Selling a vehicle in Missouri is more than just exchanging a car for money. Like in many other states, this process requires adhering to several state regulations.
Missouri Revised Statutes Section 301.210 outlines the seller's duties and responsibilities. These include endorsing and delivering the title to the new owner, removing the license plates, and disclosing the odometer reading at the time of sale. The seller must also report the sale to the Missouri Department of Revenue (DOR).
Failure to comply with these requirements can lead to legal complications and potential fines for both parties involved. Non-compliance may also result in delays or the invalidation of the sale, which causes significant inconvenience and possible legal repercussions.
Therefore, understanding and following these regulations is imperative for anyone selling a vehicle in Missouri.
Legal Requirements Before Selling a Vehicle in Missouri
Before selling a vehicle in Missouri, sellers must adhere to several legal requirements to guarantee a valid and lawful transaction. These include proving rightful ownership of the car, having updated vehicle inspection certificates, and providing buyers with factual vehicle information.
Meeting these prerequisites is crucial for protecting the seller and buyer and preventing future legal issues.
Title Preparation
When selling a vehicle, the seller must have a certificate of title. This title is the legal proof of ownership; without it, the sale cannot be completed. The seller must sign and provide the title to the buyer, who will need it to register the vehicle in their name. A duplicate is necessary if the title is lost, damaged, or destroyed.
To apply for a duplicate title in Missouri, the vehicle owner must submit a Missouri Title and License Application (Form 108). This form must be fully completed and signed and include a Missouri address in the owner's area.
The applicant must mark the " DUPLICATE " block at the top of the form and specify the reason for the duplicate title in the "Duplicate Title Only" section near the bottom. Additionally, the form must be notarized, with the owner's signature witnessed by a notary public, who will complete the notarization box in the same section.
If the original title was mutilated, it must be returned with the application. If the duplicate title is to be mailed to an address other than that listed in the owner's portion of the application, and no lien is indicated, the applicant should mark the "Mail To" block and provide the alternate address. A notarized Lien Release is required if a lien is present.
The application form, along with an $8.50 duplicate title fee and a $6 processing fee, can be submitted to any Missouri License Office or mailed to the address below:
Motor Vehicle Bureau
PO Box 100, 301 West High Street, Room 370,
Jefferson City, MO, 65105-0100
Safety Inspection
Before a vehicle can be sold, the seller must verify that it has undergone and passed a thorough safety inspection performed by Missouri-authorized inspection stations.
Missouri law mandates that all motor vehicles pass a safety inspection. Failure to comply with this requirement may result in legal consequences, including penalties and potential liability issues.
Sellers can verify that their vehicles meet the necessary safety standards by completing a safety inspection. From a buyer's perspective, a safety inspection certificate provides peace of mind, giving them the assurance that the car they are purchasing has been thoroughly examined.
More importantly, the safety inspection certificate is crucial when registering the vehicle. This certificate must be given to the buyer at the time of sale and is only valid for 60 days. Failure to provide a valid certificate may result in registration complications and delays.
Note that certain vehicles are exempt from the safety inspection requirement. For instance, motor vehicles manufactured within the first ten years following the model year of manufacture and with less than 150,000 miles on the odometer are exempt as of August 28, 2019.
Emissions Testing
If the vehicle being sold is registered to operate in St. Louis County, St. Charles County, Jefferson County, and St. Louis City, sellers must conduct emissions testing in addition to the safety inspection.
Per regulations, the emissions testing or inspection must be completed within 60 days before the vehicle is sold. The emission report is a vital document that the seller must give to the buyer for vehicle registration.
Specific vehicles are exempt from this emissions testing requirement. One such exemption applies to vehicles registered outside the affected areas. Furthermore, "even" model year vehicles with registrations expiring in "odd" calendar years and "odd" model year vehicles with registrations expiring in "even" calendar years are exempt from this requirement.
Several other situations exempt the vehicle from the emissions requirement. For a complete list of exemptions, visit the MO DOR Motor Vehicle—Additional Help Resource page and click or scroll down to the "Emissions Inspections" section.
Note that the Missouri DOR does not operate the emissions testing or inspection. Instead, it is administered by the Missouri State Highway Patrol and the Department of Natural Resources through the Gateway Vehicle Inspection Program.
