Selling car by owner, then buying a car by owner

beachmamapropertiesMarch 7, 2006

hello, i have always traded in my cars, so selling on my own for the first time and I want to make sure that I do it correctly and that I handle the tags, title and registration correctly.

On Sunday, I found a 2000 V8 Toyota Tundra Extra Cab truck w/84000 miles that i want to purchase BY OWNER from my neighbor. We agreed on $8500 as the price (according to Edmunds that is a good deal). I told him that I need to sell my car first, so Monday, I put my 1998 Honda Odyssey on Craigslist.org for $4700 (after checking Edmunds.com appraisals & TMV for pricing help) and that same day I took a deposit and I got my asking price and the buyers are coming to pick it up with cash on Saturday. I have the title and all the service records, books, keys, etc.

Now how do I do this? do I type up a sales contract or agreement? what should it say. The vehicle is beyond warranty @ 132,000 miles.

I want to say all sales final.

Does the buyer have to have insurance BEFORE they pick it up?

Do they have to take my license plate? I just got my 2007 tabs in January. I plan on placing the plate on the new truck.

Do i give the buyer a receipt for the payment (we agreed cash)?

how do I fill out the title information on the Title or do I have to do that at the county offices in front of somebody?

I also need to know how to buy the truck from my neighbor correctly, so this should help my buyer and also me as a buyer. I previously bought his house, now I am buying his truck!

I live in Florida, hope that helps. thanks for any help you can give me for buying and selling by owner

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beachmamaproperties

oh yeah, taxes? how are those handled? thanks

    Bookmark   March 7, 2006 at 10:27AM
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earthworm

Here in PA we have the notary publics(another expense)
Also the AAA; but the think the local friendly NP is far better usually - they handle thousands of transactions, so they actually run the show.
Simply ask exactly what paperwork is required; this varies from state to state.
And our Motor Vehicle is very, very helpful- one of our nations best, IMO..

Private sales are "as is" -strictly, and or course cash only, most of the time.

So prior to the transaction, one should use his local mechanic to check out the vehicle.

Both parties must be absolutely honest and totally open with communications - this is vital..
When this is absent, it is time to run, not walk away.

    Bookmark   March 7, 2006 at 11:21AM
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jemdandy

Be sure that you get a statment from the buyer of your vehicle to the effect that he did in fact purchase this vehicle. This statment has to be signed by the purchaser if it to have any value. Include the date of purchase, vehicle description, vin number, saying it was purchased "as is". This form should be made up beforehand and be ready at the time of sale. It could have two signatures at the bottom: Buyer:______________ and
Seller:____________________
Date: _____________________

The reason for this note is protection for both the seller and buyer. It provides the buyer with document stating that you did agree to sell this vehicle to him, and it provides you with a document stating that the vehicle was actually bought by another person, and that you are no longer responsible for it. This last part is the important part (and I had an experience where this came in handy).

Here's what can happen. The buyer pays you money for the car and drives off, BUT fails to follow through on his end to get it registered to him. As far as the state knows, its still your car. Any parking tickets, etc. will find their way back to you! If the car is envolved in an accident or felony, it get traced back to you. That little piece of paper can save you a peck of trouble.

About your auto insurance:

Confer with your insurance agent about questions.

Inform your insurance agent immediately after the sale of your vehicle. Usually, you can get your policy rewritten to cover the vehicle that you are buying (with fee adjustments). Your agent can inform you about coverages during a vehicle swap. For examle, my policy has a few days grace period that covers a vehicle that I might purchase. The coverage on my prior car ends when I inform my agent that it has been sold.

    Bookmark   March 10, 2006 at 9:02PM
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kathyjane

Above all, make sure you, the seller, and the buyer sign on the correct lines on the title and that date, price and correct odometer reading boxes are filled in.

Once all signatures are in place, make a copy of title to keep for your records.
Do not let the buyer use your tags. The vehicle is now his responsibility and he is liable for it.

Call your DMV and let them know the vehicle has been sold, otherwise, you'll still be charged personal property taxes on it. (Might be different in Fla., than in Va.)

(Check and make sure he gets any extra keys and remote with it!)
Good luck!

