Selling a car?

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Sylvus
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Selling a car?

Post by Sylvus »

So I'm just toying with the idea right now, but I was wondering what you need to know in order to sell your car as a private seller?

Suppose I put it up on AutoTrader (or whatever), and someone agrees to buy it. What then? Do I have to pay taxes on money I receive? Does the person have to pay Sales Tax? What if I still owe some money on my auto loan, I'd guess the bank has some sort of a lien on it, how does that come into play (do I have to pay off the loan first, or can I use money from the sale to pay that off?)

I've never done anything other than just trade cars in, but I think I've kept my Mountaineer in pretty good shape and I was thinking about seeing if I could sell it and just try to get into a little bit lower payment/better gas mileage than I currently have. Ultimately, I'd just drive it into the ground if no one bought it, so I figure it couldn't hurt to list it for sale.
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Aabidano
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Re: Selling a car?

Post by Aabidano »

>>Do I have to pay taxes on money I receive
Depends on the area and the amount, in theory, sometimes. In reality not that I've ever seen for a regular car.

>>Does the person have to pay Sales Tax?
They pay that when they go to register it. You pay the dealer to take care of it when you buy from them.

>>What if I still owe some money on my auto loan, I'd guess the bank has some sort of a lien on it, how does that come >>into play (do I have to pay off the loan first, or can I use money from the sale to pay that off?)

You and the purchaser can go to the banks' business office, he pays you, you pay them the difference, he gets the title all at one shot. You're still liable if the cashiers check bounces, you can call the issuer with the check # to validate it prior to accepting it. Or you can pay it off the day before by whatever means and cross your fingers that the sale goes through if you borrowed short term to pay it off. Some banks have other arrangements, ask and see what they'll do.
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