Sellers can visit the Gateway Vehicle Inspection Program website to find emissions testing locations and learn more about the program.
Vehicle History Reports
Missouri vehicle sellers can obtain Vehicle History Reports (VHRs) to ensure transparency and build trust with prospective buyers.
These reports offer crucial insights into a vehicle's background, including ownership history, accidents, title status, mileage, and repairs. Before purchasing, potential buyers rely on this information to gauge the vehicle's condition and reliability.
Acquiring a VHR is simple. Sellers can access these reports through various third-party services by providing the Vehicle Identification Number (VIN). Note that obtaining these reports incurs a fee.
Alternatively, sellers can request a Motor Vehicle Record from the Missouri DOR. For additional information on obtaining these records, contact the department at 573-526-3669 and choose Option 3.
Selling a Vehicle with a Lien in Missouri
Before selling a vehicle with a lien in Missouri, sellers must secure either a notarized Lien Release (Form 4809) or a statement from the lienholder confirming the lien's release.
To do this, the seller must determine the amount owed to the lienholder. Once the payoff amount is known, the seller should negotiate the sale of the car with the buyer. It is essential to disclose the presence of a lien on the vehicle and clarify that the lien must be satisfied before the title can be transferred.
Sellers must settle the outstanding amount with the lienholder to clear the lien from the title. They should contact the lienholder to arrange payment of the payoff amount. Once the lien is settled, the lienholder will issue a lien release document.
Once they possess the lien release document, sellers can proceed with the sale. They should furnish the buyer with the properly assigned Certificate of Title, the lien release document, and any other necessary paperwork, such as a safety inspection certificate and emissions inspection, if applicable.
Motor Vehicle Sales Tax in Missouri
When selling a vehicle in Missouri, regardless of whether it is used or not, sales tax must be taken into account. The DOR collects these taxes when individuals apply for a title on various motor vehicles, such as cars, trailers, all-terrain vehicles, boats, or outboard motors, regardless of the date of purchase.
The current sales tax rate for car purchases in Missouri is a flat rate of 4.225%. However, in addition to the state sales tax, local taxes and other fees may apply. These additional taxes and fees can vary across different municipalities and counties, potentially impacting the final amount that needs to be paid.
The City of Branson has the highest tax rate, at 10.35%, considering both the local and state sales tax. On the other hand, the cities or counties with the lowest tax rate are Collins, Osceola, Rockville, and Roscoe, with a combined rate of 4.725%.
Individuals can refer to the Missouri Sales and Use Tax Lookup to determine the specific sales and use tax rate applicable to different addresses in Missouri.
It is also worth noting that certain sales tax exemptions exist in the state. To see the qualifications for a sales tax exemption, refer to the Exemptions and Requirements list provided by the DOR.
Who Pays Sales Tax When Selling a Car Privately in Missouri?
The responsibility for paying sales tax falls on the buyer rather than the seller when selling a car privately in Missouri.
The buyer is required to pay the sales tax when registering for a newly bought vehicle with the MO DOR. As mentioned, the sales tax rate in the state varies depending on the county where the car is registered and can include state, local, and sometimes city sales tax.
In addition to the sales tax, buyers should be aware that they are responsible for settling other fees related to registration, title, and processing when they go through the vehicle registration process.
Sales Tax for Vehicles Sold in Missouri to Residents of Another State
When a vehicle in Missouri is sold to residents of another state, the application of sales tax is subject to the tax laws of Missouri and the buyer's home state.
If the buyer is a resident of another state and purchases a vehicle in Missouri, the transaction is generally exempt from Missouri sales tax. Instead, the purchaser pays the applicable sales tax when registering the vehicle in their home state.
However, if the vehicle was acquired while living outside Missouri and the buyer has become a new resident, the rules become more intricate.
If the vehicle was purchased within 90 days of moving to Missouri, the buyer is required to pay Missouri sales tax. On the other hand, if the car was bought more than 90 days before relocation, the buyer must pay the difference between the sales tax paid in their previous home state and the sales tax in Missouri.
For additional information regarding sales taxes, consult the MO DOR or the equivalent agency in other states.
