Quick Facts About Selling a Car to a Dealership

• Clean your vehicle inside and out before you go — consider a full detail for the best offer.
• You can also request Instant Cash Offers from participating Kelley Blue Book dealers by entering basic vehicle details, then decide whether the price works for you.
• Bring your loan information or your car title to the dealership.

Selling to a dealership can be faster and simpler than dealing with private buyers. You don’t need to buy a car to sell one at a dealer. If you’re choosing between selling and trading in: selling makes it easier to compare offers across dealers, while trading in may simplify the transaction and, in some states, reduce sales tax on a new purchase.

Before you go: Remove personal items, wipe down the interior, wash the exterior, gather documents and keys, and look up your car’s value (trade-in and private-party).

Top Tips for Selling to a Dealership

1. Prep the Car for Sale

Clean it thoroughly and fix small, obvious issues (like a broken switch) that can lower an appraisal. For older cars, a basic mechanical inspection can help you avoid surprises and price adjustments. Before handing it over, delete personal data and phone pairings from the infotainment system, remove garage-door codes, and take any toll tags.

2. Know What Your Vehicle Is Worth

Use Kelley Blue Book valuation tools to estimate private-party and trade-in value. Be honest about condition, accidents, and known issues. Be ready to disclose accidents, smoke/pet odors, flood/lemon history, and any dashboard warning lights. These factors often drive the biggest price adjustments.

3. Gather Documents

These are the documents you’ll need to sell your car.

• Vehicle title (or loan payoff information, if applicable)
• Car registration
• Service records
• Loan/lien release documents (if you owe money on the car)
• Owner’s manual and extra sets of vehicle keys
• A valid driver’s license for verification

If you still owe on the car, call the lienholder for the payoff amount. If you’re upside down, you may need to pay the difference or roll it into a new loan. Ask how you’ll be paid (check vs. electronic transfer) and when funds will be available. Confirm who files the DMV forms and title paperwork, and get a signed bill of sale and the odometer statement before you leave.

RELATED: How to Sell a Car: 10 Steps for Success

4. Get Multiple Offers Using Kelley Blue Book’s Instant Cash Offer

Enter your vehicle identification number (VIN), mileage, and an accurate condition description to receive offers from participating dealers. Expect the final number to depend on an in-person inspection. Bring a printout or screenshot of your best offer to use as leverage elsewhere. Dealers typically base offers on local market demand, auction data, reconditioning costs, and how quickly they think the car will sell.

5. Obtain Several Quotes — and Negotiate

Get at least 2-3 offers, including from different areas if feasible. Many dealers will hold an offer for a short window. Use a simple line: “I have an offer for $X. Can you beat it if I sell today?”

MORE: 7 Ways to Protect Yourself When Selling a Car Privately 

6. Find the Right Dealer

Target dealers that sell vehicles like yours. Read reviews and consider local demand. Dealers want cars they can turn around and resell.

7. Don’t Wait Too Long

Offers can change quickly with market demand. If you’re selling to simplify the process, move while your best offer is still valid.

8. Check Dealer Inventory

If a lot is already packed with cars like yours, your offer may be lower than at a dealer with more demand.

RELATED: Is Now the Time To Buy, Sell, or Trade-In a Car?

9. Specialty or Classic Car?

A specialty dealer may pay more and market it better than a general dealership. Ask around — the worst they can do is say no.

PRO TIP: Use our sister site Autotrader’s Classic Cars marketplace to list your vehicle.

MORE: How to Sell a Car Without a Title

Common Pitfalls to Avoid When Selling a Car

If you are selling your vehicle, you can avoid these common mistakes to get the most out of the sale. Here’s a list:

• Skipping cleaning: The cleaner your vehicle is, the more the dealer will see how well you’ve cared for it. Don’t skip this crucial detail.
• Paying for expensive repairs: A well-maintained car goes a long way when selling, and your vehicle history report helps show you kept up with scheduled maintenance. However, big repair bills right before selling often don’t pay off.
• Not receiving multiple offers: Dealerships are short on used car inventory right now. It’s wise to shop your car around to get the best offer.
• Not negotiating: If you avoid haggling on the value of your car, you could miss out on hundreds of dollars in the sale. 
• Not researching tax benefits: When you sell a car to a dealer and buy a new one at the same place, some states offer a sales tax break on your new car purchase. 

