CHAPTER 8 PAPERWORK
The paperwork varies from state to state so it is impossible to cover it extensively here. In general you should check with your local Department of Motor Vehicles or similar organization for the requirements. This is the general procedure below.
Transfer the ownership
You will need to fill out a form that transfers the ownership to the buyer. You will fill out such things as the date, your name, his name and address and the odometer reading.
Do not do this until you have received payment and all funds are cleared!
You will then need to send a form to the DMV stating that you have sold the car. This is important because you do not want to be collecting parking fines from a car you do not own.
Write out a receipt
You should write out a receipt for the money received and make 2 copies Ė both signed by the buyer and yourself. The purpose of this is to cover you in the event of any legal disputes. Keep a copy of the receipt in your important documents.
Your receipt should have on it: the date, the vehicle registration number (plate number), the amount you sold it for, the make and model of the vehicle as a minimum. If you want to add more detail you can as appropriate.
Writing a receipt makes things more professional and also helps the buyer feel good as well because you are willing to acknowledge the transaction in writing.
Cars under finance
If your car is under finance, you should check with the financial institution on how to go about transferring the ownership details. Each will have its own procedure
Car Financing Tip
Donít leave the financing of your next car until itís too late. Apply while you are selling your current car. You will then have everything ready to go so you have more negotiating power for your next vehicle.
If your car is already under finance then you should consider refinancing at a better rate.
One company I know of - e-loans -has some of the best deals in the business.
To check out their deals click here Ė ELOANS
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