How to Sell a Car That’s Not in Your Name

We all get pushed into tight situations sometimes. Those situations may have to do with our mortgage, budgeting for living expenses and other plans, or our cars. No matter what it is, all these are legitimate personal finance issues that will require our utmost concern. Sometimes, some of these issues are easily resolved. Other times, not quite so. Nevertheless, what is essential to know is that if you can overcome those challenges, you will be able to get out of them when they finally come quickly.

Of the issues earlier mentioned, a very pressing one is how to sell a car without a title. That is, how to sell a vehicle that is not in your name. Of course, you do not have any required authority to sell a car that is not in your name, at least until you pay back the loan on it. The real owner of any vehicle is the one that holds its lien. And the title of any car you buy with a loan is held in the name of the institution that gives you the loan to buy it. The title of a car is proof of its ownership.

However, your car not having a title does not have to be a headache when you want to sell it. Therefore, the following is all you need to know about how to sell a car that is not in your name.

Consult Your Bank or Lienholder

Call the financial that has your title. If you have not repaid your loan on your car, the car will still be held in the name of the bank, or the institution you took the title loan from. Therefore, you should consult the company about your title loan to be able to sell the car, even if it is not in your name yet.

Importantly, your request should be how to transfer the title from the name of the bank to yours. Usually, to be able to do this, you will have to pay back the vehicle loan in full first.

Get Licensed and Have Your Car Registered

Hopefully, you already have the necessary documents for your car. These documents should stipulate the status of the vehicle and your driving competence. With them, you will be able to sell the car, even if it is not in your name, for cash. 

Additionally, to further ease your task, it will be better for you to go to a salvage yard. There, all you will have to present will be those documents, usually your driver’s license and valid registration of the car. Feel free to ask questions to know if they have more requirements. 

Pay Attention to the State Laws

Vehicle laws vary from state to state. In some states, for example, you can quickly sell a car that is not in your name if the car is old, and you have a bill of sale. Usually, the specified duration of use is 10-15 years. The bill of sale is a compulsory form to tender before you can complete any transaction involving a car.

When you sell your car, the new owner will need the bill of sale to serve as proof of his purchase. 

Consequently, this bill highlights important vehicle details such as:

• Identification number
• Sale price
• Date of sale
• Names and signatures of both the buyer and seller.

The Motor Vehicle Bill of Sale will be drafted by you. It will mark the transfer of your car ownership to the buyer. Once it is made, the car will no longer be in your possession, and its new owner will be protected from any legal trouble. Hence, it would be best if you get this form and fill it. Doing so will increase the prospective trust sellers will have in you, thereby boosting your chances and fast-tracking the process of getting your car sold.

Then, if Your Car is Salvaged

Perhaps, your car is old. Maybe it was recently involved in an accident, and it got very damaged. Whichever it was, the vehicle will be said to require salvaging. This is because the cost to restore it to its previous capabilities and usefulness will most likely be higher than the price it has depreciated to at the stage. 

The good news is: you can still sell your salvaged vehicle. However, you will have to do more work to win the trust of your prospective sellers as they will generally be highly critical of their buy. 

Therefore, it will help a great deal if you can:

• Choose to make necessary repairs to reduce the risks of the buyer. However, you should make sure you are not spending too much.
• Is your vehicle insured? Insurance is a time-tested strategy to guard against unforeseen circumstances (e.g., accident), which might result in damage for your car.

Then, if your salvaged car does not have a title, you can also consider the option of using a junk car medic. Junk car medics, because of their network, find it considerably easy to sell salvaged vehicles. 

If You had Lost Your Title

Ideally, you should carefully safeguard your title. Hence, it would be best if you kept it in a deposit box or a fireproof container. Also, make photocopies and keep them safe, and always keep them with you. This will make replacement easier whenever it gets lost.

Still, in any case of a lost title, you should check with the Department of Motor Vehicles (DMV) Office for your state to file for your lost title and ask for a duplicate one.

Conclusion

There are chances that you will eventually lose your car’s title. However, selling a car without a title is difficult, but not impossible. And if you pay attention to the points we addressed, it should be relatively easy.