Just Sold Your Car? Here’s What to Do Next
A car sale is not complete until you’ve notified the DMV, cancelled your registration, and secured your signed bill of sale. Taking these 5 steps protects you from liability for the vehicle after the sale date.
Post-Sale Checklist
Complete these steps after handing over the keys.
- 1
Keep your signed bill of sale
This is proof you sold the vehicle. If the buyer gets a ticket or is in an accident before they transfer the title, you’ll need the bill of sale to prove the car was sold on the sale date. Keep it for at least 5 years.
- 2
Notify your state DMV of the sale
Most states let you file a “notice of sale” or “release of liability” online. Do this within 5 days of the sale. This removes you from records as the registered owner.
- 3
Cancel or transfer your insurance
Contact your insurer the same day. If you’re buying another car, transfer the coverage. If not, cancel to stop paying premiums. Never cancel before the sale is complete.
- 4
Remove your license plates
In most states, the plates go with you (the seller), not with the car. Remove them before the buyer drives away. Return them to the DMV or transfer them to your next vehicle.
- 5
Report the sale on your taxes if applicable
If you sold the car for more than your original purchase price, you may owe capital gains tax. Most private car sales are at a loss and not taxable. Check with your tax advisor.
- 6
Wait for the buyer to transfer title
The buyer is responsible for title transfer at the DMV. Once they do, you’ll no longer appear in DMV records. Typical deadline: 30 days from sale date. If the buyer delays, your release-of-liability filing protects you.
- 7
Watch for any liens or loans
If you had a loan on the car, confirm the payoff was received and the lien was released before delivering the title to the buyer.
Did you use BillOfSaleNow?
If the sale is done and the bill of sale is signed, this is the moment to leave a review. It helps other sellers find a tool that protects them.