Free New Jersey Used Car Bill of Sale
A used-car bill of sale in New Jersey travels with the signed title: the MVC tells sellers to hand over both, with the bill of sale showing the buyer's name and address, the date of sale, the odometer reading, and the price. Used cars get the same 6.625% sales tax as any other vehicle, certified on the actual purchase price — so writing a fake low price is exactly what the Division of Taxation's Casual Sales Unit is there to verify. Used cars also tend to be old enough to need inspection within 14 days of registering, which is the buyer's problem, not the seller's.
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New Jersey Used Car Bill of Sale — What You Need to Know
Sales Tax Details
Used-car private sales are taxed at 6.625% on the actual purchase price, payable to NJ MVC at titling. The Division of Taxation's Casual Sales Unit verifies the tax with the MVC; a buyer who ignores a Casual Sales notice can be billed tax based on the vehicle's value.
Exemption: Sales between family members are not exempt. The MVC exemption list includes a gift (marked as a gift on the title's purchase price line) and a transfer to an heir or legatee.
Inspection Requirements
Used vehicles older than 5 model years must pass NJ inspection on a biennial cycle — emissions in the seven northern enhanced-inspection counties, safety inspection elsewhere. Buyers should ask to see the current inspection sticker and any recent inspection failures before paying.
Registration
Registration for this vehicle type is handled by NJ MVC — not the same agency that handles cars in New Jersey. Plan for separate filings.
New Jersey Used Car Sale — Step-by-Step Checklist
- Run the VIN through NJ MVC's title-status check or NMVTIS to confirm there are no liens, salvage brands, or theft holds
- Inspect the title front and back — any erasure, cross-out, or pencil entry voids it
- Test-drive and either get a pre-purchase inspection or accept the as-is risk in writing on the bill of sale
- Complete the bill of sale: VIN, year/make/model, odometer, exact price, both signatures, both addresses, date
- Buyer takes the assigned title + NJ insurance + ID + payment for 6.625% tax + $60 title + registration to MVC within 10 working days
- Schedule inspection within 14 days if the car is older than 5 model years
Common Pitfalls
- Buying a used car without a current NJ inspection sticker — buyer is on the hook for repairs to pass within 30 days or registration is suspended
- Trusting an unsigned title — NJ will not accept a title without the seller's in-pen signature and odometer reading
- Writing "gift" on a paid sale to dodge tax — family or not, a sale is taxed, and the Casual Sales Unit verifies private-vehicle sales tax
- Leaving the purchase price line without "gift" on a real gift — the MVC exempts a gift only when the title says so
- Letting the 10-working-day titling window lapse — $25 late penalty
Pro Tip
A New Jersey used-car bill of sale lives or dies on the title paperwork, the inspection status, and whether the price you write is the real one. Give the buyer a bill of sale, get the title signed in pen, mark a genuine gift on the title, and walk into MVC inside 10 working days with NJ insurance and 6.625% sales tax in hand.