What you need to know when selling a car

Rules for selling a car 2019

To know how to sell a car under the new rules, you need to remember a certain procedure, be attentive to details and take into account several nuances. We'll talk about this in our material.

Content

How to sell a car correctly under the new rules

To successfully sell a used car, pencil in 6 rules:

• prepare a DCP (purchase and sale agreement) in triplicate: for yourself, the buyer and road inspectors;
• check the documents for the car;
• indicate your, the buyer’s and the car’s details in the contract using a computer or manually;
• sign the contract and make sure that the buyer’s signature is there;
• Give away a car and get money in return;
• Prepare a tax return (if necessary).

Now let's look at each point in detail.

Preparation of copies of the agreement

New rules for selling a car make it possible to sell a car using DCT. The risks are minimal, the procedure is inexpensive - fill out the form in 5-10 minutes. There is no need to have the contract certified by a notary. The only thing is, for reinsurance, print out the vehicle acceptance certificate along with the DCP. This document will help prove that you actually handed over the car.

Experts do not advise drawing up a contract yourself - you may make mistakes or miss points. It is better to immediately download the current form online. Prepare 3 copies: leave one for the buyer, give the other to the traffic police (for re-registration), and keep the third for yourself. If only you have the contract, it will take a lot of time to justify yourself before the road inspector or even the court. For example, it will be difficult to prove that it was not you who drove at a speed of 150 km/h in the neighboring region.

Verification of documents

Make sure that you have all the documents on hand - PTS, STS, OSAGO policy, as well as a power of attorney if you are not the owner of the car. If the PTS is lost, you will spend time and money on restoration and eventually receive a duplicate - the transaction may not take place. It is easier with compulsory motor liability insurance and a certificate, but it will also take time.

If there is no space in the vehicle passport for a new entry, update the document before concluding the contract. If you do this through government services, you will save 30% of the fee: for issuing a new STS, making changes to the owner’s data, you will pay only 595 rubles. Or find out the traffic police details on the road inspection website, but then redoing the documents will cost more.

Registration of DCT

To register the sale of a car under the new rules, the seller must provide the traffic police with a passport, vehicle registration certificate and title. If you are not the owner of the car, the owner must write a power of attorney for you.

How to write

Fill out the contract form completely, preferably with a blue pen. Do not abbreviate words, write without errors or blots. Place dashes in empty columns.

What to write

Be sure to indicate the exact date of the agreement. Write down the mileage at the time of sale and the exact time when you handed over the car to the new owner - this way, protect yourself from a dishonest buyer or just a reckless driver who became the new owner of your iron horse. Display the technical features of the car, such as all-wheel drive. If the new owner tries to charge you money for non-compliance with the stated technical characteristics, you will have a document stating the opposite.

Where to apply

The safest way to arrange the sale of a used car in 2019 is to visit the traffic police department. Go to the MREO together with the buyer - you can issue a DCP and transfer documents for the car there. At the same time, you will check that the car has been registered again, and now it has a different owner.

What to expect

Often, new car owners take a long time to register their car. If the buyer does not re-register the car within 30 days, contact the road inspection. There you will submit an application to terminate the registration of the vehicle, because... don't know where it is. To draw up the document, grab your passport.

If the buyer does not show up, you can deregister the car. In this case, the car must be scrapped, and driving such a car is fraught with a fine.

Signatures in the contract

Make sure that the new owner of the car signs all copies of the contract. If you missed something, the traffic police may have questions. By signing, the buyer confirms that he bought your car and is now the legal owner. Your signature is a sign that you handed over the car and received the money. If there is no signature in at least one of the copies, the court may declare the transaction invalid. This will result in serious problems for you if the buyer of the car, for example, caused an accident and disappeared. He may claim that you forged his signature, and then you will not only get a “bucket” that needs to be repaired, but also problems with the law.

Receiving the money

The rules for buying and selling a car imply, of course, exchanging the car for money. As a rule, this happens in the following way: in the contract you specify the amount for which you are giving the car. Many sellers make it smaller than the real thing to avoid taxes. For example, a car cost 190 thousand rubles, and the seller writes 140 in the contract. Accordingly, when terminating the transaction, they pay the buyer less than it actually was. This is wrong, illegal, but happens often. Moreover, 99 out of 100 buyers will not go to prove that they bought a car more expensive than stated in the policy.

