How to Sell a Car in Texas

Selling a car can be annoying and time consuming, but it doesn’t have to be the end of the world. If you live in Texas, you can easily sell a vehicle to another individual, a company, or dealership, and the process is more straightforward than in some other states. Texas allows online title transfers and makes selling a car as easy as possible. Let’s take a look at how the process works.

Step 1: The Decision to Sell

The first and most obvious step when selling a car is to decide whether you need to sell it at all. Used car values are finally beginning to fall, but still elevated at the moment, so now can still be a good time to get rid of an extra vehicle. Your decision should be based on whether or not you need the car, and you should consider the costs of replacing the vehicle if you need another one down the line.

Step 2: Determine the Worth of Your Car and Set a Price

Internet sites like Kelley Blue Book and NADA can help you determine the estimated value of your vehicle, but they aren’t exact. Market conditions, your vehicle’s condition, and other factors impact the value of your car, and even then, you’ll still have to convince someone to pay your price. A helpful exercise is to take the car to a local dealer and get a purchase estimate. That will give you a good idea of what you can expect, and will help guide your pricing decision. Keep in mind that many buyers expect to haggle, especially with an individual private seller, so it’s a good idea to give yourself breathing room.

Step 3: Gathering Paperwork and Documentation

Texas has more relaxed vehicle documentation and emissions regulations than many other states, but you’ll still have to keep track of paperwork along the way. The state says that you should provide the buyer with a signed title, including the date of sale and odometer reading and a signed application for Texas title and/or registration with the sales price noted.

Step 4: Preparing Your Vehicle for Sale

You may feel like you’re unloading a problem or burden onto another person when you sell your car, but you should take as much care as possible to make sure it’s clean and exactly as you described. Give it a wash and vacuum the interior. Try to remove stains and make sure there are no foul odors. If your buyer is doing their homework, they’ll take the vehicle for a mechanical inspection prior to purchase, but you should make sure you understand what’s going on under the hood yourself. That leads us to the next recommendation, get a vehicle inspection.

Step 5: Vehicle Inspection

You need to know what is or isn’t wrong with your car so you can list it honestly. You can get a lot more money for the vehicle if you can represent it as not needing extensive repairs. Buyers tend to sidestep as-is sales or vehicles with unknown conditions unless they’re looking for a project.

Step 6: Consider Donation

If selling seems like a hassle or you don’t want to deal with the process, you could consider donating the car to a charitable organization. They won’t use the car, and will instead sell it to raise money for their cause. You get a fat tax credit at the end of the year and everyone’s happy. The only catch is that you won’t get a check at the end of the process. Check out Car Talk's Vehicle Donation Program here.

Step 7: Listing a Your Car

When it’s time to list your car online, take care to list on a site that aligns with your car’s place in the market. If it’s a unique classic or exotic car, you may have better luck selling on a platform or auction site that specializes in those vehicles. Several online sites focus on specific brands, so it’s possible to find a specialized Mercedes-Benz listing platform, for example. It’s important to take clear, properly framed images that show interior and exterior conditions as honestly as possible. Get close up shots of any damage or areas of interest, and try to showcase desirable options or features your car has.

Step 8: Getting Payment

If you’re selling to a dealer, they’ll print a check you can take right to the bank and deposit, but things aren’t so straightforward when you’re dealing with a private party. Many people are extremely uncomfortable handling and carrying large amounts of cash, so if that’s you, you’ll need to ask your buyer for a bank check or to meet at the bank so you can deposit the cash directly. It’s not a good idea to accept personal checks, as the buyer could hand you a bogus check and completely trash your car before your bank calls to tell you it bounced. Make certain to meet in a mutually safe area for any dealings with private party buyers. Safety should always be a consideration when making a transaction of this kind.

Step 9: Transferring Ownership and Removing Insurance

Your car should remain insured until you sign over the title and move on. Texas’ title/registration application is the way to get started. You can transfer the license plates, and if you decide to dispose of them, they must be defaced with permanent ink or paint to prevent fraudulent use. You'll also want to make sure that all vehicle subscriptions and extended warranties are canceled before you hand over the car.

Read more on the topic of Selling a Car here.