How to Sell a Car Privately in Tennessee

Selling a car privately in Tennessee can be a smart way to get more money than trading it in—but it takes planning. From pricing your vehicle right to handling the legal paperwork, this guide walks you through every step to make the process smooth, safe, and successful.

So, you’ve decided to sell your car privately in Tennessee. Maybe you’re upgrading to something newer, downsizing, or just ready for a change. Whatever the reason, selling privately can put more cash in your pocket compared to trading it in at a dealership. But it’s not as simple as slapping a “For Sale” sign on the windshield and waiting for calls.

Selling a car privately means you’re taking on the role of salesperson, marketer, negotiator, and paperwork processor—all at once. The good news? With the right preparation and knowledge, you can navigate the process smoothly and safely. Tennessee has specific rules and steps for private car sales, and understanding them upfront saves you time, stress, and potential legal trouble down the road.

In this guide, we’ll walk you through every step of how to sell a car privately in Tennessee—from pricing your vehicle to handing over the keys. Whether you’re selling a used sedan, a rugged pickup, or a classic ride, these tips will help you get the best deal while staying protected. Let’s get started.

Key Takeaways

• Research your car’s value: Use tools like Kelley Blue Book or Edmunds to price your vehicle competitively based on condition, mileage, and local demand.
• Prepare your car for sale: Clean it inside and out, fix minor issues, and gather maintenance records to boost buyer confidence.
• Create a compelling listing: Write a clear, honest description with high-quality photos from multiple angles to attract serious buyers.
• Meet safely and test drive smartly: Always meet in public, bring a friend, and verify the buyer’s driver’s license before allowing a test drive.
• Complete the title transfer correctly: Sign the title properly, fill out the bill of sale, and notify the DMV to avoid future liability.
• Accept secure payment: Use cash, cashier’s check, or bank transfer—avoid personal checks or wire transfers from strangers.
• Cancel insurance after sale: Don’t cancel too early, but remove coverage once the buyer takes possession to avoid unnecessary costs.

1. Know Your Car’s Worth

Before you even think about listing your car, you need to know how much it’s actually worth. Pricing it too high will scare off buyers. Pricing it too low means leaving money on the table. The key is finding that sweet spot where your car is competitive but still reflects its true value.

Use Online Valuation Tools

Start by checking reputable pricing websites like Kelley Blue Book (KBB), Edmunds, or NADA Guides. These tools let you input your car’s make, model, year, mileage, condition, and features to get a fair market value. Be honest about the condition—don’t overstate it just to bump up the price.

For example, if you’re selling a 2018 Honda CR-V with 60,000 miles in good condition, KBB might suggest a private party sale price between $18,000 and $20,000. But that’s just a starting point. You’ll also want to look at similar listings in your area.

Check Local Listings

Head over to Craigslist, Facebook Marketplace, or Autotrader and search for cars like yours within a 50–100 mile radius. Note the prices, but also pay attention to how long they’ve been listed. A car priced at $19,500 that’s been up for three months might be overpriced. One listed at $18,800 that sells in a week is likely priced right.

Let’s say you find three similar CR-Vs in Nashville: one at $19,200 (clean title, low miles), one at $18,500 (minor scratches), and one at $17,900 (high mileage). That tells you the market range. You might price yours at $18,700 to be competitive but still leave room for negotiation.

Adjust for Condition and Extras

Your car’s condition matters—a lot. A well-maintained vehicle with service records, new tires, and a clean interior can command a higher price. On the other hand, if it has dents, a check engine light, or worn upholstery, you’ll need to adjust downward.

Also, consider aftermarket upgrades. A premium sound system, alloy wheels, or a towing package can add value—but don’t expect full retail price for them. Most buyers will only pay a fraction of what you spent.

2. Prepare Your Car for Sale

First impressions count. A clean, well-maintained car tells buyers you’ve taken care of it—and that it’s likely to be reliable. Plus, a little effort here can significantly boost your sale price.

Clean It Inside and Out

Start with a thorough wash and wax. Clean the wheels, tires, and under the hood. Inside, vacuum every corner, wipe down surfaces, and remove any personal items. Don’t forget the trunk and glove compartment.

