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How to Sell an Old Car Without Ownership: 8 Steps (with Pictures)

There are many common misconceptions about used car names. Generally, people assume that they must have a name if they want to sell it. (Some might even wonder if it’s okay to sell an old car without title.) While it’s true that lack of ownership can be a wake-up call for many buyers, there’s often a perfectly logical explanation for why it’s missing. Perhaps someone left the car on the current owner’s property, or the original ownership was lost or stolen.

In many cases, trying to sell a car without a document is illegal. However, as long as the reason for the lack of ownership is legal, you can still sell your car.

What is a title and why is it important?

The title deed, or pink slip, is a legal document proving ownership of a vehicle. The Department of Motor Vehicles (DMV) is responsible for issuing documents to car owners, while issuing documents to new car buyers is the responsibility of the seller.

There are four types of car names:

  • Clean title: the car has never been involved in an accident that ended with the insurance company declaring the car completely lost.
  • Clear ownership: the vehicle is in free and clean ownership, without any debts.
  • The right to disposal: the car was in an accident in which the insurance company recognized it as completely lost.
  • Restored or recreated title: The vehicle was once salvaged but has been rebuilt and is roadworthy again.

Each title contains information such as the make and model of the vehicle, vehicle identification number (VIN), color, mileage, license plate, as well as the owner’s name and current address.

There is also another type of title called a “linked” title. If you bought a freehold car and are trying to sell it, a lien will let the buyer know that the title is marked “lost lien”. This type of title protects both you and previous owners if questions arise about the legality of vehicle ownership.

Usually the dealership will tell you the name of the car when you buy it. However, if you are selling a used car, you must provide the buyer with proof of ownership. Providing a title proves that the vehicle has not been stolen and that you have the right to sell it.

In most states, buyers require a title deed to complete the transfer of ownership. The title deed establishes the buyer as the new owner with transfer of ownership.

What to do if you have never registered a car?

If your vehicle has never been titled, you will need to have the original sales documentation on hand. What kind of documentation you will need varies from state to state. Some states require additional proof of ownership.

Cars that are 15 years old or older are exempt from title. All that is required is a bill of sale.

What if you want to sell a car with a name from another state?

In some states, you need more than a bill of sale to prove ownership. You should always check with your local DMV to make sure you are following the proper procedures. You may also be required to provide a notice of sale, which will act as a receipt for the transaction.

Sometimes you may need more than a transaction receipt to prove ownership, but it will be useful for the licensing and registration process.

What are the sale options?

There are several options for selling when trying to sell a car without a title.

  1. Private buyer
  2. Dump
  3. Local dealers (restrictions may apply)
  4. Salvage merchants

Step 1: Request a name change

If the vehicle title is damaged, lost or stolen, you can contact your local DMV and request a new one.

The DMV website will also have information on how much it will cost to replace a title. If you have a title and any information has changed, you need to replace it.

If you own your vehicle free and clean, you only need to contact the DMV for a replacement title. However, if you are still paying the lender for the car, you will need to contact them for a copy.

You must also consider processing times when applying for a replacement title. Depending on your state, you may be able to get an electronic copy of your name and print it out right away. However, some states still use the traditional mail header method and may take weeks to process. Some states also require possession of the title within 30 days before selling a vehicle.

Step Two: Explore Local Exceptions or Other Ownership Options

Some states offer alternative ways to claim ownership of a vehicle if it is abandoned. In some places, you can file a mechanic’s lien for any unpaid service bills stacked against the vehicle.

You also have the option to apply for an abandoned car title. The state will use the vehicle’s VIN and attempt to contact the previous owner of the vehicle and grant him the right of first refusal.

The applicant may claim ownership or sell the vehicle if the owner does not respond within a certain period of time.

Some states will not give ownership of a car older than 15 years. Instead, they may offer a bill of sale form that allows the new owner to register the vehicle. Online templates are available if your state does not have a bill of sale form.

You can also arrange for a transfer of ownership. If you decide to go this route, you must apply for a title and pass a legal vehicle check.

Step three: notarize the bill of sale

It is also advisable to certify the contract of sale with a notary. Notarization of the invoice will give the new buyer the confidence that the information provided about the vehicle is legal.

Step Four: Explore Alternative Selling Options

Sometimes selling a used car to another person is not possible. If you come to that conclusion, you can always try to sell it as a salvage vehicle. Car services can buy a car from you if you provide documents confirming ownership.

Selling at a junkyard means bypassing the photos and online ads you would have to make to sell a car somewhere like Facebook Marketplace or Craigslist.

Keep in mind that if you want to sell your car in a junkyard, it cannot have a lien; You must pay off the car in full.

There are also people who buy and resell cars for profit as a side job similar to reselling houses. They are often much more accommodating than regular buyers of legal issues or damages.

Should you sell your car in a junkyard?

Old cars or cars with noticeable damage usually don’t sell for a lot of money, but if you decide to sell them in a junkyard, you can earn more than if you tried to sell them to a private individual.

In fact, you can expect to get anywhere from $250 to $500 for a wrecked car. The cost of a car depends on several factors:

  • Vehicle location (this applies if the vehicle needs to be towed)
  • If there is any significant damage to the vehicle due to flood, fire or major accident
  • Whether or not the vehicle is missing any critical components such as transmission, catalytic converter or engine.
  • Year, make and model of car

To maximize your car’s profits, consider selling some of the parts yourself before selling the car at a junkyard. Selling just five or six parts for $100 each can make you more money than selling the whole car.

Step Five: Be honest with potential buyers

If you are unable to obtain ownership of the vehicle, which can happen with older project vehicles, be upfront and honest with any potential buyers that you cannot provide proper documentation.

If the buyer is willing to take over the payments for your car, you can make a deal with your lender and get them to vacate the title and transfer the loan.

Step Six: Keep copies of all documentation

Even after you have sold your vehicle, keep copies of all documentation you provided with the sale. The new owner may decide not to give ownership of the car, in which case you want to protect yourself from any liability that might fall on you if something goes wrong with the car.

Also, if the car is abandoned, lost or stolen in the future and someone contacts you about it, you will have all the documentation to provide to the requester.

Step Seven: Be sure to notify your sale status

Once you’ve sold your car, you need to make sure the state it’s registered in knows you sold it. Once you sign the bill of sale, you must notify the DMV.

Notifying you of the status of the sale will help you avoid unexpected taxes or fees down the road.

Step Eight: Register your vehicle in Vermont

Vehicles over 15 years old can be registered in Vermont without title. If you provide the state with the bill of sale and all the fees required to register the vehicle, you will be able to register it there.

Vermont only requires registration as proof of ownership of a vehicle over 15 years old, so documentation will be considered proof of ownership in the other 49 states. The bill of sale does not require notarization and can be typed or handwritten.

You only need the details of the buyer and seller, the date and price of the purchase, and the VIN. Keep in mind that this process only applies to vehicles over 15 years old. If you have a newer machine, this process will fail.

Selling Your Unwanted Freehold Vehicle Doesn’t Have to Be Complicated

While there are many things to consider when selling your old car, it’s often easier than people realize, even if you don’t have title. By following a few simple steps, you can often rehabilitate your title.

As a last resort, as long as you can prove ownership, local junkyards are constantly running advertisements for junk cars, whether on billboards or in Google search results. Selling to them allows you to make a few hundred dollars off a worthless car, which is a pretty good deal after all.

This article originally appeared on Geek Wealth.



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