Selling your car can be an easy task so long as you know what's required. If you're not sure at all how it works, we've got you covered. The rules and regulations for car selling slightly vary by state, but today, we're just going to focus on how Utah's laws work.
To sell a car in Utah, you'll need to do the following steps:
- Fill out the title
- Sign over the title to the purchaser
- Give the buyer the registration and emissions certificate.
It seems a little too simple, right? Well, we'll be breaking down the process more so you know entirely what to do to sell your car. Continue reading to learn more.
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The Necessary Items
Below are all the things you'll need to have to complete the selling process.
The car title is the legal proof that the owner owns the car. The title needs to include the name of the original car owner or seller and the car's vehicle identification number. Forgetting or losing this will stall the buyer from actually claiming ownership of the car. If you lost it, you'll need to contact the DMV to get a new one.
According to AutoBlog, it'll cost you $6 and you need to have a filled out Form TC-123 (application for a duplicate title). The address to mail it in to is:
Utah Division of Motor Vehicles
Mail and Correspondence
P.O. Box 30412
Salt Lake City, UT 84130
Keep in mind that this applies to if the car is titled in the state of Utah. You'll need to check with the DMV of the original state it's titled from if it's not Utah.
The registration is the documentation proving that the vehicle is in the DMV system. The buyer needs to have this after the sale because the car isn't yet registered in his or her name. Buyers have a small window to get it registered in their name, but your registration helps them in that small window.
If you're in the stage of advertising that your car is for sale, you'll need the vehicle identification number. That gives buyers the ability to look up everything done to the car to keep it legal to drive. You benefit from knowing the vehicle history too if someone owned the car before you. For more information, check out our post on What Makes a Car Street Legal.
Maintenance records are great to have too. Buyers are going to wanna know what repairs and maintenance have been done to the car. Have this to show proof of that and to seem like a credible seller.
Bill of Sale
We'll be discussing this document in detail later in the article but think of it as a receipt. Have a copy of this for yourself as evidence it was sold.
How do you Sign Over a Car Title in Utah?
To sign over the title to the buyer, the seller and the buyer sections of the title must be filled out. The seller section has these fields you need to fill out: sale price, date of sale, your name, address, signature, and the odometer disclosure. The odometer disclosure must be EXACT or close to it with the odometer discrepancy box checked off; don't include the tenths. If the car is ten years old or older, you don't have to worry about that part.
After all your fields are properly filled out, the buyer then fills out their section. It has fields for their name, address, and signature.
Both you and the buyer need to heed these warnings from Family Car Buyers. Failing to do so can void the title and make the process complicated.
- Don't erase, cross or scratch out, or use white-out on anything
- Write neatly and legibly
- Only write with a black or blue pen
- Use your names as it appears on legal documents; no nicknames whatsoever
How Much are Tax, Title, and License Fees in Utah?
The amount of sales tax that Utah collects on car purchases is 6.85% of the sale price. So whatever you sold on the car, multiply it by this rate and this will be the sale tax. However, if the car was sold without any profit gain or for a loss, this won't apply.
The cost to transfer the title to the buyer is the same as replacing a title; $6. You might need a duplicate registration if a title needs to be corrected according to the Utah DMV. Note that if you're a car dealer, you might charge the buyer a dealer documentation fee.
To handle license (or registration) fees, you'll need to pay $44. If the sale involves a motorcycle instead of a car, it'll be $46 instead.
Is a Bill of Sale Required in Utah?
Remember that one of the necessary selling documents was a bill of sale? It's not required as part of the process, but it is strongly recommended. The bill of sale serves as additional proof of sale for the seller once the sale is done. It can come in handy for the buyer on his or her trip to the DMV and its evidence that you sold the car.
Whether you write the bill of sale yourself or use an official copy is up to you. Click here to view the bill of sale form provided by the state of Utah. If you write up your own, you'll need the following elements:
- Amount of money given, written in words and numerically
- Method of payment and/or payment plan details if it's not paid in full at the point of sale
- Legal names of the buyer and seller
- The vehicle type
- Its make, model, and year
- The Vehicle Identification Number
- The license plate number
- A dated signature of the seller
- A statement saying the vehicle was sold "as-is"
Having a copy for your records will help to legally protect you in case something happens after the sale.
Is a Bill of Sale Valid Without a Notary?
A notary is not needed to complete a bill of sale. However, it's still ideal that there is one present. This will further protect you from any possible future complications that might arise after the sale.
If the buyer buys the car in Utah but does the transfer process in a different state, get the bill of sale notarized. The following states require notarization: Louisiana, Maryland, New Hampshire, West Virginia, Montana, and Nebraska.
How Many Cars Can You Sell in Utah Without a License?
Each state gives you a maximum of cars registered in your name you can sell within a year. In the state of Utah, your limit is two sold cars. Any car selling beyond that requires you to get a dealer license.
A dealer's license allows you to sell multiple cars in a year without legal penalty. Selling more than two cars for profit a year without a license is illegal. Obtaining a Utah dealer's license can be inconvenient, but once you get it, you can sell as many cars as you want.
Now you have all the necessary information to begin the car selling process. As long as you have all the correctly filled documents (mistake-free title, your registration, the vehicle history, and bill of sale with the specific details), you'll be all set. Just make sure that you don't sell more than two cars in a year to avoid legal issues. If you are going to buy a new truck once you sell your vehicle, check out our post Buying a Used Truck? Five Essential Things You Must Consider.