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A quick sale but costly oversight

When Leija finally found a buyer, she says he wasted no time. The man showed up almost immediately with another person and a backpack stuffed with $3,500 in cash.

"As soon as I told him that he could come, he was on his way," she said.

Leija admitted she skipped some key paperwork. Instead of drafting a formal bill of sale, she signed over the title and trusted the buyer to handle the rest.

"I had my title, I filled out my part, put my name, signed it, and then gave it over to him, and he said he would fill out his part," she said.

But Leija had no way of knowing whether the buyer ever completed the transfer with the Texas DMV — leaving her name still tied to the car when things went south. According to the DMV, both buyers and sellers should complete Form 130-U to officially transfer ownership and ensure the paperwork is filed.

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How to make your next sale safer

Although this deal took a dangerous turn, Leija said it was her first time selling a car and she skipped some steps that could’ve kept things safer. If you’re planning to sell a car online, here’s how to make sure your sale doesn’t go off the rails:

  • Vet buyers first Before agreeing to meet, screen potential buyers by phone. It helps you figure out if they’re serious, whether they’ve got financing in place and gives you a chance to answer questions. If someone pushes for a fast sale and skips this step, take it as a red flag.
  • Be smart about the test drive Once you're comfortable, meet in a busy public place and bring a friend or family member. Always check the buyer’s driver’s license before letting them get behind the wheel.
  • Keep the transaction safe Talk about payment methods ahead of time. Avoid unusual requests like driving someone to a bank or loan office. Don’t meet at your home — choose a safe, public location. Keep the title out of sight until you’re ready to sign, and use secure payment options. Apps like Zelle or Venmo can work for smaller amounts, but be aware of transfer limits.
  • Nail the paperwork Fully complete the title with the sale price, date and odometer reading — and keep a copy. Most states also require a bill of sale and a release of liability form to protect you if the new owner racks up tickets. Don’t forget to file that release with your DMV. Alan Helfman, who owns multiple car dealerships, strongly recommends that sellers go the extra mile and accompany the buyer to the DMV to make sure the paperwork gets filed properly.
  • Complete the title transfer Check your state’s rules before closing the deal. Typically, the seller signs over the title and the buyer registers the car and pays state taxes or transfer fees at the DMV or tag office. Some states also require a recent smog check or inspection certificate, so be sure to have that ready.
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Victoria Vesovski Staff Reporter

Victoria Vesovski is a Staff Reporter for Moneywise.

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