Yes — But A Company-Owned Vehicle Comes With A Little More Paperwork Than The Car Sitting In Your Personal Driveway
Maybe your company bought a pickup that isn't being used anymore. Maybe there's an SUV sitting behind the office collecting dust, or a company car that once made sense but now spends most of its life parked.
Whatever the reason, the business doesn't need it anymore.
So can you sell it? Absolutely.
But there's an important difference between selling your personal vehicle and selling one titled to a business. When the company owns the vehicle, you need to establish that the person selling it actually has the authority to do so.
THE COMPANY OWNS IT — SO PROVE WHO CAN SELL IT
Start with the title. If the vehicle is titled in the name of an LLC, corporation or other business entity, the business owns the vehicle—not the individual who happens to drive it.
When selling a company-owned vehicle, the seller will need to provide Articles of Incorporation (AOI) or applicable company formation documents showing who has the authority to sell and sign for the vehicle on behalf of the business.
That documentation matters because a buyer needs to verify that the person signing over a company asset is actually authorized to do it. You might have purchased the vehicle for the company. You might drive it every day. You might have the keys, registration and insurance card sitting on your desk.
None of that replaces documentation showing you have the authority to sell a vehicle titled to the business.
Before starting the sale, locate the title and your company's AOI or applicable formation documents and make sure the business information is consistent.
GET THE PAPERWORK TOGETHER BEFORE YOU HAVE A BUYER WAITING
Selling a company vehicle doesn't have to be complicated. Trying to figure everything out at the last minute certainly can make it complicated.
Situation |
What Needs Attention |
|---|---|
Vehicle titled to company |
Business ownership must be verified |
Individual selling for company |
AOI/company formation documents showing authority to
sell |
Vehicle has an outstanding loan |
Lien and current payoff must be addressed |
Multiple company owners/officers |
Confirm who is authorized to sign |
Business name has changed |
Business and title records need to be reconciled |
Company dissolved or reorganized |
Additional documentation may be required |
Multiple company vehicles being sold |
Review title, authority and payoff for each vehicle |
The goal is simple: know what's on the title, know who can legally sign for the business and have the supporting documentation ready.
That's considerably easier than discovering a paperwork problem when everyone is ready to complete the sale.
WHAT IF THE BUSINESS STILL OWES MONEY ON THE VEHICLE?
A company vehicle doesn't necessarily have to be paid off before it can be sold. If there's a lien, however, it has to be dealt with as part of the transaction. Find out who the lender is and obtain the current payoff amount rather than relying on the balance shown on an old statement. The title and lien situation should be clear before the transaction reaches the finish line.
A loan isn't automatically a roadblock. A surprise loan can be.
AND NO, “COMPANY VEHICLE” DOESN'T AUTOMATICALLY MEAN BEAT-UP WORK TRUCK
Businesses own everything from pickups and cargo vans to sedans, SUVs and luxury vehicles.
A vehicle being company-owned doesn't determine what it's worth. Its year, mileage, condition, equipment, history, mechanical condition and current market demand still matter. A well-maintained company SUV with reasonable mileage isn't suddenly worthless because an LLC appears on the title.
The bigger question may be why the business is continuing to own it. If that vehicle isn't being used, the company may still be dealing with insurance, registration, loan payments, maintenance and depreciation while it occupies a parking space.
An unused company vehicle is still a company expense.
PUT THAT COMPANY ASSET BACK TO WORK — BY SELLING IT
If your business no longer needs the vehicle, don't automatically keep it another six months because selling a company-owned car sounds complicated.
Get the paperwork together. Then get a number.
Start with Team CarBuyerUSA and get an initial price in about 20 seconds without entering your phone number or email first. We buy vehicles nationwide, including company-owned vehicles, giving businesses an alternative to shopping the vehicle around local dealerships or dealing with the headaches of a private sale.
Have the title information ready. If the vehicle is titled to the company, be prepared with the AOI (Articles of Incorporation) or applicable company documents showing who is authorized to sell it. If there's a loan, have the lender and payoff information available.
Then let the numbers decide whether that vehicle still belongs on your company's books.
Your business bought the vehicle because it once served a purpose. If that purpose is gone, the vehicle doesn't need to sit around getting older along with it.
Go to CarBuyerUSA.com, find out what it's worth and turn an underused company asset into money your business can actually put to work.
