Can You Sell a Car Without Registration?

All states require vehicles to be registered with the state to ensure the vehicle is safe and allows for collection of fees related to the ownership of the vehicle. In some instances, a car is not registered with a state. This may occur if the registration is expired, the car is stolen, or there are unpaid fees or fines related to the car that puts the registration on hold until paid. 

If you want to sell your car but it isn’t registered, can you still proceed? Read on to learn more about the possibilities and pros and cons of selling a car without registration. 

What is registration? 

Car registration is the process of officially recording a vehicle with the relevant government agency, such as the Department of Motor Vehicles (DMV) in the United States. During registration, the car owner provides information about the vehicle, such as the make and model, year of manufacture, and vehicle identification number (VIN). The owner also provides personal information and pays a fee to register the car with the government.

Car registration ensures that vehicles on the road are safe and meet certain standards and allows the state a means of identifying the owner of a vehicle and allowing for the collection of taxes and fees related to vehicle ownership. It is a legal requirement for car owners to register their vehicles, and failure to do so can result in fines or other penalties.

Sometimes, there is confusion between a car title and car registration. A car title shows proof of vehicle ownership. The registration shows that the vehicle is registered with the state.

Can you sell a car without registration? 

In general, it is possible to sell a car without registration, but it can be more difficult and may require additional steps.

In some cases, the buyer may be willing to purchase the car without registration and take care of the registration process themselves. However, in most cases, the seller will need to provide some documentation to show proof of ownership, such as a car title, bill of sale, or transfer of ownership form. These documents will need to be notarized and may need to be submitted to the appropriate government agency. 

It’s important to note that the requirements for selling a car without registration can vary depending on the state you are in. For example, in New York, you can sell a car without registration. The implications of selling a car with no registration include the car being declared invalid and receiving a fine of no less than $200 and no more than $1,000. 

How to sell a car without registration 

1. Preparation 

Selling a car without registration can be more complicated than selling a registered car. You will want to obtain a bill of sale: A bill of sale is a legal document that shows the transfer of ownership from the seller to the buyer. It includes information about the vehicle, such as the make and model, VIN, purchase price and date of sale. You may also need to provide a notarized affidavit of ownership to show that you are the legal owner of the vehicle.

Depending on the laws in your area, you may need to have a safety and emissions inspection done on the car before selling it. This can help reassure potential buyers that the car is safe and in good working condition.

When selling a car without registration, it's important to be transparent about the car's condition, any defects or damage, and any other relevant information that could affect the sale. This can help build trust with potential buyers and prevent any misunderstandings or legal issues down the line.

Finally, set a price for the sale of the car. Consider setting a slightly higher price to allow room for negotiations, but also ensure you have done quality research to see what a fair price for the year, make and model of your car is. 

2. Advertise 

There are several ways to advertise your car for sale.

• Online classifieds - Websites such as Craigslist and Autotrader allow you to create an ad for your car and post it online. You can include photos, a description of the car's features and condition, and your contact information.
• Social media - Posting about your car for sale on social media platforms like Facebook, Twitter, or Instagram can be an effective way to reach a large audience, especially if you have a large following or belong to local buy/sell/trade groups.
• Word of mouth - Telling friends, family and coworkers that you're selling your car can be a great way to get the word out and find a buyer quickly.
• Car dealerships - Many car dealerships offer to buy used cars from private sellers. If you plan on purchasing a new car, consider going to the dealer where you hope to purchase your new car. You can trade in your car and the value can go towards the price of your new car. 

When creating your ad, be sure to include as much information as possible about your car, such as the make and model, year, mileage and any notable features or modifications. Also, be sure to take clear and well-lit photos of the car from multiple angles. This will help potential buyers get a better sense of what they're interested in and increase the chances of selling your car quickly.

3. Sale process 

The sale process can be tedious because you may get contacted by buyers who are not seriously looking and others who are, so it will take time to sort through customers and provide quality communication. 

When you are engaging with a serious potential buyer, arrange a test drive and allow them to inspect the car. They may want to take the car to a mechanic of their choosing so be open to arranging and being present at that meeting.

If a potential buyer is interested in purchasing your car, they may make an offer. Negotiate the price until you both reach an agreement.