When you receive the money, place it in a small bag or other inconspicuous place. No one should know that you have a large amount of money on you.

Give the buyer the keys, MTPL policy (if it is still valid), PTS, STS, service book (if available). Ready!

Preparation of a tax return

First, let's figure out in what cases it is not necessary to draw up a declaration:

• if the car has been owned for more than 3 years;
• the price of the car when selling is 250 thousand rubles or less;
• the car was sold for the same money as it was bought, or cheaper.

For example, you drove a car for 2 years, after which you sold it for 500 thousand. The difference between this amount and the established tax deduction of 250 thousand rubles will be taxed. We count:

500 – 250 = 250 tr.

In your tax return you indicate:

• car make, model
• body type
• state number at the time of sale
• year of issue
• your full name

You fill out the tax return and submit it to the Federal Tax Service from January 1 to April 30 of the year following the year of sale of the car. So, if you sold the car on August 15, 2017, you submit the declaration no earlier than 4 months later.

Attach the declaration to the declaration and a certificate from the road inspection, which contains information about the car and the transaction amount.

According to the tax payment receipt, pay the amount indicated in the declaration to the bank no later than July 15 of the year of filing the declaration.

The rules for selling a car also include the seller’s confidence in the cleanliness of the car - external and legal.

You can check your car online using the Autocode service. The report may reveal problems you weren't aware of. For example, you will see information about the seizure, the date the car loan was issued. Or you will find out that the previous owner has several fines, the mileage is incorrect, or the car has been stolen.

If the car’s history is “clean”, show the results of the online check to the buyer. This will build trust in you and the car, and will also help sell the car for more money.

If you don’t have time to visit a car service center and find out the technical condition of the car, involve an on-site inspection “Autocode”. You can do this shortly before meeting with the buyer. Leave a request on the website or in the mobile application, then tell the specialist a convenient place and time for the meeting.

The on-site technician will assess the condition of the suspension, engine and other components, check the geometry of the body, paintwork, and analyze the operation of the battery and sensors. A specialist will definitely evaluate the interior and look for signs of twisted mileage or exploded airbags. The technician will also drive the car for several hundred meters and thus check for problems in the chassis, steering, and brake system. The price of a detailed inspection using professional equipment is from 2,600 rubles.

The rules for selling a car are the same for everyone. A conscientious seller will make sure that the buyer has a positive opinion about the previous owner of the car. If you don’t know about any problems, and the new owner of the car realizes that he bought a “bucket”, he will blame you for deception. Or the buyer will be dishonest and say that he discovered repainted parts after an accident, although he himself became a participant in it. Make sure that the car has no pitfalls and that it is technically sound. And then sell with a clear conscience.

How to sell a car yourself in 2019

The law allows for the sale of cars. The process must be formalized accordingly. This year, the current legislation has undergone major changes. This was done to make existing methods of fraud impossible to implement. Not all drivers are aware of the adjustments made. Experts advise you to figure out in advance how to register the purchase and sale of a car according to the new rules in 2019.

Today, you can sell your own car yourself or with a general power of attorney. The transaction is concluded on the basis of a purchase and sale agreement.

In the process of carrying out actions, you will need to prepare a package of documentation. The sold car must be re-registered to the new owner. In this case, there is no need for deregistration. There is also a set of other innovations. To find out all of them, you should familiarize yourself with the latest information in advance. We will talk further about how the car is sold according to the new rules, about the package of documents that will need to be prepared, as well as about the features of registering a vehicle.

Car sales procedure

Today, you can formalize the sale of a car in two ways - using a standard purchase and sale transaction and using a general power of attorney. In the first situation, the seller and buyer enter into a simple written agreement. The mechanism for selling a car under a general power of attorney is simple. A document is drawn up regulating the transfer of the rights of one of the parties to a third party. It will act on behalf of the seller or buyer. The procedure for selling a car between individuals under a general power of attorney is associated with a number of additional nuances and risks. The likelihood of fraud increases. Therefore, purchasing a car under a general power of attorney is highly not recommended.

Before signing a car purchase agreement, it is worth finding out whether the previous owner of the vehicle intends to retain the license plates. If yes, then the person must contact the traffic police and draw up a statement in accordance with the established rules. The seller and buyer can then proceed directly to the sales process. The fact confirming the conclusion of the transaction is the car purchase and sale agreement. It does not require notarization. The transaction is concluded in simple written form.

