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. Certain information is required for a bill of sale to be considered valid by law enforcement officials and License Plate Issuing Officials. Ala. Code 8-20A-6. A bill of sale is required on all motor vehicles purchased or transferred in the state, including those that are not required to be titled under the Alabama Uniform Certificate of Title and Antitheft Act. A used car dealership is commonly a fast-paced operation. 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. Shoppers who buy used cars, on the other hand, most often have to buy them “as is” without any warranty coverage. Titles and Registrations . That makes buying a used car a riskier proposition, but it doesn’t mean shoppers are without options. The buyer must apply for a new tag. Curbstoning is illegal in Alabama and defrauds thousands of unwary consumers every year. Used Cars for Sale in Alabama. Mike Parker is a full-time writer, publisher and independent businessman. When you sell the vehicle, remove the license plate. Unfortunately, in Alabama the state's lemon law applies only to new cars. Fill it out according to the instructions and submit it to your Alabama Department of Revenue county title and registration office. Looking for State Regulations in another state? It's also helpful to provide the buyer with any maintenance logs or other paperwork associated with that vehicle. 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. Don't pay more than you should. Retailers sell only to the public and must collect sales tax. This federal law applies to any product which costs more than $25, comes with a warranty, and does not perform as it should. License plate transfer fee is $1.25. When you sell your car in Alabama, you'll need to sign the car title over to the buyer. 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. However, you can't tell a car is in good condition just by looking at … If you are transferring the title of your vehicle to a person in your family, you are not required to provide such certification. Used car listings in Alabama include photos, videos, mileage and features. Comparison shop for prices. Alabama enforces the Lemon Law to protect buyers. 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. 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. A car bought “as is” has no warranty. Curbstoning involves individuals who ignore these laws meant to protect consumers from unlicensed, unscrupulous sellers. It may be a "Lemon." For more information about your state's coronavirus (COVID-19) updates, see our. Plan to advertise online, in your local newspaper, or in a local car buying guide. Selling a Vehicle in Alabama. Unfortunately for drivers who believe they’ve bought a defective used car, the lemon law almost always only applies to new vehicles. By: Legal Services Alabama 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. Clean up your car. A bill of sale is required any time a vehicle is sold or transferred, and must be provided to obtain a certificate of title. Copyright 2021 Leaf Group Ltd. / Leaf Group Media, Alabama Department of Revenue:Bill Of Sale Minimum Requirements. The Alabama Department of Revenue and law enforcement officials will not accept an invoice in place of a bill of sale. The original title signed over to the buyer from the seller on the back of the title. If you have relied upon a false or misleading claim in purchasing a faulty vehicle, you may have a claim against the auto dealer. 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. His background includes a career as an investments broker with such NYSE member firms as Edward Jones & Company, AG Edwards & Sons and Dean Witter. 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. Subscribe to stay in the loop & on the road! Individuals who purchase a new or used vehicle in the state must maintain a copy of the bill of sale within the vehicle during the time between the date of purchase or transfer and the time when the new license plate is issued. Read consumer reports, comparison guides, and forums to learn about the car you are researching. Persons purchasing vehicles to be registered in these states are only allowed a partial exemption of sales tax on the purchase of automotive vehicles that will be removed from Alabama within 72 hours from the date and time of purchase. Personal checks are not advised. The seller must have the right to sell the car. Laws on a Bill-of-Sale for a Vehicle in the State of Alabama Time Frame. 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. Once you decide on a car, get a car report on it. Without used car laws in Alabama, it is especially important that you make every attempt to avoid a lemon vehicle. 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. In such a case, you'll have to provide smog certification to the buyer. Deciding to sell a Used Car. For example, if you buy a car "as is," the car normally is not covered by implied warranties. 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. The bill of sale must be signed by both the buyer and the seller. Make copies of the paperwork for your own records. Test drive each car. Buying a used car can be confusing and difficult. You'll want to know if you are comfortable behind the wheel. 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. It is against the law to buy or sell a car without a clear title and up-to-date registration, so buyer beware if … Have a mechanic examine the car to warn you of any damage or problems with the vehicle. Federal law prohibits vehicle dealers from misrepresenting either the mechanical condition of the car or the terms/existence of a warranty. State laws prohibit private citizens from selling multiple cars or vehicles other than those titled to them. Also there’s a federal law that requires all car dealers to post on the window of all used cars they are selling a special “Buyer Guide” form (it’s often called a Used Car Window Sticker) that discloses your warranty rights. Do your homework. The Alabama lemon law covers self - propelled vehicles intended primarily for use and operation on the public highways. 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