How To Sell a Car in New Jersey

Selling a vehicle in New Jersey requires compliance with state requirements for title transfer, odometer disclosure, and vehicle registration procedures. Both private-party sellers and those transacting with a dealership must follow specific procedures to complete a valid transfer of ownership. The New Jersey Motor Vehicle Commission (MVC) administers these requirements.

What You Need To Know Before Selling a Car in New Jersey

Title Law and Ownership Requirements

All motor vehicles operated on New Jersey roads must have a certificate of title issued by the Motor Vehicle Commission. The seller must possess a valid New Jersey certificate of title or, if the vehicle was previously titled in another state, must have an out-of-state title in the seller's name. The titled owner must ensure that all ownership records are current and accurate before transferring the vehicle to a new buyer.

When multiple owners are listed on the title, completing the assignment section requires the signatures of all designated joint owners. The title must accurately reflect all selling and purchasing information before submission to the Motor Vehicle Commission.

Vehicles Exempt From Title Requirements

Specific vehicle categories do not require title certificates under New Jersey law. Per the New Jersey MVC enumeration of non-conventional vehicles, exempted classes include trailers not exceeding 2,500 pounds, bogies, farm tractors under 1,500 pounds, snowmobiles, all-terrain vehicles, boat trailers under 2,500 pounds, mobile construction field offices, jet skis, and watercraft 12 feet or smaller. These classifications require registration but are not subject to title issuance.

Satisfying an Existing Lien

If an outstanding lien is recorded on the vehicle's certificate of title, the lien must be fully satisfied and released before the vehicle can be legally transferred to a new owner. Once the loan is paid off, the lienholder must provide proof of payment. The Motor Vehicle Commission requires a signed and dated lien satisfaction letter on the lienholder's official company letterhead that includes the vehicle's VIN number, year, make, and all owner names. If the lienholder is not a financial institution, the lien satisfaction letter must be notarized. Alternatively, the lienholder may endorse the satisfaction of the lien directly on the certificate of title.

No General Inspection Required for Private Sales

New Jersey does not require a private-party seller to obtain a vehicle inspection or emissions test before completing a sale. While New Jersey does require vehicle inspections for registered vehicles every two years, the seller is not obligated to provide a current inspection certificate at the time of sale. The responsibility for inspection transfers to the buyer after purchase.

Documents Required To Sell a Car in New Jersey

Certificate of Title

The existing certificate of title is the primary document when transferring ownership. The seller must complete the assignment section on the reverse side of the title, providing the buyer's full legal name and address, the date of sale, the odometer reading, and the seller's signature exactly as it appears on the front of the title. All required information must be accurately completed and legible. The certificate of title may not be altered using correction fluid or other means; any alterations will result in rejection by the Motor Vehicle Commission.

Bill of Sale

While a properly completed title with all required information may be sufficient for title transfer, the Motor Vehicle Commission recommends that all vehicle sales between private parties include a bill of sale. The bill of sale should contain the buyer's name and address, the date of sale, the odometer reading, and the sale price. Both the seller and buyer should retain a signed copy for their records and to provide documentation if liability disputes arise after the sale.

Odometer Disclosure Statement

Federal law requires the seller to disclose the vehicle's odometer reading at the time of sale. The Odometer Disclosure Statement (Form OS/SS-2), issued by the Motor Vehicle Commission, must be completed for motor vehicle transfers unless the vehicle is exempt. The seller must certify the odometer reading as actual mileage, confirm that the mileage exceeds the odometer's mechanical limits, or indicate that the odometer reading is not the actual mileage. Failure to complete the odometer disclosure statement or to provide false information on it may result in federal penalties.

This form is not required for vehicles that are 20 years old or older, for vehicles with a gross vehicle weight rating exceeding 16,000 pounds, or for vehicles not designed to be operated on public roads.

Lien Release Documentation

If the vehicle has an outstanding lien, the seller must obtain a signed lien satisfaction letter from the lienholder on official company letterhead before completing the sale. This letter must include the vehicle's VIN number, year, make, and all owner names. Individual lienholder satisfaction letters must be notarized. Alternatively, if the title itself has been endorsed with a lien satisfaction signature and date, that may serve as proof of lien release.

How To Transfer a Car Title in New Jersey

Step 1: Review the Title Before the Sale

The seller should verify that the certificate of title is in the seller's possession, accurately reflects ownership, and contains no alterations. If the title is lost or damaged, the seller must obtain a duplicate certificate of title from the Motor Vehicle Commission before completing the sale. The seller should also verify that no liens are recorded on the title, or obtain lien-release documentation if any liens exist.