Editor’s Note: We have updated this article since its initial publication. Renee Valdes contributed to the report.

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What You Need to Know

• You typically need a title to sell a car. It provides legitimate proof of ownership. 
• Selling a vehicle without a title or proof of ownership is illegal in most jurisdictions, but there are ways you can sell a vehicle without one.
• If you owe money on the car, most lenders will require that you pay off the note before releasing the title.

When you sell a car, its title proves you own the vehicle. The title contains all the vital information about the car, like its vehicle identification number (VIN), make, model, and date the title was issued. Without it, ownership is hard to prove. If you’re trying to sell a car but you don’t have the title, don’t panic. Sometimes, there’s a perfectly logical explanation, such as the lender currently holding a lien on the vehicle. Maybe it was lost, stolen, or otherwise damaged. Maybe the car itself was stolen (in which case, you should report it to the police before continuing).

Buying and selling a vehicle without proof of ownership is illegal in most jurisdictions. If you find yourself without the title for whatever reason, you will need to resolve it before proceeding with the sale. How you do that depends on your circumstances and the state where you’re doing business. Many states now issue electronic titles (e-titles) to reduce storage and administrative costs and to streamline title transfers. In some cases, sellers might search for a misplaced physical title when it’s actually a digital-only record. Read more about them in our car title guide.

If you do need a replacement title, here’s the step-by-step process:

Step 1: Request a Replacement Car Title

If the title is lost, damaged, or stolen, contact your local Department of Motor Vehicles (DMV) and find out how to obtain a new one. You can also check the DMV’s government website for details, including the cost to replace or duplicate the title.

Remember that if the odometer reading or any other part of a title has been altered, most DMVs will not consider the document valid and will require a replacement.

Step 2: Explore Alternate Titling Options

Some states offer ways to title an abandoned vehicle or car with outstanding repair bills.

In Virginia, for example, you can file a mechanic’s lien for unpaid bills if you provide the proper documentation. You can also file for an abandoned vehicle title. This is a process in which the state uses the vehicle identification number (VIN) to attempt contact with the vehicle’s last known owner, giving them a right of first refusal. More states have tightened rules regarding abandoned vehicles to prevent fraud. The process is usually lengthy and requires certified notices.

Step 3: Write up a Bill of Sale

Some states did not issue titles until as recently as 1975. If this is the case for you, a bill of sale may be adequate proof of ownership. If so, check your state’s regulations on presenting a bill of sale. Some states require that sellers use a state form as a bill of sale.

Most states require a bill of sale form to print out or pick up at a DMV branch. A bill of sale typically includes the sale date, price, vehicle details (year/make/model/VIN/mileage), buyer/seller information, and signatures.

MORE: How to Sell a Car: 10 Steps for Success

Step 4: Get a Notary

Some states require a bill of sale to be notarized, and it’s not a bad idea to take this step even if it’s not required. Having a notary witness the transfer of vehicle ownership can legitimize the transaction when selling an auto without a title.

Step 5: Be Upfront With Your Buyer

If you don’t have a title and can’t get one — this is sometimes the case with older project or parts vehicles — make sure the buyer knows from the start that you don’t have all the documentation required to make a legitimate sale.

If you owe money on the car, most lenders will require that you pay off the note before releasing the title. However, you may be able to arrange a transfer through the lender if the buyer is willing to pay off or pick up your payments.

RELATED: 7 Ways to Protect Yourself When Selling a Car Privately

Step 6: Keep Copies of Everything

Even after you have sold the vehicle and it’s long gone, ensure you keep copies of all paperwork associated with ownership and transfer. You can’t be sure that the new owner will title the vehicle, and you don’t want to be held liable for anything that might happen involving that vehicle in the future.

Also, if there are ownership questions later on (if you’re contacted by someone making an abandoned vehicle claim, for example), you’ll have your bases covered.

Step 7: Notify Your State of the Sale

When selling a car, be sure the state where the vehicle is titled knows that you’ve sold it. Notify the DMV as soon as you’ve signed the bill of sale. This way, you will avoid further taxation and fees.

