In Oklahoma, the primary law governing the sale of vehicles is the Oklahoma Vehicle License and Registration Act. This law outlines the state's requirements and procedures for transferring vehicle ownership.
Sellers must provide the buyer with a properly assigned and notarized certificate of title, reflecting the accurate odometer reading at the time of sale. Additionally, the seller must notify the Service Oklahoma office within 30 days of the sale to officially record the change of ownership.
This process ensures that the vehicle's title and registration records are updated promptly and accurately, thereby protecting both the buyer and the seller from potential legal and financial liabilities. Failure to comply with these regulations can result in penalties and complications in the title transfer process.
Legal Requirements Before Selling a Vehicle in Oklahoma
Before selling a vehicle in Oklahoma, sellers must comply with the following legal requirements to ensure a smooth and lawful transaction:
Preparing a Certificate of Title
In Oklahoma, a certificate of title is essential for legally transferring vehicle ownership. If the title is lost or damaged, the owner must obtain a duplicate before proceeding with the sale.
To get a duplicate title in Oklahoma, the owner must submit a completed Application for Duplicate Certificate of Title (Form 701-7) to the Service Oklahoma office on N Classen in Oklahoma City or at a Licensed Operator location (formerly called a Tag Agency).
The form must be signed by the vehicle's owner or lienholder and notarized by a Notary Public. If a Power of Attorney is used, a notarized copy of this document is also needed.
Additionally, the application must include the vehicle identification number (VIN) and the current registration decal number.
Proof of ownership, such as the current Oklahoma registration or proof of out-of-state residency, must be provided as well. Acceptable proof includes an out-of-state driver's license in the owner's name, out-of-state registration, rental agreement, or utility bill.
If the Oklahoma registration has lapsed and out-of-state residency cannot be proven, the owner is required to settle any overdue registration fees and submit an Oklahoma insurance verification form.
The fee for a duplicate title is $11, with an additional $1.55 fee if mailing the form. Applicants can mail their completed application to the following address:
Service Oklahoma
Motor Vehicle Division
P.O. Box 26800
Oklahoma City, OK 73126
Having a Vehicle History Report and Other Essential Records
Gathering certain records that provide valuable information to potential buyers and build trust in the transaction is essential when selling a vehicle in Oklahoma.
One essential record to have is a vehicle history report. This report contains valuable data about the car, including details about previous owners, locations, accidents or damage the vehicle may have experienced, repairs conducted, and manufacturer recalls.
To obtain a vehicle history report, individuals can visit the National Motor Vehicle Title Information System (NMVTIS), where approved data providers can retrieve records using the vehicle identification number (VIN). Note that most vehicle history providers charge a fee for their services.
In addition to the vehicle history report, gathering service and maintenance records is beneficial. These records consist of receipt sets and service summaries demonstrating diligent maintenance and vehicle care.
Moreover, obtaining other essential records, such as official driving or motor vehicle records (MVR) from Service Oklahoma, can be helpful. These records can be requested online through the Service Oklahoma Motor Vehicle Records (MVR) Application tool, where the required information needs to be provided.
Obtaining an MVR involves fees, including a $25 fee for the MVR itself, a $3 certified copy fee (if applicable), and a $2.50 transaction fee.
Getting a Pre-Sale Inspection
When selling a vehicle in Oklahoma, it is highly recommended that a qualified mechanic conduct a pre-sale inspection. This inspection thoroughly assesses the vehicle's condition, identifying any existing or potential issues that may impact its performance, safety, or value.
During a pre-sale inspection, skilled technicians will perform a detailed examination of various components and systems, including the following:
- Engine and mechanical parts
- Transmission and drivetrain
- Brake system
- Suspension and steering system
- Electrical system
- Interior and exterior condition
- Fluid levels and quality
- Frame and structural integrity
- Tire condition
Getting a pre-sale inspection may involve an additional cost, but it is a worthwhile investment for sellers in Oklahoma. It can help facilitate a smoother transaction, build trust with potential buyers, and ultimately increase the chances of a successful sale at a fair price.
Advertising the Vehicle
In Oklahoma, no specific law directly mandates how vehicles must be advertised for sale. However, general laws and regulations govern advertising practices, which also apply to vehicle advertisements. These laws primarily aim to prevent deceptive or misleading advertising practices and protect consumer rights.
The primary law governing advertising practices in the state is the Oklahoma Consumer Protection Act. This act prohibits unfair or deceptive trade practices, including false or misleading advertising. It requires that all advertisements be truthful, accurate, and not misleading to consumers.
Additionally, the Oklahoma Motor Vehicle Commission (MVC) has regulations for motor vehicle dealers that pertain to advertising. These regulations generally state that:
- Advertising must be ethical and free from misrepresentation, deception, or omission of material facts.
