Free Alabama Car Bill of Sale
Alabama does not publish an official bill-of-sale form — any written document that captures the agreed price, vehicle description, and both parties' signatures is legally sufficient. The critical paperwork is Form MVT 5-1, which the buyer files at the county probate judge's office to obtain a new title. Sellers must physically remove their license plates before handing over the keys, because Alabama plates stay with the seller, not the vehicle.
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Alabama Car Bill of Sale — What You Need to Know
Sales Tax Details
Alabama levies a 2% state sales tax on vehicle purchases. County and municipal add-ons vary — Jefferson County adds 1.5%, Madison County adds 0.5% — so the combined rate typically falls between 2% and 4% depending on where the buyer registers the vehicle.
Exemption: Vehicles transferred between immediate family members (spouse, parent, child, sibling) are exempt from state sales tax when accompanied by a notarized gift affidavit.
Inspection Requirements
Alabama has no statewide safety or emissions inspection requirement for privately sold vehicles.
Alabama Car Sale — Step-by-Step Checklist
- Write a bill of sale capturing: full legal names and addresses of buyer and seller, VIN (17 characters), year, make, model, odometer reading, sale price, and sale date.
- Sign the back of the existing Alabama certificate of title in the designated seller signature block — do not use correction fluid or cross out errors.
- Remove your license plates from the vehicle before transfer; plates belong to the seller in Alabama and must not be left on the car.
- Provide the buyer with the signed title, the bill of sale, and any lien-release documentation if a lienholder was listed on the title.
- Buyer takes the signed title and a completed Form MVT 5-1 to the county probate judge's office within 20 calendar days of the sale date.
- Buyer pays the applicable 2% state sales tax plus any county/municipal add-on at the probate office when applying for the new title.
- Seller should notify ALEA or the county probate office of the sale to protect against post-sale liability for tickets or damage.
- Both parties keep a copy of the signed bill of sale for at least seven years for tax and liability records.
Common Pitfalls
- Leaving the plates on the car: Alabama plates are registered to the owner, not the vehicle. A seller who lets the buyer drive away with the plates can be held responsible for tolls, red-light camera violations, and worse.
- Missing the 20-day title-transfer deadline: Alabama charges a penalty for late applications at the probate office. The clock starts on the sale date listed on the bill of sale, not the date the buyer gets around to visiting the office.
- Skipping the odometer disclosure on the bill of sale: federal law (49 U.S.C. § 32705) requires a written odometer statement for vehicles under ten years old. Omitting it can expose the seller to federal odometer-fraud liability.
- Assuming notarization is required: Alabama does not require a bill of sale to be notarized for a standard private car sale, but both parties should still sign in person and retain originals.
- Paying off a lien but forgetting the lien-release letter: if the title shows a lienholder, the seller must obtain and present a lien-release letter from the lender before the probate office will issue a clean title to the buyer.
Pro Tip
Pro tip: complete the paperwork the same day as the handover. Alabama's 20-day window for title transfer sounds generous, but probate offices in smaller counties may have limited hours, and delays compound quickly. Sellers should photograph the signed title and the vehicle's odometer reading before handing over the keys — a timestamped photo protects against any later dispute about the car's condition or mileage at the time of sale.