How Do You Sell a Car in Texas?

How Do You Sell a Car in Texas?

To sell a car in Texas, you must have car insurance and submit a bill of sale, the original title and a transfer notification form to the Texas Department of Transportation. You must also notify the DOT and your insurance company of the consummation of the sale.

  1. Insure your car

    Texas law requires that a car is insured when it is being sold.

  2. Prepare the necessary documents

    One required document is a bill of sale or vehicle purchase agreement. When you create a bill of sale, be sure to include the buyer’s name and address, seller’s name and address, the vehicle identification number, a legal description of the vehicle, the selling price, and the date of sale. You must also have the original Texas car title that is properly endorsed to the new owner and a Texas Motor Vehicle Transfer Notification form, which can be obtained at the Department of Transportation.

  3. Report the sale of your car to the Department of Transportation

    You must notify the DOT of your car's selling price, as this determines the amount in use tax that the new owner must pay to the state.

  4. Notify your insurance company

    Inform your insurance company about the transfer of title. Consult with your car insurance agent to see if you must pay a cancellation fee or receive a refund for having prepaid premiums.