Can You Buy a Car Without the Title?

We talked about selling a vehicle with no title. But can you buy a car without one? Technically, buying a car without the title is possible, especially if you financed the vehicle. However, when purchasing a car from a private seller, you need the title because it provides proof of ownership. Unless the vehicle is an older model, vintage, or classic car, purchasing a car without a title could mean you’re buying a stolen car.

MORE: How to Sell a Car Online

Can You Register a Car Without a Title?

No, you cannot register a car without a title unless it is exempted by your local DMV. You will need the title to register a vehicle, meaning you won’t even be able to drive it legally. Always check with your local motor vehicle agency for requirements on car titles and vehicle registrations.

If you buy a car from a private seller when the bank holds the title, use a reputable escrow service. The service will collect the funds from you to pay off the seller’s loan and send you the title. Alternatively, you could meet the seller at the lender’s office.

Editor’s Note: We have updated this article since its initial publication. Renee Valdes contributed to the report.

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Quick Facts About the Buying and Selling Marketplace

• The final sale price of the average new car is perilously close to the $50,000 mark.
• Used car prices dropped slightly last month.
• The credit market remains good for borrowers, with lower rates likely ahead.

The price of the average new car is nearing the $50,000 mark. It briefly surpassed $50,000 in September, largely due to a rush to buy expensive electric vehicles (EVs) before a $7,500 federal tax credit disappeared. However, in November, it nearly hit that level without the EV sales rush. It will likely permanently crest the mark sometime early in 2026.

Believe it or not, there is some good news for car shoppers. Wage growth in November helped cancel out some of the effects of high prices. The winter holidays often bring heavier discounts to the sales lot. But late 2025 remains a challenging time for shoppers needing a new car.

Tariffs, trade wars, a government shutdown limiting economic data, and threatened parts shortages have meant loud headlines and growing uncertainty. Automakers have increasingly canceled affordable cars, focusing their efforts on attracting wealthier buyers.

And your fellow shoppers are making pricier choices — cars priced over $75,000 outsold cars priced under $30,000 in November.

But don’t panic. It’s still possible to find a good deal on a new car this month, and many things are moving in your favor if you need new transportation.

We’ll explain what to expect when buying a new or used car, or selling or trading one in, and why it might make sense to act quickly.

What New Car Shoppers Can Expect

The average new car buyer paid $49,814 in November, 1.3% higher than a year ago. If current trends hold, that figure will likely permanently cross the $50,000 line in January.

That’s partly due to prices increasing as cars for the new 2026 model year reach sales lots, and as manufacturers increasingly pass the cost of tariffs on to the car shopper. The average November sale included discounts worth just 6.7% of the purchase price, down from 7.9% the previous year.

The decisions shoppers continue to make also contribute to higher average prices. Luxury cars tend to sell well around the holidays, and as November ended, cars with sticker prices over $75,000 were outselling those priced under $30,000.

That high average price “reflects what consumers choose to buy, not what’s available,” notes Cox Automotive Executive Analyst Erin Keating. “Many new-car buyers today are in their peak earning years and are less price-sensitive, opting for vehicles at the higher end of the market to get the features and experiences they value most.” Cox Automotive is the parent company of Kelley Blue Book.

The average full-size truck, for instance, sold for $70,178 in November, even though every full-size truck on the market starts at a much lower price.

RELATED: When Will New Car Prices Drop?

So much of that cost is in your control as a shopper. You can keep prices reasonable by choosing only as much car as you really need, and by paying attention to supply at the brands you’re considering.

Dealers typically aim to maintain a 60-day supply of new cars on sales lots, with an additional 15 days on order. This month, some are well below that target and unlikely to offer heavy discounts. Others have a surplus and are looking to make deals. Shopping outside your preferred brands could save you thousands.

Each Automaker Is Responding Differently

Car pricing is complicated, and each automaker has responded to tariffs differently. As long as the tariffs remain, the response will likely shift constantly.

Some, like Hyundai and Mercedes-Benz, pledged not to raise prices at first, though increases are trickling in with the model-year change. Others are deciding on a case-by-case basis.

