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. 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. Deciding to sell a Used Car. You'll want to know if you are comfortable behind the wheel. 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. These dealers sometimes take shortcuts to speed along the process of securing and selling their cars that could cause complications for the buyer. When a motor vehicle is withdrawn from inventory, the licensed dealer shall purchase an Alabama license plate and register the vehicle. Buying a used car can be confusing and difficult. For starters, having an independent mechanic examine any car you’re serious about buying. 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. Personal checks are not advised. However, there are some exceptions to this rule. Moulton, AL. Selling a Vehicle in Alabama. This article talks about those rights. Retailers sell only to the public and must collect sales tax. His background includes a career as an investments broker with such NYSE member firms as Edward Jones & Company, AG Edwards & Sons and Dean Witter. Alabama Used Car Lemon Law. The buyer must apply for a new tag. A car bought “as is” has no warranty. Clean up your car. 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. State laws prohibit private citizens from selling multiple cars or vehicles other than those titled to them. Instead of gifting a car or selling it for $1, you may decide to sell the car and keep the cash. For more information about your state's coronavirus (COVID-19) updates, see our. When you sell the vehicle, remove the license plate. Used car listings in Alabama include photos, videos, mileage and features. Motor vehicle dealer, motorcycle dealer, and manufacturer license plates may not be used in lieu of regular issued license plates as a means of avoiding registration and ad valorem tax requirements. 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. The original title signed over to the buyer from the seller on the back of the title. 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. The Alabama lemon law covers self - propelled vehicles intended primarily for use and operation on the public highways. It's also helpful to provide the buyer with any maintenance logs or other paperwork associated with that vehicle. 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. It’ll be … When you buy a used car, you will need to transfer registration with the state, apply for a title, and pay taxes on your purchase. Used Dealer License Application. Fill it out according to the instructions and submit it to your Alabama Department of Revenue county title and registration office. Federal law prohibits vehicle dealers from misrepresenting either the mechanical condition of the car or the terms/existence of a warranty. It is against the law to buy or sell a car without a clear title and up-to-date registration, so buyer beware if … Read consumer reports, comparison guides, and forums to learn about the car you are researching. 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. Unfortunately for drivers who believe they’ve bought a defective used car, the lemon law almost always only applies to new vehicles. Ala. Code 8-20A-6. In fact, car dealers who sell, or offer for sale, more than five used vehicles in a 12-month period must comply with the Rule. Car Dealer Liability for Misrepresentation When Selling a Vehicle. My New Car is a Lemon. 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. Test drive each car. This means that when a car is sold as-is, the seller is often absolved of any responsibility to repair or replace any damaged or defective parts. In today’s day and age, you have lots of choices to sell that used car. Search our inventory of used cars for sale in Alabama at Enterprise Car Sales. However, you can't tell a car is in good condition just by looking at … Be aware of the terms related to selling used cars and the obligations of the seller, including implied warranties. By: Legal Services Alabama The frequency and severity of consumers' used-car problems has led some state legislatures to pass new laws. Once you decide on a car, get a car report on it. The bill of sale must be signed by both the buyer and the seller. Make needed repairs. Every used car for sale comes with a free CARFAX Report. 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. However, there are several ways to avoid buying a lemon when you buy a used car. Shoppers who buy used cars, on the other hand, most often have to buy them “as is” without any warranty coverage. As is the case with any company that sells tangible goods, one of the dealership's main goals is to sell off inventory as soon as possible before it ages. 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. The state of Alabama recognizes any enterprise that sells five or more vehicles in any one year period as a car dealer. 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. Used car dealers commonly get their cars from private sellers, trade-ins, auctions and rental car agencies in some cases. Buying and selling a car in the state of Alabama is relatively easy if you do your homework. Alabama Lemon Law Has your new car been serviced for the same defect three or more times, or in the shop for more than 30 days? Titles and Registrations . 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. Copyright 2021 Leaf Group Ltd. / Leaf Group Media, Alabama Department of Revenue:Bill Of Sale Minimum Requirements. Many shoppers buy a new car because it comes with a manufacturer’s warranty that covers any parts that fail for a set period. Unfortunately, in Alabama the state's lemon law applies only to new cars. © 1999 - 2021 DMV.ORG. 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. Statute of Limitations. The lemon law appears to cover used … Take the following information to the tag office, usually located in your county courthouse: The title fee is $20. Don't pay more than you should. This federal law applies to any product which costs more than $25, comes with a warranty, and does not perform as it should. Used Cars for Sale in Alabama. Required Information. Mike Parker is a full-time writer, publisher and independent businessman. Alabama law requires the seller to have a clear title to the vehicle being sold. Here are some answers to questions that you may have about buying a used car. 