Selling a car in Illinois involves a few key steps to ensure the transaction is legal and protects you from future liability. The core process requires you to properly sign over the title, complete a bill of sale, and notify the state that you are no longer the owner. The most critical step is filing a Vehicle Transaction Report with the Illinois Secretary of State to officially release you from responsibility for the car, like parking tickets or accidents after the sale.
Prepare Your Vehicle and Paperwork
Before you list the car, gather the necessary documents. You'll need the certificate of title. If there's a lien on it from a loan, you must contact the lender to get it released. A Vehicle History Report (like Carfax or AutoCheck) can make your car more attractive to buyers. It's also wise to get a Bill of Sale, which you can download from the Secretary of State's website. This document records the sale price, which is important for tax purposes.
Determine Your Car's Value and Set a Price
Research what your car is worth to set a competitive asking price. Use online tools from Kelley Blue Book (KBB) or Edmunds. Be realistic about the condition—"good" or "fair"—to attract serious buyers. Setting a price slightly above your target gives you room for negotiation.
Advertise and Meet Safely
Take clear photos of the car's exterior, interior, and odometer. List it on popular online marketplaces. When meeting potential buyers, choose a safe, public location like a supermarket parking lot. For test drives, always hold onto their driver's license while they drive your car.
Finalize the Sale and Transfer Ownership
Once you agree on a price, complete the paperwork. As the seller, you must:
- Correctly fill out the assignment of title on the back, including the odometer reading, sale price, and date.
- Sign the title exactly as your name appears on the front.
- Provide the buyer with the signed title and a completed bill of sale.
- Remove your license plates. Do not leave them on the car.
- File the Vehicle Transaction Report online or by mail immediately after the sale. This is your legal proof of sale.
The table below outlines typical timelines and costs associated with selling a car privately in Illinois.
| Step | Typical Timeline | Potential Cost | Key Document |
|---|
| Obtaining a Vehicle History Report | 10-30 minutes | $20 - $40 | Carfax/AutoCheck Report |
| Safety & Emission Testing | 1-2 hours (if required) | Up to $50 | Vehicle Inspection Report |
| Buyer's Test Drive & Negotiation | 1-3 days | N/A | N/A |
| Finalizing Sale & Paperwork | 30-60 minutes | N/A | Title, Bill of Sale |
| Filing Vehicle Transaction Report | Immediately after sale | Free | Secretary of State Form VSD 703 |
| Tax Implications for Seller | Reported on annual taxes | Varies by sale price | Bill of Sale (Record Keeping) |
