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The bottom line: Selling your car in Alabama comes down to a few key things.
Fill out the title correctly, handle any loan paperwork, and take off your license plates before handing over the keys. The buyer deals with registration and taxes after that.
Key Takeaways
- Title notarization: Alabama does not require it. Just sign the back of the title in blue or black ink, exactly as your name appears on the front.
- Missing title: A replacement costs $15 and can be applied for online. It takes 7 to 14 business days online or in person, and 4 to 6 weeks by mail.
- Buyer deadline: The buyer has 20 calendar days to register the car and go through a VIN inspection at the county office.
- License plates: They stay with you, not the car. Remove them before the buyer drives away.
- Release of liability: Alabama has no required form, but reporting the sale to the DMV online protects you from tickets or incidents tied to the vehicle after it’s sold.
- Bill of sale: Only legally required for untitled vehicles (35+ years old) or boats. For regular titled cars, it’s recommended but not required by state law.
- Lien release: If you still owe money, your lender must release it using Form MVT 5-63, a direct title signature, or a release letter on their letterhead.
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Step-by-Step Process for Alabama
Step 1: Prepare Your Alabama Paperwork
Documents you’ll need:
- Vehicle title – Must be in your name and clear of liens
- Valid Alabama driver’s license – Names must match exactly
- Lien release documentation – If you still owe money on the car
If your title is missing:
You’ll need to get a replacement first. Apply online or visit your county license office with your ID and $15. Takes 7 to 14 business days if done online or in person, 4 to 6 weeks by mail.
If you still owe money on the car:
Alabama offers several official methods for lien release. Your lender must use one of these:
- Form MVT 5-63: Official Alabama lien release form that must be notarized.
- Direct title signing: Lender signs in the lien release area on your Alabama title.
- Lender letterhead: Release letter on official letterhead with your VIN, name, release date, and authorized signature.
- Alabama’s automatic lien release: Liens automatically release after 12 years for most vehicles, or 4 years if your vehicle is 12+ model years old.
Learn more: How to Sell a Financed Car?
Name matching requirement:
Check your title carefully. The name on your driver’s license must match the name on the title exactly. If you got married or changed your name, bring documentation showing the name change.
Step 2: Prepare Your Car
Clean your car inside and out, gather maintenance records, and run a VIN check to get the best price and build buyer confidence.
Learn more:
Step 3: Price Your Car
Learn more: Best Free Car Valuation Tools
Step 4: Advertise Your Car
Facebook Marketplace works best in Alabama, especially in Birmingham, Huntsville, and Mobile where buyer activity is highest. Cars.com and Autotrader are good for reaching buyers statewide and from neighboring states.
Alabama has no emissions testing requirement, so older and higher-mileage vehicles tend to attract more local interest than in states where buyers worry about passing inspection. Peddle or Wheelzy will buy your old or damaged car directly, and Carvana will give you competitive offers if you have a newer car.
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Step 5: Meet with Buyers Safely
Always meet at public places like bank parking lots during daylight hours.
Learn more:
Step 6: Handle Payment and Negotiate
Cash for cars under $5,000, cashier’s check (verify at bank), or meet at buyer’s bank for wire transfer.
Learn more:
Step 7: Complete the Alabama Title Transfer
Alabama titles are set up in a specific way. The front is only for lienholders, so you’ll work on the back where you see colored sections: red for seller, teal for buyer.
In the red section (seller), fill out these numbered areas:
Section 1: Write the exact date of sale, buyer’s full legal name (no nicknames), and buyer’s complete address.
Section 2: Enter the precise odometer reading at time of sale. Here is a separate odometer disclosure form if your title does not have it.
Section 3: Write the date of sale and agreed-upon sale price.
Then sign and date exactly as your name appears on the front of the title.
Use black or blue ink only. Don’t make any corrections, cross-outs, or use white-out. If you mess up, you’ll need to get a duplicate title.
Joint ownership rules:
- Names joined by “OR” (like “John Doe OR Jane Doe”) = only one person needs to sign
- Names joined by “AND” (like “John Doe AND Jane Doe”) = both people must sign
The buyer fills out the teal section and takes everything to their county license office within 20 calendar days. If the 20th day falls on a Sunday, holiday, or when the office is closed, they get until the next business day.
Important: A VIN inspection is required each time ownership changes. The buyer handles this at the county office or with Alabama law enforcement.
