How do you handle cash / title when selling a vehicle privately?

[.455_Hunter]

How and when do you hand over the title and keys, when the buyer is:

- paying in cash?

- paying with certified funds?

- is getting a loan, like from a credit union, and the lean holder will keep the title?

Thanks for your input and experiences!

[Irving]

Do it at their Bank so you can verify funds on the spot.

[theGinsue]

Do it at their Bank so you can verify funds on the spot.

Yep!

ETA: For smaller transactions (up to a couple hundred dollars), it's cash only and I always use a counterfeit light and pen.

[Mtneer]

Just sold my '89 Toyota truck today. In this case, I'm not worried about taking a cashiers check since it's a dad buying it for his son; we met in person this morning and I'm sure it's all good. Otherwise, I'd do as suggested above.

We'll meet on Monday at the DMV to do the title transfer. I have to keep my plates and he needs to show proof of insurance to register it and get new plates. Nice kid but I don't want any 16-year-old driving a vehicle with my plates even if I have a bill of sale.

PS now think I priced it too low. Put it on Craigslist 4 days ago and had over a dozen serious buyers interested, plus several lowballers. Didn't have to negotiate price at all. But happy it's going to someone who will appreciate and maintain it...should be good for another 20 years.

[BPTactical]

Never, ever, ever let somebody use your plates "just to get it home".

I dodged a felony robbery rap when I was naive and let the plates go with a Buick Regal I sold to a dirtbag. He gave me a sob story on how he couldn't afford the plates until next payday and I stupidly fell for it.
Dirtbag robbed a King Soopers (Edgewater) a week after I sold it to him.
It was an anxious couple of minutes when Edgewater and Denver PD knocked on the door.
Thank God I had a signed and dated Bill of Sale and did not match the description of the party ID'd as the perpetrator.

[Ridge]

When I sold my S10, they went to get cash, and while they were gone I removed the license plates, registration and other personal stuff from the truck, and dug out the title. They handed me the cash, I counted it out and when I confirmed it, I signed the title and handed it and the keys over to them.

If they're using a check, meet at their bank to verify the funds are available (and cash it there).

If getting a bank loan, meet at that bank and the title goes to them.

[bradbn4]

When I bought my Blazer we did a simple transfer at the bank...he got a cashiers check and I got a signed title and the keys.
I figure if something extra hinky went on the bank would have the footage.

[Erni]

When I bought my Blazer we did a simple transfer at the bank...he got a cashiers check and I got a signed title and the keys.
I figure if something extra hinky went on the bang would have the footage.
Same. Let the other party watch you order the check. Once the teller was printing it, he signed title, we exchanged paper and called AAA to get it added to insurance. If you buy on the weekend you have until Monday to register.

[Great-Kazoo]

1: NO Test rides w/out payment in hand and a D.L to hold. Or i take a test ride with them.

2: They decide to buy it, plates off along with any paperwork which was already removed.

3: Call to Ins co to remove vehicle from policy

4: cash transaction or we go to bank for their payment.

[CS1983]

1: NO Test rides w/out payment in hand and a D.L to hold. Or i take a test ride with them.

2: They decide to buy it, plates off along with any paperwork which was already removed.

3: Call to Ins co to remove vehicle from policy

4: cash transaction or we go to bank for their payment.

Same.

I also CCW during the entire transaction and try to time it so I can immediately deposit cash at credit union.

[.455_Hunter]

Thanks! This is all very helpful.

[ben4372]

I always take cash even when its over 10k. It's easy enough. They don't need plates to get it home. A bill of sale is good for at least 24 hours, maybe 72. Keep your plates, you can roll the unused months into your new car too. Usually not worth it on my cruddy cars, but on a late model it's worth it.

[MrPrena]

Good to know.
I am about to sell 2 if my vehicles privately and I dont think buyer will be comfortable with that kinda cash carrying around.

The going to bank for cashiers check is what I would be doing. I am planning to post those on description.
If buyers dont like it, buy something else. :)

[kidicarus13]

Beginning January 1, 2019, pursuant to C.R.S 42-6-109(3), created with Senate Bill 18-073, a person transferring ownership of a vehicle may voluntarily notify the Department of Revenue, Division of Motor Vehicles within five days of transfer of ownership at?mydmv.colorado.gov?(using the report release of liability link under vehicle services) or in person at a county motor vehicle office. This notification serves to remove the seller's liability for the buyer's actions involving the vehicle after the sale is complete. Information entered into this system is available to law enforcement agencies.
This new process supplements the existing vehicle sales process and provides additional protection for individuals selling their vehicles. Vehicle owners are still required to sign their title over to the new vehicle owner and the seller should remove their license plates before completing a motor vehicle sale.

[rtr]

You meet with buyer, buyer pays you cash, you sign over title to buyer and give him car and title. Buyer can legally drive car home without plates, buyer should insure car before driving it. Buyer can go to DMV to register car, turns in signed title and will get new title in mail.

[Martinjmpr]

The only thing that's REQUIRED is to sign over the title.

For my own peace-of-mind, I drafted a simple Bill of Sale. The BoS Describes the vehicle, specifically states that it is sold "as-is" with no warranties expressed or implied (not needed really but better safe than sorry.)

It has a place for the date and TIME of the sale.

It also contains an excerpt of the CRS that explains that when buying a vehicle from a private party, you do not need plates.

I'll cut-and-paste it below for anyone else to use.

I always make two copies, one for the buyer and one for me. The one for the buyer is for if he gets pulled over for no plate on his way home. The one for me is a CYA so if the vehicle is involved in an accident, used in a crime, etc, I can show proof that as of a specific date and time I no longer owned it.

