Yes, you need to complete a few steps when you junk your car to transfer ownership and protect yourself from future liability.
What to do when junking a vehicle:
- Sign over the title: Complete the seller section on the back of the title. This transfers ownership to the buyer.
- Get a bill of sale: Request or create a receipt showing the sale date, price, buyer information, and vehicle details (VIN, year, make, model).
- Remove your plates: Take the license plates off the vehicle before it is towed.
- Return plates to DMV: Some states require plate surrender. Others allow you to transfer plates to a new vehicle.
- Notify the DMV: File a release of liability or notice of sale with your state DMV. This protects you if the car is involved in incidents after the sale.
- Cancel insurance: Contact your insurer to end coverage after the vehicle is removed.
- Keep copies: Save copies of the signed title, bill of sale, and any DMV forms for your records.
Requirements vary by state. Check your local DMV website for specific rules on selling or junking a vehicle in your area. Most cash for junk cars buyers will guide you through the paperwork process.