Selling a junk car for cash is simple, but there can be a lot of paperwork. Some of this is for the sale to the junk company, but you'll also have more paperwork to fill out for your state. When you transfer a car out of your possession, the state needs to know what happened to it. If you don't tell them, or if you don't have the right paperwork to tell them, then anything going on with that car is still your responsibility in the state's eyes.
Does the Transaction Count as Selling or Junking?
Some states distinguish between selling (or transferring) the car and junking it. There may not be much of a difference between the procedures for both, but there can be some crucial ones. For example, junking the car may require that you notify the state before you take the car apart. If you sell the car instead, though, all you could have to do is let the state know after the fact, within a certain time frame. If you're selling the junk car for cash to a specific company that will handle the junking themselves, chances are your transaction will merely be a sale/transfer. But do double-check.
Make Sure You and the Buying Company Have Filed With the Motor Vehicle Department
Your state's motor vehicle department (or department of motor vehicles, department of public safety, or whichever department handles car registrations) needs to know when you sold the car and to whom, and they need confirmation from that person or company. A typical procedure for this is to have both of you fill out transfer forms after the car has changed hands. That lets the department know that you are no longer legally responsible for that vehicle, its VIN, and its plates, and that the person you said you sold it to confirmed that they are now the owners and are thus responsible.
You Must Have Proof of Ownership
One thing that is universal is that you must have proof of ownership of the car, or you must fulfill some requirements if you lack paperwork like the car title. Those requirements may vary by state, but they can include additional paperwork that might show ownership, a bond, and evidence that the car title is clean and free of things like liens. It can take some time to get these things together if you don't have all your files neatly organized, so start checking out the requirements now if you don't have your car title. Also, contact the junk car company you hope to sell your car to and ask them what they need to see in order to buy the car.
People sell junk cars for cash to these companies all the time, so you know the procedure is very doable. It only sounds like a lot because you've never sold a junk car before. Contact the cash for junk cars company you're interested in selling to and ask them what they need to see and what you have to do for your state's motor vehicle department. They can walk you through the specific steps.