- Advertised prices must include all charges the customer must pay, except taxes and official fees.
- Advertised prices for used vehicles must clearly distinguish whether the vehicle is being sold "as-is" or with a warranty.
- Advertisements must not use misleading terms or phrases, such as "invoice price," "factory price," or "dealer cost," unless the specific dollar amount is clearly stated.
While no law directly mandates how vehicles must be advertised, sellers must comply with these general advertising regulations to ensure that their advertisements are truthful and transparent and do not mislead or deceive potential buyers.
Note that these laws and regulations apply not only to traditional advertising methods but also to online platforms, social media, and any other medium used to advertise vehicles for sale in Oklahoma.
Selling a Vehicle with a Lien in Oklahoma
Selling a vehicle with a lien in Oklahoma involves additional steps, but it is manageable with the right approach. When a lien is present, the lender or lienholder has a legal claim on the vehicle until the loan is fully paid off.
First, the seller should contact the lienholder to obtain the loan's payoff amount, which may include fees or charges and could differ from the outstanding balance on the loan statement. Knowing this exact payoff amount is crucial.
Next, the seller should determine the vehicle's fair market value using resources like Kelley Blue Book or Edmunds. This helps assess whether the potential sale price can cover the payoff owed to the lienholder.
When selling the vehicle, the seller has two primary options: selling to a dealership or a private buyer. Dealerships are generally more experienced in handling transactions involving liens and will work directly with the lienholder to transfer the title and pay off the remaining loan balance.
If selling to a private buyer, the seller must inform the buyer about the existing lien. The lienholder will provide specific instructions on handling the transaction, which may involve the buyer paying off the loan directly to the lienholder or the seller using the sale proceeds to pay off the loan.
It is essential to follow the lienholder's requirements carefully, as they may require additional documentation or have specific procedures for transferring the title and releasing the lien.
Obtaining a Lien Release
When a vehicle loan is fully paid off in Oklahoma, the lien on the vehicle's title needs to be released to reflect the change in ownership status. To obtain a lien release, the owner must follow specific steps.
First, the owner should receive a properly executed lien release document from the lienholder. This document proves that the loan has been satisfied, and the lien no longer applies.
Next, the owner must submit the lien release document to the Service Oklahoma Motor Vehicle Liens department by mailing it to:
Service Oklahoma
Motor Vehicle Liens
P.O. Box 26800
Oklahoma City, OK 73126
There is no fee to release a lien in the Service Oklahoma system. However, if the owner wishes to obtain a new title certificate reflecting the lien's removal, they must visit a Service Oklahoma Licensing Office.
At the office, the owner should present the lien release document and the current title certificate. A new title without the listed lien will be processed and issued for $11.
Note that liens remain active in the Service Oklahoma system until a properly executed lien release form is submitted. Obtaining this lien release is crucial for the owner to have full ownership rights over the vehicle and to facilitate any future sale or transfer of the vehicle's title.
Motor Vehicle Sales Tax in Oklahoma
Oklahoma has a motor vehicle sales tax that applies to car purchases. The tax rate is 4.5% on the total purchase price of the vehicle. This tax is divided into two components: a sales tax rate of 1.25% and a vehicle excise tax of 3.25%.
The state applies these tax charges differently for new and used cars.
When buying a new car, the 4.5% tax rate is applied directly to the final purchase price. For used vehicles, a fixed rate of $20 in taxes applies to the initial $1,500 price. The remaining price is then subject to the combined 4.5% tax rate.
Most car sales in Oklahoma are subject to sales tax. However, certain individuals are exempt from this tax.
Disabled veterans and their surviving spouses may qualify for a full or partial exemption from car sales tax. To check eligibility and apply for an exemption, individuals can visit the Oklahoma Taxpayer Access Point and complete the 100% Disabled Veteran Declaration.
Additionally, there are exemptions from paying the vehicle excise tax. These include:
- Disabled veterans
- Nonresident military personnel stationed in Oklahoma with vehicles registered in another state
- Vehicles owned and registered in another state for at least 60 days before registration in Oklahoma
- Inherited vehicles
- Governmental organizations
- Cars gifted by immediate family members
Who Pays Sales Tax When Selling a Car Privately in Oklahoma?
When selling a car privately in Oklahoma, the buyer pays the applicable sales tax to a tag agent contracted by the Oklahoma Tax Commission (OTC). The seller does not collect or remit the tax. The buyer must take the vehicle's purchase documentation to a local tag agent or license operator when registering and titling the car in their name.
Sales Tax for Vehicles Sold in Oklahoma to Residents of Another State
When a vehicle is sold in Oklahoma to residents of another state, the buyer is typically responsible for paying sales tax in their home state upon registering the vehicle.