The law does not impose restrictions on the frequency of sales and time of purchase and sale of vehicles. Any citizen has the right to draw up and sign any number of contracts during the year.

If the parties find it difficult to draw up a car purchase and sale agreement on their own, you can contact a lawyer. The specialist will draw up the document in accordance with established rules. However, a fee will be required for his services. During the transaction process, it is necessary to prepare a package of documents.

The owner of the vehicle is obliged to provide:

• passport of a citizen of the Russian Federation;
• PTS;
• registration certificate.

The list of papers for buyers is smaller. The person acting in this role must present a passport and purchase a compulsory motor liability insurance policy. The law allows information about the buyer to be included in the seller’s current policy if such an operation is provided for in an agreement concluded with the insurer. The information will be included in the PTS, as well as in the registration certificate.

The purchase and sale agreement for a new vehicle is drawn up in 3 copies. It must be supplemented by the vehicle acceptance certificate. The seller and buyer participating in the transaction each receive a copy of the contract. 3 copy is provided to the traffic police. It is required during the car registration process. Information about the buyer will be entered into the PTS. The law does not impose any special requirements on the specifics of drawing up a purchase and sale agreement. However, the paper regulating the transaction must comply with generally accepted rules of document exchange.

When filling out the form for the purchase and sale of a new vehicle, you need to take into account the following rules:

• the period for transfer of the vehicle begins to be calculated from the moment the agreement is concluded;
• the information in the document should be reflected in as much detail as possible;
• You will also need to provide information about the documents for the car - registration certificate and title. This will subsequently simplify the procedure for deregistration and registration;
• the price of the car must be indicated in numbers and words;
• It is necessary to record a list of additional items that the seller transfers along with the car.

In the contract itself, the parties indicate the rights and obligations of each other. Composing the paper yourself can be problematic. Therefore, experts advise using a ready-made sample document and following the step-by-step instructions. This will avoid mistakes.

Car registration procedure

When the purchase and sale of a car is completed, you will need to complete the registration procedure. The action falls on the shoulders of the new owner of the car. He is obliged to contact the traffic police to undergo the procedure within ten days from the date of conclusion of the contract.

To register a purchase, you need to have a package of documents with you, the list of which includes:

• a completed application to contact the traffic police;
• PTS car;
• OSAGO policy;
• registration certificate;
• a copy of the vehicle purchase and sale agreement with the signatures of the parties;
• receipts confirming payment of the state duty.

The state duty consists of several parameters. A person who decides to buy a car will have to transfer funds to the state treasury for the title, registration certificate and license plates. In total you have to pay 2000 rubles. If the car still has old license plates, you do not need to provide funds for their repurchase. In this situation, the state duty will be reduced to 500 rubles.

During the process of re-registration of the car, the traffic police officer will inspect it, and the inspector will check the application. Then the new owner will receive the title back. The document will be stamped by the MREO. Additionally, a registration certificate and license plates are provided if they are renewed.

Do you need transit numbers?

Last year there were changes to the rules for removing and registering a vehicle. The detailed decision is due to the fact that the use of transit numbers issued upon transfer of a car provided the citizen with the opportunity to evade taxes.

Today, you can drive with temporary license plates only to avoid customs clearance. Registration can be carried out without deregistration.

This allows you to reduce the amount of time required to complete the procedure. Additionally, the new owner of the vehicle has the right to retain the old license plates.

Additional features of selling a car

If the PTS does not have a place to make an entry, the document must be updated before concluding the contract. The cost of the service is 500 rubles. You can pay the state fee at the bank or at terminals. Details for completing the transaction can be obtained on the traffic police website or during a personal visit to the organization’s office. According to the new rules, the purchase and sale agreement for a new car must contain an exact indication of the date of its conclusion. The transfer of the vehicle must be carried out on the basis of a signed agreement. The seller must transfer the registration certificate and title to the buyer.

Documents and algorithm for selling a car

Most car owners have decided to sell their car at least once. In this situation, in addition to the need to find a suitable buyer, the question arises of the legal registration of the transaction, including what documents are needed to sell the car.

How to carry out a sale in accordance with legal requirements? What documentation will be required to sell a car and how to draw up a contract correctly?

Algorithm for selling vehicles to individuals.

