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Buying & Selling a Vehicle
From the first test drive to the signed-over title — what to check, what to pay, and the paperwork that makes it official.
Every vehicle sale comes down to three things: the signed-over title, a bill of sale, and the DMV filings that follow — title transfer and registration for the buyer, a release of liability for the seller. Buyers should add a vehicle history report and an independent inspection before paying; sellers should file the notice of transfer the same day the car changes hands.
The handshake is easy. The title is the deal.Money and keys can change hands in a minute — but until the title transfers and the DMV knows, the old owner is still on the hook. We’ll walk you through both sides of the sale, step by step.
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Every step of the deal
Buying a Used CarInspections, history checks, and private-sale paperwork.Buying a New CarResearch, negotiation, and what to sign at the dealership.Selling Your CarTitle, bill of sale, release of liability — done right.Tax & Tags CalculatorEstimate the real out-the-door cost in your state.Auto LoansFinancing basics before you talk to a dealer.Auto WarrantiesFactory vs. extended — what’s actually covered.Leasing a CarHow leases work and when they beat buying.State RegulationsLemon laws, sales tax, and title rules by state.
Frequently asked questions
What paperwork do I need to sell my car?
At minimum: the signed-over title, a bill of sale, and an odometer disclosure (federal for vehicles under 20 model years old, built into most titles). Many states also want a release of liability or notice of transfer filed right after the sale — that's what protects you from the buyer's parking tickets and accidents. If there's a loan on the car, the lienholder has to release the title first.
Should I buy from a dealer or a private seller?
Private sellers usually price lower, but you buy as-is with no recourse. Dealers cost more but handle the title, registration, and taxes for you, and used cars may carry warranty protections your state's lemon law or the FTC Used Car Rule provides. Either way: get a vehicle history report and an independent mechanic's inspection before money changes hands.
How is sales tax handled on a car sale?
In most states you pay sales or use tax when you register and title the vehicle, based on the purchase price or the vehicle's book value — whichever the state trusts more. Private-party sales are taxed in most states too, so budget beyond the sticker. A handful of states charge no vehicle sales tax at all. Our Tax & Tags Calculator estimates the full out-the-door cost for your state.
Can I sell a car that still has a loan on it?
Yes, but the lender holds the title until the loan is paid. The clean routes: pay it off first, sell at a dealership that handles the payoff, or close the sale at the lender's office so the buyer sees the lien released. Never hand over the car on a promise the title 'will come later' — and as a buyer, never accept one.
