Buying and Selling used cars via private seller

[Danny46]

Alright, so I am in the market for a lightly used vehicle right now and have been scouring Craigslist for private sellers so I can get it a couple grand cheaper than the stealerships. Also will be looking to sell my mustang soon. I have never bought or sold a car via private seller and am curious what exactly goes into it? I've done some reading on it but just want to make sure im not messing something up.

Buying: From what I understand, you need the bill of sale which is any written document and you have 30 days to pay sales tax at the registration office correct? What happens if the guy yanks his old plates off the vehicle, do I have to drive around with no plates till I get mine? What happens if he doesnt have the actual title in hand, how do I go about getting it from the bank or getting it sent to my bank?

Selling: How can I be sure that the person I sell it too actually registers the vehicle in their name and doesnt go rob a bank with it in my name? What is the best way to receive payment? I don't want to send my stang off then figure out the check bounced.

Thanks in advance

[kingjason]

Alright, so I am in the market for a lightly used vehicle right now and have been scouring Craigslist for private sellers so I can get it a couple grand cheaper than the stealerships. Also will be looking to sell my mustang soon. I have never bought or sold a car via private seller and am curious what exactly goes into it? I've done some reading on it but just want to make sure im not messing something up.

Buying: From what I understand, you need the bill of sale which is any written document and you have 30 days to pay sales tax at the registration office correct? What happens if the guy yanks his old plates off the vehicle, do I have to drive around with no plates till I get mine? What happens if he doesnt have the actual title in hand, how do I go about getting it from the bank or getting it sent to my bank?

Selling: How can I be sure that the person I sell it too actually registers the vehicle in their name and doesnt go rob a bank with it in my name? What is the best way to receive payment? I don't want to send my stang off then figure out the check bounced.

Thanks in advance

You do not need a bill of sale. You need a U-130 and the signed title. When you sell yours you are covered if you fill out the form on top of your title (it tears away) and mail it in. I believe you can go do it online also.

If the title is with the bank then deal with his bank directly. If he gets any back they will cut him a check. Never pay the individual and expect him to pay it off and get you the title.

Last is cash only or go to the financial institution he is getting the money from and get the cashiers check from them directly. Usually they want the title in their hands before cutting a check anyways. The only time I bought a car that was weird was through state farm. They cut me a check for the seller and then I actually went and did the paperwork at the tax office. The title still went to them.

[CRASH]

Buying:
1.) Always meet in a safe, well lit area and preferably have backup.
2.) Don't give anyone cash in full unless they A.) have title in hand or B.) can go to the bank with you to pay off the lien against it right then and have the bank sign off on the lien.
3.) Beforehand, go to the tag office and get an Application for Texas Title and take it with you to have the seller fill out and sign any necessary "Seller" areas.
4.) The seller doesn't necessarily have to date it but if they do, you will need to get it registered right away to avoid late fees.
5.) The seller is perfectly within his/her rights to pull the plates and registration sticker off. If they do, get it registered in your name immediately.
6.) Do your homework ahead of time and check the VIN if possible for any title issues, etc.

Selling:
1.) Same as #1 above. BE SAFE !
2.) Buy a $3 counterfeit dollar bill pen to check all of the bills with.
3.) Go to your local DMV and get the Notification of Sale and Release of Liability form. Get as much information as you can from the buyer. Take a picture of their ID with your smart phone if possible.
4.) Pull the license plates and registration sticker off of the vehicle.
5.) Don't take a check unless it is a verifiable cashier's check.

[Danny46]

Thanks guys! I'll definitely be watching my 6 during these transactions. King Jason, where do I send the title too? I thought you generally kept the title?

So if the seller pulls the plates/registration, I just have to bee line it to get plates and a sticker?

[GrayStangGT]

All the forms can be printed off the internet no need to go to the tax office.

http://www.txdmv.gov/component/docman/doc_download/998-130-u-application-for-texas-title?Itemid=232

http://txdmv.gov/reports-and-data/doc_download/954-vtr-346-texas-motor-vehicle-transfer-notification

[kingjason]

Thanks guys! I'll definitely be watching my 6 during these transactions. King Jason, where do I send the title too? I thought you generally kept the title?

So if the seller pulls the plates/registration, I just have to bee line it to get plates and a sticker?

The top of the title I think has a address on it. If that's what you are asking, oh and it tears away from your title. Let me go look I have never really messed with that.

[Frank]

Selling:
1.) Same as #1 above. BE SAFE !
2.) Buy a $3 counterfeit dollar bill pen to check all of the bills with.
3.) Go to your local DMV and get the Notification of Sale and Release of Liability form. Get as much information as you can from the buyer. Take a picture of their ID with your smart phone if possible.
4.) Pull the license plates and registration sticker off of the vehicle.
5.) Don't take a check unless it is a verifiable cashier's check.[/QUOTE]

Is #3 for the Seller not the same as that form on the top of the title you tear off and mail in?

[Lone Star Performance]

Danny, he can keep the plates, most of the time the seller does (and they should). You can request a temporary plate at the DMV, cost is $2. If the title is through a lien holder, meet him at that financial institution. Pay cash and the lien release will be immediate. If they keep the titles on hand at that particular location, they will give you title on the spot.

If the title is to be mailed, the title is always sent to the title holders name and address, which means he will have the title to the car that YOU paid off. Have the Bill of Sale filled out and signed.

Create an Authorization Letter requesting the lien holder to send the title to you instead. Buyer and seller will both sign and have it notarized.

[CyaNide]

When buying also make sure the vin # matches.

CN

[JC316]

When buying also make sure the vin # matches.

CN

This. I almost bought a car that had a VIN typo on the title, tax office said they wouldn't title it.

Oh you can have the seller print out a transit permit if he takes his plates. It's a piece of paper that they print out with your name, address, and destination city on it, if you get pulled over, you show it to the cop.