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How do I sell a car to a friend?

My buddy wants to buy my Mitsubishi from me. I am happy to sell it to him, but I want to make sure we do everything legally. How do I sell a car to a friend?

avatar
Nick Kunze · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
The laws surrounding
car sales
 differ from state to state, so it’s a good idea to check with your state’s DMV beforehand. With that being said, here are the steps you will most likely need to take to legally sell the car to your friend:
  • Settle on a fair price
  • Sign the title over to your friend
  • Notify your insurance company of the sale and take the old car off your policy
  • Notify the DMV of the sale (depending on your state laws)
If you start looking for a new car and want to make sure you’re getting the best insurance coverage at the best price, sign up with the
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MORE:
How to transfer a car title when buying or selling
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