Can I Sell My Dad’s Car If I Have Power of Attorney

Having power of attorney (POA) may allow you to sell your dad’s car, but only if the document specifically grants you that authority. The process involves verifying the POA type, checking state laws, preparing paperwork, and ensuring transparency to avoid legal issues.

Key Takeaways

• POA Must Include Vehicle Sale Authority: Not all power of attorney documents allow selling vehicles—check the language carefully.
• Durable vs. General POA Matters: A durable POA remains valid if your dad becomes incapacitated; a general one may not.
• State Laws Vary Widely: Each state has different rules for titling, registration, and selling a car on someone else’s behalf.
• Proper Documentation Is Essential: You’ll need the original POA, title, ID, and sometimes a notarized affidavit.
• Avoid Conflicts of Interest: Selling the car for personal gain can lead to legal trouble—always act in your dad’s best interest.
• Notify the DMV and Lienholder: Update records and pay off any loans before transferring ownership.
• Consider Consulting a Lawyer: When in doubt, legal advice ensures compliance and protects everyone involved.

Can I Sell My Dad’s Car If I Have Power of Attorney?

If your dad is elderly, ill, or otherwise unable to manage his affairs, you might be stepping in to help—especially when it comes to practical matters like selling his car. Maybe he’s moved into assisted living, no longer drives, or needs the money for medical bills. Whatever the reason, you may be wondering: *Can I sell my dad’s car if I have power of attorney?*

The short answer is: **possibly—but only if your power of attorney (POA) gives you that specific right.** It’s not automatic. Just having a POA doesn’t mean you can sell his car, transfer his house, or access his bank accounts unless the document explicitly says so. And even then, there are legal steps, paperwork, and potential pitfalls to navigate.

This guide will walk you through everything you need to know—from understanding the types of POA to completing the sale legally and ethically. Whether you’re acting out of love, necessity, or both, doing this the right way protects your dad, you, and the buyer.

Understanding Power of Attorney: What It Is and What It Allows

Before you even think about listing your dad’s car on Craigslist or driving it to a dealership, you need to understand what power of attorney actually means—and what it doesn’t.

A power of attorney is a legal document that allows one person (the “agent” or “attorney-in-fact”) to act on behalf of another (the “principal”). In this case, you’re the agent, and your dad is the principal. But here’s the catch: **the agent can only do what the POA document permits.**

There are several types of POA, and each comes with different levels of authority:

General Power of Attorney

This gives broad powers to handle financial and legal matters, including selling property, managing bank accounts, and signing contracts. If your dad signed a general POA that includes vehicle transactions, you’re likely in the clear—*but only while he’s mentally competent.* Once he becomes incapacitated (due to dementia, stroke, etc.), a general POA typically becomes invalid.

Durable Power of Attorney

This is the gold standard for long-term planning. A durable POA remains in effect even if the principal becomes incapacitated. Most people who set up POA for aging parents choose this type because it ensures continuity. If your dad granted you durable POA and included the right to sell vehicles, you can proceed—even if he’s no longer able to make decisions.

Limited (or Special) Power of Attorney

This grants specific, narrow powers—like selling a particular car or signing a single document. If your dad signed a limited POA just for the car sale, that’s perfect. But if it’s missing or expired, you’re stuck.

Springing Power of Attorney

This only takes effect under certain conditions—usually when the principal becomes incapacitated. It’s useful, but can be tricky because it requires proof of incapacity (like a doctor’s note), which can delay the process.

👉 **Pro Tip:** Always check the exact wording of the POA. Look for phrases like “sell, convey, or transfer any motor vehicle” or “manage personal property.” If it’s vague or silent on vehicles, you may need to get court approval or have your dad amend the document (if he’s still capable).

Does Your POA Allow You to Sell a Car?

This is the million-dollar question. And the answer depends entirely on what the document says.

Let’s say your dad signed a durable POA that states:
> “My agent may buy, sell, lease, or otherwise dispose of any real or personal property, including motor vehicles, on my behalf.”

That’s a green light. You can sell the car.

But if the POA only says:
> “My agent may manage my bank accounts and pay my bills.”

Then selling the car? Not allowed. Even if it seems logical, you can’t assume authority that isn’t written down.

What If the POA Is Silent on Vehicles?

If the document doesn’t mention vehicles at all, you’re in a gray area. Some states allow agents to perform “ordinary” transactions under a general POA, but car sales often require explicit permission. To be safe, consult a local attorney or try to get a supplemental POA signed (if your dad is still competent).

