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This article talks about those rights. Indiana's Used Car Lemon Laws Buying a used car can be a positive and rewarding experience. Laws on a Bill-of-Sale for a Vehicle in the State of Alabama Time Frame. Used Cars for Sale in Alabama. Be aware of the terms related to selling used cars and the obligations of the seller, including implied warranties. Have a mechanic examine the car to warn you of any damage or problems with the vehicle. When you sell your car in Alabama, you'll need to sign the car title over to the buyer. However, there are several ways to avoid buying a lemon when you buy a used car. A bill of sale is required any time a vehicle is sold or transferred, and must be provided to obtain a certificate of title. The seller must have the right to sell the car. A: Unfortunately, you only get the warranty that you agree upon when you purchase a used vehicle unless it is still under the manufacturer’s original warranty. Alabama State Code 810-5-75-.35, Section 40-12-260 (b) (2) requires individuals who reside in the state to obtain a license plate for any new or used motor vehicle within 20 calendar days of purchase or transfer of ownership. Perhaps you have a gently used vehicle that still has a few good years left in it and are now choosing to sell the car. The vehicle should match the description given by the seller. Used Car Rule The Federal Trade Commission (FTC) is charged with enforcing the “Used Car Rule,” a federal regulation that requires used car dealers to disclose certain information to consumers. A valid bill of sale must include the buyer's name and physical address, the sale date, a description of the vehicle including the make, model, year, body type and vehicle identification number, and the seller's name and physical address. If you must take cash, get the buyer to sign in receipt of the vehicle. Figure out what kind of car you want or need to fit your lifestyle and budget. A post office box is not acceptable. Curbstoners are scam artists. Titles and Registrations . Offer a dollar amount lower than you are willing to pay, then work upwards as the seller makes a counter-offer. In fact, car dealers who sell, or offer for sale, more than five used vehicles in a 12-month period must comply with the Rule. Instead of gifting a car or selling it for $1, you may decide to sell the car and keep the cash. According to the Motor Vehicle Division of the Alabama Department of Revenue, a bill of sale may be an informal document drawn up between individuals, or it may be a formal document drawn up by a dealer. Buying and selling a car in the state of Alabama is relatively easy if you do your homework. Mike Parker is a full-time writer, publisher and independent businessman. However, there are some exceptions to this rule. By: Legal Services Alabama Curbstoning involves individuals who ignore these laws meant to protect consumers from unlicensed, unscrupulous sellers. This car report will provide a title search, accident report, lemon report, odometer check, and registration details. This information includes the legal name, address, and signature of the buyer and the seller(s) along with the date of the sale, the odometer reading, and the purchase price. When a motor vehicle is withdrawn from inventory, the licensed dealer shall purchase an Alabama license plate and register the vehicle. Don't pay more than you should. Selling a Vehicle in Alabama. Search our inventory of used cars for sale in Alabama at Enterprise Car Sales. License plate transfer fee is $1.25. If you are transferring the title of your vehicle to a person in your family, you are not required to provide such certification. Individuals who purchase a new or used vehicle in the state must maintain a copy of the bill of sale within the vehicle during the time between the date of purchase or transfer and the time when the new license plate is issued. © 1999 - 2021 DMV.ORG. Ala. Code 8-20A-6. Comparison shop for prices. Copyright 2021 Leaf Group Ltd. / Leaf Group Media, Alabama Department of Revenue:Bill Of Sale Minimum Requirements. Federal law prohibits vehicle dealers from misrepresenting either the mechanical condition of the car or the terms/existence of a warranty. Persons purchasing vehicles to be registered in these states are only allowed a partial exemption of sales tax on the purchase of automotive vehicles that will be removed from Alabama within 72 hours from the date and time of purchase. For more information about your state's coronavirus (COVID-19) updates, see our. The buyer must apply for a new tag. You'll want to know if you are comfortable behind the wheel. In such a case, you'll have to provide smog certification to the buyer. Without used car laws in Alabama, it is especially important that you make every attempt to avoid a lemon vehicle. Alabama law requires the seller to have a clear title to the vehicle being sold. The car must be roadworthy – it is a criminal offence to sell an unroadworthy car and an MOT certificate from a test several months ago is no guarantee that the car is … Shoppers who buy used cars, on the other hand, most often have to buy them “as is” without any warranty coverage. The price you see is the price you pay. Alabama Used Car Lemon Law. Subscribe to stay in the loop & on the road! Curbstoning is illegal in Alabama and defrauds thousands of unwary consumers every year. Required Information. It is against the law to buy or sell a car without a clear title and up-to-date registration, so buyer beware if someone attempts to do this with you. What if I got ripped off? For example, if you buy a car "as is," the car normally is not covered by implied warranties. Dealers must conspicuously stamp or inscribe the statement "PENALTY OF fifteen dollars ($15.00) due if vehicle is not registered in the name of the new owner within 20 calendar days" on all bills of sale. A bill of sale is required on all motor vehicles purchased or transferred in the state, including those that are not required to be titled under the Alabama Uniform Certificate