Free Alabama Trailer Bill of Sale
Alabama does not title every trailer — utility trailers, boat trailers, and trailers more than 20 model years old are exempt, so many private trailer sales change hands on a bill of sale plus a registration transfer at the county license plate office. Newer travel trailers and semitrailers still need a title transfer. The VIN on a trailer is typically on a plate riveted to the tongue or A-frame, and it must match the title exactly.
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Trailer titling rules trip up many sellers — GVWR thresholds, separate boat trailer titles, and state notarization requirements all vary. Our step-by-step writing guide walks you through the fields DMVs commonly ask for. Read: How to Write a Bill of Sale (Step-by-Step) →
Alabama Trailer Bill of Sale — What You Need to Know
Primary ID Field
VIN
Sales Tax
2%
Title Required
Yes
Alabama does not title utility trailers or boat trailers, or any trailer, semitrailer or travel trailer more than 20 model years old. Other trailers 20 model years old or newer, such as travel trailers and semitrailers, need a title.
Inspection
Not required
Sales Tax Details
2% state sales tax plus county/municipal add-ons applies to trailer purchases, paid at the county license plate office at time of title transfer.
Inspection Requirements
No safety inspection is required for trailer sales in Alabama.
Alabama Trailer Sale — Step-by-Step Checklist
- Locate the trailer VIN on the vehicle identification plate attached to the tongue or A-frame and confirm it matches the title or registration.
- Write a bill of sale that includes: VIN, year, make, trailer type (utility, boat, cargo, flatbed, etc.), GVWR if known, sale price, sale date, and full names and addresses of both parties.
- If the trailer has an Alabama title, sign it in the seller's signature block.
- Remove your license plate from the trailer before transfer — Alabama plates stay with the seller.
- Hand the buyer the signed title, bill of sale, and any lien-release letter if a lienholder is listed on the title.
- Buyer registers the trailer at the county license plate office within 20 calendar days, applying for a title first (Form MVT 5-1E) if the trailer needs one, and pays the 2% state sales tax plus local tax.
- Buyer registers the trailer and obtains new Alabama plates before towing it on public roads.
- Both parties keep signed copies of the bill of sale as a record of the transaction.
Common Pitfalls
- Assuming every trailer has a title: Alabama does not title utility trailers, boat trailers, or trailers more than 20 model years old. For those, the signed bill of sale and the registration transfer are the record that the trailer is no longer yours.
- Using the seller's plates during buyer's test tow: Alabama plates belong to the seller's registration. If the buyer tows the trailer on the seller's plates without authorization and is involved in an accident, the seller faces significant legal exposure.
- Failing to obtain a lien release: trailers purchased on financing will show a lienholder on the title. The seller must provide a lien-release letter from the lender before the county license plate office will issue a new clean title to the buyer.
- Homemade trailers with no VIN: if a homemade or heavily modified trailer has no manufacturer VIN, the seller should contact the Alabama Department of Revenue before the sale to arrange for an assigned VIN — attempting to title a trailer without one will cause delays at the county license plate office.
Alabama Trailer Bill of Sale — FAQs
Does Alabama require a title for a small utility trailer?
No. Alabama law does not issue titles for utility trailers, and trailers more than 20 model years old are also exempt. The buyer still registers the trailer at the county license plate office, using the bill of sale as proof of ownership.
Where is the VIN on a trailer in Alabama?
The VIN is typically stamped or riveted on a metal plate on the tongue (the A-frame section that connects to the tow hitch) or on the main frame near the front. On older trailers, the VIN may also be stamped directly on the frame rail.
What is the sales tax on a trailer purchased in a private sale in Alabama?
The state base rate is 2% of the documented purchase price (or the state's standard value, if the buyer accepts it), paid at the county license plate office when the buyer applies for a new title. County and municipal surtaxes vary and can bring the total above 4% in some cities.
Can I tow a newly purchased trailer in Alabama before getting a new title?
The buyer should obtain a temporary permit from the county license plate office or use a dealer-issued temporary tag if applicable. Towing without valid registration is a traffic violation. The 20-day window covers the title application and registration, and plates and registration must be in order before using the trailer on public roads.