To transfer ownership of a car to another person, you need to:

1. Collect and prepare documents when selling a car.
2. Enter new data into the technical passport. The entries are confirmed by the signatures of the parties indicating the date of signing.
3. The buyer should contact the traffic police to register the car in his name.

In accordance with Order of the Ministry of Internal Affairs of Russia dated August 7, 2013 No. 605, a car with license plates is currently being sold unless the seller has special wishes to retain the plates for himself. In practice, this means that if the owner changes, there is no need to change the numbers. This innovation relieves the buyer of the obligation to pay a fee for registration plates.

In addition, the Order made the following changes:

1. There is no longer any need to deregister the car and issue transit license plates before selling it.
2. Certification of the purchase and sale agreement by a notary has become optional.
3. It is now possible to register a car regardless of the registration address. In this case, the numbers of the region in which the applicant is permanently registered are issued.

Thus, a car seller in 2019 may not appear at the traffic police station at all. The exception is when the former owner wishes to retain the previous numbers. In this situation, the traffic police will issue new registration plates for the car being sold, and leave the old ones with the applicant for up to 180 days.

Often sellers have a question about what will happen if the new owner does not register the vehicle in his name within 10 days. In this case, according to the new regulations, the previous owner has the right to terminate registration by submitting a corresponding application to the traffic police .

Documents required to complete the transaction.

The answer to the question of what documents are drawn up when selling a car is the following list:

1. Identification documents of the buyer and seller.
2. Documentation for transport (PTS, registration certificate, OSAGO, certificate of registration).
3. Agreement regarding purchase and sale.

How to draw up a contract?

An agreement under which the ownership of a car is transferred to another person can be drawn up in simple written form or orally. In the second case, a joint appearance of the seller and buyer at the traffic police is required. At the request of the parties, the agreement can be certified by a notary, but this will entail additional costs.

Documents when selling a car to an individual are drawn up taking into account the requirements of the law. For the purchase and sale agreement, there is a requirement to fill out the data in one color of ink - blue or black. The agreement is drawn up in 3 copies: 2 for the buyer, 1 for the seller.

The contract must reflect:

1. Place and date of signing the contract.
2. Information about the parties to the transaction, including passport details.
3. Details of the vehicle number and registration certificate.
4. Vehicle characteristics.
5. Car cost.
6. List of documents transferred to the buyer.

The agreement is sealed by a resolution of the parties indicating the date of signing.

You can generate an agreement using your data on the website http://gai.ru/registration/autosale/, or download a standard agreement from the link at the end of this article, print it and fill it out manually.

Video: Filling out a car purchase and sale agreement correctly

What should the buyer receive upon completion of the transaction?

Many car owners are concerned about what documents are transferred to the buyer. The new owner of the car has the right to receive from the seller:

1. PTS (technical device passport), the pages of which reflect information about the change of owner.
2. Inspection certificate or diagnostic card.
3. Vehicle registration certificate.
4. Insurance policy with modifications regarding the owner. When the policy expires, insurance for a new period may be paid by the buyer.
5. Copies of receipts confirming the fulfillment of the obligation to pay fees, taxes and fines.
6. A certificate from a financial institution stating that the loan has been fully repaid if the car is a credit car.
7. A copy of the general power of attorney when making a sale by a proxy.

Car keys are given along with the documentation. The buyer, in turn, transfers to the seller the amount indicated in the contract.

Order of the Ministry of Internal Affairs of Russia dated August 7, 2013 No. 605 significantly simplified the procedure for selling a car, but you should still know what documents are needed to sell a car and in what order the transaction is carried out, as well as the buyer’s rights to receive everything related to his purchase, documentation.

How to sell a car yourself in 2019 - step-by-step instructions

Sooner or later, most car owners are faced with the problem of selling a car. The reason for selling the car doesn’t matter, the main thing is to do everything right so that no problems arise later. To sell a car profitably, you need to take into account a lot of nuances, which will be discussed in this material.

What do you need to know before selling?

First of all, the car owner needs to find out whether all the documents are available and in order; this usually applies to the vehicle title, which is used extremely rarely and is kept at home. Having made sure that all documents for the car are in order, you can proceed to checking the car for the presence of prohibitive measures by the state.

The first step is to check the fines that were received on the car. If you dealt with bailiffs, you need to check whether the property has been seized, whether the FSSP employees have lifted the ban on the sale of the car. The same thing should be done if you have problems with banks.