    Bookmark   March 10, 2006 at 10:03PM
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irishyankee

I believe in Pa. they have a lemon law up to so many days after the purchase to protect the buyer.30 days I believe it is.

    Bookmark   March 10, 2006 at 11:19PM
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beachmamaproperties

successful sale. i kept my tag and registration. i cancelled the insurance the next day. I have a bill of sale and I signed the title and got the cash, all done.

now the seller of my truck, well he changed his mind, so I am looking around for another one. the tag office here told me I have a couple of weeks before I have to turn in the tag if I don't find a new vehicle to put it on.

thanks for your help!

    Bookmark   March 15, 2006 at 8:52PM
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bill_h

here in mich. its easy, sign the back of the title, hand it and the keys to the buyer. sale over. the buyer then gets the title put in his name sometimes or resells it and jumps the title, or drives around and gets a parking ticket in your name. plus it seems everyone in the detroit area is a curbside car dealer. so for that reason unless i know the person iam buying or selling to, i trade in and buy from a dealer. now if your state has tighter rules than mi. go for it. but here i dont recomend it.

    Bookmark   March 16, 2006 at 1:38AM
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Meghane

What do you do to make sure the buyer of your vehicle doesn't bounce a check or have a fake money order or something equally horrible that screws you out of money and car?

I am selling my Wrangler, but have no idea how to make sure that once I have form of payment in hand, and hand over keys, that my form of payment is valid. Do you go with purchaser to their bank and confirm their account has sufficient funds? Go with them to a legit place to get a money order? How do you do it?

I wouldn't bother, but the place I bought my new used vehicle offered about 50% of what I can sell it for outright. While selling myself is a PITA, I don't think it's worth $2000 for the convenience of them selling it for me!

    Bookmark   June 2, 2008 at 8:31PM
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mxyplx

Cash maybe?

I always tell em, "I ain't in the banking business, cash money long green under the table over the table write it up any way you want don't matter long as its cash."

    Bookmark   June 3, 2008 at 10:16AM
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Meghane

Well, that would work. I keep forgetting money comes in cash form LOL!

Is meeting the person at my bank during banking hours the best idea? I want to avoid carrying around that kind of money for any period of time. And I don't want anyone to think that I have a lot of cash at my home either. I figure the bank is a nice public place, with security cameras, can get the money, hand over title and keys, and get money into my account immediately. I know most people probably don't worry so much about it, but most people don't live in Durham either.

    Bookmark   June 5, 2008 at 2:28PM
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ericstac

I'm in Texas, a few years back when I sold my 73 vette ($9500.00) to this guy about 200 miles away. About six months later I get a call from the DPS at midnight saying they found my car ditched on a side road off the highway and wanted to know if I wanted it towed to my house or a particular shop or if I was coming to get it. I thought about for a few minutes but then decided that would be wrong...

    Bookmark   June 17, 2008 at 8:47AM
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ky114

Funny stories about different transactions. Bill_h, I'm glad to read that in the Motor City, it's somewhat of a free-for-all. It just seems appropriate, being the home of the U.S. auto industry.

One thing that can work well for selling a car -- if you're replacing it with a new or used car from a dealer -- is what dealers around here call a "courtesy trade." You and the buyer of your car agree on a price as usual, then you and your buyer go together to the dealer where you're buying your new car. The dealer shows your old car on the sales documents as a trade, with the value being the price the buyer is going to pay for it. This saves you on sales tax in many states. The buyer then purchases the car from the dealer for that price.

I know of many dealers who will do this for free, as a service to the person buying the car from them. A few charge the buyer a standard "paperwork" fee. They're willing to do it even though they make no money on the sale of the trade because it can help you buy the new car, since the buyer is presumably giving you more for it than the dealer would have.

    Bookmark   June 19, 2008 at 1:46AM
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Meghane

Well, I posted the Jeep on craiglist and literally 10 minutes later a guy called and said he'd bring cash from Atlanta tomorrow. We went to the bank and he gave us the money in cash, we signed over the title and had it notarized, and he trailered the jeep away. Not only that, but we got $2000 more than what CarMax offered. Probably could have gotten more- 6 more phone calls and 2 emails came within the next 12 hours until we took the ad down.

    Bookmark   June 19, 2008 at 8:47PM
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