Free North Carolina Odometer Disclosure Bill of Sale
The federal Truth in Mileage Act (49 U.S.C. § 32705) requires a written odometer disclosure for every qualifying vehicle transfer. Vehicles of model year 2010 or older (model year 2011 and newer stay covered until they are 20 model years old), those with a GVWR over 16,000 lbs, and new vehicles before first retail sale are exempt. In North Carolina, the odometer reading is recorded in the odometer disclosure section of the MVR-1 (Title Application) or on the certificate of title; instead of sales tax, buyers pay a 3% Highway Use Tax (HUT) capped at $2,000 for most transactions.
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Odometer disclosure is a federal requirement under 49 CFR §580, not just a best practice — and falsifying mileage is a federal crime. Our guide explains exactly what each field requires, when the 10-year exemption applies, and what to do if the odometer has rolled over. Read: Odometer Disclosure Statement: What It Is & What to Write →
North Carolina Odometer Disclosure Bill of Sale — What You Need to Know
Primary Form
Standard bill of sale
Agency
NC DMV
North Carolina Division of Motor Vehicles
Primary ID Field
VIN
Sales Tax
0.03%
Title Required
Yes
Inspection
Not required
North Carolina Odometer Disclosure Sale — Step-by-Step Checklist
- Locate the odometer disclosure section on the North Carolina certificate of title or prepare the MVR-1 Title Application.
- Read the odometer to the digit on sale day and write that number.
- Certify the reading correctly — actual mileage, rollover (exceeds mechanical limits), or known-discrepancy (not actual mileage).
- Both seller and buyer must sign and date the odometer disclosure section.
- Prepare a bill of sale with the vehicle description, sale price, and odometer reading to support the 3% Highway Use Tax calculation.
- The buyer submits the completed title or MVR-1, bill of sale, and HUT payment to the NC DMV license plate agency.
- Save the complete document set; five years of retention is the floor.
Common Pitfalls
- Selling 'as-is' does not waive the seller's federal odometer disclosure obligation under TIMA.
- Confusing 'not actual mileage' (known discrepancy) with 'exceeds mechanical limits' (rollover) is a common error with serious legal consequences.
- Skipping the disclosure on a covered vehicle is a federal crime — up to $10,000 and three years per violation.
- North Carolina's 3% HUT is capped at $2,000 for most transactions but is still calculated on the purchase price; underreporting the price triggers HUT fraud in addition to potential odometer issues.
- Odometer fraud's civil price: triple the actual damages, with $1,500 as the statutory floor per violation.
North Carolina Odometer Disclosure Bill of Sale — FAQs
What is North Carolina's Highway Use Tax and how does it differ from sales tax?
North Carolina replaced its vehicle sales tax with a 3% Highway Use Tax (HUT) on vehicle transfers. The HUT is capped at $2,000 for most private-party sales and is paid to the NC DMV at the time of title transfer.
Where is the odometer disclosure made in North Carolina?
The odometer disclosure is made in the designated section of the NC certificate of title or on the MVR-1 Title Application. Both seller and buyer must sign the disclosure before the title is submitted to the DMV.
Is a 2001 model-year vehicle exempt from odometer disclosure in North Carolina?
No disclosure is required — the federal exemption covers all vehicles of model year 2010 and older, which includes any 2001 model. The 20-model-year clock only applies to 2011-and-newer vehicles.
What penalties apply to odometer fraud in North Carolina?
Federal penalties include criminal fines up to $10,000 and imprisonment up to three years. Civil remedies allow the buyer to recover treble actual damages, with a minimum of $1,500 per violation.