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 25 or more model years old (2001 and older as of 2026), 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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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.
- Record the exact mileage at the time of sale.
- Select the correct certification: 'Actual mileage,' 'Exceeds mechanical limits (rollover),' or 'Not actual mileage (discrepancy known).'
- 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.
- Retain copies of all documents for at least five years.
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.
- Omitting the odometer disclosure on an eligible vehicle exposes the seller to federal criminal penalties of up to $10,000 and three years in prison.
- 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.
- Civil liability for odometer fraud is treble actual damages with a statutory minimum of $1,500 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?
Yes. The federal 25-year rule exempts vehicles with a model year of 2001 or older as of 2026 from TIMA's odometer disclosure requirement.
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.