Oklahoma does not collect sales tax on vehicles sold to out-of-state residents if the car is immediately transported out of Oklahoma. The buyer must check with their home state's Department of Motor Vehicles for specific tax obligations and procedures for registering the vehicle.
Legal Requirements After Selling a Vehicle in Oklahoma
Sellers in Oklahoma must adhere to legal requirements during and after selling a vehicle to avoid liabilities. The necessary steps involve complying with the odometer disclosure requirements, preparing purchase price documentation, transferring the title, informing the Service Oklahoma office of the sale, removing the license plates, and canceling the insurance.
Complying with the Odometer Disclosure Requirements
Starting January 1, 2021, the Federal Odometer Disclosure Rules mandate that odometer statements be included on the certificate of title for 2011 model-year vehicles in Oklahoma. Previously, vehicles ten years old or older were exempt from this requirement. Under the new rules, vehicles from the 2011 model year will need odometer statements until 2031.
The OTC updated its system on February 19, 2021, to accept odometer statements for 2011 vehicles. Although state law does not require odometer statements for vehicles older than ten years, federal law prevails.
Compliance with these federal requirements is not optional, which emphasizes the importance of adhering to the updated odometer disclosure rules during vehicle sales.
Preparing Purchase Price Documentation
Proper purchase price documentation, whether a bill of sale, purchase contract, or the Declaration of Vehicle Purchase Price (Form 722-1), is essential during a private vehicle sale in Oklahoma. This documentation is evidence of the agreed-upon sale price between the buyer and the seller and is required during the title transfer process.
It serves as proof of the transaction and helps prevent potential disputes or legal issues related to the sale price. Failure to provide adequate purchase price documentation may result in delays or complications during the title transfer process.
Transferring the Title to the New Owner
Transferring the title to the new owner during an Oklahoma vehicle sale involves the necessary steps and required documents. Properly executing this transfer protects the buyer and the seller from potential legal issues. Here are the key requirements:
- Properly Assigned and Notarized Oklahoma Certificate of Title: The seller must fill out and notarize the title, transferring ownership to the buyer.
- Lien Release: If the vehicle has any active liens, the seller must provide a lien release.
- Purchase Price Documentation: Documentation such as a bill of sale, purchase contract, or Form 722-1 is required to verify the transaction details.
- Odometer Disclosure Statement: An odometer disclosure statement is necessary for vehicles from the 2011 model year or newer.
- Valid Driver's License or FEI Number: The buyer must present a valid driver's license or Federal Employer Identification (FEI) number.
- Verification of Liability Insurance: The buyer must provide proof of liability insurance that meets Oklahoma's requirements.
These must be brought to the Service Oklahoma office or at a Licensed Operator location. This relieves the seller of liability and makes the buyer the legal owner, who then takes on the registration responsibilities.
According to Oklahoma law, the title must be transferred within 30 days from the date of assignment.
Does a Seller Need To Be Present During a Title Transfer in Oklahoma?
In Louisiana, the seller does not need to be present during the title transfer process. However, there are documents that the seller must provide to complete the transfer successfully. The essential documents include:
- Signed Title
- Bill of Sale
- Odometer Disclosure Statement, if applicable
- Lien Release, if applicable
The buyer can then take these documents to the Licensed Operator location to complete the title transfer process. The buyer is responsible for submitting the paperwork, paying the necessary fees, and ensuring all documentation is in order.
Notifying the Service Oklahoma Office of the Sold Car
When selling a vehicle privately in Oklahoma, it is recommended to notify the Service Oklahoma office about the transfer of ownership. This can be done by submitting the Notice of Transfer of Ownership of a Vehicle (Form 773).
The Notice of Transfer form requires the seller to provide detailed information about the vehicle, including the following:
- VIN
- Title number
- License plate number
- Seller's name, address, phone number, and email address
- Buyer's name and address
After completing the form, the seller must sign and date it, indicating the date of sale. Once signed, the seller can file the Notice of Transfer online through the OkCARS website or submit it to any Licensed Operator location, along with a $10.00 filing fee.
Notifying the Service Oklahoma office about the vehicle sale serves as a record of the ownership transfer in their computer files. It prevents certain transactions from being processed until the buyer completes the title transfer.
Removing the License Plates and Canceling Insurance
After completing the vehicle sale, the seller must take the necessary steps to avoid any legal or financial complications.
First, they should remove the license plates from the vehicle and keep them in a safe place until transferring or surrendering them to the Service Oklahoma office or at a Licensed Operator location.
Next, the seller must contact their insurance provider and cancel the policy on the sold vehicle, effective from the date of sale. They must provide the necessary documentation, such as Form 722-1, to validate the transaction. The seller should remember to retain proof of cancellation for their records.
Failing to cancel the insurance policy on time may result in penalties or difficulties in obtaining a refund for the remaining coverage period.