How To Sell a Car in Indiana

Compliance with Indiana motor vehicle regulations requires transferring title through proper assignment, completing required documentation, and satisfying tax and registration obligations. The Indiana Bureau of Motor Vehicles (BMV) enforces statutory requirements for the transfer of motor vehicles in private transactions.

What You Need To Know Before Selling a Car in Indiana

Title Law and Ownership Requirements

All motor vehicles operated in Indiana must be titled in the owner's name under Indiana Code Title 9. The individual or individuals identified as the owner on the face of the certificate of title possess legal authority to execute the transfer of that vehicle. When a certificate displays two owner names separated by "and," both owners must execute the assignment. If the names are separated by "or," either owner may complete the transfer independently.

Vehicles Exempt From Title Requirements

Certain categories of vehicles are not required to be titled under Indiana law. Titles are not required for implements of husbandry, special mobile equipment, off-road vehicles acquired before January 1, 2010, utility trailers purchased before January 1, 1990, and pop-up trailers purchased before July 1, 2016. A bill of sale may serve as proof of ownership for these exempt vehicles. Ordinary passenger motor vehicles do not qualify for any exemption and require a certificate of title regardless of age or condition.

Satisfying an Existing Lien

No vehicle transfer may proceed while a recorded security interest or lien exists on the certificate of title. The lienholder must release the security interest before title assignment occurs. Under Indiana Code 9-17-3-3.4, the lienholder shall deliver the released certificate of title to the owner upon satisfaction of the debt obligation. The owner must obtain the lienholder's release documentation and provide it to the purchaser before executing the transfer.

Vehicle Inspection Requirements

Vehicles purchased from another state and titled in Indiana are subject to a mandatory inspection to verify the Vehicle Identification Number. Indiana BMV branch offices, certified full- or partial-service providers, and law enforcement officers may conduct this inspection. BMV branches and certified providers perform the inspection without charge. Law enforcement officers may assess a fee not to exceed five dollars ($5.00). Upon completion, the officer shall furnish the Physical Inspection of a Vehicle or Watercraft (State Form 39530) to the applicant. Private sales between Indiana residents do not require an inspection.

Pre-Sale Title Completion Requirements

The seller must complete all seller-designated sections of the certificate prior to the execution of the sale. A signature and a legible printed name in the seller section are required before the vehicle is delivered to the purchaser. The seller shall complete the odometer disclosure, specify the date of transfer, enter the purchase price, and provide all purchaser information in the appropriate title sections. Thorough completion ensures the purchaser can apply for the new certificate in a timely manner.

Documents Required To Sell a Car in Indiana

Certificate of Title

The certificate of title functions as the sole document establishing motor vehicle ownership. The seller signs the title in the seller-designated section and prints the seller's name legibly before the transfer date. All seller-section blanks, including odometer statement, date of sale, selling price, and purchaser information, must be completed by the seller. The signed and fully completed certificate is delivered to the purchaser at the time of transfer. An incomplete or improperly signed title will not satisfy registration requirements.

Bill of Sale

The Bill of Sale (State Form 44237) provides written documentation of the transaction. For vehicles not subject to titling requirements, the bill of sale may serve as the primary document for transferring ownership. When functioning as a primary transfer document, the bill of sale must identify the purchaser, provide complete vehicle identification, including year, make, model, and VIN, and display the seller's signature and address. The bill of sale is not subject to notarization requirements. Parties should maintain signed copies for transaction records and potential dispute resolution.

Odometer Disclosure Statement

Federal and state statutes mandate written odometer disclosure when motor vehicle ownership transfers. The seller enters the vehicle's current mileage in the odometer space on the certificate of title, which the seller and purchaser both sign to confirm the reading. Should the certificate lack adequate space or contain errors, parties may use the Odometer Disclosure Statement (State Form 43230) as a separate document. The seller certifies the accuracy of the mileage or indicates if the reading cannot be verified. Each party shall retain a copy of the completed odometer disclosure.

Physical Inspection Form for Out-of-State Titles

Out-of-state vehicles require completion of the Physical Inspection of a Vehicle or Watercraft (State Form 39530) to verify the VIN. Indiana BMV facilities and certified service providers conduct inspections at no charge; law enforcement officers may charge up to five dollars. The completed form must accompany the title application to the BMV.

