This article talks about those rights. The frequency and severity of consumers' used-car problems has led some state legislatures to pass new laws. Alabama law requires the seller to have a clear title to the vehicle being sold. Used-Car Lemon Laws. It may be a "Lemon." Many small lot car dealers don’t comply with the law. Laws on a Bill-of-Sale for a Vehicle in the State of Alabama Time Frame. Have a mechanic examine the car to warn you of any damage or problems with the vehicle. 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. 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. A quick look may tell you a car is in bad condition. 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. Moulton, AL. Curbstoning involves individuals who ignore these laws meant to protect consumers from unlicensed, unscrupulous sellers. It is important to make your claim under the Alabama Lemon Law as soon as possible so that you do not lose your … For more information about your state's coronavirus (COVID-19) updates, see our. 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. Shoppers who buy used cars, on the other hand, most often have to buy them “as is” without any warranty coverage. Required Information. If you are transferring the title of your vehicle to a person in your family, you are not required to provide such certification. When selling a car privately in Alabama, the buyer and the seller both need to fill out the relevant sections on the back of the title. Looking for State Regulations in another state? Once you decide on a car, get a car report on it. Statute of Limitations. To learn about rights buyers of used cars have, see "Buying a Used Car" above Read More. The seller must have the right to sell the car. When you sell your car in Alabama, you'll need to sign the car title over to the buyer. Make copies of the paperwork for your own records. Mike Parker is a full-time writer, publisher and independent businessman. The original title signed over to the buyer from the seller on the back of the title. A used car dealership is commonly a fast-paced operation. The price you see is the price you pay. 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. Buying and selling a car in the state of Alabama is relatively easy if you do your homework. 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. Buying a used car can be confusing and difficult. Conveniently, the form you'll need to do so is located directly on the back of the title itself. Fill it out according to the instructions and submit it to your Alabama Department of Revenue county title and registration office. Search our inventory of used cars for sale in Alabama at Enterprise Car Sales. Deciding to sell a Used Car. That makes buying a used car a riskier proposition, but it doesn’t mean shoppers are without options. It is against the law to buy or sell a car without a clear title and up-to-date registration, so buyer beware if … 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. Used Cars for Sale in Alabama. The Alabama Department of Revenue is the government agency responsible for vehicle registration in the state. The Alabama Department of Revenue and law enforcement officials will not accept an invoice in place of a bill of sale. 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 … 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. 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. Take the following information to the tag office, usually located in your county courthouse: The title fee is $20. 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. Plan to advertise online, in your local newspaper, or in a local car buying guide. Titles and Registrations . Individuals who are residents of other states and who are serving on active duty in the U.S. military may continue to register their motor vehicles in their home state. For example, if you buy a car "as is," the car normally is not covered by implied warranties. Without used car laws in Alabama, it is especially important that you make every attempt to avoid a lemon vehicle. Determine the fair market value of your car by researching the. Ala. Code 8-20A-6. Copyright 2021 Leaf Group Ltd. / Leaf Group Media, Alabama Department of Revenue:Bill Of Sale Minimum Requirements. License plate transfer fee is $1.25. Return to Top Clean up your car. Many shoppers buy a new car because it comes with a manufacturer’s warranty that covers any parts that fail for a set period. Most sellers do not expect the buyer to pay their original asking price. 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. Personal checks are not advised. 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. A bill of sale is required any time a vehicle is sold or transferred, and must be provided to obtain a certificate of title. 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. Read consumer reports, comparison guides, and forums to learn about the car you are researching. However, there are some exceptions to this rule. 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. Used car dealers commonly get their cars from private sellers, trade-ins, auctions and rental car agencies in some cases. This federal law applies to any product which costs more than $25, comes with a warranty, and does not perform as it should. Unfortunately, in Alabama the state's lemon law applies only to new cars. If you buy a service contract from the dealer within 90 days of buying a used vehicle, federal law prohibits the dealer from eliminating implied warranties on the systems covered in the contract. Don't pay more than you should. 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. In such a case, you'll have to provide smog certification to the buyer. The bill of sale must be signed by both the buyer and the seller. 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 car bought “as is” has no warranty. Certain information is required for a bill of sale to be considered valid by law enforcement officials and License Plate Issuing Officials. By: Legal Services Alabama In today’s day and age, you have lots of choices to sell that used car. An as-is car sale refers to a sale in which a used vehicle is sold to a buyer in its current condition, with all known and unknown damages and defects. All promises made during used car transactions must be recorded in writing to be legally valid. When you sell the vehicle, remove the license plate. Here are some answers to questions that you may have about buying a used car. When a motor vehicle is withdrawn from inventory, the licensed dealer shall purchase an Alabama license plate and register the vehicle. A post office box is not acceptable. Individuals who move into the state are required to obtain a license plate for any motor vehicle in their possession within 30 calendar days of the vehicle entering the state, according to Section 40-12-262. Negotiate a price. However, there are several ways to avoid buying a lemon when you buy a used car. What if I got ripped off? Alabama Used Car Lemon Law. 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. Comparison shop for prices. Every used car for sale comes with a free CARFAX Report. Alabama law requires the seller to have a clear title to the vehicle being sold. A physical address is required on the bill of sale for both the buyer and seller. Unfortunately for drivers who believe they’ve bought a defective used car, the lemon law almost always only applies to new vehicles. The lemon law appears to cover used … Instead of gifting a car or selling it for $1, you may decide to sell the car and keep the cash. 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. 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