How to Fill Out the Alabama Motor Vehicle Bill of Sale Form

A valid Alabama motor vehicle bill of sale needs the buyer and seller’s names and signatures, the exact purchase price, the date of sale, a full vehicle description with the VIN, and an odometer reading for most vehicles. Alabama Administrative Code Rule 810-5-1-.246 sets the minimum content, and a form missing any of it can be rejected when the buyer brings it to the county licensing office to register the vehicle and pay sales tax.¹

Information the Form Must Contain

Every private-sale bill of sale should include each of the following:

Full legal names of the buyer and the seller, with signatures from both in ink.
The exact purchase price in dollars. If anything other than cash changes hands, list each item of consideration and assign it a dollar value.²
The calendar date of the sale. This date starts the 20-day registration clock for the buyer.
A vehicle description: year, make, model, and body type (sedan, pickup, SUV, and so on).³
The full 17-character Vehicle Identification Number, found on a metal plate on the driver’s side dashboard near the windshield or on the driver’s door jamb sticker.

Writing something vague like “other valuable considerations” in the price field without itemizing is one of the most common reasons a form gets sent back at the counter. Spell out every item and put a number on it.

Odometer Reading

Federal rules require an odometer disclosure for most transfers. Model year 2011 and newer vehicles need a disclosure for the first 20 years after manufacture. Model year 2010 and older vehicles follow the earlier 10-year rule and are now exempt.⁴

In Alabama, the odometer certification is normally handled on the title assignment itself. A separate secure power of attorney form (MVT 8-4) is used when the title is held by a lienholder or is being replaced.⁵

Record the exact mileage at the moment of sale. Don’t round, don’t correct over the top, and don’t white anything out. A crossed-out or altered figure can void the disclosure and stop the title transfer in its tracks.

Where to Get a Form

Several Alabama counties publish their own templates. The Baldwin County Probate Office and the Etowah County Revenue Commissioner both offer downloadable PDF forms that already include the required fields.⁶ You can also pick up a blank form at your county’s licensing office.

Drafting your own on plain paper is allowed as long as it carries every element required by Rule 810-5-1-.246. A printed form is easier for an official to read and less likely to prompt questions.

Signatures and Notarization

Buyer and seller both sign in ink. Alabama does not require notarization of title assignments or bills of sale as a statewide rule.⁷ Some county offices ask for notarization as a matter of local practice, so a quick call to your county licensing office before signing is worth the two minutes. If notarization is wanted, both parties will need to appear before a notary with a valid government-issued ID.

An “as-is” clause is optional but useful for the seller. A sentence along the lines of “The vehicle is sold as-is, and the seller makes no warranties as to its condition or performance” is enough for a private transaction. Sellers should also disclose on the form if the vehicle has been declared a salvage or total loss, since failing to do so can create liability later.

Each party keeps a signed copy. The buyer takes the original to the licensing office; the seller’s copy is proof the vehicle was sold on a specific date to a specific person.

How the Price Field Affects Tax

The licensing official calculates sales tax from the purchase price written on the bill of sale. Alabama Code Section 40-23-104 requires proof of purchase price before the vehicle can be registered, and for private sales the buyer submits a sworn statement of that price along with the executed bill of sale.⁸

If the official believes the stated price is unreasonably low, the Department of Revenue may use a standard value based on the year, make, and model to determine tax owed instead.¹ The state automotive rate is 2% of the purchase price, with county and municipal taxes stacked on top; your county licensing office can give you the exact combined rate.⁹

If the Vehicle Is a Gift

When the vehicle is a genuine gift with no lien attached, Alabama does not collect sales tax. Write “gift” where the purchase price would go. If the vehicle still has an outstanding lien, sales tax is owed even though the transfer is called a gift.¹⁰

What the Buyer Does With the Signed Form

The buyer brings the completed bill of sale, the signed-over title, and a valid ID to their local county licensing office within 20 days of the purchase date. The 20-day window starts the day after the sale.¹¹ Depending on the county, this office is run by the probate judge or the revenue commissioner.

At the counter, the official collects sales tax, the title transfer fee, and the registration fee. If a permanent plate can’t be issued on the spot, a temporary tag good for 20 days may be issued.¹² Missing the 20-day deadline triggers a flat $15 late registration penalty.¹³ Driving an unregistered vehicle without current plates can bring a fine of at least $25 on conviction. Active-duty military members deployed during the registration window get an extra 30 days after deployment ends without penalty.

Insurance has to be active before the buyer drives the vehicle off the seller’s property. Some insurers give an existing policyholder a 7-to-30-day grace period to add a new vehicle, but this varies, so confirm with the carrier before the sale.

What the Seller Does After Signing

Handing over the title and the bill of sale is only part of the job. To close out liability cleanly:

Remove the license plates. Alabama requires the registered owner to take the plates when selling or disposing of a vehicle; they can be transferred to a newly acquired vehicle or surrendered through the licensing office.¹⁴
Cancel insurance on the sold vehicle once the plates are off and the bill of sale is signed.
Keep the seller’s copy of the bill of sale. If the buyer picks up parking tickets or gets into a crash before registering the vehicle, that dated, signed document is what proves ownership had already transferred.

Until the plates come off the seller’s name, the state’s system still shows the seller as the registered owner, even after the title has been signed over. Surrendering or transferring the plates is what formally releases the seller from registration-linked liability.

1
Alabama Administrative Code. Alabama Administrative Code 810-5-1-.246 – Bill of Sale, Invoice or Other Sales Document – Minimum Requirements
2
Shelby County, AL – Official Website. What to Bring When Purchasing a Vehicle
3
Etowah County Revenue Commissioner. Alabama Motor Vehicle Bill of Sale Form
4
National Highway Traffic Safety Administration. Consumer Alert: Changes to Odometer Disclosure Requirements
5
Alabama Administrative Code. Alabama Administrative Code 810-5-75-.63 – Transactions Requiring a Secure Power of Attorney
6
Baldwin County Probate Office. Alabama Motor Vehicle Bill of Sale Form
7
Alabama Department of Revenue. Is the Assignment of an MSO or Title Required to Be Notarized
8
Alabama Legislature. Alabama Code 40-23-104 – Collection of Taxes Before Registration or Licensing; Proof of Purchase Price; Proof of Payment of Tax
9
Blount County Revenue Commissioner. Sales Tax for Vehicles
10
Alabama Tax Officials. Casual Sales and Use Taxes
11
Alabama Administrative Code. Alabama Administrative Code 810-5-1-.211 – Motor Vehicle Registration Periods, Delinquency, Penalty and Interest Charges
12
Alabama Department of Revenue. Sample Temporary Tag
13
Alabama Legislature. Alabama Code 32-6-65 – Uniform Registration Renewal Form; Centralized Registration Prohibited; Penalties
14
Alabama Department of Revenue. When I Sell or Otherwise Dispose of My Vehicle, Does the License Plate Remain on the Vehicle