6 documents needed when selling your car in Nigeria

If you have plans to sell your car either privately or to a dealership, it is important you have certain documents ready for a seamless transaction. Having the right documents at hand can make the process easier. You should also know that if you are missing any of the documents needed for selling your car, it could devalue the price of the car or make it difficult for you to get a buyer at all. Selling cars involves a lot of paperwork and processes, and this article will walk you through how to get a hassle-free sale. 

1. Title Deed

The title deed of a car is also known as the certificate of title. It is a legal document that provides proof of ownership of a vehicle. It also contains several pieces of information about the car, like the car’s make, model, and year; the owner’s full name and address; the issue date; the odometer reading on the issue date; and the signatures of the buyer, seller, and a state official. It basically contains the general information on the car. The title deed is the most important document needed when selling your car because it proves that you are actually the owner of the car. You must also ensure you have the original title with your name on it before you sell a car. 

2. Bill of Sale

Another document that is very necessary when selling your car is the bill of sale. It shows the ownership transfer from the seller to the buyer. Basically, it serves as proof that the vehicle was sold. This document usually includes information about the buyer and seller, conditions attached to the sale, the date of the transfer, and the car’s purchase price. The essence of this document is to protect both parties in the event of any disagreements or conflicts after the transaction, even though it might not be necessary in every state. Please note that it is important to confirm local standards as several states have their own different bill of-sale formats.

3. Service History 

The service history of your car plays a major role in making sure your car has a reasonable resale value. It is one of the required documents that is needed when selling a car. A vehicle’s service history is a report that shows the car’s condition, maintenance, and ownership history. Getting a vehicle service history report helps instil trust in prospective buyers regarding the car’s condition and ownership history. A clean service history can help to facilitate sales and gives the buyer the assurance that the car has been well maintained throughout its life.

If you want to have a complete service history, you must ensure that every mechanic that works on your car stamps your car’s service book at every interval, and all records that include details such as the name and address of the facility and when the service was carried out should be kept.

4. Release of Liability 

A release of liability is a document that is signed by the Department of Motor Vehicles (DMV) that you are no longer the owner of the vehicle. This is done with a Release of Liability form, sometimes called a Notice of Transfer. It is used to indicate a change of ownership. The importance of this document to you is to save yourself from any sort of future finance or legal obligations that are associated with the car after it has been sold. In the event of parking fines, toll violations, or accidents involving the car, this document proves to the Department of Motor Vehicles that you are no longer responsible for the car. This document must be given to the DMV immediately after the sale.

5. Vehicle License 

Every car that is driven on the roads of Nigeria must have a vehicle license. The vehicle license proves that the car is permitted and meets all the requirements to be driven on the road. The vehicle license certificate is usually issued by the motor registration authority and is attached to a particular vehicle. In Nigeria, the vehicle license is valid for 2 to 3 years upon renewal when expires. And it is important that this document is presented when selling the vehicle.

6. Insurance documents 

If you have car insurance (which you should), you may wish to show the relevant documents to prospective buyers to reassure them that every necessary repair was carried out during the period the car was yours. The documents would carry important information such as the vehicle’s insurance group (which will give them an indication of how much their own insurance policy may cost). If you are going to apply for a cancellation of insurance, you might be asked to pay a fee. 

Conclusion 

To have a seamless transaction when selling your car, it is important you have all the required documents available. To safeguard both the buyer and the seller, meticulous attention should be given to the necessary documentation and legal requirements.