RELATED: How Each Automaker Is Responding to Tariffs

Automakers have absorbed some of the cost of tariffs for a while. They might even respond by raising the price of one car to help pay the tariff on another.

With so much constantly shifting, your best tool for understanding local price changes is the Kelley Blue Book Fair Purchase Price, which we calculate using recent transactions for that car in your area. We update each Fair Purchase Price weekly, showing you how tariffs and tariff anxiety are impacting the prices of the specific vehicles you’re shopping for where you live.

Loan Conditions Are Improving

Prices are all that cash buyers need to worry about. However, few car shoppers are cash buyers. Most Americans borrow money to buy a new car.

We have good news for most Americans: Loan conditions are currently the best they’ve been all year.

Lenders approved 73.6% of applications in November, 1.6% better than October and 1% higher than a year ago.

The average interest rate fell to 10.5%, down from 11% the previous month. Lenders asked for an average down payment of 13.4%.

The Federal Reserve, commonly called “the Fed,” has also played a role. The Fed sets the federal funds rate, the interest rate banks use when they lend each other money. The federal funds rate determines interest rates for every type of loan, including car loans. It’s still on the way down, which should ripple through the economy over the next few months.

The Fed has now cut rates at its last three consecutive meetings. Rate cuts typically take a few months to reach shoppers, so the best rates may still come in early 2026.

What Used Car Shoppers Can Expect

Used car prices improved modestly in November. The average buyer paid $25,730 — down $217 from the month before.

Supply and demand govern used car prices, and supply has proven steady. Dealers ended November with about as many used cars as they had when it started. The prices dealers pay at auction rose modestly in recent weeks, which can be a sign of small price increases ahead. But the inflation has remained small and predictable.

That’s great news for shoppers, because the nationwide supply of used cars has been thin for years. Pandemic-era disruptions meant automakers built about 8 million fewer cars than they normally would have in 2021 and 2022. Millions of cars will never reach the used market, keeping supplies low for a long time.

Older, Less Expensive Cars Harder to Find

If you hope to find an older vehicle and your budget is less than $15,000, these cars remain in short supply. Dealers have just 36 days’ worth of used cars priced under $15,000 — 14 days below the overall industry average.

However, the tariff threat could push used car prices higher. When new car prices rise, would-be new car shoppers head to used lots looking for something still in their price range. More would-be new car shoppers start buying up the available used vehicles, drawing down the inventory. Plus, Americans are holding onto their cars longer than ever. The average vehicle on American roads is 12.8 years old. Automakers also produced fewer cars for several years after the 2008 recession, leaving fewer higher-mileage, older used vehicles available to sell.

The most accessible used cars carry prices between $15,000 and $30,000.

Automakers Build More Expensive Cars

If you haven’t been car shopping in a while, the cars on offer may surprise you.

In recent years, inexpensive cars have grown scarce. Recent analysis finds that sales of vehicles priced at $25,000 or less have fallen by 78% in just five years. Six years ago, automakers offered 36 new models in that price range. By late 2023, that number was just 10. Automakers have announced plans to cancel most of those 10, including the low-cost Mitsubishi Mirage that was axed after 2024.

Meanwhile, cars priced at $60,000 or higher have grown by 163% during the same period.

Dealers are pushing back, telling automakers they need more mainstream cars to sell, but correcting the problem will take time.

How to Buy a Car Right Now

New car prices remain nearly $12,000 higher than five years ago, amid the COVID-19 pandemic. That’s when the average transaction price for new vehicles was around $38,563. However, with all the technological advances and offerings, your next car will likely last longer and help you drive safer than ever. 

RELATED: Buying Older, Used Cars in 2025

Vehicle quality studies repeatedly show that today’s new cars suffer fewer problems than those from just a few years earlier. Buyers of higher-priced used cars will likely see the vehicle driving on the road even longer. The same goes for those buying new ones.

With most automakers now building such durable cars, they compete by adding more high-tech features. Features like adaptive cruise control and Apple CarPlay are now more common than ever on entry-level vehicles. Read on to see our tips on buying a car below.

How to Leverage Incentives to Buy a New Car

Last month, car incentives comprised about 7.2% of the average deal, or about $3,534. To learn how to take advantage of incentives, read about our monthly best car deals to find dealer or manufacturer offers, including cash back and lower interest rates for financing your next vehicle.