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. Alabama does have a lemon law and it is found at Alabama Code §8-20A-2 but it only applies to new vehicles. 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 … The price you see is the price you pay. Make copies of the paperwork for your own records. Negotiate a price. If you are transferring the title of your vehicle to a person in your family, you are not required to provide such certification. Certain information is required for a bill of sale to be considered valid by law enforcement officials and License Plate Issuing Officials. Find the best used cars in Birmingham, AL. Any motor vehicle for which a certificate of title has been issued by any state with the notation of junk, parts car, parts only, nonrebuildable, or when a certificate of destruction or bill of sale has been issued for transfer of the vehicle with similar language shall be considered to be a junk vehicle and shall not be titled in this state. All promises made during used car transactions must be recorded in writing to be legally valid. What if I got ripped off? Indiana's Used Car Lemon Laws Buying a used car can be a positive and rewarding experience. Return to Top The Alabama Department of Revenue and law enforcement officials will not accept an invoice in place of a bill of sale. The vehicle should match the description given by the seller. It is important to make your claim under the Alabama Lemon Law as soon as possible so that you do not lose your … Curbstoners are scam artists. The Alabama Department of Revenue is the government agency responsible for vehicle registration in the state. Plan to advertise online, in your local newspaper, or in a local car buying guide. Alabama issues separate car dealer licenses in four categories: new or used car dealer, wholesaler, rebuilder, and reconditioner. Avoid buying a car with costly hidden problems. Every used car we sell in Alabama comes with our no-haggle pricing. It may be a "Lemon." Have a mechanic examine the car to warn you of any damage or problems with the vehicle. To learn about rights buyers of used cars have, see "Buying a Used Car" above Read More. Figure out what kind of car you want or need to fit your lifestyle and budget. A bill of sale is required any time a vehicle is sold or transferred, and must be provided to obtain a certificate of title. Many small lot car dealers don’t comply with the law. An Alabama automobile bill of sale is a document that may prove valuable to both the seller and the buyer of the vehicle, since it contains specific information about the car sale, such as the date and place of purchase, the selling price and the personal information of the involved parties. Laws on a Bill-of-Sale for a Vehicle in the State of Alabama Time Frame. Selling a car online. Used-Car Lemon Laws. That makes buying a used car a riskier proposition, but it doesn’t mean shoppers are without options. Any action brought under this chapter against the manufacturer shall be commenced within three years following the date of original delivery of the motor vehicle to the consumer. 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. We have 4,695 used cars in Birmingham for sale that are reported accident free, 4,097 1-Owner cars, and 4,447 personal use cars. Offer a dollar amount lower than you are willing to pay, then work upwards as the seller makes a counter-offer. 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. All Rights Reserved. Curbstoning is illegal in Alabama and defrauds thousands of unwary consumers every year. Without used car laws in Alabama, it is especially important that you make every attempt to avoid a lemon vehicle. 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. Do your homework. Climb in the backseat to check for leg room and head space. Individuals who purchase a new or used vehicle in the state must maintain a copy of the bill of sale within the vehicle during the time between the date of purchase or transfer and the time when the new license plate is issued. 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. The seller must have the right to sell the car. Alabama law requires the seller to have a clear title to the vehicle being sold. 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. 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. If you are considering the purchase of a used vehicle, it is worth considering taking the vehicle to an experienced mechanic for a thorough inspection before you buy. A used car dealership is commonly a fast-paced operation. If you must take cash, get the buyer to sign in receipt of the vehicle. If you have relied upon a false or misleading claim in purchasing a faulty vehicle, you may have a claim against the auto dealer. A post office box is not acceptable. Alabama law gives rights to people who buy defective new cars. Sales tax, ad valorem, and license fees vary in each county. In such a case, you'll have to provide smog certification to the buyer. Subscribe to stay in the loop & on the road! Determine the fair market value of your car by researching the. Used Car Rule The Federal Trade Commission (FTC) is charged with enforcing the “Used Car Rule,” a federal regulation that requires used car dealers to disclose certain information to consumers. Most sellers do not expect the buyer to pay their original asking price. Looking for State Regulations in another state? This car report will provide a title search, accident report, lemon report, odometer check, and registration details. When you sell your car in Alabama, you'll need to sign the car title over to the buyer. Perhaps you have a gently used vehicle that still has a few good years left in it and are now choosing to sell the car. License plate transfer fee is $1.25. Conveniently, the form you'll need to do so is located directly on the back of the title itself. It is wise to accept only a certified check for the purchase; this will verify that the check is good. Plan to advertise online, in your local newspaper, or in a local car buying guide. For example, if you buy a car "as is," the car normally is not covered by implied warranties. Comparison shop for prices. 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