When you sell your car to another person or trade in your vehicle to a car dealership, you have to transfer the car title as part of the process. Even if you have a signed bill of sale for the vehicle proving you have sold the car to someone else, the title is important to get out of your name. Here are reasons why you should transfer the title when you sell a car.
You have to transfer the title legally
In order to sell your car legally, you have to transfer the title so the other party can register the vehicle in their name and prove they have ownership of it. The transferring of the title protects you as the seller: should the vehicle be involved in an accident or other legal issue, the title being out of your name shows the car does not belong to you. The title transfer also protects the buyer as they have proof the car belongs to them if they ever need to show proof of legal ownership.
The selling process is easier
If you have the title in hand to your vehicle, it's easier to sell your car. You can prove to the buyer that you own the vehicle and that the car is not under some kind of payment plan to an auto dealership or to a loan company. At the bottom of your car title, there should be a transfer title release form. You can fill out this form and send it to the DMV of your state; if you are selling your car to someone in another state, refer to a car title transfer company to assist you as legalities for vehicle titles vary from one state to another.
You may have lost your car title, which means you don't have one in hand to transfer. In this case, you can apply for a lost title for the vehicle. The buyer can also do this, but it's best if you do the paperwork so you have the title in hand to sign over to the new owner. If you don't know how to apply for a lost title, refer to the department of motor vehicles of your state or ask your car title transfer company to help locate you a new title so you can complete your vehicle sale. For more information about car title transfer in your state, contact a title company.Share