Paperwork

Buying from a private seller: title, bill of sale and registration

Signed title, lien release, bill of sale, sales tax and registration: the paperwork for a private used car sale, step by step, and the traps to avoid.

Carvizia team

6 min

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Contents

In short

  • Check the title before paying: seller's name, no brand, no lien, matching VIN.
  • If there's a loan, get the lien release or pay at the seller's lender.
  • Fill in a bill of sale with both names, VIN, mileage, price and date.
  • You usually pay sales tax and register the car at your DMV.
  • Rules vary by state: check your DMV's requirements before the sale.

Before you pay

  • Title in the seller's name, matching their ID. No title, no sale.
  • No brand (salvage, rebuilt, flood). See title brands.
  • Lien: if a lender is listed, the seller needs a lien release, or you complete the sale at their bank.
  • VIN on the title matching the car.
  • Odometer reading recorded on the title for cars that require it. See odometer fraud.

On the day of the sale

  1. The seller signs the title over to you in the right section, with the mileage and the date. Don't accept a title signed by someone else (an “open title”).
  2. Fill in a bill of sale: both names and addresses, VIN, mileage, price, date and signatures. Some states have an official form.
  3. Pay securely: cashier's check or bank transfer, ideally at the seller's bank.
  4. Plates: depending on the state, they stay with the seller or the car.

After the sale

  • Insure the car before driving it.
  • Title and register the car at your DMV within your state's deadline, paying sales or use tax and fees.
  • Inspection: some states require a safety or emissions inspection before registration.
  • Recalls: check them with the VIN. See VIN and recalls.
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The Carvizia team

Every day we analyze used car listings: engines, common problems, maintenance and market value. Our guides bring together what to check before you buy, without jargon.

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Frequently asked questions

What's an open title?

A title signed by the owner but with the buyer section left blank, passed from seller to seller. It's illegal in many states and hides who really sold the car.

Do I pay sales tax on a private sale?

In most states, yes, when you register the car. Rates and exemptions vary by state.

Can I drive the car home without plates?

It depends on your state. Some issue temporary permits; check your DMV's rules before the sale.

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