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How To Sell A Car To A Friend? Handle The Transaction Without Any Hassle!

How To Sell A Car To A Friend

If you're looking for how to sell a car to a friend, here's a step-by-step process to help you go through the transaction without any hassle:

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  • Step #1: determine the sale price
  • Step #2: prepare the car for sale
  • Step #3: make a sale agreement
  • Step #4: transfer the title and registration
  • Step #5: make the payment

Selling a car to a friend can be one of the most convenient ways of getting rid of your car while getting mutual benefits. However, people who sell their vehicles to their friends often need help with their paperwork and handling the transaction properly without any consequences. Many of them reach out to us, wondering how to sell a car to a friend.

The great news is that our expert team put together a list of step-by-step processes to help you go through the process without any complications. We still recommend that you review your local DMV website regulations to understand better what's required in your state. Thus, the purpose of this article is to provide you with an overview of How to sell a car to a friend from a general perspective.

How to sell a car to a friend? 5 simple steps

Selling a car to a friend is not complicated; although it sounds like much work, it's very straightforward. All you need to do is to follow these simple three steps:

–          Step #1: determine the sale price

The first and most critical step in selling a car to a friend is understanding your vehicle's current value. Sometimes you might not have a good understanding of the current value of your vehicle in the fair used car market.


Sometimes many of us might overestimate the vehicle's value just because we think it's still worth the value we paid when we purchased that. On the other hand, many people feel the vehicle is worthless because it has a problem with the engine or the transmission. Lastly, some people feel just uncomfortable deciding on a price for their vehicle, especially since they're trying to sell it to a friend.

While it can be uncomfortable to decide on the car as price when talking to a friend, having the right proof from a tool that could help you evaluate your car should make the conversation much easier and more comfortable.

I don't want experts to suggest getting a sense of your vehicle value through one of the following:

Online tools like Kelley Blue Book

One way to get a sense of your vehicle's current value is through online tools like Kelley Blue Book. This tool can provide you with a minimum and maximum price for your vehicle. You only need to provide the tool with simple information about the type and condition of your car. You also need to provide basic information about the vehicle’s current mileage so you can get an accurate summation of the value of your vehicle.

Check with the mechanic.

The other thing you can try is to check with your mechanic. Your mechanic is very familiar with your car and can tell you immediately how much it is worth if you're trying to sell it to a family member or friend. You can check with the mechanic about the minimum asked price you can accept for your car so you don't feel uncomfortable asking your friend this price.

Explore similar vehicles

Finally, if you're a mechanic who could have helped you determine your current vehicle value, you can check on classified websites and see for those who are trying to sell vehicles similar to yours and check what their asked price looks like.

–          Step #2: prepare the car for sale

Once you understand your vehicle's current value, the next step is to get your vehicle ready for sale. We understand that you are trying to sell your car to a friend, and that should not mean that your vehicle should be in bad condition. In other words, if you have food leftovers or some message from your kids in the vehicle, it doesn't hurt to take it away and remove it so the potential buyer, who's your friend, feels comfortable buying your vehicle.

There are many things that you can try to get your vehicle ready for sale, including:

Clean the car

Start by removing any messages from the vehicle and have the vehicle as clean as possible. You might need to vacuum the interior and wipe out the exterior or give your vehicle a quick car wash. Sometimes people feel it's better to give the vehicle a wax layer to make it look as great as possible, which is not required, but it could be a nice thing to do to your friend.

Fix any issues with the car

Then you can spend some minor repairs to fix any minor problems in your vehicle. For example, you can take care of any small broken elements and fix them to make the vehicle look as good as possible so your friend gets excited about purchasing your car.

Gather all relevant documents

Finally, since you're trying to sell your vehicle to a friend, it'll be your and your friend’s responsibility to understand all the paperwork. Therefore, it doesn't hurt to review your state regulations and understand what needs to be signed to finalize the deal.

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–          Step #3: make a sale agreement

At this point, you should be able to prepare the agreement for sale. As we indicated before, you should understand what your state requires regarding sale agreements and what paperwork needs to be signed. If there is no standard bill of sale issued by your state, you can use any available form online that should include the following information:

  • Name and contact information of the seller and the buyer
  • Vehicle description, including make, model, and year
  • Any terms of payment regarding either financing or checks or cash
  • If you're planning to provide your friend with some warranty, you should include that in the bill of sale
  • Finally, you should have a documented date for when the sale was completed.

–          Step #4: transfer the title and registration

After preparing the sale agreement, you must fully understand the title and registration transfer. This process should be available in many online articles or YouTube videos that could walk you through the step needed to transfer ownership.

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–          Step #5: make the payment

Finally, you should agree with your friend about the payment method. Although it can be uncomfortable to talk about this topic, especially regarding payments, it's important to be clear and upfront about how you'd like to get paid for your vehicle.

For example, you might decide to accept only cash payments, but sometimes you might want to be flexible and provide some financing options. This depends heavily on your relationship with your friends and whether you can wait for payments versus getting a full vehicle payment.

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5 tips for selling a car to a friend

At this point, you should be ready to sell your vehicle to a friend without any hassle. However, our team would like to provide you with bonus tips to help you go through the process without hassle. Let's take a closer look at some of these tips below:

1.    Be upfront about the vehicle’s condition

Since you're trying to sell your vehicle to your friend, and even if it's not yours, it's always important to be upfront about your vehicle's condition. Suppose your vehicle has a major engine or transmission problem or a check engine light illuminating between now and then. In that case, it's important that you highlight this in the beginning and before you even sign any paperwork.

Yes, we understand that it's recommended to sell the vehicle as is so you don't have to deal with complications afterward; it’s also still important that you don't scam your friend and don't surprise him with some issues in your vehicle that he will run through immediately after purchasing it.

2.    Make sure to write everything

Although you were trying to sell your vehicle to a friend, this transaction and this process involve legal components, and that's why everything must be written. As we mentioned, a clean bill of sale and agreement should be written carefully with all the details so you don't have any future complications.

3.    Ensure a proper transformation for the title and registration

The other thing you need to know is that there is a full process you need to follow for signing the title and the registration, so You don't get into any legal complications in the future. Thus, it's important that you follow this procedure carefully.

4.    Remember to keep good records

Once you finalize the deal and after you sign all the paperwork, you always need to keep the papers in a safe place. The last thing you want to do is to throw these papers away and an area where goods get exposed to water or could get damaged because you never know what could happen in the future when you need this paper, especially once you file your taxes.

5.    Understand the tax implications

Finally, since you're selling a vehicle, there will be a tax component that you must include and understand. Therefore, you might want to talk to your accountant about selling this vehicle and understand how much you can claim out of this vehicle in your tax returns.

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Final thoughts

Selling a vehicle to a friend is very convenient and helps get rid of the vehicle fast without struggling with strangers. However, many people still reach out to us, wondering how to sell a car to a friend properly.

This article provided you with a step-by-step process to help you go through the process without any complications. It started by helping you understand your vehicle's value, prepare the vehicle and the documentation, write the agreement, decide on the payment method, and finalize the deal.

If you need help understanding the process for selling your vehicle to a friend and would like a faster way without any hassle, why don't you call Cash Cars Buyer at 7737914363? Your instant free offer is ready and waiting for you!

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