alabama law on selling used cars

All Rights Reserved. A post office box is not acceptable. We have 4,695 used cars in Birmingham for sale that are reported accident free, 4,097 1-Owner cars, and 4,447 personal use cars. An as-is car sale refers to a sale in which a used vehicle is sold to a buyer in its current condition, with all known and unknown damages and defects. Conveniently, the form you'll need to do so is located directly on the back of the title itself. If you are transferring the title of your vehicle to a person in your family, you are not required to provide such certification. Deciding to sell a Used Car. Make copies of the paperwork for your own records. Take the following information to the tag office, usually located in your county courthouse: The title fee is $20. If you have relied upon a false or misleading claim in purchasing a faulty vehicle, you may have a claim against the auto dealer. Avoid buying a car with costly hidden problems. A bill of sale is required any time a vehicle is sold or transferred, and must be provided to obtain a certificate of title. Alabama does have a lemon law and it is found at Alabama Code §8-20A-2 but it only applies to new vehicles. Fill it out according to the instructions and submit it to your Alabama Department of Revenue county title and registration office. Statute of Limitations. State laws prohibit private citizens from selling multiple cars or vehicles other than those titled to them. In fact, car dealers who sell, or offer for sale, more than five used vehicles in a 12-month period must comply with the Rule. When you sell your car, you will need to provide the buyer with the original title (signed over by you on the back) and a Bill of Sale. Banks and financial institutions are exempt from the Rule, as are businesses that sell vehicles to their employees, and lessors who sell a leased vehicle to a lessee, an employee of the lessee, or a buyer found by the lessee. The frequency and severity of consumers' used-car problems has led some state legislatures to pass new laws. Plan to advertise online, in your local newspaper, or in a local car buying guide. Dealers must conspicuously stamp or inscribe the statement "PENALTY OF fifteen dollars ($15.00) due if vehicle is not registered in the name of the new owner within 20 calendar days" on all bills of sale. Unfortunately for drivers who believe they’ve bought a defective used car, the lemon law almost always only applies to new vehicles. The price you see is the price you pay. The Alabama Department of Revenue is the government agency responsible for vehicle registration in the state. Alabama issues separate car dealer licenses in four categories: new or used car dealer, wholesaler, rebuilder, and reconditioner. When you buy a used car, you will need to transfer registration with the state, apply for a title, and pay taxes on your purchase. Curbstoning involves individuals who ignore these laws meant to protect consumers from unlicensed, unscrupulous sellers. His background includes a career as an investments broker with such NYSE member firms as Edward Jones & Company, AG Edwards & Sons and Dean Witter. Unfortunately, in Alabama the state's lemon law applies only to new cars. Every used car we sell in Alabama comes with our no-haggle pricing. Moulton, AL. A used car dealership is commonly a fast-paced operation. Any motor vehicle for which a certificate of title has been issued by any state with the notation of junk, parts car, parts only, nonrebuildable, or when a certificate of destruction or bill of sale has been issued for transfer of the vehicle with similar language shall be considered to be a junk vehicle and shall not be titled in this state. A: Unfortunately, you only get the warranty that you agree upon when you purchase a used vehicle unless it is still under the manufacturer’s original warranty. Test drive each car. Curbstoners are scam artists. Ala. Code 8-20A-6. Car Dealer Liability for Misrepresentation When Selling a Vehicle. Search our inventory of used cars for sale in Alabama at Enterprise Car Sales. Nevertheless, before you commit to making a purchase, familiarize yourself with the laws, rules and recommended guidelines for buying a used car provided by the Federal Trade Commission and your state consumer protection agencies. Any action brought under this chapter against the manufacturer shall be commenced within three years following the date of original delivery of the motor vehicle to the consumer. Used Dealer License Application. A valid bill of sale must include the buyer's name and physical address, the sale date, a description of the vehicle including the make, model, year, body type and vehicle identification number, and the seller's name and physical address. As is the case with any company that sells tangible goods, one of the dealership's main goals is to sell off inventory as soon as possible before it ages. Retailers sell only to the public and must collect sales tax. If you must take cash, get the buyer to sign in receipt of the vehicle. A car bought “as is” has no warranty. Used car dealers commonly get their cars from private sellers, trade-ins, auctions and rental car agencies in some cases. Motor vehicle dealer, motorcycle dealer, and manufacturer license plates may not be used in lieu of regular issued license plates as a means of avoiding registration and ad valorem tax requirements. These dealers sometimes take shortcuts to speed along the process of securing and selling their cars that could cause complications for the buyer. Plan to advertise online, in your local newspaper, or in a local car buying guide. It is against the law to buy or sell a car without a clear title and up-to-date registration, so buyer beware if someone attempts to do this with you. For example, if you buy a car "as is," the car normally is not covered by implied warranties. Curbstoning is illegal in Alabama and defrauds thousands of unwary consumers every year. Buying a used car can be confusing and difficult. Perhaps you have a gently used vehicle that still has a few good years left in it and are now choosing to sell the car. This article talks about those rights. The original title signed over to the buyer from the seller on the back of the title. This means that when a car is sold as-is, the seller is often absolved of any responsibility to repair or replace any damaged or defective parts. However, there are some exceptions to this rule. Required Information. Read consumer reports, comparison guides, and forums to learn about the car you are researching. When selling a car privately in Alabama, the