How to Sell a Car in New Jersey

The steps and process for selling a vehicle online are different in every state. Learn how to sell your used car or truck privately in New Jersey.

Whether you live in Sussex, Middlesex, the Shore, Salem, Gloucester or Essex, if you are thinking about privately selling your used car or truck, you’ve come to the right place. With an estimated 4 million registered trucks and cars in the state of New Jersey, it is no wonder that thousands of private car owners from the Garden State have used Autotrader to sell their car. Below, we’ve outlined the five steps and forms required for how to sell a car in the state of New Jersey so you can sell your car quickly for the most cash. Remember, most U.S. states consider the vehicle title a legal document which is why it is advised to use the legal names (no nicknames) of both parties involved along with legible handwriting using a black or blue ink. Mistakes, errors and using correction fluid may void the document so be careful and take your time filling it out.

Step 1: Allow the buyer to have the car inspected by a third party
Step 2: Organize and gather all related vehicle documentation
Step 3: Bill of Sale
Step 4: Transfer the title
Step 5: Remove your license plates and notify the DMV

Step 1: Allow the buyer to have the car inspected by a third party

Most vehicle shoppers who buy a car privately will want a pre-purchase vehicle inspection conducted by a qualified and licensed auto mechanic of their choosing. Although the buyer pays for this inspection, the seller and buyer must agree on when and where the inspection is to be held. If the inspection does find any issues with the car, it is a good idea for you as the seller to keep the report for your records. Taking the car (or calling) your local dealership for that brand of car can tell the prospective buyer if there are any open/unaddressed recalls.

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Step 2: Organize and gather all related vehicle documentation

Find all maintenance records, owner’s manual and other paperwork related to the vehicle. If you can provide the buyer with extensive and detailed maintenance records, this will help provide the buyer with confidence that you’ve maintained the car in a proper and regular manner. These records can be paper receipts or work orders or an electronic record of prior service and repair.

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Step 3: Bill of Sale

Although not legally required in New Jersey, a Bill of Sale should include the following information:

• Year, Make and Model of the Vehicle
• Vehicle Identification Number (VIN)
• Date of Sale
• Purchase Price
• Current mileage odometer reading
• Legal full names, address and signatures of the buyer and seller

A Bill of Sale can be helpful if problems arise when the buyer goes to transfer the title or register the vehicle in their name. Many private vehicle owners notarize their Bill of Sale as a best practice. If the vehicle is being gifted, the seller should still indicate a purchase price of “GIFT” on the Bill of Sale.

The National Highway Traffic Safety Administration’s (NHTSA) odometer disclosure requirements were updated in December 2020 impacting certain private vehicle sales in New Jersey: For a vehicle transfer that occurs from January 1, 2021 through December 31, 2030, any vehicle of model year 2011 or newer (2012, 2013, etc.) will require an odometer disclosure. Starting on January 1, 2031, any vehicle that is less than 20 model years old will require an odometer disclosure. Previously, the NHTSA required disclosure was for only the first 10 years. Cars older than 2010 are exempt from odometer disclosures.

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Step 4: Transfer the title

If the vehicle’s title has been lost or stolen or badly damaged, you’ll need to apply for a replacement vehicle title and pay the associated fees prior to selling the car. If the vehicle’s owner has passed away, New Jersey provides a transfer of ownership form BA-62 which applies in cases where there is a surviving spouse or domestic partner. A vehicle registered in the name of a decedent may be operated for 30 days after the date of his or her death. The New Jersey Motor Vehicle Commission (MVC) has also outlined the specific rules in the case where the vehicle owner dies without a will. For vehicles with liens, the New Jersey MVC provides instructions on how to request a re-issued lien free title. If the vehicle is being gifted, the seller must still indicate a purchase price of “GIFT” on the reverse side of the title and in which case, the vehicle will be exempt from sales tax.

If there is more than one owner showing on the title, the following number of signatures will be required based on the connection between the names: And – All persons listed must sign. Or – Either seller can sign, only one signature required. And/Or - Both sellers must sign. If no connection listed, it will default to “and” and all owners (sellers) must sign.

The seller must sign the seller’s section on the reverse of the title and give it to the buyer along with a completed bill of sale containing the items outlined above. The buyer will sign the buyer’s section on the back of the title and insert their driver’s license number. The New Jersey MVC recommends all private party vehicle sales be conducted in person at a MVC office. New Jersey provides this information on pre-owned vehicle titles.

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Step 5: Remove your license plates and notify the DMV

Unless the license plate is transferred to another vehicle, before you complete the sale, take your license plates off the vehicle and turn the plate in at a MVC office. New Jersey MVC rules state that license plates can be transferred to another vehicle but not to another owner. Sellers can transfer plates to another vehicle if the same name is used for both registrations. When you do turn in your plate, be sure to ask for a receipt which will serve as proof the plates were turned in to the MVC. After the sale is complete, cancel your insurance.

For more information, visit the New Jersey Motor Vehicle Commission’s website.

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Questions about selling your car in New Jersey? We have answers.

Do I remove my license plate when I sell a car in New Jersey?

Is a Bill of Sale required for selling a car in New Jersey?

What paperwork do I need to privately sell a car in New Jersey?

Does a bill of sale have to be notarized in New Jersey?

Does a vehicle title have to be notarized in New Jersey?