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State guide

Selling a car privately in Alabama

Everything you need to complete a legal private vehicle sale in Alabama — title transfer steps, required forms, fees, and official DMV links.

Key note: County-level sales tax applies on top of state rate; total is typically 5–9%. Buyer must transfer title within 20 days.

Step-by-step title transfer guide

  1. 1

    Gather required documents

    Before listing your car, locate the original title (lien-free), your government-issued ID, and any maintenance records. In Alabama you'll also need an odometer disclosure statement.

  2. 2

    Agree on price and conduct a test drive

    Research comparable listings on CarGurus, Facebook Marketplace, and Craigslist to price competitively. Meet in a public place for the test drive. Bring a friend if possible. Verify the buyer has a valid driver's license before handing over the keys.

    Protect yourself with a vehicle history report

    Buyers expect it. Sellers who provide a CARFAX report close deals faster and at higher prices.

    Get CARFAX Report →~$40 · 30-day cookie · recommended for all private sales
  3. 3

    Complete the title transfer

    Sign the back of your Alabama title in the presence of the buyer. Fill in the buyer's name, address, sale date, sale price, and odometer reading in the designated fields. Print clearly — corrections can void the title.

  4. 4

    Complete the bill of sale

    Alabama requires a bill of sale documenting the transaction. Include seller name, buyer name, vehicle year/make/model/VIN, odometer reading, sale price, and date of sale. Use our free generator above or print two copies — one for each party.

  5. 5

    Collect payment safely

    For amounts under $5,000, cash is fine. For larger transactions, use a cashier's check from a major bank or a bank wire transfer. Verify any check at the issuing bank before releasing the vehicle. Never accept personal checks from strangers.

    Selling for $5,000+? Use a secure payment service

    Escrow.com holds the buyer's funds until the title is transferred — eliminating payment scams.

    Use Escrow.com →~0.89% fee · recommended for high-value transactions
  6. 6

    Notify the Alabama DMV and cancel your insurance

    Report the sale to the Alabama DMV to protect yourself from liability after the transfer. Remove your license plates (unless transferring them) and cancel or transfer your insurance. Keep copies of all paperwork for at least 1 year.

  7. 7

    Buyer registers within 20 days

    The buyer must apply for a new title and register the vehicle at the Alabama DMV within 20 days of the sale date. They will pay the 2% state (+ local) sales tax and the $18 title fee at that time.

Required forms & documents

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Vehicle title (signed)

The original title in your name, signed on the back

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Bill of sale

Use our free generator

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Odometer disclosure

For vehicles under 10 years old

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Photo ID

Government-issued ID for both parties

Transfer your warranty to the buyer

A transferable extended warranty increases buyer confidence and can add $500–$2,000 to your sale price.

Check warranty options →Transferable coverage · improves sale price

Alabama bill of sale (required)

Alabama requires a bill of sale for private vehicle transactions. Use our free generator or download the official form.

Generate bill of sale →

Official Alabama DMV resources

Alabama DMV — Vehicle Title Transfer

https://www.mvtrip.alabama.gov/

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Frequently asked questions — Alabama

Do I need a notary to sell my car in Alabama?+
No. Alabama does not require a notary for a standard private vehicle sale. Both parties simply sign the title in each other's presence.
Is a bill of sale required in Alabama?+
Yes, a bill of sale is required for private vehicle sales in Alabama. Use our free generator or create your own including all required fields.
How long do I have to transfer the title in Alabama?+
The buyer must apply for a new title and register the vehicle within 20 days of the sale date in Alabama. Late registration typically results in penalty fees.
How much does it cost to transfer a car title in Alabama?+
The title transfer fee in Alabama is $18. Additional fees such as registration, county surcharges, or processing fees may apply when the buyer visits the DMV.
Is there sales tax on a private car sale in Alabama?+
Yes. The buyer pays 2% state (+ local) sales tax when registering the vehicle at the Alabama DMV. This is collected at the time of title transfer, not at the point of sale.