How many times have you sold a used car to someone? Typically, you’ve probably signed a bill of sale and the title in the presence of a notary public, and exchange funds; surrendered the tag and taken the vehicle off your insurance policy.
But how do you know that the buyer turned it in and applied for new title at the tag office? That matters, particularly if the new buyer decides to drive the car, which is still in your name until re-titled, and is involved in an accident in “your” car! You could be held responsible for losses, whether insured or not.
There are a couple ways to avoid this scenario. One is if you are selling to a licensed dealer who follows the law. Another is what I recently did. You meet the buyer of your used vehicle at the tag office, and make sure the new title application is done at the same time you surrender the old tag.
Protect yourself from the potential liabilities of others, to assure that you and your family’s financial future is not unnecessarily put at risk.