You also need to know what price the car will be sold for, as well as the amount of concessions to potential buyers.

Step-by-step instructions for selling your car yourself

After checking the legal purity of the car, you can start selling the car. Let's look at this process step by step.

Step 1. Pre-sale preparation

First you need to prepare the car for sale.

It is necessary to carry out cosmetic repairs, wash the car, dry-clean the interior if possible, and generally give the car a marketable appearance. The quality of pre-sale preparation directly affects the “price tag” of the vehicle. All consumables in the car must be changed: oil, coolant, washer fluid and brake fluid.

Step 2. Search for potential buyers

There are a huge number of ways to find buyers.

1. The most popular today is placing an ad through an Internet portal that sells vehicles. Today there are a huge number of them, the most popular platforms are:

• avito.ru;
• auto.ru;
• drom.ru;
• youla.ru;
• am.ru.

Advice! To attract as many potential customers as possible, you need to photograph the car from all angles. High-quality photos attract more buyers.

1. You can put an ad in the newspapers the old fashioned way.
2. A popular method today is to place a for sale notice on the rear window of your car.
3. You can also distribute the ad through social networks by asking friends and acquaintances about it.

Step 3. Show the car

Once potential clients have been found, you can arrange a meeting with them to inspect the vehicle. At this stage, it is important to show the vehicle from its best side in order to sell it for decent money.

The best strategy when showing a car is the seller's honesty and openness; it is worth mentioning all the shortcomings and problems of the car in order to avoid problems in the future. It is better to arrange viewings during the daytime; this creates more confidence among buyers.

Step 4. Selling the car

After a buyer has been found, a deal is concluded by drawing up a purchase and sale agreement for the vehicle.

To sell a car, you will need a number of documents:

• identification documents of both the buyer and the seller (passports);
• documents on the ownership of the vehicle (PTS, vehicle registration certificate);
• power of attorney, if a representative acts as one of the parties;
• blank form of purchase and sale agreement (3 pcs).

Two copies for each party to the transaction and the third one to be provided to the buyer at the traffic police. The purchase and sale agreement contains data from the documents listed above:

• installation data of both sides;
• series, number and other details of the passport;
• information about the car (registration number, engine number of the body and chassis, other data);
• vehicle passport details;
• car cost;

You will learn how to fill it out correctly from the article “Car Purchase and Sale Agreement”.

Is a vehicle acceptance certificate required?

Not necessary! But if the car also comes with an add-on, then we recommend drawing up a transfer and acceptance certificate. He will separately confirm the fact of transfer of property to the new owner. It is necessary to indicate the exact time and components that come with the car (winter tires, pump, tools, etc.).

Step 5. Entering buyer data into the PTS

At this stage, the vehicle passport is filled out. It contains the buyer’s last name, first name, patronymic, his registered address, as well as the date of the transaction. In the field “Document confirming ownership” you must indicate the purchase and sale agreement and the date of its conclusion.

If there is no space in the PTS to add a new owner, you need to replace the PTS at the traffic police department. To do this, you need to pay a state fee of 500 rubles. through an ATM or bank branch. Details can be obtained on the traffic police website. Recently, the date has become a mandatory requisite to be indicated in the purchase and sale agreement. The vehicle is transferred on the basis of a signed agreement with the transfer of the vehicle registration certificate and PTS.

Step 6. Transfer of money and signature on documents

Transferring money is the most slippery issue in the transaction process. This is due to the distrust of strangers towards each other. From a legal point of view, ownership of the car passes after signing the purchase and sale agreement, so you only need to sign the document at the time of transfer of money. The buyer hands over the money, the seller gives the keys and documents. Both parties sign the DCP and PTS.

Step 7. After selling the car

The buyer of a car, in accordance with the requirements of Russian legislation, is obliged to register it with the traffic police department within 10 days from the date of the transaction.

the seller , having protected himself, can terminate the transaction if the buyer does not register the car within the allotted time. This is done in order to avoid imposition of fines and taxes on the old owner.

To check whether the car is registered by the new owner, you need to contact the local traffic police department; if this does not happen, then you need to fill out an application for suspension of the transaction, attaching the purchase and sale agreement to it. You can resume it at any time.

