Mike Smith Nissan

Buyer and Seller Beware in Every Used Car Transaction

Whether you just sold your used vehicle or bought a used one, you need to make certain that we do all of the right things to protect yourself and not run into any drama down the road. It's a little more than just simply filing all the necessary paperwork and closing the deal. At Mike Smith Nissan, we have seen people that don't do the proper things in Beaumont, TX when purchasing or selling a used car, so here are some hopefully helpful tips to do it right and save yourself a whole lot of trouble.

While the laws concerning the sale of motor vehicles differ from state to state, the general approach is similar all over the U.S. For a series of specific steps, make certain that you always check with the Department of Motor Vehicles (DMV) in your particular state.

As the seller of a used vehicle, you will have to to make sure that you receive the correct payment and limit your liability as well. Here are some tips about the sales transaction from both the seller and the buyer's side.

As the purhaser, you will have to prove that you are the new legal owner of the vehicle in order to register it. In most instances, this means that you will have to get the title (aka"pink slip") from the seller. With the car's title in hand, go to your state's Department of Motor Vehicles, where you may be required to pay sales tax before you will receive the new registration, title and (in many states) brand new license plates.

Getting Payment

Cold, hard cash is the easiest way to collect payment for a used vehicle, but always make sure you get a receipt. When cars are sold for amounts above roughly $2,000, a cashier's check is always recommended to create a record and for safety reasons. Walking around with a wad of cash is cool, but it also invites trouble. When cars are being bought and sold remotely, an escrow service can be utilized to facilitate the transaction. The escrow service basically verifies that the funds are paid and then transfers them from the buyer to the seller safely and seamlessly.

Limiting Your Liability

What if someone drives away in the vehicle you just sold and gets into an accident 10 minutes later? Can you be held responsible for that accident? There are two different ways to deal with this scenario before it happens. First: Record the odometer reading and sign the car's title over to the buyer. Second: In most states, a release-of-liability form can be downloaded from the DMV website.

Be Wary of Fraud

Buyers need to be particularly cautious when buying a car sight unseen from an online auction. That process is more complicated and you could be the target of scammers.

Sources: Wikipedia, Road and Driver and AAA