How To Sell a Car in Virginia

Selling a motor vehicle in Virginia requires adherence to statutory procedures governing title transfer, ownership documentation, notification to the Department of Motor Vehicles, and applicable sales tax collection. Both private-party sellers and those engaging in vehicle transactions must follow state and federal disclosure requirements to ensure the sale is legally valid. The Virginia Department of Motor Vehicles administers these regulatory requirements.

What You Need To Know Before Selling a Car in Virginia

Title Law and Ownership Requirements

Under Virginia Code Section 46.2-617, a motor vehicle cannot be sold in Virginia without first securing a certificate of title. The titled owner must ensure that the vehicle is free of encumbrances and that all ownership information is current and accurate before transfer. When a certificate of title shows joint ownership with names connected by "and," both owners must sign the assignment. If ownership is shown with names connected by "or," only one owner's signature is required to execute the transfer.

Vehicles Exempt From Title Requirements

Per Virginia Code Section 46.2-663 et seq., certain motor vehicles are exempt from title and registration requirements. These include farm tractors and machinery, backhoes, snowmobiles, all-terrain vehicles, off-road motorcycles, self-propelled wheelchairs, golf carts not operated on public highways, and certain specialized commercial vehicles used in agriculture, mining, or maritime operations. Vehicles classified as salvage or nonrepairable receive alternative certificates rather than standard titles. A vehicle lacking a Virginia certificate of title may require a bill of sale and registration documentation to establish proof of ownership.

Satisfying an Existing Lien

If a lien is recorded on the vehicle's certificate of title, the lien must be fully satisfied and released before a valid sale can be completed. The seller must contact the lienholder to obtain written confirmation of lien satisfaction. Once paid, the lienholder is responsible for releasing the lien through the Virginia Department of Motor Vehicles.

To remove the lien from the department's records, the seller or new owner must bring the title to any DMV customer service center and apply for a substitute title. The fee for a substitute title is $15.

Inspection and Emissions Requirements

Virginia does not mandate a safety inspection or emissions test as a prerequisite to the private sale of a motor vehicle. However, certain localities require emissions inspections for vehicle registration, depending on where the vehicle will be garaged. At the time of registration, the buyer may be required to obtain an emissions inspection if the vehicle is garaged in a specified county or city. The responsibility for obtaining an inspection, if required, rests with the new owner at the time of registration.

Registration Cancellation and Notification Requirement

Upon sale or transfer of a vehicle, Virginia law requires the seller to cancel the existing registration. Per Virginia Code Section 46.2-636, the seller must notify the Department of the sale, and the registration must be canceled before the title can be transferred to the buyer. The seller may complete this notification online, by telephone, or in person at a DMV customer service center. The registration cancelation is required by law and protects the seller from future registration fees and liability associated with the sold vehicle.

Documents Required To Sell a Car in Virginia

Certificate of Title

The existing certificate of title serves as the primary document establishing current ownership. The seller must complete the assignment and warranty of title section on the reverse of the title by providing the buyer's full legal name and address, the date of sale, and the odometer reading. The seller must sign exactly as the name appears on the face of the title. The assignment section of a Virginia title does not require notarization. The Department will not accept any document that has been altered using correction fluid or similar means.

Bill of Sale

Although Virginia does not mandate a bill of sale for private vehicle transfers, the Virginia Department of Motor Vehicles strongly recommends its preparation to document the transaction. The bill of sale should contain the full names and complete addresses of both the buyer and seller, the date of sale, the complete vehicle description, including the vehicle identification number (VIN), year, make, model, and body type, the purchase price, and the signatures of both parties. Both the seller and buyer should retain a signed copy.

Odometer Disclosure Statement

Federal law requires the disclosure of the vehicle's odometer reading at the time of transfer. The Odometer Disclosure Statement (Form VSA 5) must be completed and signed by both the seller and buyer at the time of the sale. The seller must certify that the odometer reading is the actual mileage, exceeds the odometer's mechanical limits, or differs from the actual mileage. Completion of this form is required at the time of transfer and must be delivered to the buyer.

Vehicle Price Certification

The Virginia Department of Motor Vehicles may accept a Vehicle Price Certification (Form SUT 1) signed by the seller or purchaser in place of a traditional bill of sale. This form documents the vehicle's information and purchase price and may be required or recommended by the department depending on the vehicle's age and the circumstances of the sale.

Lien Release Documentation

If a lien existed on the vehicle, the seller must obtain written confirmation from the lienholder that the lien has been satisfied and released. This documentation should be retained and, if applicable, presented to the DMV when applying for a substitute title to remove the lien notation from the department's records.