Removal from the register

According to current legislation, it is not necessary to deregister a car. After completing the purchase and sale agreement, the buyer has the right to independently contact the registration authorities of the State Traffic Safety Inspectorate to re-register ownership of the car. If the car was sold without removing the license plate, then new ones do not need to be issued.

If the seller wants to keep the license plates , he needs to contact the traffic police together with the buyer and write an application giving the right to move the license plates from one car to another. At the same time, they will be stored in the traffic police for 180 days, and new ones will be issued in return. By contacting the same department, you must register your new car during this time in order to receive the old license plates.

If both parties wish, the car is re-registered by the State Traffic Safety Inspectorate on the day of the transaction, even if the new owner lives in another constituent entity of the Russian Federation. This protects both parties from fraudsters, because during registration the car is checked for theft, fines and being in collateral.

What to do with insurance?

After completing the purchase and sale transaction, the seller has the right to return part of the funds spent on purchasing a car insurance policy. To do this, he needs to contact the office of the insurance company and write an application for a refund. In this case, he will receive part of the paid insurance premium back. It will not be possible to do the same without a purchase and sale agreement, since this is not provided for by law.

It is important to contact the insurance company immediately after concluding the transaction; the sooner you write, the more compensation you will receive.

Sales tax

After selling the car, you need to contact the tax authority with a declaration. This can be done through the “Taxpayer” program or through the Federal Tax Service website. True, it is not always necessary to report on the sale of a car. You can avoid tax reporting in the following cases:

• the purchase and sale transaction was executed for a car that had been owned for more than 3 years;
• if the selling price of the car is less than the price at the time of purchase;
• the cost of the car sold was less than 250 thousand rubles.

If the car was sold for more than it was purchased, the individual pays income tax based on the amount of benefit received. When selling a car, personal income tax is paid. The amount can be calculated using the formula: the tax deduction is subtracted from the sale price, and the resulting amount is multiplied by 13%. It must be paid within the year following the year of sale.

It is not recommended to indicate an undervalued value in a purchase and sale agreement for two reasons:

• upon subsequent sale within 3 years, the tax burden increases;
• risk of losing money and car.

If you indicate a low price, then scammers can, after completing the purchase and sale agreement, give the specified amount and register the car in their name. In this case, it will not be possible to resolve the issue in your favor.

How to arrange the sale of a car on credit?

You can sell a car on credit yourself. There can be many reasons for this, for example, lack of funds or the desire to purchase a new car. To sell a vehicle without any problems, you need to follow the following procedure:

• inform the bank about your desire to complete a purchase and sale transaction;
• find out the balance of the debt;
• a purchase and sale agreement is drawn up indicating the full cost of the car;
• debts to the bank are paid;
• the borrower obtains a certificate from the credit institution confirming full repayment of the loan, the bank transfers the PTS;
• The title is transferred to the buyer;
• the buyer registers the vehicle at the traffic police department.

The bank has the right to take away a car that is pledged even from the new owner. Therefore, before making a transaction, it is imperative to check whether the car is pledged, despite the confirmation of the owner with a duplicate title. He may say that the original PTS was lost, although it is pledged to the bank.

Rules for selling a car 2019

Content:

The procedure for selling a car is quite simple. You need to prepare a package of documents and correctly draw up the contract. There are two ways to sell a car: through a regular sales transaction or under a general power of attorney. After this, you may have to pay tax. This article will help you both competently sell your car and find out whether you will still owe something to the state. If you doubt that you can figure it out on your own, consult a tax specialist.

Don't have time to read the article?

Selling a car - what you need to know first

Previously, when selling a car, the seller had to deregister it himself. Now this is not necessary - the transaction is formalized by a simple purchase and sale agreement, and “deregistration” occurs automatically when the new owner registers the car in his name. These changes are commonly called “new rules for selling a car.”

So, according to the new rules:

• you can register a car in any region, regardless of the place of residence or registration of the owner;
• there is no need to have the car purchase and sale transaction certified by a notary;
• there is no need to deregister the vehicle;
• There is no need to change license plates to transit ones if the vehicle was purchased in another region.

How to sell a car correctly under the new rules

The procedure is as follows. First of all, decide whether you want to keep the license plates. If yes, you will need to fill out an application in the prescribed form with the traffic police, and only after that you can proceed to finalize the transaction.