4. Complete the sale 

Once a price has been agreed upon, it's time to complete the paperwork. This typically involves signing the bill of sale, transferring the car title, and providing any additional documentation required by your local government.

Payment also needs to occur in order to complete the sale. This can be in the form of cash, cashier's checks, or wire transfers. If you accept a personal check, be sure to verify that it clears before transferring ownership of the vehicle.

5. Transfer Ownership 

Once you have received payment, it's time to transfer ownership of the vehicle. This typically involves signing the back of the car title and giving it to the buyer, along with any other required documentation.

6. Cancel insurance

Lastly, you will need to cancel your auto insurance coverage for the car. Make sure you call your agent to avoid any further charges and also communicate whether you plan on purchasing a new vehicle in the future so you have a plan in place.  

Pros and cons of selling a car without registration 

It is important to check whether your state even allows the sale of a car without registration. However, if the state does allow it, should you proceed? Read on to weigh the pros and cons. 

Pros

• Lower costs - In some states, the fees for renewing a car's registration can be expensive. If you sell your car without registration, you could save money by avoiding these fees.

• Flexibility for the buyer - Some buyers may prefer to purchase a car without registration, as they may have their own plans for registering the car in a different state, or they may be purchasing the car for parts.

• No need to pass emissions tests - In some areas, cars need to pass emissions tests in order to be registered. If you sell your car without registration, the buyer will be responsible for getting the car registered and passing any required emissions tests.

Cons 

• Legal requirements - In most states or provinces, selling a car without proper registration and title transfer can be illegal. Not having a proper registration and title transfer can make it difficult for the buyer to legally register the car in their name, which can lead to legal complications and liability issues.

• Buyers may be cautious - Potential buyers may be hesitant to purchase a car without registration, as it can be more difficult to transfer ownership and complete the necessary paperwork. You could, therefore, be limiting your buyer pool.

• Extra steps - You may need to take extra steps to prepare the car for sale, such as getting a safety and emissions inspection, in order to reassure potential buyers that the car is in good condition. 

• Lower resale value - Cars that are unregistered may have lower resale value compared to those with proper registration, as buyers may see unregistered cars as more of a risk.

• Difficulty with financing - Buyers who need financing to purchase the car may have difficulty obtaining a loan for an unregistered vehicle, as many lenders require proof of proper registration and title transfer before approving a loan.

• Additional preparation required - Selling an unregistered car may require additional preparation, such as obtaining a safety and emissions inspection, in order to assure potential buyers of the car's condition and safety.

How to register a car before a sale 

It’s clear that there are more cons than pros when considering selling a car that is not registered. In general, not only could this be illegal depending on the state in which you reside, but this situation causes buyers to be more cautious and causes more work for both the buyer and seller. 

To avoid these drawbacks, follow these steps to register your vehicle. It's important to recognize that the process for registering a car can vary depending on your state and specific circumstances, so it's always a good idea to check with your local DMV or licensing office for specific instructions and requirements.

1. Obtain the necessary documents - You will typically need to provide proof of ownership, such as a car title or bill of sale, as well as proof of insurance, identification and residency.

2. Complete any required inspections - Depending on your location, you may need to have your car inspected for safety and emissions compliance before you can register it. Check with your local DMV or licensing office for specific requirements.

3. Pay the registration fees - You will need to pay a fee to register your car. The amount can vary depending on your state and how they calculate their registration fee.

4. Submit your paperwork - Once you have all the necessary documents and have paid the registration fees, you can submit your paperwork to your local DMV or licensing office. You may be able to do this online, in person, or by mail.

5. Receive your registration and plates - Once your paperwork has been processed and approved, you will receive your car registration and license plates. Make sure you pay the registration fee on an annual basis. Once complete, most states will send a new registration document along with a sticker to put on your plates to indicate you are up to date with your registration. 

Final thoughts

It’s clear that selling a car without registration has many drawbacks. Consider skipping the hassle of registering your own car and have it included when you sign up for a car subscription. With FINN, you can have access to a car with approval in minutes and have it delivered straight to your doorstep. Explore possible vehicles today to see how you can get on the road with FINN.