Consider using an odor eliminator if there’s any lingering smell—smoke, pets, or food. A fresh scent makes a big difference. You might even add a subtle air freshener, but avoid anything too strong.

Address Minor Repairs

You don’t need to rebuild the engine, but fixing small issues can prevent buyers from lowballing you. Replace burnt-out bulbs, fix cracked windshields, and top off fluids. If the brakes squeak or the AC isn’t cold, consider getting them checked.

For example, a $50 brake pad replacement might save you $500 in negotiation. Buyers often use minor flaws as leverage to lower the price, even if the issue is cheap to fix.

Gather Documentation

Have your maintenance records ready. Buyers love seeing proof that the car has been well cared for. Include receipts for oil changes, tire rotations, and major repairs. If you have the original window sticker or owner’s manual, include those too.

Also, get a vehicle history report from Carfax or AutoCheck. This shows accidents, title status, and service history. Offering this upfront builds trust and can justify a higher price.

3. Create a Compelling Listing

Your listing is your car’s first impression online. A great ad attracts serious buyers and reduces time wasted on tire-kickers.

Write a Clear, Honest Description

Start with the basics: make, model, year, mileage, and trim level. Then highlight key features—automatic transmission, backup camera, heated seats, etc. Be honest about flaws. Saying “minor paint scratch on rear bumper” is better than hiding it and having the buyer discover it later.

Use short paragraphs and bullet points for readability. For example:

• 2018 Honda CR-V EX-L
• 60,000 miles
• Clean title, no accidents
• Leather seats, sunroof, Apple CarPlay
• Recent oil change and new tires
• Minor scratch on rear bumper (see photo)

Take High-Quality Photos

Take photos in good lighting—early morning or late afternoon works best. Shoot from multiple angles: front, back, sides, interior, engine bay, and trunk. Include close-ups of any damage.

Avoid cluttered backgrounds. A clean driveway or empty parking lot looks more professional than a busy street. And never use stock photos—buyers will know, and it kills credibility.

Choose the Right Platforms

List your car on multiple sites to reach more buyers. Good options include:

• Facebook Marketplace: Free, easy to use, and popular in Tennessee.
• Craigslist: Still effective, especially in cities like Memphis, Nashville, and Knoxville.
• Autotrader: Great for serious buyers, but may charge a fee.
• Cars.com: Another trusted platform with strong search features.

Include your phone number and respond quickly to messages. The faster you reply, the more likely you are to close the sale.

4. Handle Inquiries and Test Drives Safely

Once your listing goes live, inquiries will start rolling in. Some will be serious, others not. Your job is to filter them and protect yourself during meetings.

Screen Potential Buyers

Ask basic questions: “Are you seriously interested?” or “Do you have financing ready?” Scammers and time-wasters often give vague answers or ask odd questions (like “Can I pay with a money order from overseas?”).

If someone seems hesitant or pushy, trust your gut. It’s better to skip a questionable buyer than risk your safety.

Meet in a Safe, Public Place

Always meet in a well-lit, public area—like a police station parking lot, mall, or busy shopping center. Many Tennessee police departments even have “safe exchange zones” with cameras and emergency call boxes.

Bring a friend or family member with you. Let someone know where you’re going and when you expect to return. Never meet at your home.

Verify the Buyer’s License

Before allowing a test drive, ask to see the buyer’s driver’s license. Make sure it’s valid and matches their appearance. You can also ask for a second form of ID, like a credit card or utility bill.

Keep the license info handy in case of an accident. And never let the buyer drive alone—always ride along or have them drive with you in the passenger seat.

Supervise the Test Drive

During the test drive, stay calm and answer questions honestly. Point out features and mention any known issues. But don’t oversell—let the car speak for itself.

If the buyer wants to take it to a mechanic, that’s a good sign. It means they’re serious. Offer to meet at a trusted shop or let them choose one.

5. Complete the Sale and Transfer Ownership

Once you’ve agreed on a price, it’s time to finalize the sale. This is where many sellers make mistakes—especially with paperwork.