How To Transfer a Car Title in Virginia

Step 1: Review the Title Before the Sale

The seller should examine the original certificate of title to confirm that the title is in the seller's name, that it is free of liens or encumbrances, and that all information is accurate and current. If the title has been lost or damaged, the seller must obtain a replacement title from the Virginia DMV before proceeding with the sale. A replacement title incurs a $15 fee.

Step 2: Check Lien Status and Satisfy Any Outstanding Liens

Before transferring ownership, the seller must verify that no liens or security interests are recorded on the title. If a lien exists, the outstanding loan must be paid in full, and the lienholder must release the lien. The seller should contact the lienholder to obtain written confirmation of lien satisfaction prior to completing the sale.

Step 3: Complete the Title Assignment

The seller must fully and correctly complete the assignment and warranty of title section on the reverse of the certificate of title. The seller enters the buyer's full legal name and address, the date of sale, the accurate odometer reading, and signs the assignment exactly as the name appears on the front of the title. Any alteration to the title document will result in rejection by the Virginia DMV.

Step 4: Complete the Odometer Disclosure Statement

The seller completes Form VSA 5 (Odometer Disclosure Statement) by certifying the odometer reading at the time of transfer. Both the seller and buyer must sign this form at the point of sale.

Step 5: Prepare a Bill of Sale

Although not mandatory, the seller should prepare a written bill of sale documenting the transaction. The bill of sale should include the names and addresses of both parties, the date of sale, the complete vehicle description, the purchase price, and the signatures of both the seller and buyer.

Step 6: Deliver Documents to the Buyer

The seller delivers the following documents to the buyer at the time of the sale: the original certificate of title with the completed assignment section, a signed copy of the bill of sale (if prepared), the completed Odometer Disclosure Statement (Form VSA 5), and any applicable lien release documentation.

Step 7: Buyer Submits Application for New Certificate of Title

The buyer must apply for a new certificate of title through the Virginia Department of Motor Vehicles. The buyer completes the Application for Certificate of Title and Registration (Form VSA 17A) and submits it to a Virginia DMV customer service center, along with the assigned title, proof of ownership, proof of insurance, and payment of the applicable fees. The buyer may also apply online through electronic titling if the vehicle already has a Virginia title. Alternatively, the buyer may use the drop-off, appointment, or mail submission options available through the Virginia DMV.

Title Transfer Fee Schedule in Virginia

The following fees apply to title transactions in Virginia:

Certain localities participating in Virginia's Local Vehicle Registration Program may charge additional local registration fees in addition to state fees.

Sales Tax on Private Vehicle Sales

Virginia imposes a Sales and Use Tax (SUT) of 4.15% on the sale of motor vehicles whenever ownership changes, with a minimum tax of $75.00 on any motor vehicle sale. The buyer is responsible for paying the applicable sales tax at the time of titling and registration with the Virginia DMV. The tax is calculated on the full purchase price of the vehicle.

What To Do After Selling Your Car in Virginia

Remove and Surrender License Plates

Virginia law requires the seller to immediately remove the license plates from the vehicle being sold. The plates are the property of the registered owner and do not transfer with the vehicle. The seller must either surrender the plates to the Virginia DMV or transfer them to another vehicle owned by the seller. To surrender the plates, the seller completes a Vehicle Registration Refund Application (Form FMS 210) and returns it along with the license plates to the DMV. If the registration expires within six months of the surrender date, a partial refund of the registration fees may be issued. Refunds typically process within 30 days.

Notify the Department of Motor Vehicles

The seller must notify the Virginia Department of Motor Vehicles that the vehicle has been sold, traded, or donated. This notification cancels the registration and is required by law. The seller may provide this notification online through the DMV website, by telephone, or in person at any DMV customer service center. This notification protects the seller from continued registration obligations and potential liability for the vehicle.

Cancel Insurance Coverage

Upon completion of the sale and removal of the license plates, the seller should contact the automobile insurance provider to cancel the policy or transfer coverage to a replacement vehicle. Maintaining an active insurance policy on a vehicle no longer owned is not required and results in unnecessary premium charges.

Retain Documentation

The seller should retain copies of the completed bill of sale, odometer disclosure statement, and any other transaction documents for personal records. These documents may be needed to establish proof of sale in the event of future disputes regarding the transaction or to demonstrate compliance with state law.

Contact Information

Virginia Department of Motor Vehicles
2300 West Broad Street, Richmond, VA 23269
Phone: (804) 367-0538
Official Website: Virginia Department of Motor Vehicles