How do you sell a car privately in Texas (sales, insurance)

[ChocolateBabz]

We moved here from the UK almost 5 years ago and bought 2 new cars just after we moved. In the not too distant future we will want to change our cars. Now if we go to a dealer they will help us sort out all the paperwork but what if we want to sell privately? Let's say we get an offer for our car. Apart from checking that the cash is not counterfeit or that the cheque is good what paperwork do we have to file and with who to transfer ownership?

On a separate note in the movies when the police say 'license and registration' what exactly are they looking for as proof of registration. I got pulled over once and the officer asked for 'license and insurance'.

[Johnhw2]

Originally Posted by ChocolateBabz

We moved here from the UK almost 5 years ago and bought 2 new cars just after we moved. In the not too distant future we will want to change our cars. Now if we go to a dealer they will help us sort out all the paperwork but what if we want to sell privately? Let's say we get an offer for our car. Apart from checking that the cash is not counterfeit or that the cheque is good what paperwork do we have to file and with who to transfer ownership?

On a separate note in the movies when the police say 'license and registration' what exactly are they looking for as proof of registration. I got pulled over once and the officer asked for 'license and insurance'.

Registration sticker if on your front window in Tx next to the inspection sticker. It shows if its current or not without yous showing it.

One financial impact to consider when changing cars is if you trade in a car on a newer or different one, the value of the trade in reduces the sales tax on the transaction, which can be around 6% of the value of the car sold. I havent done the paperwork on my own sale for the reason cited. I suspect you could go to the DMV web site and find the documents needed by the state for a direct sell by you, you might find a sample auto sales contract online as well if you are convinced you want a separate sell transaction. Used cars are in pretty high demand now and less so for new cars so you might get a good price for th new one and for your tradein considering the 6% sales tax savings on its price too.

[glorplaxy]

You can sell it somewhere like Craigslist. Just hand.over the title and make a bill of sale, collect your money and then the buyer will handle the business of going to the dmv and chamging the title into his name, which incurs a tax.

[ChocolateBabz]

Thanks guys. Interesting, so I don't actually inform anyone that I have sold the car? What if the buyer doesn't 'do his bit' and then get's in an accident. If the car was still registered to me wouldn't that cause problems?

[trbstang]

There are a couple of forms you can fill out to complete the vehicle sale more efficiently. As posted by a friend on one of my car websites:

you need to fill out 130-U Application for Texas Certificate of Title or the buyer cannot get a title in their name (very important) without a lot of work or funny business
I would also strongly recommend filling out form VTR-346 Texas Motor Vehicle Transfer Notification
I would recommend getting a bill of sale detailing the date and the person buying the car.
Notify your insurance company and provide them documentation. You're potentially liable as long as the car is in your name. The VTR346 and bill of sale are your defense if the the person buying it from you totals a daycare bus and kills all the toddlers while it is in your name.

You can use this webpage to tell the DMV that you no longer own a vehicle, therefore resolving you of responsibility for tickets, tolls, etc.:

https://vision21.txdmv.gov/Vehicle/M...ification.aspx


And this webpage has the vehicle transfer forms to apply for a new title. It makes it easier for the new owner to get his paperwork done if you fill out and sign the seller's part of the 130-U form, but it looks like the website is down or something.

Vehicle Titles and Registration Forms

Also, the license plates are YOURS to keep. They do not go with the car unless you want to let the new owner have them, and thus give them more time to actually transfer the title. You can put the old plates on your new car if it is the same kind of vehicle and it you still have a decent amount of time left until the renewal date for $5. Also scrape off the windshield registration sticker.

Frequently Asked Questions:

http://www.txdmv.gov/vehicles/titles/faq.htm

[texas7]

Originally Posted by glorplaxy

You can sell it somewhere like Craigslist. Just hand.over the title and make a bill of sale, collect your money and then the buyer will handle the business of going to the dmv and chamging the title into his name, which incurs a tax.

Yeah I never just hand over the title with a bill of sale. I make them go with me to the registration office to hand over the title (and of course give some absurdly low sales cost to the office to save them tax money) so that I know it was transferred out of my name. If they don't bother to change the title to their own name - which they often don't -- if that car is in an accident or a crime, they come knocking on your door. While that can be cleared up - it is a real hassle after the fact. I know because it has happen to two friends over the past five years - one, the sold car was used in a crime (police didn't specify type) and two was in a hit and run auto accident.

[ChocolateBabz]

Thank you, that's all a lot clearer now.

[baytownb]

you have to protect yourself on the sale, if you just sign the title over I guarantee they will wait a long time before they transfer the title. You can either take the plates off and keep them, they are yours, or you can fill out the form from TXDOT that says you sold it and to who and you are no longer liable. If you don't do that expect to get notices in the mail for toll road violations, red light cameras, towing bills or worse, a police investigation if the car was used in a crime.

[trbstang]

Originally Posted by texas7

I make them go with me to the registration office to hand over the title (and of course give some absurdly low sales cost to the office to save them tax money)

Can't do that anymore. Unless it is a gift, the tax department uses the Standard Presumptive Value to determine the taxes, unless the buyer paid more for it.

Standard Presumptive Value

[texas7]

Last time I sold my car, I just took my plates off which forced the new owner to go get it registered in his name. If they want to go to the tax office with me then I let them keep the plates.