Step 2: Complete the Title Assignment

The seller completes the assignment section on the reverse side of the existing certificate of title. The seller must sign in the seller's section exactly as the name appears on the front of the title. All required information—including the buyer's full legal name and address, the date of sale, the odometer reading, and the purchase price—must be entered accurately. If co-owners are listed on the title, all must sign the assignment.

Step 3: Prepare the Bill of Sale and Odometer Disclosure

The seller and buyer should prepare and sign a bill of sale containing the buyer's name and address, the date of sale, the odometer reading, and the sale price. Both parties should retain a signed copy. The seller must also complete the Odometer Disclosure Statement (Form OS/SS-2) if applicable, certifying the accuracy of the odometer reading or indicating whether the mileage exceeds mechanical limits or is not the actual mileage. Both documents should be signed by the seller.

Step 4: Obtain Lien Release if Applicable

If any lien exists on the vehicle, the seller must contact the lienholder and obtain a formal lien satisfaction letter on the company's official letterhead. The letter must include the vehicle's VIN number, year, make, and all owner names. If the lienholder is not a financial institution, the letter must be notarized. The seller may also request that the lienholder sign and date the lien satisfaction directly on the certificate of title.

Step 5: Deliver All Documents to the Buyer

At the time of sale, the seller delivers to the buyer the properly completed and signed original certificate of title, a signed copy of the bill of sale, the completed odometer disclosure form (if applicable), and any lien release documentation. The buyer must then visit a Motor Vehicle Commission agency within 10 working days of the date of sale to transfer the title and complete the registration process or face a $25 late penalty.

Step 6: Buyer Applies for New Title at Motor Vehicle Agency

The buyer must apply for a new certificate of title by visiting a Motor Vehicle Commission agency and presenting the assigned title, bill of sale, odometer disclosure statement, proof of New Jersey insurance, a completed Vehicle Registration Application (Form BA-49), and payment for the title transfer fee and applicable registration and sales tax fees. The Motor Vehicle Commission will issue a new certificate of title in the buyer's name and provide new license plates.

Step 7: Seller Removes and Surrenders License Plates

The seller must remove the registration plates from the vehicle after the sale is complete and before the buyer takes possession. License plates must be surrendered to the Motor Vehicle Commission within five days of the transfer of ownership. The seller may surrender the plates at any Motor Vehicle Commission agency by depositing them in the drop box located outside the agency or by mailing them to the Motor Vehicle Commission with a self-addressed, stamped envelope.

Title Transfer Fee Schedule in New Jersey

The Motor Vehicle Commission charges the following fees for title and registration transactions:

In addition to the state title transfer fee, the buyer must pay applicable registration fees based on the vehicle's weight class and model year, as well as sales tax. The Motor Vehicle Commission accepts American Express, Visa, MasterCard, and Discover card, in addition to checks, money orders, and cash at agency locations.

Sales Tax on Private Vehicle Sales

When purchasing a vehicle from a private seller in New Jersey, the buyer is responsible for paying sales tax to the Motor Vehicle Commission. The state sales tax rate is 6.625% and applies to the full purchase price, unless the transaction qualifies for a specific exemption. The only common exemption for private sales is when the vehicle is transferred as a gift; in this case, the buyer must indicate "gift" on the purchase price line on the reverse side of the title.

The seller does not collect or remit sales tax. The buyer pays the applicable sales tax at the time of registration transfer. The Division of Taxation can provide assistance with calculating the tax due by calling 609-984-6206.

What To Do After Selling Your Car in New Jersey

Remove and Surrender License Plates

After the vehicle sale is complete, the seller must remove the registration plates from the vehicle and surrender them to the Motor Vehicle Commission within 5 days of the transfer of ownership. Plates may be surrendered at any Motor Vehicle Commission agency by depositing them in the drop box located outside the agency entrance. If the seller cannot physically return to an agency, plates may be mailed to the Motor Vehicle Commission at P.O. Box 129, Trenton, New Jersey 08666-0129 with a self-addressed, stamped envelope.

If the seller has plates from a previously registered New Jersey vehicle, those plates may be transferred to another vehicle of the same class, but not to a different owner.

Notify the Insurance Provider

After removing the license plates and confirming the sale is complete, the seller should contact the automobile insurance provider to cancel coverage for the sold vehicle or transfer the policy to a replacement vehicle. Maintaining insurance on a vehicle no longer owned may result in unnecessary premium charges.

Retain Copies of All Sale Documents

The seller should retain copies of the completed and signed title assignment, the bill of sale, the odometer disclosure statement, and all other transaction documents for personal records and to provide proof of sale if any future liability disputes arise. The buyer is also required to retain these documents as proof of the legal transfer of ownership.

Contact Information

New Jersey Motor Vehicle Commission
225 East State Street, Trenton, NJ 08666-0141
Phone: (609) 292-6500
Official Website: Motor Vehicle Commission