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

January 27, 2012

To sell a car in New Jersey, certain procedures must be followed to ensure drivers are acting within the parameters of New Jersey state law. The methods and processes behind selling a car are very simple. There are many ways this can be done. However, you must follow a strict set of steps to make sure you do not miss any important paperwork that could hold up or cause the sale of a car to fall through.

Step 1: List the Car

You should have already cleaned out your car and got it ready for sale. You should have also already written your sale description. The next step is to list the car for sale, and there are many ways you can do this. First, you could try selling the car online. Place an advertisement on eBay or similar auction site to give yourself the best possible chance of a sale. Second, you can take advantage of your area by advertising the car for sale on billboards, lamp posts and in shop windows. You may pass the car off to someone you already know this way. Some local newspapers will allow you to advertise for free.

Step 2: Donation

You may no longer have a use for the car and just want to pass it on to a charity or a non-profit organization. There are many ways you can do this, but it's important that you research things first. Keep in mind the IRS has strict regulations on this type of sale and will want to inspect it to make sure the sale price has some vague resemblance to the value which will be displayed in the Blue Book Value.

Step 3: Release of Liability

You are legally asked to submit a release of liability when you sell a car. This tells the authorities you are no longer responsible for the vehicle. The form to complete this will be available at your local state motoring office. This can also be used as evidence of the sale at a later date along with a receipt signed by the new owner.

Step 4: Bill of Sale

A Bill of Sale will be used as hard evidence that a transaction has taken place between you and the new owner of your car. This form can be obtained at your local state motoring office and will be used by the new owner to prove they own the car until an official ownership certificate is released. A Bill of Sale is required by the Motoring Vehicle Commission in New Jersey as a way to charter and record all sales of cars in the area.

There is no secret or complex set of steps you have to go through in order to sell a car in New Jersey. The only legal requirements are perfectly logical ones which will help you handle the sale of your vehicle until you have all the official documents in place.

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