$BillOfSale.app

Free New Jersey Vehicle Bill of Sale

A New Jersey vehicle bill of sale documents a private-party motor vehicle transfer for the NJ Motor Vehicle Commission (MVC). The official form OS/SS-7 captures buyer, seller, vehicle, and price details — and pairs with the assigned title at retitling. Because NJ charges a flat 6.625% sales tax at the MVC counter (not to the seller), the price you write on the bill of sale is the number tax will be calculated against. Lowballing it triggers a Book Value review and possible fraud penalties.

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

Seller Information

Buyer Information

Vehicle Details

Sale Information

Condition & Warranty

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New Jersey Vehicle Bill of Sale — What You Need to Know

Primary Form
New Jersey Bill of Sale
Agency
New Jersey Motor Vehicle Commission
Primary ID Field
VIN
Sales Tax
0.06625%
Title Required
Yes
Seller must sign the title in pen on the back, complete the odometer disclosure, and record the exact sale price. Any cross-out, white-out, or pen-color change voids the title and forces a duplicate ($60) before NJ MVC will retitle. Liens must be released by the lienholder in writing — NJ requires the release to be notarized in pen before a clean title can be issued.
Inspection
Required

Sales Tax Details

New Jersey charges a flat 6.625% Sales and Use Tax on the purchase price of motor vehicles. Localities cannot add to it, so the rate is the same statewide. Tax is paid to NJ MVC at titling, not to the seller.

Exemption: Gifts and transfers between immediate family members (spouse, parent, child, sibling, grandparent, grandchild) are exempt from the 6.625% sales tax when accompanied by a notarized GU-11 affidavit. Inheritance and court-ordered transfers are also exempt with proper documentation.

Inspection Requirements

New vehicles are exempt from inspection for the first 5 model years. After that, biennial inspection is mandatory: emissions testing in the seven northern enhanced-inspection counties (Bergen, Essex, Hudson, Middlesex, Morris, Passaic, Union) and basic inspection elsewhere. Failed inspections must be repaired and re-tested within 30 days or registration is suspended.

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 Vehicle Sale — Step-by-Step Checklist

  1. Complete OS/SS-7 with full names, NJ addresses, VIN, year/make/model, exact sale price, and date
  2. Seller signs the title in pen — never pencil, never erasable ink — and fills in the odometer reading
  3. If there was a lien, attach the notarized lien release before submitting
  4. Buyer brings title, OS/SS-7, NJ driver license, proof of NJ insurance, and payment for 6.625% sales tax + $60 title fee + registration to any NJ MVC agency within 10 working days
  5. For family gifts: attach completed and notarized GU-11 affidavit to claim sales tax exemption
  6. Schedule inspection within 14 days of registration if the vehicle is older than 5 model years

Common Pitfalls

  • Writing "$1" or "gift" on the bill of sale without a notarized GU-11 — MVC will assess tax on Book Value and may flag the transfer for fraud review
  • Missing the 10-working-day titling window — late title transfer triggers a $25 penalty plus possible registration suspension
  • Erasures or cross-outs on the title — NJ voids any altered title and the seller must order a duplicate ($60, 2-week delay) before the buyer can retitle
  • Skipping the lien-release notarization — NJ rejects unnotarized lien releases at the counter, full stop
  • Buyer not carrying NJ insurance at registration — MVC will not issue plates without a valid NJ insurance ID card

Pro Tip

New Jersey wraps a flat 6.625% sales tax, a notarized lien-release rule, and a strict 10-working-day titling window around every private vehicle sale. Use OS/SS-7 for the bill of sale, file GU-11 (notarized) if you are gifting within the family, and walk into MVC with title, ID, NJ insurance, and full payment ready. Cut a corner and the transfer either bounces or gets taxed at Book Value.

New Jersey Vehicle Bill of Sale — FAQs

Do I really pay 6.625% sales tax on a private used-car sale in New Jersey?
Yes. New Jersey applies the full 6.625% Sales and Use Tax to private vehicle sales, not just dealer sales. You pay it directly to the MVC clerk when you title the vehicle — the seller does not collect it. If the price you wrote on the OS/SS-7 is more than 20% below the National Automobile Dealers Association (NADA) Book Value, MVC will charge tax on Book Value instead and may require a written explanation, so it is in your interest to record the true price honestly.
How does the GU-11 family-transfer exemption work?
If you are gifting a vehicle to a spouse, parent, child, sibling, grandparent, or grandchild, you both complete Form GU-11 (the Affidavit of Family Sale) and have it notarized. Bring the notarized GU-11 to MVC with the assigned title and OS/SS-7, and the 6.625% sales tax is waived entirely. Without GU-11, MVC will treat the transfer as a regular sale and tax it on Book Value, even if the title says "$0" or "gift" — verbal claims do not count.
Does my new-to-me used car need an inspection right away?
It depends on age. New Jersey exempts vehicles for the first 5 model years from inspection, then requires biennial inspection. If the car you bought is older than 5 model years, schedule inspection within 14 days of registering — emissions in the seven enhanced-inspection northern counties, basic safety elsewhere. Newer vehicles get a sticker valid until their first inspection date. Driving on an expired inspection sticker is a $100+ ticket and 2 points.
What happens if there is still a lien on the title?
You cannot transfer a NJ title with an active lien. The seller must contact the lienholder, pay off the loan, and obtain a written lien release that is notarized in pen — NJ specifically rejects electronic or unnotarized releases at the counter. Once the release is in hand, MVC will issue a clean title or you can submit the original title plus the notarized release together. Until that paperwork is complete, the buyer should hold the funds in escrow rather than hand over cash.