Step 8: Sign Bill of Sale (Recommended)
Most people think you always need a notarized bill of sale in Alabama. That’s wrong.
A bill of sale is legally required only for untitled vehicles (35+ years old) or boats. When it is legally required, it must be notarized or have two witness signatures.
For regular titled vehicles, a bill of sale isn’t required by state law, but it’s smart protection for you. Some counties might prefer it, but it’s not a legal requirement. You can use our free bill of sale generator to create one in minutes.
Learn more: What is Bill of Sale for a Car? (Seller Guide + Templates)
Step 9: Handle Alabama License Plates and Registration
Remove your license plates before the buyer drives away. In Alabama, plates belong to you (the owner), not the car.
You can:
- Transfer plates to another car you own (same classification)
- Return them to your county license office (no refund)
- Keep them if you want
The buyer gets new plates when they register the car.
Learn more: How to Remove License Plates Safely?
Step 10: Submit the Release of Liability
Report the sale to the Alabama DMV after you sell the car.
This creates a paper trail showing you’re no longer responsible for the vehicle.
Step 11: Cancel Insurance
Cancel your insurance only after the title transfer is complete.
Learn more: When to Cancel Car Insurance After Selling a Car?
Alabama DMV Resources
State Resources:
- Alabama Department of Revenue – Motor Vehicle Division
- Vehicle Licensing Offices by County
- License Plate and Registration Information
Phone Support:
- Motor Vehicle Division: (334) 242-9000
Alabama Fees and Costs
| What You Pay? | Cost | When? |
|---|---|---|
| Duplicate title (if needed) | $15 | Before sale |
| Lien payoff (if applicable) | Loan balance | Before sale |
| Everything else | $0 | Buyer pays |
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Frequently Asked Questions
How long does the buyer have to transfer the title after we complete the sale?
Exactly 20 calendar days from the date you write on the title.
If the 20th day falls on a Sunday, holiday, or when the county office is closed, they get until the next business day. After that, they face penalties and interest charges.
Do I need to get the title notarized when I sign it over in Alabama?
No, Alabama doesn’t require title notarization. The title assignment itself never needs a notary.
When is a bill of sale required in Alabama?
Legally required only for untitled vehicles (35+ years old) or boats. For regular titled vehicles, it’s recommended for protection but not required by state law.
When it is required, it must be notarized or have two witness signatures.
Can I sell my car if I still owe money on it in Alabama?
Yes, but you need to coordinate lien release with your lender. You can use Form MVT 5-63, have them sign the title directly, or get a release letter on their letterhead.
If you owe more than the car’s worth, you’ll need to pay the difference.
My car was inherited. What additional Alabama forms do I need?
Depends on the estate. If it went through probate, you need letters testamentary or letters of administration from the probate court.
If it didn’t go through probate, you need Alabama Form MVT 5-6 (Next of Kin Affidavit) plus a death certificate. The MVT 5-6 must be notarized.
Both my spouse and I are on the Alabama title. Do we both need to sign?
If your names are joined by “AND,” both must sign. If joined by “OR,” only one signature is needed. This applies to both the title assignment and any applications.
What if I make a mistake on the Alabama title?
Don’t try to fix it yourself with white-out or cross-outs. Get a duplicate title with the correct information from your county office for $15.
The buyer is from out of state. Does Alabama require anything special?
Not for you as the seller. They might need a VIN inspection when they register in their state, but that’s their problem to solve.
Do Alabama license plates transfer to the buyer?
No, unlike some states, Alabama license plates stay with you (the seller). Remove them before the buyer leaves. They’re registered to you personally, not to the car.
What happens if my lender won’t cooperate with the lien release?
Contact them directly to understand their process. Some lenders will meet you at closing to sign the title. If they’re unresponsive, consider paying off the loan first, then selling.
How do I know if my old lien was automatically released?
Alabama automatically releases liens after 12 years for most vehicles, or 4 years if your vehicle is 12+ model years old. Check your title. If it’s been that long since the lien date, you might not need active paperwork.
What if my lender went out of business?
Alabama has a special process for defunct lienholders. You’ll need a notarized affidavit that the lien is satisfied, plus certified mail evidence that you tried to contact them at their last known address.
Does Alabama require smog or emissions testing when selling a car?
No, Alabama doesn’t require emissions or smog testing for private car sales.
Article Update History
All paperwork requirements, fees, and forms in this guide were verified against current Alabama DMV records.
Originally posted and shared with our readers.