Free New Mexico Bill of Sale Template & Generator

New Mexico Bill of Sale Requirements

Additional Forms Required in New Mexico

• MVD 10002 (Application for Vehicle Title and Registration)
• MVD 10009 (Bill of Sale)

New Mexico taxes vehicle sales with a dedicated 4% Motor Vehicle Excise Tax, and the most valuable thing to understand about it is what it is NOT. New Mexico's better-known Gross Receipts Tax — running roughly 7% to 9% depending on where you live — does not apply to titled vehicle sales. Buyers who budget using the GRT rate substantially overestimate what they owe, and guides that conflate the two are simply wrong. The MVET is 4%, calculated on the purchase price less any trade-in, and paid at the MVD when you title.

The catch is the 80% rule. If your declared price is less than 80% of the vehicle's NADA average trade-in or wholesale value, the MVD ignores your figure and computes the 4% on the NADA value instead. That makes an accurate and credible bill of sale genuinely load-bearing in New Mexico: if you bought a car cheaply for real reasons — high mileage, mechanical problems, accident history — the document is what supports the lower number. A vague or suspiciously round figure invites the book-value override.

New Mexico splits its paperwork across two MVD forms. MVD 10009 is the Bill of Sale; MVD 10002 is the Application for Vehicle Title and Registration. They go in together with the seller-assigned title. No notarization is required on either.

The deadline structure escalates in two stages, which is unusual. The buyer has 30 calendar days to apply for title, and missing that adds a modest $20 late fee. But at 90 days a 50% MVET penalty applies — a far more serious charge that turns procrastination into real money. Filing promptly is worth the trip, and New Mexico makes that easier than most states by licensing private partner offices such as MVD Express alongside state field offices; they charge a convenience fee but often cut the wait dramatically.

On the seller's side, take the plate off the vehicle — New Mexico plates belong to the owner and transfer to your next car — and file a notice of transfer with the MVD so the record shows the vehicle changed hands. Combined with your signed copy of the bill of sale, that is what protects you from anything the buyer does before they complete the title transfer.