What If Your Dad Is Incapacitated?

If your dad can’t sign a new POA or clarify the existing one, and the current document doesn’t clearly allow car sales, you may need to go to court to become his legal guardian or conservator. This is a longer, more expensive process—but sometimes necessary.

👉 **Real-Life Example:**
Maria had a durable POA for her dad, who had early-stage Alzheimer’s. The document allowed her to “manage all personal property.” She assumed that included selling his car. She listed it online, found a buyer, and went to the DMV—only to be turned away because the POA didn’t specifically mention vehicles. She had to get a court order, which took six weeks and $1,200 in legal fees. Don’t let this happen to you.

State Laws and DMV Requirements: What You Need to Know

Even with a valid POA, selling a car isn’t as simple as handing over the keys. Every state has its own rules for titling, registration, and transferring ownership—especially when someone else is acting on behalf of the owner.

Here’s what you’ll typically need:

1. The Original Power of Attorney Document

Most DMVs require the original POA (or a certified copy). Photocopies or scans may not be accepted. Some states also require the POA to be recorded with the county clerk, especially if it involves real estate—but for cars, the original usually suffices.

2. The Vehicle Title

The title must be in your dad’s name. If it’s lost, you’ll need to apply for a duplicate before selling. Some states allow the agent to sign the title on the principal’s behalf; others require both signatures (even if one is by proxy).

3. Valid Identification

You’ll need your driver’s license and possibly your dad’s ID (even if he’s incapacitated). Some DMVs accept a copy of his birth certificate or Social Security card if he no longer has a license.

4. Odometer Disclosure

Federal law requires an odometer reading when selling a car over 10 years old. As the agent, you can sign this—but you must truthfully report the mileage.

5. Bill of Sale (Recommended)

While not always required, a bill of sale protects both you and the buyer. It should include:
– Vehicle make, model, year, and VIN
– Sale price
– Date of sale
– Signatures of both parties (you signing as agent)

6. Release of Liability

After the sale, you (or the buyer) must notify the DMV that your dad is no longer responsible for the car. This protects him from tickets, accidents, or toll violations after the transfer.

👉 **State-Specific Example:**
In California, the DMV requires Form REG 262 (“Application for Duplicate or Transfer of Title”) and a notarized statement if the agent is signing. In Texas, you can use Form 130-U and sign as “John Doe, by Jane Smith, his attorney-in-fact.” In Florida, the POA must be recorded if the car is worth over $5,000.

Always check your state’s DMV website or call ahead. Rules change, and what worked last year might not work now.

Step-by-Step: How to Sell Your Dad’s Car Legally

Now that you know the basics, let’s walk through the actual process—step by step.

Step 1: Confirm Your Authority

Review the POA. Does it allow vehicle sales? Is it durable? Is it still valid? If you’re unsure, ask a lawyer.

Step 2: Gather All Documents

Collect:
– Original POA
– Vehicle title
– Your ID and your dad’s ID
– Odometer reading
– Maintenance records (optional but helpful for buyers)

Step 3: Pay Off Any Loans

If the car has a lien (loan), you can’t sell it until the loan is paid. Contact the lender to get a payoff amount. You may need to use your dad’s funds or your own (if authorized). Once paid, the lender will release the lien and send the title.

Step 4: Determine the Car’s Value

Use tools like Kelley Blue Book, Edmunds, or NADA Guides to find a fair market price. Consider the car’s condition, mileage, and local demand. Don’t underprice it—but don’t overprice it either.

Step 5: Advertise and Sell

List the car on platforms like Facebook Marketplace, Craigslist, or AutoTrader. Be transparent: mention that you’re selling on behalf of your father and provide proof of POA if asked.

When a buyer is interested:
– Meet in a safe, public place
– Allow a test drive (with insurance)
– Accept secure payment (cash, cashier’s check, or bank transfer)

Step 6: Complete the Sale

At the DMV or online (if available), submit:
– Title (signed by you as agent)
– Bill of sale
– Odometer disclosure
– POA copy
– Registration transfer form

The buyer will pay sales tax and registration fees. You’ll get a receipt confirming the transfer.

Step 7: Notify the DMV and Insurance

File a release of liability form. Cancel your dad’s insurance policy—don’t just let it lapse, as this can cause penalties.

👉 **Pro Tip:** Keep copies of everything—POA, title, bill of sale, DMV forms. You may need them if questions arise later.

