Selling a used car laws affect the seller but protect the buyer in almost every transaction. Read on to find basic tips for selling a used car, but keep in mind that used car selling laws can vary from state to state.
Are you getting ready to put your old car up for sale? If so, this article will provide you with the necessary steps to do so while also following the laws required to complete the sale. Basic selling a used car laws will protect not only the seller but also the buyer in the transaction, especially the lemon laws. Car owners have plenty of options when it comes to selling and these include trading the vehicle into a dealership when purchasing a new one, listing the vehicle on the Internet, offering it for sale in automotive magazines, placing ads in local supermarkets or putting a 'For Sale' sign on the vehicle and parking it in a high traffic area.
Laws Vary by State
It all depends on the state where you live when it comes to selling your used car. Some states require the seller to provide the buyer with a valid registration during the transaction while other states will make this completely optional. To determine what the law is for your state, visit your local DMV office for vehicle registration laws when selling a used car.
Signing Car Title
Some states require that the car title be signed, on the back, by both the seller and the buyer in front of a notary public. Even further, some states may require that the whole process be restarted if mistakes are made when filling out the back of the title. With that being said, be extra careful when filling out the title.
Curbstoning Is Illegal in Some States
The majority of states in this country have laws making curbstoning illegal. Curbstoning is a practice performed by private owners of used cars who sell a large amount of used cars without a dealer's license. They park the used car with a 'For Sale' sign on the vehicle away from their home or from businesses. This practice is performed so that sellers are more difficult to track down after a sale should something be wrong with the vehicle.
Acquire a Dealer License
Should you find it fun and interesting to sell many used car per year, you should check with your state's Dealer Licensing Bureau. Each state has different laws on how many used vehicles you can sell per year before you are required to obtain a dealer license. If you are selling many cars per year without the required dealer license, you could be hit with stiff penalties. If you're unsure where to find your state's Dealer Licensing Bureau, call any DMV office and ask.
Bill of Sale
Almost all 50 states in the country require the seller of a used car provide the buyer with a receipt, or a bill of sale for the transaction. The seller and the buyer should keep this receipt in their records in the event that the DMV, the IRS, or any other government agency wishes to examine the sale at a further date. The IRS might need to see a receipt for the sale in the event of an audit.
When selling a used car, laws for you state may vary. If you follow these basic tips, however, the process should go smoothly.
