Guide For Selling Used Car In Alabama

Author By Agnibhu -
Guide For Selling Used Car In Alabama

The procedures and approach for selling a car online vary by state. Discover how to sell your used car or truck in Alabama confidentially.

If you reside in Alabama's Cumberland Plateau, East Gulf Coastal Plain, Piedmont Upland, or Highland Rim and want to sell your old automobile or truck privately, you've come to the perfect location. With an estimated 2.2 million trucks and vehicles registered in Alabama, it's no surprise that thousands of individual vehicle sellers in the Cotton State have utilized cashforcarsinc to sell their vehicles. We've outlined the steps and forms needed to sell a car in Alabama below, so you can sell your car quickly and for the most money.

Remember that most states regard the car title as a legal document, so use the legal names (no nicknames) of both individuals involved, as well as legible handwriting in black or blue ink. Mistakes, typos, and the use of White-Out may render the document null and worthless, so be cautious and take your time filling it out.

If you want to donate a car or transfer a title to a relative, follow the identical steps indicated below. In the case of an inherited vehicle, you must provide a Next of Kin Affidavit, Form MVT 5-6, with the title.

Step 1: Allow the buyer to have a third party assess the vehicle

Many private automobile buyers pay for a pre-purchase vehicle check performed by a skilled and certified auto technician of their choice. Although the buyer pays for the inspection, the seller and buyer must agree on the date and location of the inspection. If the inspection reveals any problems with the car, you should save the report for your records as the seller. Although no inspections are required before a private party automobile sale in Alabama, they can provide the customer with peace of mind that they are purchasing a quality vehicle.

Step 2: Organize and collect all vehicle papers

Find all maintenance records, the owner's manual, and other vehicle-related papers. If you can offer the buyer extensive and thorough maintenance documents, it will give the buyer confidence that the automobile has been properly and regularly maintained. You should also think about providing a car history record from a provider like CarFax or AutoCheck.

The title certificate is the most critical document to have when selling a car. If a lien exists on the title, the lienholder must release interest in the vehicle before it may be sold. This can be accomplished by either the seller paying off the vehicle or the lienholder obtaining a letter of lien release. Form MVT 5-63, Alabama's official lien release form, is available for this purpose. If you are unable to pay off the automobile, a lien release declaration from your lienholder must be submitted to the Alabama Department of Revenue's Motor Vehicle Division.

Step 3: Prepare a Bill of Sale

A bill of sale is not required for private automobile sales in Alabama, but certain counties do. In order to legally transfer ownership of a car that lacks a title, you'll also need a bill of sale.

Baldwin County is Alabama's largest county, and a bill of sale is required. Baldwin County has its own official bill of sale form that may be accessed here. On this form, you put basic car information such as the year, make, and model, as well as the odometer reading, the purchase price, the purchase date, the VIN, and signatures from both the buyer and seller, as well as their addresses. Check with your county to see if a bill of sale is needed. If your county does not have an official bill of sale form, you may use services like LegalZoom to generate a legally binding bill of sale template.

Step 4: Transfer the title

If the vehicle's title is lost, stolen, or severely damaged, you can obtain a duplicate title using Alabama's convenient online portal. This can be used to apply for a new title or to replace one that has been lost. Otherwise, you can send Form MVT 12-1 along with a $15 application fee. When trading a car privately in Alabama, the buyer and the seller each need to fill out the applicable sections on the back of the title. This information comprises the legal name, address, and signature of the buyer and the seller(s), together with the date of the transaction, the odometer reading, and the purchase price.

If there are two (2) owners united by the preposition "and" or with no connection between the identities, they shall have a tenancy in common ownership rights, and both owners shall be needed to sign the title application. Two (2) owners linked by the conjunction "or" or "and/or" shall have joint tenancy ownership rights with rights of survivorship, and only one (1) owner shall be asked to sign the title application. In Alabama, no more than two owners can be listed on a car title. When the car title is filled out correctly and legibly, the buyer can easily transfer registration and obtain a new plate. Vehicles 35 model years or older do not require a title in Alabama. Last but not least, Alabama does not provide same-day automobile title printing.

In December 2020, the National Highway Traffic Safety Administration (NHTSA) revised its odometer disclosure standards, which may affect some private car purchases in Alabama: Any vehicle of the model year 2011 or newer (2012, 2013, etc.) that is transferred between January 1, 2021, and December 31, 2030, will need an odometer declaration. Beginning January 1, 2031, every vehicle less than 20 model years old will be required to have an odometer disclosure. Previously, the NHTSA only mandated disclosure for the first ten years. Cars manufactured before 2010 are exempt from odometer disclosures.

Also Read: How To Do A Car Title Transfer

Step 5: Take off your license plates and cancel your insurance

Before passing over the car to the buyer, the seller must remove the license plates. If you do not, you may be held accountable for any infractions that occur after the buyer takes ownership of the car. Alabama requires you to either transfer your license plates to another vehicle or surrender them to your local licensing official. According to Alabama law, the buyer of the car must get a new license plate within 20 calendar days after the date of sale.

When you return the plates, you must include Form MV 31-7A-5, the Request for Registration Revocation, which legally ends your registration of the vehicle in question. When that procedure is complete, make sure to cancel your insurance as soon as possible after returning or transferring your plates, so you don't continue to pay to cover a vehicle you no longer own.

Visit Alabama's Motor Vehicle Division website for further information and other vehicle paperwork.

The Easier Way to Sell Your Car

Now that you've learned everything there is to know about selling a car in Alabama, it's time to determine where to list it. It is simple to sell your car with Cashforcarsinc. With ready-to-sign state documentation, encrypted chat, and more, our platform provides all the tools and recommendations you need to make the transaction a breeze.

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