buyer and the seller both need to fill out the relevant sections on the back of the title. It is important to make your claim under the Alabama Lemon Law as soon as possible so that you do not lose your … Used Cars for Sale in Alabama. Return to Top Used Car Rule The Federal Trade Commission (FTC) is charged with enforcing the “Used Car Rule,” a federal regulation that requires used car dealers to disclose certain information to consumers. The lemon law does not cover motor homes or any motor vehicle having a manufacturer's gross vehicle weight rating of 10,000 pounds or more. When you sell your car in Alabama, you'll need to sign the car title over to the buyer. Certain information is required for a bill of sale to be considered valid by law enforcement officials and License Plate Issuing Officials. The Alabama lemon law covers self - propelled vehicles intended primarily for use and operation on the public highways. Every used car for sale comes with a free CARFAX Report. Clean up your car. Alabama enforces the Lemon Law to protect buyers. An Alabama automobile bill of sale is a document that may prove valuable to both the seller and the buyer of the vehicle, since it contains specific information about the car sale, such as the date and place of purchase, the selling price and the personal information of the involved parties. © 1999 - 2021 DMV.ORG. Subscribe to stay in the loop & on the road! Alabama law requires the seller to have a clear title to the vehicle being sold. Instead of gifting a car or selling it for $1, you may decide to sell the car and keep the cash. Alabama State Code 810-5-75-.35, Section 40-12-260 (b) (2) requires individuals who reside in the state to obtain a license plate for any new or used motor vehicle within 20 calendar days of purchase or transfer of ownership. Climb in the backseat to check for leg room and head space. This information includes the legal name, address, and signature of the buyer and the seller(s) along with the date of the sale, the odometer reading, and the purchase price. Federal law prohibits vehicle dealers from misrepresenting either the mechanical condition of the car or the terms/existence of a warranty. This federal law applies to any product which costs more than $25, comes with a warranty, and does not perform as it should. Looking for State Regulations in another state? For starters, having an independent mechanic examine any car you’re serious about buying. Alabama law requires the seller to have a clear title to the vehicle being sold. Used-Car Lemon Laws. Make needed repairs. Used car listings in Alabama include photos, videos, mileage and features. Be aware of the terms related to selling used cars and the obligations of the seller, including implied warranties. Selling a car online. Alabama law gives rights to people who buy defective new cars. However, there are several ways to avoid buying a lemon when you buy a used car. Individuals who are residents of other states and who are serving on active duty in the U.S. military may continue to register their motor vehicles in their home state. The manufacturer or distributor is selling or leasing new motor vehicles in Alabama to its qualified vendors, not-for-profit organizations, fleets, or the federal, state, or local government if sold or leased and delivered through new motor vehicle dealers in this state. Here are some answers to questions that you may have about buying a used car. By: Legal Services Alabama The bill of sale must be signed by both the buyer and the seller. All promises made during used car transactions must be recorded in writing to be legally valid. It's also helpful to provide the buyer with any maintenance logs or other paperwork associated with that vehicle. If you buy a service contract from the dealer within 90 days of buying a used vehicle, federal law prohibits the dealer from eliminating implied warranties on the systems covered in the contract. The lemon law appears to cover used … The vehicle should match the description given by the seller. Mike Parker is a full-time writer, publisher and independent businessman. The Alabama Department of Revenue and law enforcement officials will not accept an invoice in place of a bill of sale. Titles and Registrations . It is wise to accept only a certified check for the purchase; this will verify that the check is good. According to the Motor Vehicle Division of the Alabama Department of Revenue, a bill of sale may be an informal document drawn up between individuals, or it may be a formal document drawn up by a dealer. Most sellers do not expect the buyer to pay their original asking price. The car must be roadworthy – it is a criminal offence to sell an unroadworthy car and an MOT certificate from a test several months ago is no guarantee that the car is … Don't pay more than you should. Without used car laws in Alabama, it is especially important that you make every attempt to avoid a lemon vehicle. What if I got ripped off? License plate transfer fee is $1.25. Buying and selling a car in the state of Alabama is relatively easy if you do your homework. Offer a dollar amount lower than you are willing to pay, then work upwards as the seller makes a counter-offer. Find the best used cars in Birmingham, AL. Copyright 2021 Leaf Group Ltd. / Leaf Group Media, Alabama Department of Revenue:Bill Of Sale Minimum Requirements. If you are considering the purchase of a used vehicle, it is worth considering taking the vehicle to an experienced mechanic for a thorough inspection before you buy. Many small lot car dealers don’t comply with the law. To learn about rights buyers of used cars have, see "Buying a Used Car" above Read More. It’ll be … Alabama Lemon Law Has your new car been serviced for the same defect three or more times, or in the shop for more than 30 days? This car report will provide a title search, accident report, lemon report, odometer check, and registration details. Comparison shop for prices. Pretty much the only way you can use the lemon law on a used car is if you bought it with an express written warranty. In such a case, you'll have to provide smog certification to the buyer. Personal checks are not advised. When you sell the vehicle, remove the license plate. To register a vehicle in Alabama for the first time, the registrant must provide a certificate of title and proof of liability insurance, and pay all required fees and taxes. Kind of car you want or need to sign the car and keep the.., see our of any damage or problems with the vehicle should match the description by... 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