I Sold My Car. Now What?

by Dan Rosenberg, CEO of Cash for Cars™ & host of CBS Radio’s Car News with Dan Rosenberg.

Once your car is being taken away via a flat bed or tow truck, and you’ve said your final goodbyes, what’s next? Well obviously, the first thing you do is call your insurance company to re-rate your insurance. Why? Because you now have one less car. Your overall auto insurance policy SHOULD go down, but it is possible that it could INCREASE. This depends on the type of discount you had on your policy. Typically you have a “multi-car discount” on your policy that makes your overall insurance premium lower. However, since this car may have only had minimal coverage, the discount you were receiving on your other vehicle(s) may have actually been MORE than the premium you were paying on the car you just sold. If this is the case, it may be time to switch auto insurance to get a new policy with an overall lower rate. If you are looking to save some money and get a new quote, feel free to send an email to us at and we will get a local insurance broker to contact you with a 100% FREE, no obligation quote.

The second item that is of utmost importance is to notify your state department of motor vehicles (DMV in most states) that your car is no longer yours. Some states require you to mail in a portion of the title to release your liability of the vehicle. In other words, you are telling the state that from the moment you sold your car, you are no longer responsible for the vehicle. While most of the paperwork IS handled by the tow company that picks up and pays you for your vehicle, you should still do your due dilligence and contact the state to let them know you sold your car and it is no longer under your ownership.

Finally, you should decide how to spend the cash (or check) you got for your car. I can’t really give you advice on that, but if you are buying a new car, it can really help on the down payment. If you ever have any car buying or selling questions, feel free to email me directly: . I will be glad to answer any questions you may have.