Common Pitfalls and How to Avoid Them

Even with the best intentions, things can go wrong. Here are the most common mistakes—and how to dodge them.

Selling Without Proper Authority

This is the #1 error. If your POA doesn’t allow car sales, don’t do it. It’s fraud. The buyer could sue, the DMV could reject the transfer, and you could face criminal charges.

✅ **Fix:** Get legal advice or amend the POA (if possible).

Signing the Title Incorrectly

You must sign as the agent—not as yourself. For example:
“John Smith, by Jane Doe, his attorney-in-fact under POA dated 01/15/2023.”

Signing just your name or your dad’s name (without indicating you’re acting on his behalf) can invalidate the transfer.

✅ **Fix:** Use the exact format required by your state. Check the DMV website.

Ignoring Tax and Insurance Implications

Selling a car can affect your dad’s taxes (if it’s a gift or sale below market value) and insurance rates. Also, if the car is leased, you may face early termination fees.

✅ **Fix:** Consult a tax professional and notify the insurance company immediately after the sale.

Acting Against Your Dad’s Best Interest

As an agent, you have a fiduciary duty—meaning you must act in your dad’s best interest, not your own. Selling the car to a friend at a discount, keeping the money, or using it for personal expenses is a breach of trust.

✅ **Fix:** Keep detailed records, get fair market value, and use the proceeds for your dad’s benefit (medical bills, care, etc.).

Failing to Notify the DMV

If you don’t file a release of liability, your dad could be held responsible for accidents or tickets after the sale.

✅ **Fix:** Submit the form the same day the car is sold.

When to Consult a Lawyer

While many car sales with POA go smoothly, some situations call for legal help:

– The POA is unclear or outdated
– Your dad is incapacitated and can’t sign a new document
– There’s a dispute among family members
– The car has significant value (over $20,000)
– You’re unsure about tax or liability issues

A lawyer can:
– Review the POA
– Help you get court approval if needed
– Draft a bill of sale
– Ensure compliance with state laws

The cost ($200–$500) is small compared to the risk of legal trouble.

Ethical Considerations: Acting in Good Faith

Selling a parent’s car is more than a transaction—it’s a responsibility. You’re not just moving metal; you’re handling a piece of their life, their independence, and their trust.

Ask yourself:
– Is this sale necessary?
– Is the price fair?
– Are the proceeds being used for my dad’s benefit?
– Would he approve?

If the answer to any of these is “no,” pause and reconsider.

Also, be transparent with family members. Even if you have legal authority, keeping others in the dark can cause conflict. A quick email or call can prevent misunderstandings.

👉 **Real-Life Example:**
David sold his mom’s car after she moved to a nursing home. He used the money to pay for her medications and home care. He told his siblings, shared the bill of sale, and kept receipts. Everyone understood. No drama. That’s how it should be.

Conclusion

Yes, you can sell your dad’s car if you have power of attorney—but only if the document gives you that right, and only if you follow the law. It’s not just about signing papers; it’s about acting with integrity, clarity, and care.

Start by reviewing the POA. Confirm it’s durable and includes vehicle sales. Gather all documents. Follow your state’s DMV rules. Sell the car fairly. Notify the authorities. And above all, act in your dad’s best interest.

This isn’t just a legal process—it’s a moral one. By doing it right, you honor his trust, protect his assets, and give yourself peace of mind.

When in doubt, ask for help. A few hundred dollars for legal advice now can save thousands—and heartache—later.

Frequently Asked Questions

Can I sell my dad’s car if he’s in a nursing home?

Yes, if you have a valid durable power of attorney that allows vehicle sales. The fact that he’s in a nursing home doesn’t change your authority—but you must still follow state laws and act in his best interest.

Do I need to be listed on the car title to sell it?

No. You don’t need to be on the title if you have a power of attorney. You can sign as the agent, but the title must be in your dad’s name.

What if the car has a loan?

You must pay off the loan before selling. Contact the lender for the payoff amount. Once paid, they’ll release the lien and send the title so you can transfer ownership.

Can I sell the car online with POA?

Yes, but the buyer may ask for proof of your authority. Provide a copy of the POA and be prepared to complete the transfer at the DMV with proper documentation.

What happens if my dad passes away before the sale?

The POA ends at death. You’ll need to go through probate and may need to be appointed as executor before selling the car. Consult a probate attorney immediately.

Can I sell the car for less than market value?

Technically yes, but it could raise red flags—especially if family members question your motives. Always document the reason and ensure it benefits your dad (e.g., quick sale for medical bills).