$BillOfSale.app

Free New Jersey Used Car Bill of Sale

A used-car bill of sale in New Jersey runs on the OS/SS-7 form and ties together three documents the MVC clerk wants in one stack: the assigned title, the OS/SS-7, and the sales-tax receipt. Used cars get the same 6.625% sales tax as any other vehicle, calculated on the price you write — so writing a fake low price triggers a Book Value override. 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.

New Jersey Requirements: Transfer title within 10 days. 6.625% sales tax.

Seller Information

Buyer Information

Used Car Details

Sale Information

Condition & Warranty

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Selling a used car as-is? Our private sale checklist walks you through price research, safely screening buyers, and the exact paperwork steps — so nothing slips through and you stay protected from post-sale disputes. Read: Private Car Sale Checklist

New Jersey Used Car Bill of Sale — What You Need to Know

Primary Form
New Jersey Bill of Sale (Used Vehicle)
Agency
New Jersey Motor Vehicle Commission
Primary ID Field
VIN
Sales Tax
0.06625%
Title Required
Yes
For used cars, the seller must complete the title back: signature in pen, printed name, exact odometer reading (federal disclosure required for any vehicle under 20 model years old), date of sale, and sale price. NJ does not allow co-signed or pencil entries — any error voids the title.
Inspection
Required

Sales Tax Details

Used-car private sales are taxed at 6.625% on the actual purchase price, payable to NJ MVC at titling. If the price is more than 20% below NADA Book Value, MVC defaults to Book Value unless you can document the discount (mechanical issues, accident damage, etc.).

Exemption: Sales between immediate family members (spouse, parent, child, sibling, grandparent, grandchild) are exempt with a notarized GU-11 affidavit. Inherited vehicles transferred via probate are also exempt with the executor letter.

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

  1. Run the VIN through NJ MVC's title-status check or NMVTIS to confirm there are no liens, salvage brands, or theft holds
  2. Inspect the title front and back — any erasure, cross-out, or pencil entry voids it
  3. Test-drive and either get a pre-purchase inspection or accept the as-is risk in writing on the OS/SS-7
  4. Complete OS/SS-7: VIN, year/make/model, odometer, exact price, both signatures, both NJ addresses, date
  5. Buyer takes title + OS/SS-7 + NJ insurance + ID + payment for 6.625% tax + $60 title + registration to MVC within 10 working days
  6. 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 a "gift" price for a non-family sale to dodge tax — MVC will tax Book Value and may refer for fraud review
  • Skipping the GU-11 notarization on a real family gift — MVC denies the exemption and charges full tax
  • Letting the 10-working-day titling window lapse — $25 late penalty plus your insurance may not cover an untitled vehicle

Pro Tip

A New Jersey used-car bill of sale lives or dies on the OS/SS-7 paperwork, the inspection status, and whether the price you write matches Book Value. Use OS/SS-7, get the title signed in pen, file GU-11 for family gifts, and walk into MVC inside 10 working days with NJ insurance and 6.625% sales tax in hand.

New Jersey Used Car Bill of Sale — FAQs

How do I know if a used car will pass NJ inspection?
Ask the seller for the current inspection report (every NJ inspection station prints one) and look at the expiration on the windshield sticker. The seven northern counties (Bergen, Essex, Hudson, Middlesex, Morris, Passaic, Union) require an OBD-II emissions scan, so any car with a Check Engine light will fail. Elsewhere, the inspection is mostly safety — tires, brakes, lights, wipers. If you are buying a car older than 5 model years, schedule inspection within 14 days of registering, or risk a 30-day suspension if you fail and don't re-test.
What if the used car is older than 5 model years and the inspection just expired?
You can still register and title it, but you must inspect within 14 days. Drive it to inspection during that window only, with the OS/SS-7 and a temporary tag if needed. If it fails, you have 30 days to repair and re-inspect — driving past that triggers registration suspension and a fine. Some buyers negotiate a price cut equal to the cost of expected repairs (catalytic converter, tire replacement, brake work) when the sticker is close to expiring.
Can I write "$1" or "gift" on a used-car bill of sale to lower the tax?
No, and MVC checks. New Jersey runs every private-party sale price against NADA Book Value, and if the price is more than 20% below Book, the clerk taxes Book Value instead and asks for a written explanation. If it is a real family gift, file a notarized GU-11 affidavit and pay zero tax legitimately. If it is a non-family sale and you misrepresent the price, you are committing tax fraud — penalties include the back-tax, a 5% late penalty per month, and potential criminal referral.
Do I need a smog check before selling a used car in NJ?
Not as a pre-sale requirement — NJ does not require sellers to inspect before selling. But the buyer will need to inspect within 14 days of registering if the car is over 5 model years old, and if it fails emissions in the seven northern counties, you will likely face a price negotiation request or a back-out. Smart sellers in those counties get a clean inspection report within the past 90 days to head off "but it might fail" haggling.