Am I responsible for a car after I sell it?

Asked by: Dr. Torrance Ziemann Jr.  |  Last update: August 26, 2025
Score: 4.3/5 (6 votes)

Also called a notice of transfer or sold notice form, the release of liability officially transfers legal responsibility of the car from the seller to the buyer. Many states require it for car sales.

Are you liable for a car after you sell it?

You are not responsible for a car after you sell it unless you give the buyer a warranty or guarantee. Once the vehicle changes owners, the seller is no longer under any obligation to the buyer. If you sell a car ``As Is'' and it breaks down on the owner the very next day, it's the buyer's tough luck.

How do I protect myself when selling a car?

Be sure to check the laws and regulations in your particular state.
  1. Screen Callers Thoroughly.
  2. Take Precautions With the Test Drive.
  3. Ensure a Safe Transaction.
  4. Maintain a Paper Trail.
  5. Block out Your Personal Information.
  6. Complete the Title Transfer.
  7. How to Avoid Scams and Fraud When Selling Your Car Privately.

Can you get your car back after selling it?

As far as the law is concerned, the transaction is complete and there is no legal mechanism to compel you to take the car back. You can unwind the sale if you want, but do have it inspected to make sure that there's no new damage that occurred while she had possession.

Can someone sue you after you sell them your car?

Sure. You can get sued for anything. Now if you were dishonest and made some sort of material misrepresentation or deliberately hid some sort of defect in a vehicle that you sold, you will almost certainly lose.

Problems with Cars and car dealers, getting a repair or return for a faulty car

22 related questions found

What if I sell a car and it breaks down?

The important thing to know that in California, as is the case in most states, sales between individuals (that is, non-dealers) are presumed to be “as is.” This means that both parties understand that the car is being sold despite its faults and the seller is not liable for any further repairs and they are relieved ...

Can I sue a dealership for selling me a bad car?

Under California law, you may have legal recourse against the 3rd party dealership for selling you an unsafe car. Dealerships have a legal obligation to sell vehicles that meet certain safety standards and are fit for operation on the road.

Can you sell your car back to the dealership if you still owe?

Note: If you're selling a car with an active loan, you're still the one responsible for paying it off, so the remaining balance on the loan will likely be subtracted from the price the dealer offers you. So if you owe more than what the dealer offers, you'll need to pay the difference to the lienholder.

Is it illegal to sell a car with a rusted frame?

Undisclosed Frame Damage Could Be Grounds for a Fraud Charge

If you purchase a used car and later discover that it has frame damage that you were not told about, you may have a case against the dealer for fraud.

What happens if you buy a car and don't like it?

If you've purchased a new or used car and have second thoughts, you usually cannot return it. The dealer who sold you the vehicle is typically not legally obligated to take it back and issue you a refund or exchange after you've signed the sales contract. There are some exceptions to this rule.

How do I protect myself as a seller?

How to Protect Yourself When Selling Online
  1. Protect your personal information. ...
  2. Limit communication channels. ...
  3. When selling locally, stick to in-person transactions. ...
  4. Only accept payment through approved methods. ...
  5. Take extra caution with shipping. ...
  6. Take advantage of seller protections and guidelines.

Do you have to disclose an accident when selling a car privately?

The seller has no duty to disclose any accidents or other problems with the vehicle, unless the buyer asks. The seller just cannot affirmatively misrepresent the vehicle's condition - so, a person can't say, "No, it's never been in an accident" if it has.

Do I have any responsibility after I sell my car in CA?

When you sell or transfer your vehicle or vessel to another party, you are required to submit a Notice of Transfer and Release of Liability (NRL).

Am I liable if my name is on a car title?

If the truck is in your name and they get into an accident, you are jointly liable with them for damages caused. If your insurance finds they have no license they will not cover the damages and you would be personally liable.

What to cancel after selling a car?

After you've released your liability on the car, you'll need to cancel or adjust your auto insurance policy. Ask your insurance provider for options, especially if you own another vehicle.

What happens when you sell a car as is?

When a car is sold "as is," the car is sold in its current condition, which means the buyer accepts the car with all known and unknown problems at the time the car is purchased. So, if something goes wrong or breaks down after you purchase the car, the cost of any repairs is almost always the buyer's responsibility.

Can I sue a dealership for selling me a car with frame damage?

If a car dealership sold you a car that was in an accident or if a dealer sold you a car with structural damage, frame damage, or other substantial damage without disclosing it to you, then you may have a claim under California law.

Should I fix rust before selling car?

However, if the rust has created a deep hole in the metal of your car, you need to replace whatever section has been affected. When the area "in question" is an entire panel of your car, you can see why things can ridiculously expensive fast.

Can you claim a rusted frame on insurance?

Does car insurance cover frame damage from rust? No, car insurance doesn't typically cover frame damage that's caused by rust. That's because rust occurs slowly over time due to wear and tear — not from a sudden, unexpected event.

What happens if you sell your car before you pay it off?

You still need to pay it! If the bank still has a lien on it and you sell it, you're committing fraud. Until that lien is paid off, the bank owns that car, not you! A decent legal Notary will not even allow you to do the necessary DMV paperwork to sell it if there's a lien on it.

How do I get rid of a car I still owe money on?

Voluntarily Surrender the Car

A voluntary surrender allows you to return the vehicle to your lender on your terms, and while it can damage your credit, it won't have as big an impact as a repossession. You'll also be able to avoid certain repossession-related costs, which lenders may choose to add to what you owe.

Can I return my car to the dealership if I still owe?

Most of the time, unfortunately, you can't return a financed car. Although there are a few scenarios where it may be possible (more on that below), they are few and far between.

What to do if you get sold a faulty car?

If you believe that you have been sold a bad car, you should contact an attorney to discuss your legal options. An attorney can help you understand your rights and can help you file a lawsuit, if necessary.

What do I do if a mobile dealership sold me a bad used car in Washington state?

You can ask the Attorney General's Office for help. Visit www.atg.wa.gov/file- complaint. If you file a complaint, they may be able to mediate your dispute with the car dealer (but only if you and the dealer agree to mediation).

What to do if scammed by a car dealership?

Read on to learn how to defend yourself against auto dealer fraud.
  1. Contact the Car Dealer. ...
  2. File Complaints With State Agencies. ...
  3. Report Fraud and File Complaints With Federal Agencies. ...
  4. Get Legal Help From a Consumer Attorney.