Legal Requirements After Selling a Vehicle in Missouri
Both parties must fulfill several legal obligations to finalize the transaction during and after the vehicle sale in Missouri. These requirements include completing the odometer disclosure statement, transferring ownership through the appropriate documentation, and notifying the MO DOR of the transaction.
By meticulously fulfilling these procedures, both parties can seamlessly complete the transaction while mitigating any legal risks or complications that may arise.
Odometer Disclosure Requirement
The Odometer Disclosure Requirement is a prerequisite in Missouri for transferring the title when selling a vehicle. Both parties must complete this statement and include the mileage registered on the car at the time of sale. It helps prevent odometer fraud and guarantees accurate vehicle value.
As of January 1, 2021, vehicles in Missouri starting from the model year 2011 must have their mileage disclosed during ownership transfer until the car reaches 20 years of age.
All motor vehicles, except trailers and all-terrain vehicles, must disclose their mileage on the certificate of title when transferring ownership to a new owner. Exceptions include vehicles with a gross vehicle weight rating exceeding 16,000 pounds and cars at least 10 years old and from the model year 2010 or earlier.
If the certificate of title does not provide space for the required odometer information or lacks the printed name(s) and signature(s) of the buyers and sellers, it must be accompanied by a completed Odometer Disclosure Statement (Form 3019).
If the vehicle's actual mileage is unknown or the mileage displayed on the odometer is inaccurate, the seller or owner must provide a statement explaining the discrepancy or utilize the Odometer Statement of Explanation Form. The title may be branded according to the mileage statement in such cases.
Transferring the Title to the New Owner
Transferring a vehicle's certificate of title is critical in selling a car in Missouri. It assures that the ownership of the vehicle officially passes from the seller to the buyer, protecting both parties from potential legal and financial liabilities.
To complete the title assignment correctly, the following information is required:
- Purchaser(s) Name and Address
- Date of Sale
- Vehicle Model
- Dealer Number of Seller, if applicable
- Sale Price and Trade-in
- Odometer Reading
- Signatures and Hand Printed Names of Sellers and Buyers
- Lienholder's Information, if applicable
Once the information is complete, the seller can pass the certificate of title to the buyer. The buyer can then take the title to any Missouri License Office to apply for a new title in their name.
Do Both Parties Need To Be Present To Transfer a Title in Missouri?
In Missouri, both parties do not necessarily need to be present to transfer a title. If the buyer possesses the furnished certificate of title, they can visit a Missouri License Office to apply for a title transfer without the seller's presence. However, there are fees associated with this process that the buyer must settle to transfer the title into their name officially.
Remove License Plates
Sellers must remove their license plates before the buyer takes possession of the vehicle. This requirement is mandatory regardless of whether the plates are expired.
The seller should correctly dispose of the plates by either destroying them, recycling them, or returning them to a Missouri License Office. This affirms that the seller's personal information and liability are not associated with the vehicle once ownership changes.
On the other hand, the buyer is responsible for obtaining new license plates for the vehicle. By obtaining new license plates, the buyer confirms the vehicle is correctly registered under their name and complies with the state's regulations.
How To Notify the Missouri DOR of the Sold Car?
Sellers must notify the DOR of a sold vehicle to avoid potential liabilities.
As of January 1, 2006, any sale or transfer of a motor vehicle, trailer, or all-terrain vehicle in Missouri must be reported to the department within 30 days. This mandate applies to all sellers or transferors, excluding Missouri licensed dealers. Even sales facilitated by authorized representatives or successors require documentation.
To report a sale, the seller or transferor must submit either a completed Notice of Sale (DOR-5049) (NOS) or a Bill of Sale (DOR-1957) form.
Failure to comply with this regulation can result in penalties. A seller could face an infraction and fines up to $200 for non-compliance. However, if the failure to report is linked to fraudulent activities aiding the purchaser in avoiding title application or registration fees, the offense escalates to a class C misdemeanor with fines up to $300.
Note that certain transactions are exempt from this requirement. These include sales involving salvage title vehicles, repossessions, vehicles awarded through declaratory judgments, sales to dealers or out-of-state buyers, transfers to beneficiaries through trusts or transfer on death arrangements, manufactured homes, vessels, and vehicles transferred to insurance companies.