Yes, you can absolutely sell a car with out-of-state plates. The key is understanding that the license plates stay with the seller, not the car. Your responsibility is to provide the buyer with a valid title, properly signed over, and a bill of sale. The new owner is then responsible for registering the car in their home state and obtaining new plates. The process involves a few critical steps to protect yourself from future liability.
The most important action you must take is to complete a bill of sale and officially notify your state's DMV that you have sold the vehicle. This release of liability is crucial. It severs your connection to the car, ensuring you are not held responsible for parking tickets, toll violations, or accidents that occur after the sale, even if the buyer is slow to register it. You should remove the license plates before handing over the keys.
For the buyer, purchasing a car with out-of-state plates is common but requires due diligence. They will need to handle the titling and registration process in their own state, which may involve a vehicle inspection (like a VIN verification or emissions test) and paying state-specific sales tax and registration fees. The table below outlines the general requirements for both parties to ensure a smooth transaction.
| Action Item | Seller's Responsibility | Buyer's Responsibility |
|---|
| Title Transfer | Sign over the clean, official title to the buyer. | Take the signed title to their local DMV. |
| Bill of Sale | Create and keep a copy for records. | Use it to prove purchase price for tax purposes. |
| License Plates | Remove them from the car before the sale. | Register the car in their state for new plates. |
| Release of Liability | File the form with your home state's DMV immediately. | Not applicable. |
| State Inspection | Not required, but ensure the car is in sellable condition. | Get any required safety/emissions inspection done. |
| Sales Tax | Not responsible for the buyer's tax. | Pay the applicable state and local sales tax at registration. |
Communication is vital. Be transparent with the buyer about the car's origin and walk them through the paperwork. This prevents confusion and ensures a legitimate, hassle-free sale for everyone involved.
