There is a wise old saying that says you sell used car should never sell your car to one of your friends. The thought behind this advice is that if something happens to the car, and your friend ends up with an expensive repair bill, he or she will blame you for selling them a lemon. This could put your friendship in jeopardy and create hard feelings between you and your friend. If you’re anything like me, you may have friends that you do not want to engage in this type of a business situation.
With that said, use your judgment and trust your gut feeling. If you decide to sell to your friend, make sure that you and your friend are clear about the condition of the car and any work that it may need.
Yes you can sell your car to your friend, however legally they cannot just take over your loan for you. They would have to go out and get their own loan to buy your car so you can pay off your loan.
Here’s some tips for selling your car to your friend.
First of all you will have to come up with a fair price for your friend. If this is just a business deal, then check the Kelly Blue Book and the NADA book for values to help establish a fair selling price. You will also want to check with cars. com and Auto Trader to see what cars like yours are selling for. These sources will give you a more realistic number for the value of your car.
Now on the other hand, if you’re trying to help out a friend that needs a car you can both agree on a set price. Let say the car is worth $10,000 and you agree to sell it to them for $7,000 because you want to help them out. So be it. Your friend should be very happy and pleased with the deal.
Even though this is your friend, you should arrange to have the car inspected by a mechanic so you and your friend both know the condition of the car. If you find out that the car needs some minor repairs, you can discuss this with your friend and decide who is going to pay for the repairs.
It is the seller’s responsibility to provide title to the buyer. Once you pay off your loan the lender will provide you with the title. The Department of Motor Vehicles should be notified about the change of ownership by the buyer. This is true for most States. Once you sell your car you can notify your insurance company to cancel your policy.