The procedures and approach for selling a car online vary by state. Discover how to sell your used car or truck in Michigan confidentially.If you reside on the fringes of the Upper or Lower Peninsula or in a city like Detroit, Ann Arbor, or Ypsilanti and want to sell your old vehicle or truck privately, you've come to the perfect spot. It's no surprise that with over 3 million registered trucks and vehicles in Michigan, thousands of individual car owners in the Wolverine State have used cashforcarsinc.com to sell their vehicles. We've explained the five stages and documents required to sell a car in Michigan so you can sell your vehicle quickly and for the most money.Remember that most states in the United States regard the car title as a legal document; therefore, use the legal names (no nicknames) of both parties involved, as well as legible handwriting in black or blue ink. Mistakes, omissions, and the use of correction fluid may render the document null and void, so be cautious and take your time filling it out.
Step 1: Allow the buyer to have a third party assess the vehicle
Most private vehicle buyers should have a pre-purchase vehicle examination performed by a trained and certified auto technician of their choice. Although the buyer pays for the inspection, the seller and buyer must agree on the date and location of the inspection. If the inspection reveals any problems with the vehicle, you should save the report for your records as the seller. Paperwork Required Before Selling Your Car: Everything You Need To Know About
Step 2: Organize and collect all vehicle papers
Find all maintenance records, the owner's manual, and other vehicle papers. If you can offer the buyer extensive and thorough maintenance documents, it will give the buyer confidence that the automobile has been properly and regularly maintained. These documents might be paper or electronic records from your local shop or dealership.
Step 3: Create a Bill of Sale
A Bill of Sale should include the following information, even if it is not legally required in Michigan:
- Vehicle Year, Make, and Model
- Vehicle Identification Number (VIN)
- Date of Purchase
- Purchase Cost
- The buyer's legal complete name, address, driver's license number, and signature
- The seller's legal complete name and signature (s)
When the buyer seeks to transfer the title or register the car in their name, a Bill of Sale might be useful. As a best practice, many private automobile owners get their Bill of Sale notarized. Under Michigan law, a seller is not accountable for any damages or violations of law that come from the purchaser's usage of the car if the owner keeps a Bill of Sale evidence, as indicated above.In Michigan, private car transfers are subject to a 6% tax on the whole purchase price or the fair market value of the vehicle, whichever is larger. The Michigan Department of Treasury is in charge of collecting the tax. If you buy or acquire a car from an immediate family member, no taxes are owed. Vehicles given amongst direct family members in Michigan are also exempt from sales tax if certain conditions are met. Taxes apply to any other car sales between non-immediate family members. If the car is being given away, the seller should still specify a $0.00 purchase price on the Bill of Sale. There is no tax required if you inherit a vehicle from an immediate family member.The National Highway Traffic Safety Administration's (NHTSA) odometer disclosure regulations were amended in December 2020, affecting some private car purchases in Michigan, in part in response to an increase in odometer fraud cases throughout the country. Any vehicle of the model year 2011 or newer (2012, 2013, etc.) that is transferred between January 1, 2021, and December 31, 2030, will require an odometer disclosure. Beginning January 1, 2031, every vehicle less than 20 model years old will be required to have an odometer disclosure. Previously, the NHTSA only mandated disclosure for the first ten years. Cars manufactured before 2010 are exempt from odometer disclosures. Michigan provides the Odometer Disclosure Form BDVR-108 on its website.
Step 4: Change the title
If the vehicle's title is lost, stolen, or severely damaged, you must file for a Transfer a title of the car. Please pay all associated costs before selling the automobile. If the car's owner dies, vehicle ownership is inherited according to a pre-defined list established by Michigan. If the car owner dies and the estate is not probated, the surviving spouse may transfer ownership of the vehicle to them. The title cannot be transferred until the car loan is completely paid off. If there is a lien, it must be released in the proper signature space by the lienholder. A lien termination document from the financial institution may also be attached to the title. Michigan private car vendors must sign the title assignment and include the following information:
- Vehicle range
- The sale date
- The final selling price
If the title has more than one owner listed on the front, all owners must sign. In the buyer's part of the title, the buyer should put their legal name, current address, and signature. If both purchasers are unable to sign at a DMV branch office simultaneously, use the Appointment of Agent form given by Michigan's Secretary of State. The title will stay in the seller's name once the car is sold until the buyer submits the seller's assigned title and applies for a title in their (the buyer's) name. This is why most sellers and purchasers meet in person at a DMV branch office to complete a title transfer application; otherwise, you may be held accountable for their activities. If you are unable to meet the buyer in person, Michigan gives guidance on how to document the documentation of the car transaction.
Step 5: Remove your license plates and contact the Department of Motor Vehicles
Unless the license plate is being transferred to another vehicle, remove your license plates from the car before completing the transaction. Never let the buyer drive away with your license plates. Buyers of a freshly acquired vehicle without license plates in Michigan are allowed to drive it immediately home within three days of the transaction, but they must have the title issued in their name and evidence of insurance. If you do not intend to transfer the license plate to a new vehicle, discard or recycle it. Visit the Michigan Secretary of State's website for further information, or use their online services here.
The Easier Way to Sell Your Car
Now that you've learned everything there is to know about selling a car in Michigan, it's time to determine where to list it. Cashforcarsinc.com makes it simple to sell your car. With ready-to-sign state documentation, encrypted chat, and more, our platform provides all the tools and recommendations you need to make the transaction a breeze.