RELATED: How to Buy a New Car in 10 Steps

Selling a Car Right Now

Few of us can sell a car without needing to buy a replacement. If you can sell now, what are you waiting for? You could get more for your vehicle if it’s in high demand, and that’s excellent news. The best way to get the most money for your used car is to sell it privately. But if you don’t want the hassle, there is still an opportunity to sell to a dealership.

PRO TIP: If selling a car, consider selling it peer-to-peer using Kelley Blue Book’s Private Seller Exchange marketplace. It’s a low-cost method that helps consumers earn more for their vehicles than selling to a dealership.

Trading in a Car Now

The ongoing shortage of used cars will be with us for years. As a result, you’ll likely still see respectable offers for your used car this month.

Searching for a decent price for your trade-in is still a good idea by shopping around. Each dealership tries to keep a balance of vehicles on its lot. Sometimes, the one you want to buy from doesn’t need your trade-in desperately, but a competitor does.

Research your vehicle’s Kelley Blue Book value, then call several local dealerships to see what they’ll offer you for it. Or try our Instant Cash Offer tool, which brings the deal to you from various dealerships without obligation. You can choose your preferred offer or use it to negotiate with others.

Is Trading in Your Vehicle a Good Idea?

Possibly. You could get more money than usual if your vehicle is in high demand. It will help defray the costs of buying a new or used car. However, if your vehicle is not in high demand, you can expect to get close to the Kelley Blue Book value. Use Kelley Blue Book’s car valuation tool to find out the price of your new or used car.

Can You Trade in a Vehicle That’s Not Paid Off?

Yes. Whether you have paid off your car or not, you can still trade it in. However, a car depreciates when you drive it out of the dealership. It’s best to take stock of how much equity you carry in the vehicle. Take the difference between the car’s current market value and what you owe to figure that out. Read our story on selling a car.

Looking Ahead

New car prices are likely to cross the $50,000 line early in 2026, and stay above it indefinitely. Automakers will eventually have to address the yawning gap at the low-cost end of the car market. But they’re being conservative with their business decisions now, with few willing to take the risk of designing cheaper cars when the expensive ones are selling so well.

Used car prices, barring any unusual disruptions to the market, should increase only subtly.

If you need a new car soon, it might make sense to act now while prices remain steady.

RELATED: 10 Best Used Car Deals

Tips for Buying a Vehicle Right Now

If you shop right now, we recommend a few strategies to help you find the right new or used car that fits your budget.

1. Expand your search. Widen your search to a broader geographic area because you could find a better deal or the used car you want outside your immediate area.
2. Stay patient. Call dealerships to see what’s in stock for those high-demand vehicles. Leave a refundable deposit if you want first dibs.
3. Buy a less expensive model. With higher car loan interest rates, consider buying a cheaper vehicle model instead of a more expensive one in the lineup you’re considering. Understand how much you can afford.
4. Look for deals. Make sure to research car deals to find what works best for you. It may involve contacting or visiting several dealerships as you search for the right fit.
5. Weigh your options. Don’t just look for a car; search for the best interest rates from banks or credit unions. Also, shop for your insurance rates ahead of the deal to know how much the higher auto insurance costs will be for your desired vehicle. Then, weigh all your options, including financing incentives and deals at the dealership, if that’s where you buy your next vehicle. Also, you may find that the prices of some newer-model used vehicles are almost the same as new cars. Just keep all your options open during your search.
6. Avoid dealer markups. If you see a markup (sometimes called a “market adjustment”) on your final invoice, ask the dealer to remove it. If they refuse, shop at another dealership. Markups were more prevalent during the COVID-19 pandemic. However, dealers still mark up some vehicles that are in short supply.
7. Question all add-ons. If your sales summary includes entries like “window tint,” “fabric protection,” “carpeted floor mats,” and other add-ons you didn’t request, ask the dealer to remove those line items from your invoice. Many dealers tack on these extras to make quick profits.

It may make more sense to keep your existing car for another year or two. If you must buy, be prepared to take excellent care of your next car to keep it running for a long time.

Editor’s Note: We have updated this article since its initial publication.

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