How to Avoid Liability When Selling a Car

Selling a car is not as easy as it looks. Once you list your car for sale online, you start a process that can take any direction based on your selling skills and how thorough you are with the process. Do you have the right selling strategy? How to ensure that once you sell the car, no amount of liability comes back to you? Let’s understand.

How to Avoid Liability When Selling a Car 1

Selling a Car Online

Listing a car online is one of the easiest ways to showcase a vehicle to potential buyers and sell it quickly. However, this means, your car will have to survive heave competition, because let’s face it, everyone is online with a deal. To start with, research websites and businesses that have an excellent sales record.

When you put up your car listing online, avoid personal information, and provide detailed information. Your data on your listing will make you prone to hacking, and you might as well end up getting calls from wrong people. Open just one communication channel: a phone number purchased for the sale, an email-id created for the car listing process, etc.

The following are a few questions that will help you identify interested buyers for your car.

What is your Name?

Ask for the full name of the person who shows interest in your car. This may sound a little awkward initially because you are not sharing too much of your details. But a person who is willing to share his full name can be trusted for the deal.

You will need the full name of the buyer to transfer the car title to his/her name anyways. So, if a person hesitates, you can stop and analyze the reason and step back if needed.

What is your location?

It is safe to deal with out of state individuals, but this process calls for a lot of extra effort. An interstate or an overseas transfer of a vehicle needs additional paperwork and a huge fee charged by the transport company that will deliver the car.

When you list your vehicle, clearly ask the customer they will secure the vehicle. You will need to be very clear about the logistics related to the car, or you will end up paying rather than earning on your car sale deal. If your customer has arranged a shipment, get all the information like transaction number, shipment contact information, etc.

If a buyer is hesitant about sharing the location, pause for some time and, if needed, move to the next buyer.

When would you like to meet and see the car?

A buyer would like to see the car, that is obvious. He/she would want to inspect the vehicle or get it checked by a mechanic. If you come across a person, who is willing to send you money without looking at the car, you should be alarmed.

Getting hassle-free money for your car sounds lucrative, but it may not be the best way out. So, be careful of scammers and do what’s right.

Selling a Car in Person

It is essential to be smart and safe, even when selling a car in person. Start by asking the name and other personal details of the interested person. Ask them for their full name and social security number.

This will ensure that the person you are talking to isn’t scamming in any way. Any hesitancy in sharing the personal details should ring a bell in your mind. Do not rush into a deal and never fall for offers that are too good to be true.

One significant rule to remember while selling a car offline is never to invite a buyer to your home or your workplace. Always meet at a public place or a neutral place that works for both of you. One of the best places to schedule a meeting is a retail shopping center, where you have proper security and facilities like video surveillance.

Payment Terms and Conditions

Ask for advance payment and that too in cash for junk cars. You cannot risk accepting a check. A check can be counterfeit and may be rejected for lack of funds in the account. Inform the buyer about this condition well in advance so that they can arrange for the money in time.

Tell the buyer to meet you at your bank so that you can instantly deposit the money, and in case of a check, you can check its authenticity.

Never risk your relationship with your bank to please the buyer. Once you have the funds in your account, you can transfer the title to the buyer’s name. Most serious buyers will understand all the payment precautions you are taking, but if someone doesn’t, you should consider your decision and step back if needed.

Post-Sale Liabilities

Make it a point to sign a release of liability document at the time of signing the papers. Also, include a ‘sold as is’ clause in the bill.

Selling your car, at a reasonable price and without any hassles is possible if you practice these safe selling rules. Always remember, car sales need patience. Do not make hasty decisions and be smart about money transactions and personal interactions.