Free Kentucky As-Is Bill of Sale
Kentucky's lemon law (KRS § 367.840) covers only new vehicles sold by dealers — private as-is sales receive no lemon law protection. Under Kentucky UCC (KRS § 355.2-316), an 'AS IS' disclaimer must be in writing and conspicuous to exclude implied warranties. The #1 risk in a Kentucky private sale is the usage tax trap: even if you accept a below-market price because the vehicle is sold as-is, Kentucky taxes the buyer on the NADA retail value unless the price is attested in a notarized Affidavit of Total Consideration — the buyer can owe more tax than the sale price might suggest.
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Kentucky As-Is Bill of Sale — What You Need to Know
Sales Tax Details
Kentucky usage tax is 6% of the NADA retail value unless the actual sale price is attested in a notarized Affidavit of Total Consideration (and is at least 50% of the trade-in value) — selling the vehicle below book value as-is does NOT by itself reduce the usage tax owed. The buyer pays this at the county clerk's office.
Inspection Requirements
Kentucky has no statewide mandatory vehicle safety inspection for private sales or registration.
Kentucky As-Is Sale — Step-by-Step Checklist
- Write 'AS IS — NO WARRANTIES EXPRESSED OR IMPLIED' in bold uppercase on the bill of sale to satisfy KRS § 355.2-316 writing and conspicuousness requirements.
- Warn the buyer upfront about Kentucky's usage tax rule: they owe 6% of the NADA retail value unless the actual sale price is attested in a notarized Affidavit of Total Consideration. This is a frequent post-sale shock.
- Disclose all known defects in writing on the bill of sale; concealment of known material defects can support fraud claims that pierce the as-is clause under Kentucky common law.
- Sign the Kentucky certificate of title over to the buyer in front of a notary, completing the odometer disclosure for vehicles of model year 2011 or newer.
- Inform the buyer of the 15-day deadline to complete the title transfer at the county clerk's office; missing this results in late fees.
- If the vehicle has a salvage or rebuilt title, disclose this clearly in writing; Kentucky requires accurate title status disclosure.
- Retain a signed copy of the bill of sale for your records for at least 3 years.
Common Pitfalls
- Selling below NADA value without warning the buyer about Kentucky's usage tax — without a notarized Affidavit of Total Consideration the buyer will owe 6% of NADA value, not the discounted as-is price, which can add hundreds of dollars to their cost unexpectedly.
- Writing 'as is' without a written, conspicuous format — KRS § 355.2-316 requires both a written disclaimer and conspicuous presentation; an oral as-is statement is unenforceable under Kentucky UCC.
- Concealing a known defect and relying on the as-is clause — Kentucky courts treat fraudulent concealment of material defects as piercing the as-is protection; document all disclosures.
- Missing the 15-day title transfer window — if the buyer does not transfer at the county clerk within 15 days, late fees accrue and the seller remains on the registration record.
Pro Tip
Kentucky's usage tax rule is the single most misunderstood aspect of a private as-is sale in the state. Always communicate the NADA-based tax calculation to the buyer before signing anything — it affects their total cost of ownership and should be priced into their offer.