How to Sell a Car in Alabama Privately? (State Guide)

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Written by Tomas Gutauskas
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Tomas Gutauskas

Managing Editor

Expertise
  • Private Car Sales
  • Market Valuations
  • Online Car Buyers
  • DMV Paperwork & Titles
I want to take the guesswork out of selling your car. I analyze market data, decode DMV title laws, and test out online car buyers to give you a straight answer on whether it's worth holding out for a higher price or if you're better off taking the most convenient offer and moving on.
Published: Aug 14, 2025
Last Updated: Aug 10, 2026
✓ Fact Checked: Mar 19, 2026
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Information on this article is compiled from publicly available data, customer feedback and our internal analysis. All our articles are being constantly updated and fact-checked annually to ensure accuracy, timeliness, and relevance.
How to Sell a Car in Alabama Privately? (State Guide) 2

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The bottom line: To sell a car in Alabama, start with the title. If yours is missing, get a duplicate using Form MVT 12-1 for $15 through the Alabama Public Title Portal or any designated agent. Alabama doesn't require the title assignment to be notarized.

A bill of sale is recommended for most sales. Use our bill of sale generator.

Sign the title, then handle your plates: in Alabama, plates stay with the seller, so you’ll transfer your plates to another vehicle you own or surrender them to your county license plate issuing office. The buyer has 20 calendar days to register the vehicle or face $15 plus interest charges.

Alabama has no required release of liability filing, but you can voluntarily report the sale through the Not required. Cancel your insurance only after the title transfer is complete.

Alabama at a glance

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Step-by-Step Process for Alabama

Step 1: Prepare Your Alabama Paperwork

Documents you’ll need:

  1. Vehicle title: Must be in your name and clear of liens
  2. Valid Alabama driver’s license: Names must match exactly
  3. 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 through the Alabama Public Title Portal, or visit your county license office with your ID and $15. The form is Form MVT 12-1. Processing takes 7 to 14 business days online or in person, 4 to 6 weeks by mail.

If you can’t get a replacement title:

Selling without a title is also possible in limited cases. The video explains the two legal exceptions in Alabama: a dismantler exception for older low-value vehicles, and the 35-year exemption.

The exceptions cover vehicles that are either at least 12 model years old and worth $1,000 or less, when sold to a licensed dismantler, or more than 35 model years old. The legal authority is Alabama Code Section 32-8-87 (dismantler) and Section 32-8-31 (35+ year vehicles). If neither applies, get a duplicate before selling, or sell to a licensed dismantler if you qualify.

If you still owe money on the car:

Alabama offers several official methods for lien release. Your lender can use Form MVT 5-63, direct title signing in the lien release area, or release letter on lender letterhead. Liens automatically release after 12 years, or 4 years for vehicles 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

Start with online tools like KBB and Edmunds, then check what similar cars are selling for locally.

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.

Emissions testing required in Alabama: not required. Safety inspection required: not required. 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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  • Accepts cars with active loans
  • Trade-in can save on sales tax
  • License plate starts the quote
  • Direct deposit option available

Learn more:

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 (Form MVT 5-5) 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 make an error, you’ll need 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 the county license office within 20 calendar days. If the deadline day falls on a Sunday, holiday, or when the office is closed, they get until the next business day. Missing the deadline brings $15 plus interest charges.

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)

A bill of sale is recommended for regular titled vehicles in Alabama, and it’s required for untitled vehicles 35+ years old or boats, with notarization or two witness signatures. Some counties might also prefer one even when not legally required.

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

In Alabama, license plates stay with the seller. Your options at the time of sale: transfer your plates to another vehicle you own or surrender them to your county license plate issuing office, or keep them for later use. 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

Release of liability filing in Alabama: None required. You can still report the sale through the Not required on a voluntary basis to create 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 Sale Checklist

Progress0 of 21 complete

Before the Sale

At the Sale

After the Sale

Alabama DMV Resources

State Resources:

Phone Support:

Alabama Fees and Costs

What You Pay?CostWhen?
Duplicate title (if needed)$15Before sale
Lien payoff (if applicable)Loan balanceBefore sale
Everything else$0Buyer 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 deadline day falls on a Sunday, holiday, or when the county office is closed, they get until the next business day. Missing the deadline brings $15 plus interest charges.

Do I need to get the title notarized when I sign it over in Alabama?

When is a bill of sale required in Alabama?

A bill of sale is required for untitled vehicles 35+ years old or boats, with notarization or two witness signatures.

For regular titled vehicles, it’s recommended for protection but not required by state law.

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. The release options: Form MVT 5-63, direct title signing in the lien release area, or release letter on lender letterhead. Liens automatically release after 12 years, or 4 years for vehicles 12+ model years old.

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?

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?

In Alabama, license plates stay with the seller. The buyer gets new plates when they register 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’s lien rules: Form MVT 5-63, direct title signing in the lien release area, or release letter on lender letterhead. Liens automatically release after 12 years, or 4 years for vehicles 12+ model years old.

Check your title for the original lien date. If the auto-release timeline has passed, you may 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?

How to sell a junk car in Alabama?

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Article Update History

Fact-checked

All paperwork requirements, fees, and forms in this guide were verified against current Alabama DMV records.

Published

Originally posted and shared with our readers.

Sources

Duplicate Title Application Form

"Form MVT 12-1" Accessed May 5, 2026

Cost to Replace a Lost Title

"$15" Accessed May 5, 2026

Online Title Replacement URL

"Alabama Public Title Portal" Accessed May 5, 2026

Title Notarization Explanation

"Alabama doesn't require the title assignment to be notarized" Accessed May 5, 2026

Bill of Sale Required?

"recommended" Accessed May 5, 2026

Where Do License Plates Stay?

"with the seller" Accessed May 5, 2026

Buyer Registration Deadline After Sale

"20 calendar days" Accessed May 5, 2026

Buyer Penalty for Missing Registration Deadline

"$15 plus interest charges" Accessed May 5, 2026

Title Required to Sell?

"yes, though vehicles more than 35 model years old are exempt" Accessed May 5, 2026

Replacement Title Processing Time

"7 to 14 business days online or in person, 4 to 6 weeks by mail" Accessed May 5, 2026

Bill of Sale Form Availability

"required for untitled vehicles 35+ years old or boats, with notarization or two witness signatures" Accessed May 5, 2026

How Lenders Release the Title

"Form MVT 5-63, direct title signing in the lien release area, or release letter on lender letterhead. Liens automatically release after 12 years, or 4 years for vehicles 12+ model years old." Accessed May 5, 2026

Release of Liability Form Name

"None required" Accessed May 5, 2026

Inherited Vehicle Title Transfer Form

"Form MVT 5-6 (Next of Kin Affidavit)" Accessed May 5, 2026

Sell Without Title: Legal Authority

"Alabama Code Section 32-8-87 (dismantler) and Section 32-8-31 (35+ year vehicles)" Accessed May 5, 2026

Inherited Vehicle Form Requirements

"If probated: letters testamentary or letters of administration. If not probated: Form MVT 5-6 plus death certificate, notarized." Accessed May 5, 2026

Separate Odometer Disclosure Form

"Form MVT 5-5" Accessed May 5, 2026

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