June 02, 2024
If you want to replace your current vehicle with a new or the latest model, you’ll want to find a buyer for your car. This may be the first time you’re selling a vehicle in Alabama. Here’s what you need to know about how to sell a used car so that you feel confident and prepared.
What You Need to Sell Your Used Car in Alabama
When you’re ready to sell your used car, you’ll need to make sure you have all the necessary documents. You might only need the title to complete the sale. In other situations, you may need a bill of sale. Some Alabama counties require this form, including the state’s largest county, Baldwin County. You must have a clear title showing you as the owner. If you have a loan on the vehicle, you’ll either need to pay off the balance and have the lender send you a new title or have them send a lien release.
If the vehicle title has a space for you to write the current odometer reading, you’ll need to fill it out. If there isn’t a space for this information, you must include a federal odometer statement. While you aren’t required to provide any other documentation, you might want to gather your maintenance records and get a vehicle history report for the buyer. This information can help the buyer see the car’s value, making them more willing to pay your price.
Is a Pre-Sale Inspection Required in Alabama?
Alabama doesn’t require vehicle inspection before you sell it to a private party. However, the buyer may want to have it inspected to ensure it’s in good condition and doesn’t have any major issues. The buyer will pay for the inspection, but you’ll have to agree on where and when to have the inspection performed. Agreeing to an inspection will help the buyer have more faith they’re getting a quality vehicle.
Document the Sale
It’s important to document the sale of a vehicle to a private party. The title will show you’re transferring ownership. However, you may want to include a document that lists the price the buyer is paying and the purchase date. You can create a bill of sale to show who purchased the vehicle and other important information. You can find templates online with various legal sites that will serve as legal contracts. Having this documentation can protect you from any false accusations from the buyer. Keep a copy of the inspection showing where it passed or documentation providing evidence of any repairs you paid for.
Do You Need to Provide a Bill of Sale in Alabama?
There isn’t a statewide requirement for you to have a bill of sale in Alabama. Some counties will require a document showing that the vehicle is sold. Those counties may offer a bill of sale online, such as Baldwin County. In other countries, you may need to create a generic bill of sale document. You would enter the VIN, make, model, and year of the vehicle, along with the purchase date, price, and the buyer and seller information.
Sign the Title Over
Once you’ve received the money for your used vehicle, you’ll need to sign ownership of the car to the buyer. You’ll sign your name as the seller on the vehicle’s title and give it to them so they can get a new title. If you had a loan on the car, you’ll need to pay that off before the lender will send you a free title.
Remove Vehicle Plates
Before you let the new owner drive away in your vehicle, you’ll want to remove your vehicle plates. These plates are registered to you, so you must keep them. You can use them on another vehicle or turn them in to the local motor vehicle license bureau.
Declare Your Car Sold
Once you’ve sold your vehicle, you’ll want to let the Motor Vehicle Division of the Alabama Department of Revenue know that the plates no longer belong to that vehicle. You’ll cancel your insurance or transfer the policy to a new vehicle. If you have the car listed anywhere else, such as for your job or in permit parking, you’ll need to let the appropriate people know you no longer own that model.
Summary: How to Sell a Used Car in Alabama
This information will help you know how to sell a used car and what Alabama law requires. It can help you get the best deal while providing peace of mind for the buyer. If you’re ready to shop for a new vehicle, check out the selection of models available at Bentley Chevrolet. Stop in and talk to our finance team, or take a look at our inventory of new and certified used models online.
