Paperwork Needed to Sell or Buy a Car in Alabama

Selling a car in Alabama involves gathering the necessary paperwork to ensure a smooth transaction. Below is a comprehensive list of the documents you'll need, along with helpful links for further guidance: 

1. Certificate of Title

The most important document you'll need is the car's Certificate of Title. This proves ownership and must be signed over to the buyer at the time of sale. Ensure the title is properly filled out, including odometer disclosure (if required) and signatures of both parties.
Helpful Link: Alabama Certificate of Title Guide

2. Bill of Sale

Though not mandatory, it's highly recommended to provide a Bill of Sale. This document outlines the terms of the sale and can be used as a record for both buyer and seller. It should include details such as the vehicle's VIN, sale price, and date of transaction.
Helpful Link: Alabama Bill of Sale Guide

3. Odometer Disclosure Statement

If the vehicle is less than 10 years old, Alabama law requires an Odometer Disclosure Statement. This ensures that the buyer is aware of the exact mileage on the vehicle at the time of the sale.
Helpful Link: Alabama Odometer Disclosure Rules

4. Liability Release

After selling the vehicle, it's crucial to notify the Alabama Department of Revenue that the car is no longer in your possession. This can protect you from any future liability issues if the buyer fails to register the vehicle.
Helpful Link: Alabama Vehicle Release of Liability

5. Vehicle Identification Number (VIN) Inspection

In some cases, a VIN inspection may be required, especially if the title is from another state. This verification ensures that the car’s VIN matches the one listed on the title and other documents.
Helpful Link: Alabama VIN Inspection Information

6. Proof of Insurance

You’ll need to provide proof that the vehicle is insured until the point of sale. The buyer will also need this proof when they register the car under their name.
Helpful Link: Alabama Car Insurance Requirements

7. License Plates

In Alabama, license plates remain with the seller when the car is sold. You'll need to remove the plates from the vehicle after the sale and either transfer them to another vehicle or return them to the Department of Motor Vehicles (DMV).
Helpful Link: Alabama License Plate Rules

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