How To Sell a Car in North Carolina

Selling a motor vehicle in North Carolina requires compliance with state title transfer procedures, documentation requirements, and payment of applicable taxes. Both private-party sellers and those engaging with dealerships must follow specific processes established by the North Carolina Division of Motor Vehicles (NCDMV), including proper title assignment, odometer disclosure, damage disclosure, and license plate removal.

What You Need To Know Before Selling a Car in North Carolina

Title Law and Ownership Requirements

Under North Carolina General Statute Section 20-52, a certificate of title is required for all vehicles subject to registration in the state. The owner holding the certificate of title must be the registered owner, and the title must be free of any liens, claims, or encumbrances before the sale may be completed. A certificate of title establishes legal ownership and is required for the transfer of ownership to a new owner.

Vehicles Exempt From Title Requirements

Certain motor vehicles are exempt from the requirement to obtain a certificate of title. Per North Carolina General Statute Section 20-51, vehicles exempt from registration and titling include farm tractors and trailers used to transport farm products, supplies, or implements when operated within specific geographic or distance limitations, as well as other implements of husbandry used in farming operations.

Satisfaction of Existing Liens

If the certificate of title shows a recorded lien or security interest, that lien must be satisfied and released before the title can be transferred to the new owner. Upon payment of the loan secured by the lien, the lienholder is responsible for releasing the lien. The seller should obtain a written lien release from the lienholder and ensure that the lien is removed from the certificate of title. Once the lien is paid off, the Division of Motor Vehicles will issue a title free of the lien, or the lienholder may provide a physical release document to be submitted with the title transfer application.

Inspection and Disclosure Requirements for Private Sales

Used vehicles acquired from private sales in North Carolina must be inspected before the new owner registers the vehicle, unless the vehicle has received a passing inspection within the previous 12 months. The inspection requirement applies to the buyer at the time of registration, not to the seller prior to sale. A seller is not required to provide or arrange for a pre-sale inspection or emissions test to complete a private motor vehicle transaction. However, federal and state laws require the seller to disclose the vehicle's odometer reading and any known damage at the time of transfer.

Documents Required To Sell a Car in North Carolina

Certificate of Title

The existing certificate of title is the primary document establishing ownership. Under North Carolina General Statute Section 20-72, the seller must execute an assignment and warranty of title on the back of the certificate. The assignment must include the buyer's full legal name and address, the date of transfer, the odometer reading if the vehicle is less than 10 years old, the seller's signature executed exactly as the name appears on the face of the title, and the seller's hand-printed name.

If the original title is a North Carolina title, the seller's signature and assignment must be executed either in the presence of a person authorized to administer oaths or by electronic signature in a manner that conforms to Article 40 of Chapter 66 of the General Statutes. The state of North Carolina does not accept title documents that have been altered or corrected with fluid or similar means.

Odometer Disclosure Statement

Federal law requires disclosure of the vehicle's odometer reading at the time of title transfer. The Odometer Disclosure Statement (Form MVR-180) must be completed for vehicles less than 10 years old. The seller certifies the actual odometer reading or indicates if the mileage exceeds the odometer's mechanical limits or if the reading does not represent the actual mileage. Both the seller and buyer must sign the form. This form is not required for vehicles that are 10 model years old or older.

Damage Disclosure Statement

The Damage Disclosure Statement (Form MVR-181) must be completed by the seller and provided to the buyer. The seller must disclose any known damage to the vehicle, including frame damage, structural damage, or other significant damage. Both the seller and the buyer must sign this form. The form documents the vehicle's condition at the time of transfer and is required for title transfer processing.

Bill of Sale

Although not statutorily required for private motor vehicle sales in North Carolina, a bill of sale is strongly recommended. The bill of sale provides evidence of the transaction and may be helpful if disputes arise regarding the sale. The bill of sale should contain the full names and addresses of both the seller and the buyer, the date of sale, a complete description of the vehicle, including the vehicle identification number (VIN), make, model, year, and body type, the purchase price, and the signatures of both parties. Many county licensing officials request or require a bill of sale even though state law does not mandate it.

Lien Release

If the vehicle title shows an outstanding lien or security interest, a lien release document from the lienholder is required. The lien release must show that the lien has been satisfied and released. This document, provided by the lienholder, must be delivered to the buyer along with the other transfer documents.

Title Application

The buyer must complete the Title Application (Form MVR-1) to apply for a new certificate of title in their name. The seller is not required to complete this form; the buyer submits it to a designated license plate agency or by mail to the Division of Motor Vehicles.

How To Transfer a Car Title in North Carolina

Step 1: Review the Title Before the Sale

The seller should examine the certificate of title to verify current ownership, confirm that all names are correct, and identify any recorded liens or security interests. If the title is missing, damaged, or contains errors, a duplicate or corrected title should be obtained from the Division of Motor Vehicles prior to sale. A duplicate title can be requested using Form MVR-4 (Application for Duplicate Title). If liens are shown on the title, the seller must contact the lienholder and arrange for the lien to be satisfied and released before proceeding with the sale.

