by Armando Martinez

License Plate Transfer Process in Alabama

When you buy or sell a car in a private party sale in Alabama, the license plate does not automatically transfer to the new owner. The seller must remove their license plate from the vehicle before handing over the keys. The buyer must then obtain their own license plate. The state of Alabama only requires that one license plate be displayed on your vehicle. 

To obtain a license plate, the buyer must visit the local Alabama Department of Revenue (ADOR) office. The buyer will need to bring the vehicle's title, proof of insurance, and a valid driver's license. The buyer will also need to pay a license plate fee, which varies depending on the type of vehicle and the county in which it will be registered.

The standard issue license plate fee for a standard passenger car, motor home, or pick up truck having a gross vehicle weight of less than 8,000lbs in Alabama is $23. However, the fee can vary depending on the type of vehicle and if it is a truck, its weight. For example, the fee for a motorcycle is $15, while the fee for a truck with a gross vehicle weight of 8,001 to 10,000 lbs.is $35. Themed or personalized plates are also available for additional fees (https://www.revenue.alabama.gov/motor-vehicle/registration-file-information/) . 

License Plate Fees in Alabama

In addition to the license plate fee, there are other fees associated with buying or selling a car in Alabama. These fees include:

- Sales Tax: Alabama has a state sales tax of 2.0% for vehicles. However, individual counties may also impose their own sales tax, which can increase the total sales tax rate. The sales tax is based on the purchase price of the vehicle.

- Title Transfer Fee: The title transfer fee in Alabama is $15.

- Registration Fee: The registration fee in Alabama is $15.

It's important to note that these fees are subject to change, so be sure to check with the local ADOR office for the most up-to-date information.

Conclusion

Buying or selling a car in a private party sale in Alabama, it’s important to know the license plate transfer process and associated fees. Remember that the seller must remove their license plate from the vehicle, and the buyer must obtain their own license plate from the local ADOR office. Also, be prepared to pay additional fees such as sales tax, title transfer fee, and registration fee. With this guide, you should now have a better understanding of the license plate transfer process and associated fees when buying or selling a car in a private party sale in Alabama.

This article was written by Armando Martinez. Armando Martinez is among the nation’s experts on automotive titling, registration, DMV services and document operations. With nearly two decades of experience across a broad range of financial services functions and some of the largest names in auto, from Wells Fargo to Uber, Armando combines vision and ingenuity with a wealth of information so auto shoppers and sellers can learn from his experience.

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