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Selling your car to bring home an upgraded model is an exciting feeling. Your old car has given you excellent service, and you have finally decided to part ways to upgrade to the latest version available in the market. However, there are a few steps you need to follow before bidding your old friend adieu!
First and foremost, you must transfer the ownership of your vehicle’s title to the new buyer. Because even after selling off your car, your priorities would be to completely eliminate your liability and secure all payments. While selling or buying a car, the most important step is to transfer the car’s title to the new owner. A car title, sometimes known as the “pink slip”, refers to a document that proves you are the owner of the car, and it is issued by the Texas DMV (Department of Motor Vehicles).
Apart from ownership details, the pink slip also includes other vital information, including the vehicle identification number (VIN), the type of car it is, and the mileage its manufacturer claimed at the time of sale. So, here are the detailed steps and last-minute reminders you need to consider before handing off your used car.
What Do I Need for a Used Car Title Transfer?
To legally transfer the title of the used car in Texas, you will need the following documents.
- Valid Texas title
- Odometer reading (it is applicable for any car less than 20 years old)
- A completed Texas title application (from 130-U)
- Proof of inspection
- Proof of insurance under the buyer’s name
- Buyer and seller IDs
- Power of Attorney documentation (if necessary)
- Lien Release Form (if applicable)
- Valid signed affidavits
If you are unable to submit the above documents in-person at the local TxDMV office, you can mail them to the below-mentioned address:
Division of Motor Vehicles
600 New London Ave
Cranston, TX 02920
Used Car Inspection/Smog Certification
If you are a used car dealer or selling your used car, you will be required to give a valid smog certificate to the new owner at the time of selling. However, if the car you are selling is less than two years old, a smog inspection is not required. In that case, the new owner must pay the smog transfer charges.
Texas Emissions and Smog Check Requirements
Smog checks are required to ensure that the types and amounts of pollutants your car is emitting do not exceed the maximum limits. The requirements to pass the Texas smog check vary depending on zonal areas or counties. If you own a gasoline vehicle between 2 and 24 years and live in the following locations, you need to pass the annual smog check.
- Austin-Round Rock Metro Area
- Travis County
- Williamson County
- Dallas-Fort Worth Metro Area
- Collin County
- Ellis County
- Dallas County
- Denton County
- Johnson County
- Rockwall County
- Tarrant County
- Kaufman County
- Parker County
- El Paso Metro Area
- El Paso County
- Houston-Galveston-Brazoria Metro Area
- Brazoria County
- Fort Bend County
- Galveston County
- Harris County
- Montgomery County
Smog Check Exemptions
If your vehicle falls under the following categories, you are not required to pass a smog inspection.
- New cars manufactured in the last 2 model years
- Cars manufactured more than 24 years ago
- Diesel-powered cars
- Hybrid vehicles
How to Transfer Your Used Car Title?
The moment the seller signs the title, the ownership of the vehicle gets transferred. The buyer then received a new title and registration from the Texas DMV (Department of Motor Vehicles). Follow these steps to transfer your used car’s title under different categories.
Transferring a Used car’s title as a New Resident
New residents of Texas have 30 days to title and register their out-of-state car with the TxDMV. Firstly, get your car inspected, including a safety check and emissions check, depending on certain Texas counties. Before getting your car titled in Texas, your out-of-state vehicle must pass the necessary inspections.
Transferring the title of a Used Car purchased from a private seller
If you are purchasing a car from a private seller or used car dealer, you will have 30 days to title your vehicle starting the sale date. You may be required to keep track of the following –
- The vehicle’s date of sale
- The car seller’s name and address
- The car’s purchase price
- Other vehicle information, including make, model, VIN, etc.
Transferring the title of a Used Car purchased from a Used Car Dealership
While buying a vehicle from a used car dealership in Austin, Texas, the dealer should submit the car’s title and registration application on the buyer’s behalf. The buyer is expected to pay all the necessary vehicle title charges. Take a proper receipt from the used car dealer as proof you are the vehicle’s new owner.
How to transfer ownership of a Used Car without a Title?
In Texas, you must have a car title to transfer the vehicle’s title. If you lost your vehicle’s title, you should re-apply for a duplicate Texas car title by submitting Form VTR-34.
Transferring a Used Car title when you have an Out-of-State title
For a seamless transfer of an out-of-state car title in the state of Texas, you will need to meet the following requirements and paperwork:
- The out-of-state vehicle title (original)
- A completed application form for an ownership certificate
- Proof of identification (such as a valid driver’s license)
- Proof of a valid Texas vehicle insurance policy
How much does a Used Car title transfer cost
While buying a used car, you would need to pay a Title Transfer Fee of $28 to $33 (depending on your county or area). Apart from that, you would be charged –
- A Sales Tax of 6.25% of the total car purchase price
- A base License/Tag Fee of $51.75, and
- A $10 local fee.
Conclusion
In conclusion, when selling your vehicle, you must legally transfer the car’s title to the new owner (the person buying your vehicle) to enable that individual to complete the vehicle’s registration process. And keep the document of car title transfer safely as it acts as the legal proof of who owns the car. To avoid the hassles of buying a used car and transferring the ownership rights to your name correctly, consult a reputed used car dealership, such as East West Autos.
FAQs
What is a car title and why is it important?
A car title, often referred to as the “pink slip,” is a document that proves ownership of a vehicle. It includes important information such as the vehicle identification number (VIN), the type of car, and its mileage. Transferring the title to the new owner is crucial for legal ownership and liability purposes.
What documents do I need to transfer the title of a used car in Texas?
To transfer the title of a used car in Texas, you will need:
- A valid Texas title
- Odometer reading (for cars less than 20 years old)
- A completed Texas title application (Form 130-U)
- Proof of inspection
- Proof of insurance under the buyer’s name
- Buyer and seller IDs
- Power of Attorney documentation (if necessary)
- Lien Release Form (if applicable)
- Valid signed affidavits
What are the Texas emissions and smog check requirements for used cars?
In Texas, a smog check is required for gasoline vehicles between 2 and 24 years old in certain counties. Exemptions include new cars manufactured in the last 2 model years, vehicles more than 24 years old, diesel-powered cars, and hybrid vehicles.
How do I transfer a used car title if I’m a new resident of Texas?
New residents have 30 days to title and register their out-of-state car with the Texas DMV. The vehicle must pass a safety and emissions inspection before it can be titled in Texas.
What should I do if I’m buying a used car from a private seller?
When buying from a private seller, you must title the vehicle within 30 days of the sale. Keep records of the sale date, the seller’s information, the purchase price, and vehicle details.