Yes, you can technically sell a car with expired tags. The act of selling the vehicle itself is not illegal. However, driving the car with expired registration, even for a test drive, is illegal and can result in a ticket for the driver (which could be you or the potential buyer). The key is to handle the sale correctly to avoid liability and ensure a smooth transfer.
The primary risk isn't the sale, but the operation of the vehicle on public roads. Law enforcement will issue a citation to the person driving the car, regardless of who owns it. To protect yourself, the best practice is to sell the car "as is" and make it clear the buyer is responsible for all costs associated with registering and titling the vehicle in their name. It's highly recommended to handle the sale on private property, like a driveway or a parking lot, to eliminate any need for a test drive on public streets.
Be transparent with potential buyers about the expired tags. Surprises can kill a deal. A buyer will likely factor the cost of back fees and potential penalties into their offer. The table below outlines potential costs and actions for the buyer in different scenarios, which you can use to set expectations.
| Scenario | Potential Buyer Costs & Actions |
|---|
| Tags expired less than 1 year | Standard registration renewal fees, plus possible late penalties. Smog check may be required. |
| Tags expired more than 1 year | Fees can be significant; the vehicle may be flagged as "planned non-operational" (PNO) by the DMV, requiring additional steps to clear. |
| Out-of-state buyer | The buyer will register the car in their home state; your expired tags are typically less of an issue, but the car must be driven legally to their state. |
| Sale to a dealership | Dealerships have specific processes for this and will handle all DMV paperwork and fees, often deducting the cost from your car's offer price. |
| Using a bill of sale | Crucial for documenting the sale date, price, and vehicle condition. It protects you from liability for tickets or accidents after the sale. |
The most critical step is to complete the release of liability with your state's DMV immediately after the sale. This document formally notifies the DMV that you are no longer the owner, protecting you from any future tickets or liabilities associated with the vehicle.
