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Used Cars for Sale and the Bill of Sale

By Hanna Nilson



By selling your car privately itís possible to incur a decent return on your investment. However, be prepared to take on the responsibility of handling all the legitimacy factors. This means extra paperwork!

The Bill of Sale, otherwise known as a Vehicle Transfer form (not to be confused with the Title Transfer form), for your car selling transaction is one of the most essential elements to the selling process. Managing cars for sale can take some extra amount of time and effort. However, if all of your paperwork, especially the Bill of Sale, is handled with care and proficiency, it could save you a lot of trouble in the future. If this is your first time selling a car privately, you may want to consider the following guidelines in addition to some extra research.

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As it is with any large investment, always be sure all bases are covered. By initiating the car selling task, is becomes the sellerís job to be prepared to handle the worst case scenario. By making copies of the signed car Bill of Sale, for both the buyer and the seller of your used car, you can ensure a smooth and secure selling transaction.

Car Bill of Sale: The Bill of Sale is essentially a written agreement between the car buyer and the car seller. In some states, the back of the car Title serves as the Bill of Sale, with pre-printed boxes to fill in the information. In any case, the bill of sale should include your name, the buyerís name, the vehicle identification number, year, mileage, make and model of the car. The Bill of Sale may also contain options for further details about the car selling transaction, such as the date, location, and amount paid. Itís good to know that cars for sale by a private owner are usually bought with cash, certified check, or a promissory note. Try to stay away from personal checks! Also, be sure to list somewhere that the car is being sold ďas isĒ to avoid potential liability problems.

As mentioned above, itís always good practice to keep extra copies of the car Bill of Sale. However, you might want to keep a copy of your Bill of Sale for tax purposes as well. By consulting with a tax advisor about how the sale affects your tax situation, you might be able to save some money on top of the paid amount for your used car.  

A Bill of Sale or Vehicle Transfer form is available either online or at your local DMV location. As long as all the terms between the seller and the buyer are written down and signed by both parties, it will protect certain rights in case of a misunderstanding, argument or even lawsuit. It is important to have the Bill of Sale when selling a car because if the seller is ever sued for Breaching an Oral Agreement, the written contract will serve as evidence for the case.

Cars for sale by private owners can be intimidating for some. Yet, as long as youíre careful about staying organized and on top of the selling operation, you should be successful in turning your used car into a significant cash return. Good luck!


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