What Are The Legal Side of Selling Cars in NJ?

Your new car is here, but what have you done to your old companion? Is it still lying in the garage? But why keep it when you are not going to drive it anymore? Keeping it will only make you spend on its maintenance; it is better to sell used cars in NJ and get some cash for it. It’s a smart choice because that way, you make the right use of your car, and you get some extra cash, too. Otherwise, your car would have gathered dust in the garage, and over time, it would be only a burden to you. New Jersey has various options to sell your old car, like selling it to a dealership, online platform, private sale, or cash-for-car companies- whatever option you choose, you need to know several critical legal aspects you should be aware of. Selling a car in New Jersey involves more than just finding a buyer and exchanging keys.

Today, we will review the essential legal considerations, from title transfers to emissions testing and state regulations.

Transfer of title:

The first legal hurdle you must take care of is the title transfer. The car’s title is like its birth certificate, and it needs to be accurately and legally transferred to the new owner. Here’s the deal: if you don’t properly transfer the title, you could find yourself in a world of trouble, and we don’t want that.

The Bill of Sale:

Now, let’s talk about paperwork. You’ll need a Bill of Sale, which is like the sales contract for your car. The price, the selling date, and the buyer and seller’s names and addresses are all included in this document that contains the details of the transaction. Be sure to keep a copy for your records.

The Lemon Law Limbo:

In New Jersey, we have something called the Used Car Lemon Law. This law provides some consumer protection if you’re selling a used car. The critical thing to know is that you must disclose any known defects to the buyer. If you don’t, you might find yourself in a legal pickle. So, when you’re drafting that Bill of Sale, make sure you’re honest about your car’s condition.

Emissions Testing:

Now, let’s talk about a hot topic — emissions testing. In NJ, you need a valid emissions inspection sticker to sell your car legally. So, before you list your car for sale, ensure it’s up to par with the state’s emissions standards. It’s not just good for the environment; it’s suitable for your sale’s legality.

Sales Tax and Your Responsibilities:

Let’s talk about the green stuff — sales tax. When you sell your car privately in New Jersey, you’re responsible for handling the sales tax. Make sure you and the buyer agree on who’s handling this tax.

Notify the MVC:

One of the most important steps is to notify the New Jersey Motor Vehicle Commission (MVC) of the sale. It ensures that you’re no longer held responsible for the vehicle, including any parking or traffic violations that the new owner might rack up. It is super important, so don’t forget!

Release of Liability:

When you’ve notified the MVC, you’ll receive a Release of Liability. This document is legal proof that you’re no longer responsible for the car. Keep it safe and sound; it might come in handy if any issues arise.

Keep Detailed Records:

Throughout the selling process, keep detailed records of everything — from the initial discussions with potential buyers to the final sale. Having a paper trail can protect you if any disputes or legal issues arise down the road.

Legalities When Selling to Out-of-State Buyers:

Selling your car to someone from out of state? Be aware that the rules might differ. Make sure you’re familiar with the regulations and paperwork required for selling a car to someone who doesn’t call New Jersey home.

Consult Legal Counsel If Necessary:

If you’re unsure about any legal aspect when you sell junk cars in New Jersey, don’t hesitate to consult legal counsel or contact the New Jersey MVC for guidance. It’s better to be safe than sorry!

In a nutshell, selling your car in New Jersey is a process that involves several legal responsibilities. Understanding and following the laws and regulations ensures a smooth and trouble-free sale.