Free Kentucky Used Car Bill of Sale
Buying a used car in Kentucky means navigating the 6% Motor Vehicle Usage Tax, which is calculated on NADA retail value — not what you paid, unless your price is attested in a notarized Affidavit of Total Consideration. Without that affidavit, a used car with a $20,000 book value carries $1,200 in usage tax even if you negotiated the price to $17,000. You must also clear any existing lien and complete the title transfer at your County Clerk within 15 days.
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Kentucky Used Car Bill of Sale — What You Need to Know
Sales Tax Details
Kentucky Motor Vehicle Usage Tax: 6% of the NADA retail value, unless the purchase price is attested in a notarized Affidavit of Total Consideration. Buyers who pay below market value are frequently surprised when the County Clerk taxes the transaction at book value.
Exemption: Transfers between immediate family members may qualify for reduced usage tax — confirm with your County Clerk.
Inspection Requirements
Kentucky does not require a statewide safety inspection for used vehicle purchases.
Kentucky Used Car Sale — Step-by-Step Checklist
- Verify the seller's name matches the name on the title before signing anything
- Request a lien release letter from the seller's lienholder if any loan is shown on the title
- Complete odometer disclosure on the title (required by federal law)
- Draft a bill of sale documenting the agreed purchase price, vehicle details, and both parties' signatures
- Look up the NADA book value before closing so you know the actual tax liability — not just the negotiated price
- Take the assigned title (seller's signature notarized), proof of Kentucky insurance, and ID to the County Clerk within 15 days
- Pay the 6% usage tax (on book value, or on your price if attested in a notarized affidavit) and receive your new Kentucky title
Common Pitfalls
- Underestimating the usage tax — Kentucky taxes on NADA retail value unless your price is attested in a notarized Affidavit of Total Consideration, meaning the real tax bill can be significantly higher than 6% of what you paid
- Accepting a title that still shows an active lienholder — you cannot legally transfer a title with an unresolved lien
- Skipping the odometer disclosure — federal law requires it for most vehicles of model year 2011 or newer and under 16,000 lbs gross weight, and an incomplete title will be rejected
- Waiting past 15 days to visit the County Clerk — late transfers incur penalties that accumulate quickly
- Not getting a signed bill of sale — without it you have no documented proof of the sale price or 'as-is' terms if a dispute arises
Pro Tip
Document the exact purchase price, and if you want the usage tax based on that price, complete and notarize the Affidavit of Total Consideration (Form 71A100 or TC 96-182) before visiting the County Clerk — without it, the retail value is used.