of Title and Antitheft Act. Return to Top This federal law applies to any product which costs more than $25, comes with a warranty, and does not perform as it should. Alabama does have a lemon law and it is found at Alabama Code §8-20A-2 but it only applies to new vehicles. In today’s day and age, you have lots of choices to sell that used car. The lemon law does not cover motor homes or any motor vehicle having a manufacturer's gross vehicle weight rating of 10,000 pounds or more. The original title signed over to the buyer from the seller on the back of the title. The manufacturer or distributor is selling or leasing new motor vehicles in Alabama to its qualified vendors, not-for-profit organizations, fleets, or the federal, state, or local government if sold or leased and delivered through new motor vehicle dealers in this state. To register a vehicle in Alabama for the first time, the registrant must provide a certificate of title and proof of liability insurance, and pay all required fees and taxes. Deciding to sell a Used Car. It is wise to accept only a certified check for the purchase; this will verify that the check is good. Car Dealer Liability for Misrepresentation When Selling a Vehicle. Most sellers do not expect the buyer to pay their original asking price. Also there’s a federal law that requires all car dealers to post on the window of all used cars they are selling a special “Buyer Guide” form (it’s often called a Used Car Window Sticker) that discloses your warranty rights. If you have relied upon a false or misleading claim in purchasing a faulty vehicle, you may have a claim against the auto dealer. That makes buying a used car a riskier proposition, but it doesn’t mean shoppers are without options. This means that when a car is sold as-is, the seller is often absolved of any responsibility to repair or replace any damaged or defective parts. For starters, having an independent mechanic examine any car you’re serious about buying. Nevertheless, before you commit to making a purchase, familiarize yourself with the laws, rules and recommended guidelines for buying a used car provided by the Federal Trade Commission and your state consumer protection agencies. State laws prohibit private citizens from selling multiple cars or vehicles other than those titled to them. Pretty much the only way you can use the lemon law on a used car is if you bought it with an express written warranty. Personal checks are not advised. Fill it out according to the instructions and submit it to your Alabama Department of Revenue county title and registration office. His background includes a career as an investments broker with such NYSE member firms as Edward Jones & Company, AG Edwards & Sons and Dean Witter. A used car dealership is commonly a fast-paced operation. All Rights Reserved. Unfortunately for drivers who believe they’ve bought a defective used car, the lemon law almost always only applies to new vehicles. When you sell the vehicle, remove the license plate. It may be a "Lemon." An Alabama automobile bill of sale is a document that may prove valuable to both the seller and the buyer of the vehicle, since it contains specific information about the car sale, such as the date and place of purchase, the selling price and the personal information of the involved parties. Any action brought under this chapter against the manufacturer shall be commenced within three years following the date of original delivery of the motor vehicle to the consumer. Selling a car online. If you are considering the purchase of a used vehicle, it is worth considering taking the vehicle to an experienced mechanic for a thorough inspection before you buy. When you buy a used car, you will need to transfer registration with the state, apply for a title, and pay taxes on your purchase. Used Dealer License Application. Alabama issues separate car dealer licenses in four categories: new or used car dealer, wholesaler, rebuilder, and reconditioner. It is against the law to buy or sell a car without a clear title and up-to-date registration, so buyer beware if … It's also helpful to provide the buyer with any maintenance logs or other paperwork associated with that vehicle. Moulton, AL. Many small lot car dealers don’t comply with the law. When you sell your car, you will need to provide the buyer with the original title (signed over by you on the back) and a Bill of Sale. Many shoppers buy a new car because it comes with a manufacturer’s warranty that covers any parts that fail for a set period. Make copies of the paperwork for your own records. Banks and financial institutions are exempt from the Rule, as are businesses that sell vehicles to their employees, and lessors who sell a leased vehicle to a lessee, an employee of the lessee, or a buyer found by the lessee. The Alabama Department of Revenue and law enforcement officials will not accept an invoice in place of a bill of sale. We have 4,695 used cars in Birmingham for sale that are reported accident free, 4,097 1-Owner cars, and 4,447 personal use cars. Unfortunately, in Alabama the state's lemon law applies only to new cars. Motor vehicle dealer, motorcycle dealer, and manufacturer license plates may not be used in lieu of regular issued license plates as a means of avoiding registration and ad valorem tax requirements. Conveniently, the form you'll need to do so is located directly on the back of the title itself. Plan to advertise online, in your local newspaper, or in a local car buying guide. Climb in the backseat to check for leg room and head space. Looking for State Regulations in another state? A car bought “as is” has no warranty. Once you decide on a car, get a car report on it. Statute of Limitations. A physical address is required on the bill of sale for both the buyer and seller. Every used car we sell in Alabama comes with our no-haggle pricing. It is important to make your claim under the Alabama Lemon Law as soon as possible so that you do not lose your … Negotiate a price. My New Car is a Lemon. 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