Selling Your Vehicle in Delaware
Selling a vehicle in Delaware can be a straightforward process if you know the necessary steps and have the right documentation. Whether you are selling to a private buyer, dealership, junkyard, or through an online car buyer, understanding the state’s rules, taxes, and required paperwork will help you make the sale quickly and smoothly. In this article, we will guide you through the process of selling your vehicle in Delaware with all the important details and insights.
Step 1: Prepare Your Vehicle for Sale
Properly preparing your vehicle for sale can help you get a better price and make the transaction go more smoothly. Here’s what you should do to get your vehicle ready:
- Clean the car: Make sure the car is clean inside and out. Wash the exterior and vacuum the interior. A well-maintained vehicle will make a better impression on potential buyers.
- Fix minor repairs: Address any small problems such as replacing a flat tire or fixing a broken headlight. While you don’t need to make large repairs, small fixes can increase your car’s appeal.
- Check fluids: Ensure that the oil, brake fluid, coolant, and windshield wiper fluid are all topped off and in good condition. Buyers are more likely to be interested in a vehicle that appears well-maintained.
- Gather important paperwork: Collect the title, registration, maintenance records, and any other relevant paperwork. Having these documents ready will make the sale process quicker and easier.
Step 2: Choose How to Sell Your Vehicle
In Delaware, you have several options for selling your vehicle. Each option comes with its own set of advantages and disadvantages, so choose the one that best suits your needs.
Selling Privately
Selling your vehicle privately is often the most profitable option, though it requires more time and effort.
- Set a fair price: Use online tools such as Kelley Blue Book or Edmunds to determine the fair market value of your car. Consider your vehicle’s age, mileage, condition, and features when setting the price.
- Advertise your vehicle: List your car on popular platforms like Craigslist, Facebook Marketplace, or Autotrader. Be sure to include high-quality photos and detailed descriptions of your vehicle’s features and condition.
- Negotiate the price: Be prepared to negotiate with buyers. Have a minimum price in mind that you’re willing to accept, but be flexible during negotiations.
- Meet buyers in safe locations: Always meet potential buyers in public places, such as parking lots, to ensure your safety. If you’re offering test drives, consider accompanying the buyer.
Selling to a Dealership
Selling to a dealership is faster and more convenient, but you may not get as much money as you would in a private sale.
- Get multiple offers: Visit several dealerships in your area to get offers for your car. Some dealers may offer trade-in deals if you’re buying another vehicle, which could benefit you.
- Compare offers: After getting offers, compare them and choose the dealership that offers the highest amount for your car.
- Finalize the sale: Once you accept an offer, the dealership will handle the paperwork, and you will receive a check or direct deposit. The process typically takes just a few hours.
Selling to a Junkyard
If your car is no longer running or is in poor condition, selling it to a junkyard might be the best option. Junkyards buy vehicles for parts, scrap metal, or other salvageable components.
- Get estimates from junkyards: Call several junkyards to compare offers. The value of your vehicle will depend on its weight, condition, and salvageable parts.
- Arrange for towing: Many junkyards offer free towing, which can be helpful if your car is not operational.
- Provide necessary documentation: Be prepared to show the title to the junkyard. Some junkyards may also ask for a bill of sale.
Selling to an Online Car Buyer
Online car buying platforms offer a fast, convenient way to sell your vehicle. These companies often offer competitive prices and can schedule free pick-up.
- Get an online quote: Use websites like RunBidSell to get an instant quote for your vehicle in Delaware.
- Schedule free pickup: Many online car buyers offer free towing, meaning you don’t have to worry about transporting your vehicle.
- Complete the paperwork: Once you accept the offer, you’ll need to sign over the title and provide other necessary documents. The company will walk you through the process.
Step 3: Transfer the Title
In Delaware, transferring the title of your vehicle to the new owner is an essential part of the selling process. You will need to complete the following:
- Sign the title: On the back of the title, write the buyer’s information, including their name, address, and the sale price. Make sure to sign the title as the seller.
- Create a bill of sale: While not legally required in Delaware, a bill of sale can act as a receipt for both you and the buyer. It should include details about the vehicle, the sale price, and both parties’ information.
- Remove the license plates: In Delaware, the license plates stay with the seller, not the vehicle. Be sure to remove the plates before handing over the vehicle to the buyer.
Step 4: Cancel Your Insurance
Once you’ve sold your vehicle, cancel your car insurance or transfer it to your new vehicle. This will prevent you from continuing to pay for coverage on a car you no longer own.
Step 5: Notify the Delaware DMV
Delaware requires that you notify the DMV that you’ve sold your vehicle. This ensures you are not held liable for any accidents or violations involving the car after the sale.
- Submit a Notice of Transfer and Release of Liability: This form must be submitted to the Delaware DMV. You can complete this process online, by mail, or in person. The notice informs the DMV that the car has been sold and transfers liability to the new owner.
- Keep a copy of the form: For your records, make sure to keep a copy of the Notice of Transfer and Release of Liability for your protection.
Step 6: Pay Off Any Existing Loans
If you still have an outstanding loan on your vehicle, it’s essential to pay it off before selling. Without clearing the loan, you cannot transfer the title to the buyer.
- Contact your lender: Determine the payoff amount and schedule the necessary payment to settle the loan.
- Obtain the title: After paying off the loan, the lender will send you the title. You can then complete the sale and transfer ownership to the buyer.
Sales Tax and Fees in Delaware
When selling a vehicle in Delaware, you won’t be responsible for paying sales tax, but the buyer will be.
- Title transfer fee: The buyer will be required to pay a fee for transferring the title at the DMV.
- Sales tax: While there’s no sales tax on the sale of a vehicle by a private party, the buyer will be responsible for paying sales tax when registering the vehicle at the DMV.
Popular Places to Sell Your Car in Delaware
Selling a vehicle in Delaware can be quick and easy in cities with high demand for cars. In Wilmington, buyers are always looking for used cars due to its large population and proximity to major cities like Philadelphia. If you’re in Dover, car buyers are eager to make offers, especially with its role as the state capital. In Newark, used car buyers are in high demand thanks to the University of Delaware and the growing local market. Bear residents also have easy access to buyers looking for all kinds of vehicles, from used to junk cars.
Final Thoughts
Whether you decide to sell privately, to a dealership, or through an online platform, taking the time to ensure all necessary paperwork is completed and understanding the regulations will help protect you as the seller.