The next step in the procedure for registering the sale of a car is preparing documents for transferring the car. By the time the purchase and sale agreement is signed, the seller must prepare the following documents:

• passport of a citizen of the Russian Federation;
• technical equipment passport (PTS);
• registration certificate for the car.

There are fewer requirements for the buyer; he only needs to prepare a passport of a citizen of the Russian Federation.

The car purchase and sale agreement is drawn up in 3 copies and is supplemented by an act of acceptance and delivery of the car. One copy remains with the seller, the second with the buyer, and the third is presented to the traffic police when registering the vehicle. There are no special requirements for the contract, but it must comply with the usual rules for writing contracts.

The main nuances that should be taken into account when drawing up a contract:

• as soon as signatures are placed on the car purchase and sale agreement, it becomes the property of the buyer;
• it is necessary to record in as much detail as possible all the information about the car, the buyer and the seller;
• the cost of the car must be written in numbers and words;
• It is important to write down a list of documents transferred along with the car.

How to sell a car under a general power of attorney

The procedure for selling a car under a general power of attorney differs from the standard procedure for buying and selling a car: in essence, it is a “sale without sale.” That is, in accordance with legal norms, you remain the owner of the car being sold, and the authorized person uses it under a general power of attorney. A general power of attorney is a document that formalizes the right of a trustee to dispose of property on behalf of the principal.

Both the seller and the buyer have risks in this procedure. Moreover, it should be noted that for the seller there are significantly more minuses than pluses:

• The seller retains ownership and is responsible for anything that may happen to the vehicle. For example, for unpaid taxes or crimes committed on a car;
• unpaid receipts for traffic violations will also go to the seller as to the owner of the car;
• Another disadvantage is that during a divorce, this car will be included in the divided property, even if it physically no longer exists.

And the buyer risks being left without a car if the owner decides to deregister it.

The only advantage for the owner is that there is no need to pay tax that may be charged for the sale of a car.

Taking into account the simplified procedure for selling a car, there is no particular point in selling through a general power of attorney. If you nevertheless choose this method of registering the sale of a car, the procedure for your actions is as follows:

1. To begin with, you decide on a list of rights that you transfer to the trustee. In our case, when replacing the purchase and sale agreement with a general power of attorney, the rights to the right to manage and repair, the right to sell and transfer, the right to deregister and register, the right to lease, the right to dispose of and cross the border are transferred as standard.
2. Next, you go to the notary for the execution and certification of the power of attorney, while the authorized person (buyer) does not have to be present. To the notary you take the passport of a citizen of the Russian Federation, the passport of the vehicle, the registration certificate and a photocopy of the passport of the authorized person.
3. After completing the power of attorney, you can transfer it, along with the keys and documents for the car, to the buyer at any time. But for peace of mind, it’s also good to draw up a transfer and acceptance certificate for the car.

Tax on car sales in 2019

If you sold a car in 2019, you will need to file a declaration and pay sales tax in 2020. Therefore, when selling, save all completed documents. If you sell a car that you bought less than 3 years ago, a tax of 13% will be calculated on the difference between the sale price and the purchase price. That is, if you sell a car for more than you bought it for, then you will need to pay tax on this difference.

The Tax Code allows for the possibility of using a tax deduction provided for by the Tax Code of the Russian Federation, Art. 220: from the received tax base for calculation, you can subtract a tax deduction in the amount of 250,000 rubles. But you have to keep in mind: you either deduct the cost of purchasing the car or apply a tax deduction. If you did not save the documents, you will only be able to apply a tax deduction in any case.

Let's see what is more profitable using the example of selling a car that has been owned for less than 3 years:

They sold the car for 550 thousand rubles, bought it for 400 thousand rubles.

550,000 - tax deduction 250,000 = 300,000*13%=39,000 rub. you need to pay the government;

Or we use the purchase cost scheme:

550,000 - 400,000 = 150,000 rub.* 13% = 19,500 rub. must be paid to the state.

Obviously, if the amount of expenses for purchasing a car is higher than the tax deduction amount, it is more profitable to use the second method. Of course, if you have kept documents confirming the purchase price of the car.

So, tax does not need to be paid when:

• the car has been owned for more than 3 years;
• the purchase price exceeds the sale price (no income);
• the amount of income received (the excess of the sale amount over the purchase amount) is equal to or less than the deduction amount of 250,000 rubles.