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I am looking to sell a 1997 Jeep Cherokee. The thing is, it recently failed inspection because it has some fender damage and needs paint.

I'm wondering if I have to get it repaired enough to pass inspection in order to sell it, or if I can sell with a failed inspection at a lower price?

You already know your options.

Uhhh... not exactly. I'm wondering if it's legally possible to sell a vehicle that has failed an official inspection and has no insurance.

Presumably to someone who will deregister it - car wrecker?

Transfer of ownership normally requires car to pass inspection.

I can think of no reason why not as long as you are the sole registered owner of the vehicle in question, and there is a police report permitting the car to be repaired - in other words, that it has not been written off as a result of the accident.

The buyer knows what he is getting into if only by looking at the vehicle, so there should be no reason to suspect foul play. You'll probably get more for it if it is correct and tidy - I raised the trade-in value of an Austin Metro my mother had in the UK by 800 pounds after spending 50 quid and a day's worth of elbow grease on it.

Up to you.