Buying or Selling a Vehicle (2024)

Submit a Vehicle Transfer Notification

Vehicles are required to be titled in the buyer's name within 30 days from the date of sale. Failing to properly transfer a vehicle into the buyer's name could result in the seller being held responsible for tickets, toll violations or even crimes committed with the vehicle. To ensure this doesn't happen to you, accompany the buyer to your county tax office to ensure a vehicle title application is filed.

A dealer is not required to title in the dealership’s name if you sell or trade-in your vehicle to a licensed motor vehicle dealer. The vehicle stays in your name until it is sold to an individual, which may take months or in some cases, years. To protect yourself, file a Vehicle Transfer Notification. When a vehicle transfer notification is received, TxDMV updates the motor vehicle record to show the vehicle as sold. When you file the notification within 30 days from the date of sale, you cannot be held responsible for parking tickets and toll violations that have been committed by the person who purchased the vehicle.

Find Your Local Tax Office & DMV

If you submit a Vehicle Transfer Notification and are still receiving parking tickets and/or tolls, you may contact the department for a confirmation email or submit a Request for Texas Motor Vehicle Information (Form VTR-275), that shows the month and year the vehicle was transferred.

Provide the buyer with the following:

  • A properly signed title, including the date of sale and odometer reading
  • Signed Application for Texas Title and/or Registration (Form 130-U) with the sales price clearly shown.

A seller should keep detailed written records of any transaction, including contact information for the buyer, the date of sale and information on the vehicle, including the Vehicle Identification Number (VIN).

The seller has the option to remove their license plates and registration sticker from the vehicle. There are three options for removed license plates:

  • The seller may transfer their license plates to a vehicle to be purchased, if the vehicle classification is the same.
  • The seller may keep their license plates for future transfer to another vehicle, but the registration sticker is not transferred.
  • If the seller does not transfer or keep their license plates, the license plates must be disposed of by defacing the front of the plates, either with permanent black ink or another method in order to prevent fraudulent use.

For more information about vehicle title transfers, please call us at (888) 368-4689 or (512) 465-3000, or send us an e-mail.

Title Check - look before you buy

Buying From a Dealer

If you buy your vehicle from a dealer, the dealer is required to file the title application on your behalf, so you will not have to visit the tax office. Make sure the dealer provides you with a receipt showing the vehicle has been titled in your name.

Buying From an Individual

If buying from an individual, have the seller accompany you to the county tax office to avoid unwanted surprises. Before submitting the title application, a tax office representative can tell you if the title being signed over to you is correct and if it has any salvage or legal issues. You can also use Title Check to see if the title of the vehicle you are thinking about buying has any issues impacting its value.

In addition to the title, ask the seller to provide you with:

  • The signed vehicle title
  • Application for Texas Title and/or Registration (Form 130-U)
  • Any other supporting documents, such as release of lien or power of attorney

Instructions for Completing the Application for Texas Title and/or Registration

Keep a written record that includes the name and address of the seller, date of sale and vehicle information, including the VIN. Failure to title a vehicle within 30 days from the date of sale may result in delinquent transfer penalties.

You must provide proof of liability insurance when you title and register your vehicle. If you do not provide proof of insurance, you may apply for ‘title only’.

The Vehicle Inspection Report (VIR), which is proof of inspection, must be provided if a record of current inspection is not in the state database. Ask the seller for a copy of the latest VIR if it is available.

Vehicle Transit Permit

If the transaction takes place on a Saturday or Sunday and the seller chooses to remove their license plates and registration sticker from the vehicle, you will need to download Vehicle Transit Permit. This will allow you to legally drive the vehicle to the county tax office, or if the county tax office is closed, to a place of your choice. This permit is valid for five calendar days and only one permit may be issued per vehicle sale.

Get a Vehicle Transit Permit

Fees

If buying from an individual, a motor vehicle sales tax (6.25 percent) on either the purchase price or standard presumptive value (whichever is the highest value), must be paid when the vehicle is titled. The title, registration and local fees are also due. Contact your county tax office to estimate the amount of sales tax due and to learn which forms of payment are accepted. Acceptable forms of payment vary by county.

Title Application Processing Time

Please allow a minimum of 20 business days for processing of your title application. If there is a lien on the vehicle, the lienholder will receive the title. If you have not received your title within 30 business days, please contact us.

Title Correction

If you receive your title and notice that your name is misspelled, please contact your local county tax office.

  • If the department or the county made the error, the error can be corrected at no charge.
  • If the department issued the title based on the information contained in the title application, you or your lienholder (if applicable) will need to submit a new application and fee to your county tax office to correct the error.

Vehicle Color

TxDMV collects vehicle color information. Please refer to the Vehicle Color Chart when completing a vehicle title application.

Vehicle Color Chart

Gifting a Vehicle

To give a vehicle as a gift to a relative or qualifying 501(c)(3):

  • The signed negotiable title and completed Application for Texas Title and/or Registration (Form 130-U), must be provided to the county tax office to title the vehicle.
  • The title application must be accompanied by Affidavit of Motor Vehicle Gift Transfer (Texas Comptroller of Public Accounts Form 14-317).
  • The Donor and Recipient must both sign the affidavit and title application.
  • Either the donor or recipient must submit all forms and documents in person to the county tax office.

Find Your Local Tax Office & DMV

Instructions for Completing the Application for Texas Title and/or Registration

A $10 gift tax applies to a person who receives the vehicle from a: spouse, parent or stepparent, grandparent or grandchild, child or stepchild, sibling, guardian, decedent’s estate, or a non-profit 501(c)(3).

