If you are planning on selling a vehicle in Texas, you will have to fill out some paperwork. Sweat the subtleties of the transaction now and you won’t have to deal with them down the road.

With nearly 30 million residents and over 26 million registered vehicles, Texas is one of the largest car markets in the United States. As such, ensuring that the sale of a vehicle is smooth and legally compliant is essential for both the seller and the buyer.

However, Filing a Vehicle Transfer Notification within 30 days of the sale is crucial to protect the seller from being held responsible for any parking tickets or toll violations incurred by the new owner.

Let’s look at the paperwork that must be submitted to the Texas Department of Motor Vehicles to officially transfer ownership of your vehicle. We’ll also touch on additional documents necessary to sell a vehicle in Texas.

Highway Intersection

Preparing to Sell Your Car in Texas

Before listing your car for sale, it is important to prepare the vehicle and ensure it is in good condition for potential buyers. The following steps will help you get started:

1. Clean and Inspect the Vehicle

First impressions matter, and potential buyers are more likely to consider a well-maintained and clean vehicle. Clean both the exterior and interior of the car thoroughly, paying attention to detailing, removing personal items, and ensuring the vehicle is presentable.

  • Exterior: Wash and wax the car, ensuring there is no visible damage or major scratches.
  • Interior: Vacuum and clean the upholstery, dashboard and any surfaces that may have accumulated dirt.
  • Mechanical Inspection: Conduct a basic vehicle inspection or visit a mechanic to ensure that the car is in proper working order. Address any minor repairs that could increase the value of the vehicle.

2. Determine the Value of Your Car

To set a fair and competitive price for your vehicle, you will need to determine its market value. Several factors influence a car’s value, including its make, model, year, mileage, condition, and the current demand for similar vehicles in Texas.

You can use online tools such as Kelley Blue Book or Edmunds to get an estimated value of your car. Alternatively, visiting dealerships for a trade-in offer can also provide a benchmark for pricing.

Additional Documents Necessary to Sell a Car in Texas

As a seller of a vehicle, you must provide specific documents to the buyer. These documents include the bill of sale, a valid vehicle title, the completed title assignment with signature and odometer disclosure.

Additionally, the motor vehicle sales tax is a mandatory fee for individuals purchasing a vehicle from a private seller. The sales tax is calculated based on either the purchase price or the vehicle’s standard presumptive value.

Be sure to make copies of these documents to store in your records. You never know if any technical or legal challenges will pop up in the future.

At this point, it is the buyer’s responsibility to complete the remainder of the required documents and pay the fee necessary to register the vehicle in his name in the state of Texas.

Gathering Paperwork and Documentation

Gathering all necessary paperwork and documentation is essential when selling a car in Texas. You’ll need to provide the buyer with a signed title, a Vehicle Inspection Report (VIR), and a Bill of Sale. Make sure to fill out the original title correctly, including the odometer reading and sales price. You’ll also need to provide proof of liability insurance and a registration sticker. If you’re selling to a dealer, you may not need to provide all of these documents, but it’s still important to have them ready.

Title Transfer

The state of Texas requires that your vehicle’s title be transferred to the new owner. To make this transfer, you must fill out the title assignment found on the back of your vehicle’s official title certificate.

If you fail to perform a legal title transfer when selling your car, there will be consequences. As an example, it is possible that you will be held responsible for subsequent crimes and violations committed in the vehicle.

In Texas selling or trading in a vehicle to a dealer, the vehicle stays in the seller’s name until it is ultimately sold to an individual. Therefore, it is crucial to file a Vehicle Transfer Notification to protect yourself from liability for any actions taken with the vehicle by the new owner before the title is officially transferred.

It is prudent to go to the nearest county tax office with the vehicle buyer to guarantee that the application for the new vehicle title is filed. If you need a certified copy of your automobile’s title from the Texas Department of Motor Vehicles, fill out the VTR-34 form. You can download this form from the DMV’s online library of forms.

Supplemental Material That Will Help You Sell Your Vehicle in Texas

Texas has nuanced laws concerning vehicle efficiency and safety. Therefore, many buyers ask sellers for an in-depth vehicle history report before agreeing to a sale. Such a report provides information about the vehicle ranging from prior accidents to major repairs, odometer alteration and/or instances of theft.

If you have endured any sort of accident, consider enrolling in a TX driving safety course. This course will enhance your defensive driving skills. Such a course might reduce your automobile insurance rate. It is even possible that this course will remove points from your driving record after a speeding ticket or other violation.

Have your vehicle history report on-hand so you can show it to the buyer immediately after he requests it. Furthermore, having the vehicle history report on-hand makes it that much easier to market your vehicle and ask the highest possible price.

Steps to Complete the Sale

Once your car is prepared for sale and the legally required documents are gathered, you can proceed with the sale process.

1. Find a Buyer

There are several ways to find a buyer for your vehicle. You can choose to sell the car privately through online listings, trade it in at a dealership, or sell it to a car-buying service. When selling privately, consider advertising the car on platforms such as Craigslist, Autotrader, or Facebook Marketplace to reach a wider audience.

2. Negotiate and Finalize the Sale

After finding a potential buyer, it’s time to negotiate the sale price. Ensure that the agreed-upon price reflects the condition of the car and the market value. Once a deal is reached, both parties must sign the Title Transfer and other necessary documents.

The buyer will need to register the vehicle in their name with the Texas DMV, but as the seller, you must ensure that the Title Application (Form 130-U) and the Odometer Disclosure are completed accurately.

3. Transfer of Ownership

To legally transfer ownership of the vehicle, you will need to complete the following steps:

  • Sign the Title: As the seller, you must sign the back of the title and provide the buyer with the original copy. Ensure that the odometer reading and buyer’s information are filled out.
  • Submit a Vehicle Transfer Notification (Form VTR-346): This form is submitted to the Texas DMV and notifies the state that you are no longer the owner of the vehicle. This step is critical to protect you from future liabilities, such as toll charges or traffic violations, after the sale.
  • Provide a Bill of Sale (Optional): While not mandatory, the bill of sale can be used for record-keeping and as a safeguard for both parties.

4. Transfer the License Plates and Registration Sticker

You must remove the license plates from your vehicle before the buyer accepts the keys and drives off. It is possible to transfer these license plates to another vehicle you own. Reach out to your nearest county tax assessor collector’s office for details on such a transfer.

Additionally, don’t forget to cancel your insurance policy on the sold vehicle. Contact your insurance provider to terminate coverage once the sale is complete.

Taxes and Fees for Selling a Car in Texas

The buyer is responsible for paying the title transfer fee and state sales tax on the purchase of the vehicle. As the seller, you do not have to pay these taxes, but it’s important to inform the buyer of these obligations. In Texas, the sales tax is 6.25% of the sales price or the vehicle’s standard presumptive value (whichever is higher).

Don’t Forget the Bill of Sale!

It is necessary to document the actual sale of your vehicle. The transaction is recorded on a “bill of sale”. This document should include all essential information about the seller, the buyer, the automobile and the agreed sale price.

Sign and date the bill of sale and request that the buyer does the same. Make copies for yourself and the buyer. Keep this document in your records as it is proof of the vehicle sale transaction.

Conclusion

Selling a car in Texas requires careful attention to documentation and state regulations. By following this guide, you can ensure a smooth and legal transaction, protecting both yourself and the buyer. With thorough preparation and attention to detail, selling your car in Texas can be a straightforward and stress-free process.