How to Transfer a Car Title
Transferring a car title is an essential step when buying, selling, or transferring ownership of a vehicle within your state. The vehicle title legally proves who owns the automobile, and each state DMV has its own process depending on the reason for the transfer and whether the vehicle is new or used.
Beyond buying and selling, title transfers are also necessary when a vehicle is inherited, gifted to a family member, or donated. In some states, like Connecticut, drivers who have legally changed their name may also need to update their vehicle title accordingly. Keep reading to learn more about how to transfer car titles across the U.S.
How to Transfer a Car Title After Buying or Selling a Vehicle
The title transfer process typically happens in person at a local DMV. Both the buyer and seller must complete certain steps to finalize the ownership change.
Dealers selling new vehicles usually handle the title transfer for the buyer. When purchasing from a private seller, buyers should:
- Sign the back of the title and provide their driver’s license number.
- Complete an emissions test, if required by the state.
- Visit the DMV with ownership documents such as the bill of sale.
- Show valid identification.
- Fill out the necessary application forms.
- Pay title transfer fees and any applicable taxes.
Often, car title transfers are processed alongside vehicle registration. For example, in New Jersey, obtaining minimum car insurance coverage is also mandatory before transferring the title.
Before starting the transfer, buyers should verify that the seller provides an accurate odometer reading at sale time. Additionally, if the vehicle was purchased with a loan, the buyer should confirm that any lienholder requirements have been satisfied before completing the transfer.
How to Transfer a Vehicle Title Upon the Death of the Owner
Transferring a title after the owner’s death involves a slightly different process. Requirements vary depending on the heir’s situation. For example, surviving spouses can often transfer the title by submitting the old title, a death certificate, and a notarized affidavit confirming their status.
If the vehicle was left in a will, the executor must sign the title before submitting it to the DMV. Even without a will, the transfer can usually be completed. In Tennessee, for instance, heirs submit an affidavit of inheritance along with the death certificate to transfer the title.
Heirs typically do not have to pay sales tax on inherited vehicles. Maryland exempts such transfers from its 6% excise tax based on market value. Some states, like California, may waive emissions testing when transferring a title to a deceased family member.
Getting a New Car Title Versus Title Transfers
It’s important to distinguish between obtaining a new car title and transferring an existing one. A new title is usually issued when a vehicle is titled for the first time in a state or when purchased from a dealership. Motorists might also need a new title if bringing a vehicle from out-of-state.
Title transfers occur when ownership changes hands between individuals or entities. This process applies in cases such as:
- Buying or selling a vehicle
- Transferring ownership to or from family members
- Gifting or donating a vehicle
- Inheriting a vehicle
- Removing a lien after paying off a loan
Car Title Transfer Fees
Completing a car title transfer requires paying DMV fees, which vary by state and situation. For example, in New Jersey, transferring a standard vehicle title costs $60. If the vehicle is financed, fees increase to $85 or $110 depending on whether there is one or two liens.
Delays in transferring ownership can lead to penalties. In Washington state, failing to transfer the title within 15 days of purchase results in fines between $50 and $125.