car sale

Sell used car: Paperwork, procedures, and key steps for a secure transaction

6 May 2024


Selling a used vehicle may seem like a simple task, but it involves a series of procedures and legal documents that must be handled with care. In this article, we will cover all the key aspects to ensure a safe and hassle-free transaction when selling your used car.

Table of contents

Documents required to sell a used car

Before proceeding with the sale of your vehicle, it is crucial to gather and prepare all necessary documentation. This section will guide you through the essential documents you will need to ensure a transparent and legal transaction.

Vehicle registration and ITV card

The vehicle registration not only identifies the vehicle but also shows who the legal owner is. Make sure this document is up to date and that the details, such as the address, are correct.

As for the ITV, this certificate ensures that the vehicle meets the necessary technical and safety requirements for circulation. Make sure you have the ITV card and the favorable report from the last inspection, as these documents are essential to demonstrate that the car is in suitable conditions and safe for use.

Sales contract

This contract is a legal agreement between the seller and the buyer, and it is fundamental to formalize the sale. This document must include the personal details of both parties, the specific details of the vehicle, the agreed price, and any other relevant conditions.

It is advisable that both parties retain a signed copy of the contract to avoid future misunderstandings or disputes. Here you can find a detailed guide on sales contracts for cars between professionals.

Proof of payment of taxes and fees

It is essential to demonstrate that all taxes and fees related to the vehicle are up to date. The Tax on Mechanical Traction Vehicles (IVTM), commonly known as car tax or circulation tax, must be paid, and it is necessary to present the receipt of the last payment.

This tax is paid annually at the town hall where the vehicle is registered. Additionally, you must ensure that you have paid any other applicable fees or taxes, such as the Property Transfer Tax (ITP) in the case of sales between individuals.

Key steps for a safe sale

Once you have gathered all the necessary documents, the next step is to navigate the legal procedures associated with selling a car. This section will help you understand and complete the legal procedures necessary to ensure that the sale complies with all applicable regulations and laws, guaranteeing a smooth transition of vehicle ownership.

Correctly appraise the vehicle

Before listing your vehicle for sale, it is crucial to determine its current market value. There are various online tools that allow you to accurately appraise your car, considering factors such as the model, year, mileage, and overall condition of the vehicle.

An accurate appraisal will help you set a fair and attractive price for potential buyers, which can speed up the selling process. Understand the differences between the sale value and the market value of a car to avoid confusion.

Prepare and gather the documentation

Once you have determined the value of your vehicle, it’s time to prepare and gather all the necessary documentation. Make sure you have on hand the vehicle registration, the ITV card, the proof of payment of taxes and fees, and any other relevant documents.

It is also advisable to obtain a vehicle history report from the Directorate General of Traffic (DGT), which will provide valuable information about the car's history, such as outstanding fines, reported accidents, or domain reservations.

Draft a detailed sales contract

The sales contract is a crucial document that protects the interests of both parties involved in the transaction. Make sure to include all relevant details, such as the seller's and buyer's information, a complete description of the vehicle (make, model, year, registration, mileage, etc.), the agreed price, and any other special conditions.

It is advisable to seek legal advice or use recognized sales contract templates to ensure that the document complies with all legal requirements. Here you can find more information about reservation contracts at dealerships.

Carry out the ownership transfer

Notifying the DGT about the sale of the vehicle is a crucial step that should be done immediately after formalizing the sale. This procedure can be done online or in person at the DGT offices. It is necessary to present the sales contract and the identification documents of both parties.

This process ensures that the legal and administrative responsibility of the vehicle is correctly transferred to the new owner. Learn more about the ownership transfer process and the steps to follow in our article on managing car sales.

Additional tips for a successful transaction

In addition to the legal and documentary steps, there are some recommended practices that can facilitate and improve your vehicle sale experience. This section provides you with additional tips for a successful transaction.

Be transparent about the state of the vehicle

Maintaining clear and honest communication is essential to facilitate the sale and build trust with the buyer. Be transparent about the current state of the vehicle, maintenance history, repairs, or any relevant details that the buyer should know.

This transparency is not only ethically correct, but it can also prevent legal issues and disputes in the future.

Accept only secure payments

It is crucial to verify the validity and authenticity of the documents presented by the buyer. Ensure that you receive the full payment as agreed before handing over the vehicle and related documents.

It is advisable to use secure and traceable payment methods, such as bank transfers or reliable online payment services, to avoid problems or fraud. Learn about the benefits of implementing digital wallets in your dealership to offer secure and convenient payment options.

Keep copies of all documents

Once the sale is completed, keep copies of all documents and communications related to the transaction. These records are useful for future reference and may be necessary in case of disputes or later inquiries.

Additionally, maintaining an organized record of your transactions can be beneficial for tax and legal purposes.


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Book an appointment and grow your dealership

Up to 30% more local visits and leads

With a website optimized for your area, Google ranks you better and attracts more interested customers.

Increase your sales by up to 20% by conveying trust

Professional website with online payment and AI-generated photos that convey trust and accelerate purchasing.

Reduce up to a -15% your costs and improve margins

Control prices, margins, and stock in a single software that simplifies management.

Everything in your pocket

Manage your dealership from the app and the web, wherever you are.

Book an appointment and grow your dealership

Up to 30% more local visits and leads

Increase your sales by up to 20% by conveying trust

Reduce up to a -15% your costs and improve margins

Everything in your pocket

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