[Martinjmpr]

Here you go. Feel free to cut/paste into a word processor document of your choice:

***********************Motor Vehicle Bill of Sale***************************

I, _ of _ ___ (hereafter known as “seller”) being the lawful owner of the following motor vehicle:

__________________________, VIN: _______________________________________

Do hereby transfer all right and title in ownership of said vehicle to the following person (Hereafter known as "Buyer"):

______________________________of ______________________ in exchange for the sum of $____________ , ____________________________dollars, paid in the form of: _CASH IN HAND_______

Seller transfers all right and title to Buyer of this vehicle “as-is” with no warranties expressed or implied.
This transfer took place on _ at _ _ P.M at the following location:

___

____

_________________________________

Signature of Seller: _________________________________ Date: _______________

Signature of Buyer: __________________________________ Date: _______________

Colorado Revised Statutes 42-3-115, Registration Upon Transfer
...

(b) A transferee may operate a motor vehicle on the highway before registering it if:
...

(III) (A) The transferee has purchased the motor vehicle within the last thirty-six hours from a person who is not a motor vehicle dealer under article 6 of title 12, C.R.S.;

(B) The vehicle was purchased either on a Saturday, on a Sunday, on a legal holiday, or between 5 p.m. and 8 a.m.;

(C) The vehicle is being driven from the place where the transferor stored the vehicle to the place where the transferee intends to store the vehicle;

(D) The owner possesses, in the vehicle, a bill of sale that shows the time and date of sale and that is signed by both the buyer and seller; and

(E) The owner possesses, in the vehicle, proof of insurance as required by section 42-4-1409.

[Martinjmpr]

WRT the "no warranties" part, one time, back in 2009, I sold my 2004 Toyota Tacoma to a buyer in Estes Park. They came all the way down from Estes to buy it (1st gen Tacomas sell like crazy, or did at that time.)

A month or so later, while out of state on a camping trip, I got a voicemail from the buyer who was complaining that the clutch went out. I never returned his call and he never called back. But it was right after that that I put the "as-is" clause on there, just to cover my butt in case someone ever wanted to sue me for something that went wrong with a vehicle.

[CS1983]

I give any buyer ample opportunity to look at a vehicle; bring your mechanic buddy, if you want to take it to a mechanic for pre-sale inspection, I'll gladly go with, let's go on a 30 mile test drive in various driving conditions, etc. I do my best to rectify any deficiencies that I would not like as a buyer, prior to putting up for sale. But, used cars are used. I'm not a wizard who knows the timing belt is gonna snap or clutch is gonna go out in a month. Besides, I have NO IDEA how they treated a vehicle after buying it.

Hilarious that someone would try to get you on a clutch a full month after it was sold to them. I'd think such a thing so close to normal operational failure should be readily apparent during a test drive. I bet they treated it like crap for that month.

[roberth]

We agreed to terms including "no warranty expressed or implied". I accepted cash, signed the title and kept my plates.

[DenverGP]

When I sold my truck last year, the only known mechanical flaw it had was that the gas gauge was flakey. It would occasionally work, but most of the time showed lower than empty. I told them about this, and said we made sure to fill it up often, using the trip odometer to keep track of how many miles since the last fillup.

Got a call a couple weeks later from the buyer stating that the fuel pump had died after running it out of gas. Not sure what he was hoping I'd do, but I simply gave him the part number for a replacement fuel pump, and let him know that it took me about 3 hours the last time I replaced it. Didn't hear from him again after that.

A week after that, got a call from Golden PD who had found the vehicle abandoned on the side of the road. I emailed them a copy of the bill of sale with the buyers name, never heard from them again either.

[Martinjmpr]

Back about 25 years ago my older brother made the mistake of selling a vehicle and leaving the license plates on. Then he started getting parking tickets from all over the state.

He was finally able to sort it out but it was a lesson well learned. Always remove the plate, no matter what the buyer says. Always, always, always.

[ChadAmberg]

I used the blinker.com app to sell my last vehicle last year, and another one the year before. I loved the whole experience.

Starts you off with showing you how to take the series of pics, description, verifying that its actually your vehicle, all that. Then guides you on selling price, etc.

The the app posts your ad, and even copies the ad onto craigslist. But doesn't list your direct contact on craigslist, it sends buyers to the app, so you're not dealing with idiots and tire kickers.

The buyer sees the vehicle, fills out their info (validate their drivers license, insurance, etc) and can only contact you through the app to schedule a test drive. If they want it and need a loan, they get it through blinker, that's how they make their money is the loan.

So the buyer wants your ride, they submit an offer, and once you accept, the app walks you through the final process. If the buyer has cash, that's cool. If it's in their bank account or through the loan, even better, because blinker is the one to send you the $ direct into your bank. The app does things like makes sure you remove the license plates, signs the title IN THE CORRECT SPOT, all those last minute things, even makes the actual bill of sale and the handover of the keys. The money is in your bank account the next morning if it wasn't a cash deal. There's all sorts of protections for the seller too in case they wreck on test drive, etc.

It was seamless and the best car selling experience I've ever had.

[MarkCO]

Before they drive it away, yes, have your plates off and have the insurance cancelled.

Remember, Bill of Sale IS required in Colorado. If in an emissions area, the vehicle has to pass emissions.

Other than secured funds, the requirements are all listed here: https://www.colorado.gov/pacific/dmv/buying-and-selling

[ray1970]

If I buy a vehicle and the previous owner leaves the plates on it I figure they?re hinting that it?s cool for me to burn up miles on the toll roads until I get my own plates.

[MarkCO]

If I buy a vehicle and the previous owner leaves the plates on it I figure they?re hinting that it?s cool for me to burn up miles on the toll roads until I get my own plates.

Probably. Cost my Dad about $200 plus collection costs when he left the plates on his Silverado.