Selling a Car in Delaware

Delaware has some specific requirements regarding vehicle selling. We’ve collected the appropriate information here regarding these requirements so you have no problems when selling your vehicle in the state.

1. Title Information

First, make certain you completely own your vehicle. In Delaware, you can only sell a vehicle if you have complete ownership of it. In other words, any “lien” (loan) on the vehicle must be paid off before you can sell the vehicle.

Second, make sure that you have the actual title in your possession. If you cannot find the title, you’ll need to request a replacement title from the Delaware Department of Motor Vehicles (DMV). You need an official title because you and the new owner will both sign the title as proof of the transfer of ownership. Make sure both of you fill out the title transfer section of the title completely. This is important to do because you definitely don’t want to accidentally end up still owning the vehicle and being liable for anything the new driver does with it.

2. Bill of Sale Requirements

Delaware does not require a separate Bill of Sale when you sell a vehicle; this is because you will already be entering into the transfer section of the title all the information that would normally be included in the Bill of Sale. This information includes the following:

  • The new owner’s name
  • The full address of the new owner
  • The seller’s name
  • The full address of the seller
  • The date of the sale
  • The sale price
  • A full and detailed vehicle description, including the vehicle’s make, model, year, series number (if applicable) and body type (2-door, 4-door, sedan, etc.), as well as the vehicle identification number (VIN)
  • The vehicle odometer reading at the time of sale
  • The signatures of the seller and new owner

When you complete the transfer section of the title, also make certain that you tear off the bottom portion of the title called the “Sellers Report of Sale.” You need to fill out that section and either bring it to a DMV location or mail it to the address listed on that report as quickly as possible. Once the DMV has received the “Sellers Report,” you are no longer liable for anything that happens with the vehicle.

3. Inspections

Delaware requires a yearly inspection on all vehicles before they can be registered. You are required to have your vehicle’s registration up-to-date when selling the vehicle. You are not, however, required to have a separate inspection, as the new owner will have to get the vehicle inspected before they can register it.

4. License Plates

In Delaware, when you sell your vehicle, you get to keep the license plates and may be able to put those same plates on your next vehicle. This means that the new owner of the vehicle you are selling will have to order new plates from the Delaware Department of Motor Vehicles.

5. Odometer Disclosure Requirements

In Delaware, you are required to disclose your vehicle’s odometer reading when you sell your vehicle or whenever a new title is required for any reason. You can simply fill in the odometer reading space on the back of the title in order to fulfill this requirement.

6. Other Information

If you have any questions or want more details on vehicle selling, check out the website for the Delaware Department of Motor Vehicles.