Saving & Spending Home & Auto

3 Things You Must Disclose When Privately Selling a Car

Rules vary from state to state, so make sure you understand what you must tell buyers.

By Chris Adam , Edited by Chris Kissell

Updated Sept. 1, 2026

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Selling your car can be a good way to make money and start to build wealth. However, there are some pieces of information about the vehicle you should share with potential buyers to avoid potential legal issues down the road.

Since each state has its own rules, it may be helpful to contact your local department of motor vehicles for specific information about what you must disclose when you put a ride up for sale.

To get you started, here are a few general rules that many places have about what you must reveal when you sell a car.

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Whether the vehicle has been damaged

If you are planning to sell your car privately, be sure to let potential buyers know if it has been damaged or involved in an accident.

While you might think you are protected if you sell a vehicle "as-is," this is probably not true if you fail to disclose damage or previous accidents.

Check with your state about which laws pertain, but it's generally a good idea to let potential buyers know about these things.

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Other material facts

As mentioned, laws vary by state. However, it's probably in your best interest to make sure you are up front with any potential buyers about the material facts of your car.

That means if the car was damaged and straightened, you need to let someone know before they buy your car. Further, watch out that you don't make any false claims.

If you do, and if the buyer can prove it, you may face legal trouble for perpetrating fraud.

A bill of sale

Do yourself a favor when privately selling your car and create a bill of sale. While this is not required in all states, it may help protect you as a seller.

In the bill of sale, you can include things like stating there are no warranties and that the buyer will take care of repairs. This could come in handy if the buyer tries to come back and make you pay for repairs.

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Tips for selling a used car

In addition to making sure you properly disclose information when privately selling your car, there are other things you should do when bringing the car to market.

Some of these begin well before you meet any potential buyers. These actions can help you get the most money for your car or simply keep you safe during the sales process.

1. Price it right

You may need to do some homework to figure out a good sales price for your vehicle. Look at the market and see what cars are going for in your area.

In addition, figure out the value of your vehicle before you sell it. You might use an online tool from a reputable source such as Kelly Blue Book or Edmunds to determine the car's value.

2. Decide where to sell

You have a few options for where to sell your car. Beyond selling it on your own locally, you can use an online car marketplace or sell to a dealer.

Each option has its advantages and drawbacks. While you may pocket less if you sell to a dealer, it could save you time and the hassle of doing it on your own, for example.

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3. Practice safety

If you plan to sell the car on your own, practice safety when dealing with potential buyers. You don't want to give strangers any more personal information than they need to buy your car.

In addition, try to meet potential buyers at public places. Also, don't overlook financial and legal safety precautions. Ask for the driver's proof of insurance before a test drive, and get everything in writing.

4. Prep your car

Get the most out of your car by making it look as good as possible for potential buyers. Wash and vacuum it thoroughly. You might even consider having it detailed.

When you take photos, try to capture the vehicle from different angles and use good lighting.

5. Sell it like a pro

Don't transfer ownership of the vehicle until you have the money in hand. Also, keep the car insured until it is no longer yours.

Let your insurance carrier know once you have sold the car. You might even want to shop around for coverage to see if you can save money on car insurance now that you have a new vehicle.

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Bottom line

Be sure you disclose important information if you privately sell a car. Let potential buyers know about any previous accidents or damage to the vehicle, for example.

You should also practice safety when privately selling your car. You may find that the safest payment method is a direct bank transfer.

Keeping safety in mind is one of the smart car owner moves you should make to protect yourself and your money.

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