How to Sell a Car in Dallas: Laws, Paperwork and Methods to Consider

January 27, 2012

If you would like to sell a car in Dallas, there are several documents that you will need to provide legal documentation for the sale as well as successfully transfer the title to the person that buys your car. To sell a car Texas requires the same type of paperwork—no matter where in the state you live. So, whether you sell a used car in Austin, Dallas or Houston the procedure is the same. With that in mind, here is a step by step guide to selling a car in Dallas.

What You Will Need

  • Car to sell
  • Texas certificate of title
  • Bill of sale for the vehicle

Step 1 - Locate the Title to Your Vehicle

Before you even list your vehicle for sale, make sure that you have your Texas Certificate of Motor Vehicle Title on hand. If you have lost the title, or you cannot locate it, you will need to request a duplicate title from the Texas Department of Transportation (DOT). If you have lost the title, you will probably need to wait approximately 10 business days for a replacement.

Step 2 - Find a Buyer for Your Car

After you have your vehicle's certificate of title, you can begin trying to find a buyer for your car. Place an ad in a local newspaper's classified section or find a website that allows people to post vehicles for sale online. In order to determine a fair selling price for your vehicle, visit websites like the Kelley Blue Book pricing guide or the Edmunds Pricing Guide. On these sites, you can find good information on the average market value for any type of vehicle.

Step 4 - Provide the Buyer with a Bill of Sale

After you have found a buyer, and negotiated a selling price for the car, you'll need to prepare a bill of sale for the vehicle. You can use a major search engine to find bill of sale templates on the Internet, or you can use your favorite word processor to create your own. If you do create your own bill of sale, it does not need to be a complicated legal document. Just be sure that the bill of sale includes the following information:

  • Date of transaction
  • Seller's name and address
  • Buyer's name and address
  • Vehicle identification number and description of the vehicle being sold
  • Odometer mileage reading
  • Sales amount

Step 5 -Endorse the Title over to the Buyer

Once the transaction is complete, and you receive the money from the buyer, look on the backside of the title and fill out the area for endorsing the vehicle over to the new owner. Make sure to sign the title in the appropriate space so that the buyer can have the title transferred at the Texas DOT.

Step 6 - Report the Sale to the Texas DMV

Once the buyer takes possession of the vehicle, you may face liability for some actions taken by the driver if you do not promptly report the sale to the Texas DOT. Visit the nearest branch of the Department of Transportation and the request a Notice of Sale form and then fill out the document and turn it in. This will protect you in the event that the new owner of the vehicle does not promptly have the vehicle title transferred.