Paperwork is the backbone of any process which takes place. We will be mentioning some important and essential documents as well as some additional documents which can boost up your asking price on your vehicle.
Paperwork you should provide:
1.Title
A car title is a legal document that shows who owns the vehicle and is required for registration or sale. It has vehicle identification number, make and year of purchase, price when vehicle was new, license plate number, name and address of the registered owner, name of lien holder if vehicle is being financed. Every time the vehicle's ownership changes or you permanently relocate to a new state, the title must be reissued.
Also read: Selling a Car Without a Title
There are two types of titles- clean and salvage titles. A clean title simply means that the vehicle has never been declared a total loss. It may, however, have mechanical issues, poor repair, and a history of minor to major accidents. Insurance companies will cover the value of a vehicle with a clean title. You can also use it at the DMV to register your vehicle and obtain new license plates. A salvage title is issued when a vehicle is damaged (most likely in an accident) and deemed a total loss by the insurance company. In that case, the vehicle cannot be registered or insured, and its resale value is extremely low.
2. Emissions Test Certificates
Although not necessary in all states, most require that you have your car tested for emissions before selling it and give the certificate. In states where this rule does not apply, you must provide a warranty that it will pass emissions testing when the new customer tests it. If the vehicle fails the test after purchase, the buyer has the option of returning the car or paying for the improvements required to reduce emissions to the allowable limit. As a result, it is recommended that you get your emission test done nonetheless for a hassle-free sale.
3. Bill of Sale
This is also not a legal requirement in some states, but it is highly recommended. This form contains information in which you legally declare that you are selling the car as-is with no warranty other than the manufacturer's warranty (if the car is still under their warranty).It relieves you of any duty following the sale.
Documents you should have to increase the asking price of you car:
1. Documented Service History
Every time you get your car inspected, serviced or repaired, it is a good idea to save those documents since a documented service history will allow you to significantly increase your asking price. A documented service history provides information to the buyer about the vehicle and if you are asking for the right price, this collection of paperwork will justify it.
2. Owner’s Manual
Always be sure to keep your owner’s manual safe. It is a very important part of the car and will provide knowledge about the vehicle to its new owner. These can often increase the asking price.
3. Warranty Documents
If the car is still under manufacturer’s warranty, it will significantly increase the asking price depending on the time left since it gives assurance to the prospective buyers. If you have extended warranty, it significantly improves the price since the new owner will have longer coverage and it gives confidence to the new owner to purchase it quickly. Cars under warranty sell like hot cakes!
4. Inspection Sheet
This technically comes under documented service history but is important enough to garner some dedicated attention. You may not have a documented service history but it is always advisable to get an inspection done before the sale. It lets you know your car’s health which will make it easy to decide on the final asking price. Moreover, prospective buyers often bring a mechanic with them to get the car inspected. Your inspection sheet will let you compare notes with the inspection of the buyer’s mechanic and also protects you from getting scammed in case the mechanic and the buyer are trying to undervalue your car.
Because the above-mentioned documents are legal documents, they must be kept in good condition regardless of their impact on your asking price. However, their added worth is unquestionably a benefit to file and organise all papers.
Also read: Best Selling Tips for Modified Car