Divorce

If a vehicle is awarded as a result of a divorce decree, give a certified copy of the decree to your county tax office and apply for title. If the decree does not award the vehicle, a properly assigned title (where your ex-spouse signed the title over to you) will be required.

Death of Spouse

If your spouse had a will, the vehicle becomes part of the probate process. If your spouse did not have a will, you can fill out anAffidavit of Heirship for a Motor Vehicle (Form VTR-262).

For more information about vehicle title transfers, please call us at (888) 368-4689 and (512) 465-3000, or send us an e-mail.

Buying or Selling a Vehicle (2024)

FAQs

What are the disadvantages of selling a car? ›

Know the Risks When You Sell Your Car Privately
  • The Condition of Your Vehicle. ...
  • The Time Investment is Often Huge. ...
  • Scammers. ...
  • The Dissatisfied Buyer. ...
  • How Will Your Sell Your Car? ...
  • There is a Better Way to Sell Your Car!

Do you get more money selling a car or trading it in? ›

Trading in

You will get less money than selling it yourself. At best, you should expect to get the vehicle's wholesale value. You can use the trade-in amount as the down payment on the new car. To get the best price, you will probably have to haggle with an experienced salesperson over the trade-in value.

How do you sell a car in New Jersey? ›

How to Sell a Car in New Jersey
  1. Step 1: Allow the buyer to have the car inspected by a third party.
  2. Step 2: Organize and gather all related vehicle documentation.
  3. Step 3: Bill of Sale.
  4. Step 4: Transfer the title.
  5. Step 5: Remove your license plates and notify the DMV.

At what point should I sell my car? ›

60,000-70,000 miles: Most manufacturers' powertrain warranties expire in that range, and the second major maintenance is scheduled to occur. Selling before reaching those benchmarks will get you a better price for your car than selling afterward.

What are 5 disadvantages of buying a car? ›

The main disadvantages of buying a new car include:
  • Higher upfront cost.
  • Rapid depreciation.
  • Higher insurance costs.
  • Unknown reliability (for completely new models).
  • Potential for recalls.
Jan 3, 2023

What a car salesman should not do? ›

Don't make the mistake of talking too much and assuming you know what your customer wants. Salespeople often profile customers based on their appearance. They assume they want a certain type of vehicle or are working with a specific budget.

What is the best mileage to trade in a car? ›

First milestone: 30,000 to 40,000 miles

Because vehicles depreciate at a slower rate in the first three years of ownership, this is the best time to trade in your vehicle.

How long should you keep a car before trading it in? ›

Waiting until your car has positive equity: Trading in your car after 1 year makes more sense than doing a trade-in after the first few months or even half a year. As a general rule, you should trade your car in after a minimum of 2 years for a better chance at positive equity.

Where to sell your car for the most money? ›

If you want the best price for your car, consider placing an ad on a private seller marketplace or to potential buyers in your local area. However, dealers and online car buying services may be your best choice if you want an easy process with a quick turnaround.

Do you pay taxes when you sell a car in NJ? ›

As a seller, you're only required to pay taxes if there's a profit made from the sale of your vehicle.

Can I sell my car to my son for $1 in NJ? ›

Keep in mind that every car sold in the state of New Jersey, whether new or used, is subject to a 6.625% sales tax. On a $1 sale, the recipient would have to pay $0.06 tax in addition to their title and registration.

Who pays the most to sell my car? ›

You can likely get the most money for your car by selling it privately. This is because you're selling to the next owner directly instead of through a middleman like a dealership or car buying website.

At what mileage should you sell your car? ›

Somewhere in between the 50,000-mile and 60,000-mile mark seems to be the sweet spot for selling used cars. Once your car reaches 60,000 miles, you might have to start dealing with more major repairs than you had to tackle before. You can avoid them while still making a nice profit when you sell your car at this point.

At what mileage do cars lose value? ›

30,000 to 60,000 Miles

Your vehicle will now lose value at a significantly slower rate than in its first few years. It's a good idea to sell your car before it hits 60,000 miles if you don't want to spend a lot of money on repairs and replacement parts.

What is the 10 rule for buying a car? ›

When considering all the money you'll need to invest in a new car, try to keep your total transportation costs to 10% of your monthly income or less. This way, you can afford to keep up with payments and still cover any unexpected costs.

Is it a good decision to sell car? ›

If you can sell your car, eliminate some of your debt with the proceeds from the sale, and can still afford to pay cash for a less expensive car, then it might be worth selling. And if you can downside into an slightly older model EV with low miles, you could also save a considerable amount of money on gas.

What are cons of being a car salesman? ›

Cons
  • You may receive lower pay if you don't make a sale. ...
  • Your salary may depend on your sales. ...
  • You may have few advancement opportunities. ...
  • Your skills may not transfer easily to different industries. ...
  • You may work with difficult people. ...
  • You may experience burnout. ...
  • You may receive minimal commission on some sales.
Jul 16, 2024

What is a disadvantage of trading in a car? ›

Some other downsides to trading in your car that you may see include: Trade-in price may be too low. The dealership may not want/need your vehicle. Any recent money you've spent on repairs isn't considered. You can only choose from the cars at that dealership.

What is the disadvantage of a car? ›

5 Disadvantages Of Travelling By Car
  • It may seem drawn out and tiresome. The fatigue that comes with driving is arguably the largest disadvantage of the experience. ...
  • You May Have Automobile Issues. ...
  • It's Possible to Get Lost. ...
  • Taking a Car Can Get Expensive. ...
  • There Is A Theft Risk.
Feb 2, 2024

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