NEW/USED VEHICLES

VEHICLE INSPECTION

PER CODE OF ALABAMA RULING 810-5-5.13, a physical inspection of a motor vehicle and verification of the vehicle identification number and the descriptive data shown on the application is required only for first certificates of title, including certificates of title for the following:

(a)  New Vehicles - Application for first title. 

(b)  Out-of-State Vehicles - Brought into   Alabama requiring registration and titling in this State and surrendering of out-of-state title.

(c)  Other Vehicles - Not currently titled in Alabama and subject to registration and titling in this State.

AUTOMOBILE INSURANCE

Beginning June 1, 2000, motorists will be required to carry liability insurance on each motor vehicle. Failure to show proof of coverage at traffic stops could result in a fine of up to $500. Proof of insurance is not required to register a motor vehicle. Beginning January 1, 2001, an insurance certification was incorporated into the motor vehicle registration form which the customer signs before registration is complete."

NEW PURCHASE

In order  to avoid a $15 late registration fee, newly acquired vehicles must be registered within 20 calendar days of purchase.

Documentation needed for the purchase of a new/used vehicle depends on who the vehicle was purchased from.

Customers with vehicles purchased from an Alabama Dealer, the application for title and bill of sale are required.

Customers with vehicles purchased from out of state dealers will be required to pay sales tax and possibly apply for a title for the vehicle.

Customers with vehicles purchased from an individual will be required to pay sales tax and apply for a title. If the vehicle was last registered in Alabama, ad valorem taxes will have to be brought current before the vehicle can be registered. Required documentation is listed below.

Sales Tax Rates

Alabama dealer:

• Application for Title.
• Sales invoice (Bill of Sale) to verify sales tax was paid
• Tag receipt from old vehicle if transferring tag from a trade in.
• Ask about credit voucher on vehicle traded in or sold.
• Sales invoice from dealer will need to show trade in listed to receive credit voucher.
• If not, then you will needwritten confirmation of disposal of vehicle with dealer.
• Documentation must be original documents. Faxed copies cannot be accepted.

Out-of-state dealer:

• Original Title or Application for Title (or MSO/Certificate of Origin if new vehicle).
• Sales Invoice (Bill of Sale) to see how much sales tax is owed.
• Tag receipt from old vehicle if transferring tag from a trade in.
• Ask about credit voucher on vehicle traded in or sold.
• Sales invoice from dealer will need to show trade in listed to receive credit voucher. If  not, then you will need written confirmation of disposal of vehicle with dealer.
• Documentation must be original documents.  Faxed copies cannot be accepted.

Individual (Alabama):

• Original Title (or Application for Title if financed)Bill of Sale with purchase price and signed by former owner.
• Tag receipt from old vehicle if transferring a tag from former vehicle.
• Bill of sale from old vehicle if applying for credit voucher.
• Ask about credit voucher for vehicle traded in or sold.
• Vehicle is subject to back taxes up to two years if tag receipt from former owner is not provided.

 Individual (Out of State):

• Original Title (or Application for Title if financed).
• Notorized bill of sale with purchase price and signed by previous owner.
• Tag receipt from old vehicle if transferring a tag from former vehicle.
• Bill of sale from old vehicle if applying for credit voucher.
• Ask about credit voucher on vehicle traded in or sold.
• If vehicle is not titled in other state, a copy of complete registration from other state, signed by previous owner.