How to Sell Your Car if the Title is Not in Your Name
Whether you've decided to trade in your car for a new or used one, some moving parts may cause a snag. A common concern is whether you can sell a vehicle if the title is not in your name. A title is the proof of ownership and it ties the car to the name of the seller. If you try to sell a car without a title in your name, you just don't have the authority to sell it. You may also face fines and some jail time. And, you may even still be legally responsible for the car.
Transferring Your Car's Ownership
The process for transferring ownership is like buying a car. Both parties must sign and date the title, provide odometer disclosure, apply for a new title and pay the transfer fees. Typically, a title transfer fee is $95. Even if you're selling your car to a family member, this must be done. And, if the buyer wants to keep the same plates, a permission letter is required from the family member. Depending on the state you live in, you can do a title transfer either online or in-person at the DMV office.
Every state has its own requirements for doing a transfer title, but typically the following is required:
- Completed application for Certificate of Title
- Title Transfer fees
- Damage disclosure
- Current odometer reading
- Bill of Sale
- Smog check
Once you've got the car sold, it's easy to transfer car ownership. Just make sure that you have all the required documentation. The DMV agent will take your title transfer fee and then run a title check to verify all the information. After that, you'll be given a new title with your legal name on it.
If You Are Still Paying Off the Car
Most buyers won't buy a car unless there's a clear title on it. If you still owe money on the car, you won't have a clear title. As your lender what needs to be done to eliminate the loan and sell the car. Be sure to also inquire about any prepayment penalties and the approximate time for sending the title. Another option is to sell the car to an online or offline car-buying service. This way, you can let them handle all the paperwork behind the scenes. Be sure to read our detailed blog post on selling financed and leased cars.
If You Inherited Your Car from Its Deceased Owner
If you inherit a car from a deceased owner, you can transfer the title of ownership to yourself. The laws regarding this differ in each state, but you'll likely need a copy of the deceased person's death certificate, the title of the car, hold-harm agreement, letters of administration, and transfer fees.
If you are selling your car to a car-buying service, make sure to give them a call before you transfer the title yourself. Some of the companies may be able to buy the car off from you if you can prove ownership of the car.