Use a Bill of Sale

Tennessee requires a bill of sale for private vehicle transfers. You can download a free template from the Tennessee Department of Revenue website. Include:

• Buyer and seller names and addresses
• Vehicle make, model, year, and VIN
• Sale price
• Date of sale
• Odometer reading
• Signatures of both parties

Both you and the buyer should sign it. Keep a copy for your records.

Sign the Title Correctly

The title is the most important document. Make sure it’s signed properly:

• Sign in the “Seller” section.
• Print your name clearly.
• Fill in the sale price and odometer reading.
• Do not leave any fields blank—write “N/A” if not applicable.

If the title is lost, you’ll need to apply for a duplicate from the Tennessee DMV before selling.

Notify the DMV

Within 30 days of the sale, you must notify the Tennessee Department of Revenue that you’ve sold the vehicle. You can do this online or by submitting a Notice of Sale form. This protects you from liability if the buyer gets a ticket or causes an accident before transferring the title.

The buyer is responsible for registering the car and paying sales tax, but you’re still liable until the DMV is notified.

Accept Secure Payment

Only accept payment methods that are safe and traceable:

• Cash: Best for amounts under $10,000. Count it in front of the buyer.
• Cashier’s check: Get it from a bank and verify it’s legitimate before handing over the keys.
• Bank transfer: Use a service like Zelle or wire transfer directly to your account.

Avoid personal checks, money orders, or wire transfers from unknown sources. These are common scam tactics.

Once payment clears, hand over the keys, title, bill of sale, and any extra items (like spare keys or manuals).

6. Cancel Insurance and Protect Yourself

After the sale, don’t forget to update your insurance and protect yourself from future issues.

Cancel or Transfer Coverage

You can cancel your insurance once the buyer takes possession—but not before. If you cancel too early and the car is damaged or stolen before the sale, you’re out of luck.

Call your insurer and let them know the vehicle has been sold. They’ll prorate your refund. If you’re buying a new car, you can often transfer coverage to the new vehicle.

Keep Records

Save copies of the bill of sale, title, and DMV notification for at least a year. If the buyer claims you misrepresented the car or there’s a dispute, you’ll have proof.

Remove License Plates

In Tennessee, license plates stay with the seller—not the car. Remove them before handing over the vehicle. You can reuse them on your next car or return them to the DMV.

Final Tips for a Smooth Sale

Selling a car privately takes time and effort, but the payoff is worth it. Here are a few final tips to make the process even smoother:

• Be patient: It may take a few weeks to find the right buyer. Don’t rush into a low offer just to sell fast.
• Be flexible: Consider reasonable offers, especially if the car has been listed for a while.
• Stay safe: Always prioritize your safety during meetings and test drives.
• Be honest: Transparency builds trust and reduces the risk of disputes.
• Ask for feedback: If you’re not getting calls, ask friends or family to review your listing. Sometimes a small tweak makes all the difference.

Selling a car privately in Tennessee doesn’t have to be stressful. With the right preparation, you can get a fair price, avoid scams, and hand over the keys with confidence.

Frequently Asked Questions

Do I need a bill of sale to sell a car privately in Tennessee?

Yes, Tennessee law requires a bill of sale for private vehicle transfers. It serves as proof of the transaction and includes important details like the sale price, vehicle information, and signatures of both parties.

Can I sell my car if I still owe money on it?

Yes, but you’ll need to pay off the loan first or arrange for the buyer to assume it. Most private buyers won’t take on an existing loan, so you’ll typically need to settle the balance before transferring ownership.

What happens if the buyer doesn’t register the car?

As the seller, you’re still liable until you notify the Tennessee DMV of the sale. Submit a Notice of Sale form within 30 days to protect yourself from fines, tickets, or accidents caused by the new owner.

Should I allow a pre-purchase inspection?

Yes, it’s a smart move. Letting a buyer take the car to a mechanic shows you have nothing to hide and can help close the sale faster. Most serious buyers will request one anyway.

Can I sell a car with a salvage title in Tennessee?

Yes, but you must disclose the salvage title in your listing. These cars typically sell for less and may require a rebuilt title inspection before the buyer can register them.

Is it safe to meet buyers alone?

No. Always bring a friend or meet in a public place with cameras, like a police station. Let someone know your plans and avoid meeting at your home to stay safe.