Call Us Call Today! | (330) 929-3056
Auto Insurance AUTO

Auto insurance protects you against financial loss if you have an accident.

Read More
Homeowners Insurance HOME

A standard policy insures the home itself and the things you keep in it.

Read More
Umbrella Insurance UMBRELLA

Learn about different coverage options that fit your specific needs.

Read More
Motorcycle Insurance MOTORCYCLE

Browse a variety of insurance options in order to find the right one for you.

Read More
Business Insurance BUSINESS

Discover the perfect insurance options to meet your specific and unique needs.

Read More
Recreational Products RECREATIONAL PRODUCTS

Finding insurance doesn't have to be difficult. We do the work for you.

Read More

Selling a car can be confusing and stressful.  Here are some tips to keep it simple!

#1)  Be confident with the test driving!  Make sure you have good insurance coverage on the car.  Check with us first to make sure that your policy will offer all or at least some protection for letting someone else drive.  Remember, the buyer is usually a stranger so you'll have no idea whether or not they have good insurance (or sometimes they might have zero insurance!).  You could lose everything by letting an irresponsible person drive your car so take a moment and maximize your chances of a smooth transaction.

#2)  Don't let them take your car on your tags!  Ohio law requires that when you sell a car, you immediately remove your license plates and registration from the vehicle.  Keep proof that you sold it, take your plates off, and take the buyer to the nearest license bureau to get a 30 day tag.  If the buyer is out of state, they'll only need their social security card and their out-of-state license and they can purchase a 30 day tag until they get home.  The present cost of a 30 day tag is $18.50.

There is another important event that is recorded when they get the 30 day tage.  The systems at the BMV record that a transfer of ownership is happening.  Your name is in the first stages of being removed from responsibility for things that happen with that car.  If the buyer speeds past a camera, you're not going to get a letter now.  If the buyer hit skips another car, the police aren't going to come looking for you first.

#3)  Make sure the funds are certified.  Getting paid is probably the most stressful part of this process.  Cash is the safest form of payment.  There is risk involved-- obviously, you'll be carrying a rather large sum of cash until you can make it to the bank.  One way to mitigate that risk is to make the transaction right at the bank where you can immediately deposit it into your account.  

Accepting a personal check is not at all advised.  If the buyer insists, stipulate you will not hand over the title until the check clears.  Or, better yet, agree to meet the buyer at his or her bank with the personal check and have the buyer cash it.  You can then accept the cash or have a cashier's check made out to you.  If the potential buyer balks at this, void the whole thing and start the process again with the next buyer.

Cashiers checks are the next best thing to cash.  The risk of fraud still exists!  If someone hands you a fake cashiers check, there's a good chance it won't be detected for days or weeks (long after the buyer has disappeared).  Protect yourself by meeting at the buyer's issuing bank with the check.  The bank can immediately confirm the legitimacy.  If meeting at the bank branch isn't possible (for instance, if the buyer is out of town), call the issuing bank and verify as much as you can.  If the issuing bank is reputable and they confirm that the cashier's check is genuine, you should be just fine.  The issuing bank should be able to confirm that there is no way for the buyer to get that check and somehow stop payment on it without claiming that it was stolen.  And you'll be able to prove that it wasn't stolen by showing that you are the person it was issued to and that you exchanged something for that check (remember the proof that you sold the car...).

If a buyer asks for a payment plan, that's an automatic red flag.  Walk away.

There is another very safe way to accept the payment.  YOUR bank (not the sellers) or YOUR attorney can execute an escrow account for the purchase.  Never agree to an escrow that the buyer suggests.  In essence you're going to put the title (and sometimes even the keys) into an escrow account until the attorney or your banker is able to confirm that everything regarding the payment is legitimate.  The moment everything is 'clear', the escrow manager will release the title (and if applicable the keys) to the buyer and everyone is happy.

#4)  Ownership isn't entirely transferred until the buyer transfers the title into his/her name.  You're entrusting the buyer to make that transfer in a timely manner.  They are supposed to transfer the title within 30 days.  Whenever possible, GO WITH THE BUYER to the title bureau and watch them make that transfer!  In my research for this blog, someone told a story of a guy that sold a car and did not get any proof that the vehicle was sold.  Well, the buyer didn't get tags and didn't transfer the title.  Well, the buyer actually ROBBED A BUSINESS and just so happened to match the description of the seller.  Sure enough, the police arrested the seller and he sat in jail for an entire weekend until they could track down someone, anyone that could prove that he sold the car (it happened to be the notary at the bank that could vouch for him).  
KEEP IT SIMPLE!
- KEEP GOOD INSURANCE ON THE CAR
- TAKE YOUR TAGS OFF THE CAR AND WATCH THE BUYER GET HIS 30 DAY TAGS
- BE FIRM WITH THE PAYMENT BEING ON YOUR TERMS AND ALWAYS BE CONGNIZANT OF FRAUD
- KEEP COMPLETE RECORDS PROVING THAT YOU SOLD THE CAR

Do you have a car purchase nightmare?  Post it in the comments below!
Posted 9:30 AM  View Comments

Share |


4 Comments

Scott said...
Im glad that you talked about how it is safest to sell your car for cash. I have an old car that I really dont need anymore, and I was wondering how to sell it. I can see how accepting cash is a way to guarantee that you end up with the money. Ill have to keep this in mind while making a decision. https://sellcarlocal.com/sell-your-car
TUESDAY, JULY 25 2017 6:11 PM
Taylor Bishop said...
Thanks for going over some things to do when selling a car. You mentioned that the license plate and registration should be removed from the vehicle in Ohio. Im a bit interested to learn if this is the same for each state, or if there are different requirements. https://www.etags.com/registration-renewal/florida
MONDAY, SEPTEMBER 25 2017 11:25 AM
Chad Kelly said...
Thanks for the question, Taylor. These rules should be rather similar from state-to-state but we always recommend checking with your local DMV/BMV or the license/registrar office. In theory, any state that recognizes the "ownership statute" (he who owns the car is responsible for all damage/actions involving the car) should have a similar stance. If you learn otherwise in Florida, please feel free to share your findings. Thanks!
MONDAY, SEPTEMBER 25 2017 11:39 AM
Chad Kelly said...
Thanks for the question, Taylor. These rules should be rather similar from state-to-state but we always recommend checking with your local DMV/BMV or the license/registrar office. In theory, any state that recognizes the "ownership statute" (he who owns the car is responsible for all damage/actions involving the car) should have a similar stance. If you learn otherwise in Florida, please feel free to share your findings. Thanks!
MONDAY, SEPTEMBER 25 2017 11:40 AM

Post a Comment
Name
Required
E-Mail
Required (Not Displayed)
Comment
Required


All comments are moderated and stripped of HTML.
Submission Validation
Required
CAPTCHA
Change the CAPTCHA codeSpeak the CAPTCHA code
 
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive


View Mobile Version
Facebook
Carriers
Carriers
Carriers
Carriers
Carriers
Carriers
Carriers
© Copyright. All rights reserved.
Powered by Insurance Website Builder