Step 2: Complete the Title Assignment

The seller must complete the assignment and warranty section on the back of the North Carolina certificate of title. The seller enters the buyer's full legal name and address, the date of transfer, the vehicle's odometer reading if applicable, the seller's signature executed exactly as it appears on the face of the title, and the seller's hand-printed name. The completed assignment must be executed either in the presence of a person authorized to administer oaths (such as a notary public) or by electronic signature in a manner that conforms to Article 40 of Chapter 66 of the North Carolina General Statutes. Only the seller's signature requires notarization; the buyer's name and address must be filled in on the form, but the buyer need not be present. Under North Carolina law, the assignment cannot be left blank or assigned to a third party without the buyer's name specifically entered. Notaries notarizing title assignments must affix their seal or stamp with the expiration date of their commission.

Step 3: Complete the Odometer and Damage Disclosure Statements

For vehicles less than 10 years old, the seller and buyer must complete the Odometer Disclosure Statement (Form MVR-180) at the time of transfer. The seller certifies the actual odometer reading or, if applicable, that the mileage exceeds the mechanical limits or does not represent actual mileage. The Damage Disclosure Statement (Form MVR-181) must be completed by the seller and provided to the buyer to document any known damage. Both forms must be signed by both the seller and the buyer.

Step 4: Prepare the Bill of Sale

Although not required by North Carolina law, a bill of sale should be prepared and signed by both parties. The bill of sale should include the full names and addresses of the seller and buyer, the date of sale, a complete vehicle description, including the VIN, make, model, year, and body type, the purchase price, and the signatures of both the seller and the buyer. Both parties should retain a signed copy for their records.

Step 5: Deliver Documents to the Buyer

At the time of sale, the seller must deliver the following documents to the buyer:

• The original certificate of title with the assignment completed and executed as required
• The completed Odometer Disclosure Statement (Form MVR-180), if applicable
• The completed Damage Disclosure Statement (Form MVR-181)
• A signed copy of the bill of sale, if one was prepared
• Any lien release document, if applicable

Step 6: Buyer Submits Application Through a License Plate Agency

Per North Carolina General Statute Section 20-73, the buyer must apply to the Division of Motor Vehicles for a new certificate of title within 28 days after the vehicle is transferred. The buyer submits the completed Title Application (Form MVR-1) along with the properly assigned title and other required documents to a local license plate agency or by mail to the Division of Motor Vehicles. The buyer must provide proof of a valid North Carolina driver's license or identification card and proof of liability insurance. If co-owners are being recorded on the new title, all signatures on required documents must be notarized, and black-and-white copies of each co-owner's valid driver's license or identification card must be provided.

Title Transfer Fee Schedule in North Carolina

The following fees apply to motor vehicle title transactions in North Carolina:

Online title services through PayIt are subject to a $3.00 per-transaction fee and a 1.85% card processing fee. Notary fees collected by NCDMV employees are capped at a maximum of $5.00 per document and must be paid in cash. County license plate agencies may collect an additional fee for processing title applications. Mailed applications should include a check or money order payable to the North Carolina Division of Motor Vehicles.

Sales Tax on Private Vehicle Sales

North Carolina does not impose a traditional motor vehicle sales tax on private-party vehicle transfers. Instead, the state collects the highway-use tax on all vehicles whenever a title is transferred. The highway-use tax is calculated at 3% of the vehicle's purchase price, with a maximum tax of $2,000 per certificate of title issued. The buyer is responsible for paying the highway-use tax at the time of registration with the local license plate agency. Certain transfers are exempt from the highway-use tax, including transfers between family members who meet the exemption criteria, transfers by will or intestacy, transfers resulting from divorce or marital separation, transfers of salvage titles, and transfers to manufacturers for resale.

What To Do After Selling Your Car in North Carolina

Remove and Surrender License Plates

Under North Carolina General Statute Section 20-72, whenever the owner of a registered vehicle transfers or assigns the vehicle, the license plates must be removed from the vehicle. The registration card and plates may be forwarded to the Division of Motor Vehicles, or the plates may be transferred to another vehicle owned by the seller if desired. If the seller wishes to surrender the plates or remove the vehicle from the registration files, the seller may mail the plates to the Division of Motor Vehicles or deliver them in person to a local license plate agency. If the plates cannot be physically surrendered, the seller should submit a completed Affidavit for Removal of Registered Vehicle from Vehicle Registration Files (Form MVR-46F) to the Division of Motor Vehicles. This form must be notarized before submission.

Cancel Automobile Insurance

After the vehicle has been sold and the license plates removed, the seller should contact the insurance provider to cancel coverage or transfer the policy to a replacement vehicle. Maintaining insurance on a vehicle no longer owned is not required under North Carolina law and may result in unnecessary premium charges.

Retain Documentation of the Sale

The seller should retain copies of all documents related to the sale, including the bill of sale, odometer disclosure statement, damage disclosure statement, and proof of the vehicle's removal from the registration files. These documents may be needed to prove the sale in the event of future liability disputes or if questions arise regarding the vehicle's ownership or condition.

Contact Information

North Carolina Division of Motor Vehicles
3101 Mail Service Center, Raleigh, NC 27699-3101
Phone: (919) 715-7000
Official Website: North Carolina Division of Motor Vehicles