Owning your dream car doesn’t mean you’re committed to it for life. Just like any possession, you might find yourself ready to move on sooner than expected and decide to get a replacement, in that case, you may decide to sell the car before buying another one.
So, what happens after you’ve sold your car? Is it necessary to rush into getting a replacement? And what about notifying the DMV of the sale? how do you notify the DMV that you sold your car?
To notify the DMV that you sold your car, you need to submit a Notice of Transfer and Release of Liability (NRL) to the DMV to protect you from liability if the car is used for any criminal activity, ticketed, or involved in an accident, etc.
Do I Have to Notify the DMV When I Sell My Car?
As reiterated earlier, you need to notify the DMV or the state Motor Vehicle Department when you sell your car by submitting a Notice of Transfer and Release of Liability (NRL) to the DMV.
You’ll need to obtain the Notice of Transfer and Release of Liability form, fill it up, and submit it to the DMV. This should be done after you’ve successfully sold the car.
You have between 5 to 30 days to notify the DMV that you sold your car.
Some states may give you 5 – 10 days to make the notification, while others may give you a whole 30 days to make the notification.
For example, in Wisconsin, you’re mandated by Wisconsin law to notify the Wisconsin Department of Transportation within 30 days of you selling your car including the Vehicle Identification Number (VIN), the identity of the buyer, the date of the sale, and the sale price.
While in California, you’re mandated to notify the DMV about your sold car within 5 days. You can do this by submitting a Notice of Transfer and Release of Liability (NRL) through the DMV official website.
How Do I Notify the DMV that I Sold My Car?
Here’s a step-by-step guide on how to notify the DMV when you sell your car:
Step 1: Gather All the Required Documents
Before you start the process of notifying the DMV about the sale of your car, you need to gather all the necessary paperwork.
The most important document you’ll need is the vehicle’s title, often referred to as the pink slip. It is a document that proves your ownership of the vehicle and is required for transferring ownership to the new buyer.
Also, you’ll need a bill of sale, which outlines the terms of the sale, including the purchase price and any conditions agreed upon by both parties.
Depending on your state’s requirements, you may also need to fill out a release of liability form.
Step 2: Complete the Notice of Transfer and Release of Liability Form
The Notice of Transfer and Release of Liability form is an important document that notifies the DMV that you are no longer responsible for the vehicle. The form is available on your state’s DMV website or can be obtained from a local DMV office.
When completing the form, you’ll need to provide detailed information about the vehicle, including its VIN, make, model, year, and license plate number.
You’ll also need to include information about the buyer, such as their name, address, and driver’s license number.
Step 3: Provide Vehicle Information
When filling out the Notice of Transfer and Release of Liability form, it’s important to provide accurate and complete information about the vehicle.
The VIN is a unique code assigned to each vehicle and is usually located on the dashboard near the windshield or the driver’s side door frame. Make sure to double-check the VIN and other details to ensure accuracy.
Step 4: Include Buyer’s Information
The next step is to include information about the buyer on the form such as their full name, current address, and license plate number.
Make sure that you provide accurate buyer information so that the DMV can properly process the transfer of ownership.
Step 5: Submit the Form to the DMV
Once you’ve completed the Notice of Transfer and Release of Liability form and included all necessary information, you can submit the form to the DMV.
Depending on your state’s procedures, you may be able to submit the form by mail, online, or in person at a local DMV office.
Be sure to follow the instructions provided by your state’s DMV to ensure that the form is submitted correctly.
After submitting the form to the DMV, it’s important to keep a copy for your records. This copy serves as proof that you’ve notified the DMV of the sale of your car and can be helpful in case any issues arise in the future.
You may need to refer to this copy if you have any questions or discrepancies regarding the transfer of ownership.
Step 6: Transfer the Title to the Buyer
Finally, you’ll need to transfer the vehicle’s title to the buyer. This process involves signing the car title over to the new owner and providing them with a bill of sale.
Make sure to complete this step immediately to finalize the transfer of ownership and avoid any confusion or delays.
Pros of Notifying the DMV that You Sold Your Car
Here are the advantages of notifying the DMV when you sell your car:
Release of Liability
By informing the DMV of the sale, you can release yourself from any liability associated with the vehicle after it’s sold. This means you won’t be held responsible for things like traffic violations or accidents that occur after the sale.
For example, if you listed your car for sale on a public website and sold it to a random guy whom you do not know. It would be best if you had the DMV notified immediately to avoid being held responsible should the buyer use the car to commit a crime.
If the buyer uses the car to commit a felony or is given a ticket for overspeeding, if you have not informed the DMV about the sale and the title has not been transferred, you will definitely get involved in the problem.
To Avoid Future Fees
In many states, failing to notify the DMV of a vehicle sale can result in continued registration fees or other penalties.
By officially transferring ownership, you can avoid these fees and ensure that the new owner is responsible for any future obligations associated with the vehicle.
It Gives Peace of Mind
Knowing that you’ve properly notified the DMV of the sale can provide peace of mind. You can rest assured that you’ve fulfilled your legal obligations and that the transfer of ownership has been documented appropriately.
Conclusion
Indeed, you need to notify the DMV that you have sold your car by submitting a Notice of Transfer and Release of Liability (NRL) to the DMV to protect you from liability if the car is used for criminal activity, involved in an accident, ticketed, abandoned, etc.
You have 5 – 30 days from the car being sold to make the notification. However, I suggest you notify them immediately after you sell the car to prevent any unwarranted circumstances.
