer. If you fail to get the certificate, the buyer may try to knock $50 to $100 off the deal because of the hassle factor. It's a big hassle, but gather up the service receipts for your vehicle. If you need to retain them for your business records, make photocopies. Hopefully, you have been saving receipts religiously since day one because buyers expect you to have them. For newer cars, buyers want to see that factory recommended servicing took place. For older cars, proof of that new transmission or AC unit will sweeten the deal. Dig up any other manuals and documentation for the car as well. manuals, codes and keys Dig up all manuals and documentation for the car and accessories. Don't forget to include any security codes the buyer might need (i.e., CD stereo PIN#). Find all your keys, especially factory keys with serial numbers. If you have fancy wheels that require a special lug socket, by all means locate it or the new buyer might be stuck with a flat that even AAA can't fix. If you're selling a newer car or truck, the original factory warranty will stay with the vehicle for the life of the warranty, for example 36 months or 36,000 miles. If you purchased an extended service plan, you can typically transfer the plan to the new owner for a fee. Some major repair warranties, for example, AAMCO transmission's 12-month plan, are transferable to the new owner. Check your sales contract for details.
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