Free Alabama As-Is Bill of Sale
Alabama's lemon law applies exclusively to new vehicles purchased from licensed dealers — private party as-is sales are entirely outside its scope. Under Alabama UCC § 7-2-316, an 'AS IS' disclaimer must be conspicuous — printed in all caps or bold text — to validly exclude the implied warranty of merchantability. Even with a proper as-is clause, Alabama courts have consistently held that a seller who knowingly conceals a material defect can be sued for fraud, so disclosure of known problems remains legally essential.
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Alabama As-Is Bill of Sale — What You Need to Know
Sales Tax Details
Alabama state sales tax is 2% on vehicle sales; local county and municipal taxes may add up to an additional 3–4%. Buyer pays at the county license plate office.
Exemption: Some family transfers may qualify for an exemption; ask the county licensing official or the Alabama Department of Revenue.
Inspection Requirements
Alabama does not require a state safety inspection for private party vehicle sales.
Alabama As-Is Sale — Step-by-Step Checklist
- Print 'AS IS — NO WARRANTIES EXPRESS OR IMPLIED' in bold or all-caps directly on the bill of sale.
- Disclose any known material defects in writing on the bill of sale or a separate signed addendum.
- Complete the federal odometer disclosure statement on the title or a separate form for vehicles of model year 2011 or newer and under 16,000 lbs GVWR.
- If the vehicle carries a salvage or rebuilt title, clearly mark it as such and transfer the correct Alabama salvage title — never pass a salvage vehicle off on a clean title.
- Sign the back of the Alabama Certificate of Title over to the buyer, including the odometer reading, sale price, and date.
- Provide the buyer with a dated bill of sale listing buyer/seller names, addresses, VIN, year, make, model, and sale price.
- Remove your license plates — Alabama plates stay with the seller, not the vehicle.
- Keep a copy of the signed bill of sale as your record of the sale.
Common Pitfalls
- Writing 'as is' in small lowercase print within a block of text — Alabama UCC § 7-2-316 requires the disclaimer to be conspicuous, so buried fine print can be voided by a court.
- Assuming 'as is' protects against a fraud claim — it does not. Actively lying about a known defect (e.g., claiming brakes are fine when you know they are failing) exposes you to fraud liability regardless of any as-is language.
- Failing to disclose a salvage or rebuilt title. Alabama law requires disclosure; concealment is criminal fraud and voids the sale.
- Leaving the license plates on the vehicle. Alabama plates are issued to the owner, not the car; the buyer must obtain their own plates.
- Skipping the odometer disclosure on the title for qualifying vehicles — this is a federal requirement and omitting it can complicate the buyer's title transfer.
Pro Tip
An Alabama as-is vehicle sale is legally straightforward — the lemon law is not a factor, and a conspicuous as-is clause on the bill of sale effectively waives implied warranties. Your real exposure as a seller is fraud: disclose what you know in writing, sign over the correct title, and keep a copy of everything.