Application for Certificate of Title

The Application for Certificate of Title for a Vehicle (State Form 205) initiates the purchaser's formal request for a new certificate of title. This form, submitted with the seller's completed and signed certificate of title, sales tax documentation, the $15.00 title fee, and registration fees and excise taxes, establishes the purchaser's ownership. Submission must occur within 45 days of purchase to avoid administrative penalties.

How To Transfer a Car Title in Indiana

Step 1: Review the Title Before the Sale

Initial verification ensures the certificate of title exists in the seller's name and contains accurate information. Titles that have been lost or damaged must be replaced by submitting the Application for Certificate of Title for a Vehicle (State Form 205) and the $15.00 fee to an Indiana BMV branch. Any lien recorded against the vehicle must be confirmed for release and satisfaction prior to sale completion.

Step 2: Complete the Title Assignment

The seller executes the assignment by signing in the seller's section of the certificate and printing the seller's name legibly before the sale. When the certificate identifies two owners joined by "and," both must provide signatures. When separated by "or," only one signature is necessary. All required seller blanks—including date of transfer, purchase price, and purchaser details—must be completed. The seller shall certify the odometer reading or indicate if verification is not possible.

Step 3: Prepare the Bill of Sale and Disclosure Paperwork

At the time of transfer, the seller and purchaser execute a bill of sale documenting transaction particulars. The Bill of Sale (State Form 44237) may be used, or parties may create their own bill of sale containing the purchaser's name, year, make, model, VIN, seller's signature, seller's address, transfer date, and selling price. Both parties shall sign the odometer disclosure appearing on the title or complete the Odometer Disclosure Statement (State Form 43230) if needed. Each party retains copies for documentation.

Step 4: Deliver the Documents and License Plate to the Purchaser

The seller transfers the properly completed and signed certificate of title and executed bill of sale to the purchaser at the time of conveyance. The seller removes the license plate from the vehicle. License plates remain the property of the owner and may be transferred to another vehicle in the owner's name or retained at the owner's discretion. The purchaser assumes responsibility for obtaining new registration and license plates.

Step 5: Buyer Submits Application Within 45 Days

The purchaser must submit an application for a new certificate of title to an Indiana BMV branch within 45 days of purchase to forestall administrative penalties.

Title Transfer Fee Schedule in Indiana

The Indiana Bureau of Motor Vehicles collects the following fees:

Additional registration fees and vehicle excise taxes apply at the time of the title application and vary by vehicle type, value, and model year. The BMV Quick Quote Tool permits purchasers to project estimated registration and excise tax costs prior to application.

Sales Tax on Private Vehicle Sales

Indiana imposes a sales tax on private motor vehicle purchases at a rate of 7% of the purchase price. The purchaser bears responsibility for paying sales tax when applying for the Indiana certificate of title at a BMV branch. Proof of sales tax payment or an exemption determination must accompany the title application. Indiana residents who purchased a vehicle outside the state may claim credit for sales tax already paid in that jurisdiction. If the tax paid in the other jurisdiction is less than Indiana's 7% standard rate, the purchaser shall pay the difference to Indiana at the time of the title application. New residents of Indiana are exempt from sales tax charges when transferring a vehicle certificate of title from a prior state of residence to Indiana.

What To Do After Selling Your Car in Indiana

License plates in Indiana constitute the property of the owner. Upon sale, the plates do not transfer to the purchaser. The seller must remove both the front and rear license plates from the vehicle at the time of transfer. The Indiana BMV does not mandate the return of license plates from sold vehicles. The seller may transfer the plates to another vehicle owned by the seller or retain or dispose of them as the seller chooses.

The seller shall preserve copies of the completed and signed certificate of title, the executed bill of sale, and any odometer disclosure documentation as evidence of transfer and purchaser identification. These records establish the date of conveyance and demonstrate the seller's release from liability following the sale.

Contact Information

Indiana Bureau of Motor Vehicles
100 North Senate Avenue, Indianapolis, IN 46204
Phone: (888) 692-6841
Official Website: Indiana Bureau of Motor Vehicles