Rogue Magazine Lifestyle Can a Private Seller Be Liable for a Car Accident?

Can a Private Seller Be Liable for a Car Accident?



There were around 38.6 million used light vehicles sold in the US in 2022. When you sell a used vehicle as a private individual rather than a dealer, you may wonder if you can be held liable if the new owner gets into an accident. There are a few scenarios where the seller of a used vehicle may face liability even after the sale is complete.

Liability for Dangerous Defects

Some cars are more dangerous than others. ValuePenguin analyzed crash data and found that the Ford F-Series was the car most likely to be involved in a crash.

If you sell a used vehicle with a dangerous defect that you knew or should have known about, you may be liable for damages if that defect contributes to an accident. For example, if you sell a car with damaged brake lines that then fail and cause an accident shortly after the sale, the victim could potentially sue you for knowingly selling an unsafe vehicle. It’s worth pointing out that in 2018, the National Motor Crash Causation Survey found 22% of the approximately 44k vehicle defect-related crashes were caused by defective brakes.

To avoid this liability, you should fully disclose any known defects and repairs needed to the buyer in writing. You should also allow the buyer to have the vehicle inspected by a mechanic of their choice prior to purchase. Simply stating the car is sold “as-is” does not get you off the hook for knowingly selling a faulty vehicle.

Liability for Failure to Transfer Title

In most states, the seller of a used vehicle must formally transfer ownership by signing over the title certificate to the new owner. If you neglect this crucial step, you may remain the legal owner of the car. This means you could be liable if the new owner causes an accident before they officially register the vehicle in their name.

To avoid this scenario, make sure you fill out the title transfer paperwork properly and provide the new owner with the signed title when selling any used vehicle. Only once the new owner registers the car in their name will your liability end.

Liability for Allowing Unlicensed Driver

Unlicensed drivers caused almost 11,000 fatal accidents in 2021. If you allow an unlicensed driver to test drive your used car prior to purchase and they get into an accident, you may share in the liability. This could be the case even if you were not in the car at the time. By knowingly allowing an unlicensed driver to operate your vehicle, a court may find you partially responsible for any damages. Speak to a law firm that specializes in car accidents if you made this mistake.

Before letting a potential buyer test drive a vehicle, check that they have a valid driver’s license. Also, ride along during the test drive if possible to minimize your exposure to liability.

Following these simple precautions will limit the scenarios where you could be held responsible for a future accident. Consult an attorney for specific legal advice in your state if you have any concerns about potential liability when selling a used car. With some care, you can typically complete a private sale without retaining ongoing accident liability.

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