How To Sell a Car in Louisiana

The sale of a motor vehicle in Louisiana is governed by state statutes and rules established by the Louisiana Office of Motor Vehicles (OMV). Private parties engaged in vehicle transfers must comply with requirements for title endorsement and notarization, sales and use tax obligations, odometer disclosure, and notice of transfer procedures to ensure the transaction is legally valid and ownership is properly transferred to the buyer.

What You Need To Know Before Selling a Car in Louisiana

Title Law and Ownership Requirements

Under Louisiana Revised Statutes § 32:705, a certificate of title is required for the sale of a motor vehicle. The seller must deliver a properly endorsed certificate of title to the buyer at the time of sale. No person shall sell a vehicle without providing to the purchaser an endorsed certificate of title issued in the name of the seller.

A certificate of title issued in Louisiana constitutes prima facie evidence of ownership. The owner named on the title is presumed to be the lawful owner unless the title has been properly assigned or is subject to a recorded lien.

Title Endorsement and Notarization Requirements

The seller must endorse the certificate of title for transfer to the buyer. Per Louisiana Revised Statutes § 32:705(B), an endorsement for private vehicle sales in Louisiana requires one of the following forms:

The signature of the seller notarized by a notary public who shall subscribe the notary's name on the title, or the signature of the seller witnessed by two people, each of whom subscribes their name to the title and acknowledges the signature through a notarized statement. Notarization of the title is mandatory when a motor vehicle is sold by a private party and will be registered in Louisiana.

Satisfying an Existing Lien

If the certificate of title shows a recorded lien or security interest, the lien must be satisfied and released before the seller can deliver a clear title to the buyer. The lienholder is responsible for releasing the lien upon receipt of full payment. The seller should contact the lienholder to request a lien release letter. Once the lien is released, the lienholder must execute a release, or the vehicle must bear a notation on the certificate of title indicating that the lien is satisfied.

If a certificate of title cannot be obtained due to an outstanding lien, the buyer's application for a new title will be rejected until the lien is satisfied. Sellers who cannot obtain a lien release should consult with the Office of Motor Vehicles regarding the specific procedures for their circumstance.

No General Inspection or Emissions Requirements

Louisiana does not mandate that a private-party seller obtain a vehicle safety inspection or emissions test before completing a sale to a private buyer. A physical vehicle inspection is required for certain transactions, such as the issuance of a first certificate of title for newly assembled or reconstructed vehicles, but not for private sales of previously titled vehicles.

Documents Required To Sell a Car in Louisiana

Certificate of Title

The existing certificate of title is the primary ownership document and must be transferred to the buyer. The seller must complete the endorsement section on the reverse of the title, providing the buyer's name and address, the date of sale, the odometer reading if applicable, and the seller's signature exactly as it appears on the face of the title. If two owners are listed on the title joined by the word "and," both owners must sign the endorsement. If the names are joined by "or," only one owner's signature is required.

The endorsement must be notarized for private sales. Any alteration to the title, including the use of correction fluid or similar means, will result in rejection of the document by the Office of Motor Vehicles.

Bill of Sale

A separate bill of sale is not mandatory for private vehicle sales if the sale price and all required information are included on the certificate of title itself and the title is properly notarized. However, a bill of sale is strongly recommended for all transactions to provide clear documentary evidence of the sale for both parties.

If a bill of sale is prepared, it should contain the full names and addresses of both the buyer and seller, the date of sale, a complete vehicle description including the vehicle identification number (VIN), make, year, model, and body type, the purchase price, and signatures of both parties. Any bill of sale that includes a trade-in vehicle must also be notarized.

Odometer Disclosure Statement

The Odometer Disclosure Statement (Form DPSMV 1606) must be completed at the time of transfer for vehicles subject to federal odometer disclosure requirements. The seller must certify the vehicle's actual mileage or indicate whether the mileage exceeds the odometer's mechanical limits or is not the actual mileage. Both the seller and buyer must sign the form.

How To Transfer a Car Title in Louisiana

Step 1: Review the Title Before the Sale

The seller should examine the certificate of title to verify that the owner's name is correct, that no alterations or corrections appear on the document, and that any recorded liens are identified. If the seller's name on the title differs from the seller's current legal identification, or if the title is unclear or damaged, the seller should contact the Office of Motor Vehicles to address these issues before proceeding with the sale. A duplicate title may be obtained if the original is lost, damaged, or illegible.

Step 2: Satisfy Any Outstanding Liens

If a lien is recorded on the title, the seller must work with the lienholder to obtain a full release before the sale can be completed. The lienholder will release the lien upon receipt of payment and must provide written confirmation of the release. This release may be noted on the existing certificate of title or included in a separate lien release document to be presented along with the title to the buyer.

Step 3: Complete and Notarize the Title Endorsement

The seller completes the assignment section on the reverse of the certificate of title with the buyer's full legal name and address, the date of the sale, and the odometer reading, if applicable. The seller signs the title exactly as the name appears on the face of the title. This endorsement must be notarized by a notary public, who subscribes to the notary's name and seals the document. Alternatively, the endorsement may be witnessed by two individuals who subscribe their names, with one witness executing a notarized acknowledgment statement.

Step 4: Prepare the Odometer Disclosure Statement and Bill of Sale

The seller completes the Odometer Disclosure Statement (Form DPSMV 1606) if required by federal law. Both the seller and buyer sign and date the form, certifying the odometer reading at the time of sale.

A bill of sale should be prepared if the sale price and other details are not included on the notarized title or if clarity and documentation are desired. Both parties should sign and retain a copy.

Step 5: Deliver Documents to the Buyer

At the time of sale, the seller delivers the following documents to the buyer:

The original certificate of title, notarized and properly endorsed in the buyer's name. One signed copy of any bill of sale (if prepared separately). The completed and signed Odometer Disclosure Statement (Form DPSMV 1606). The seller should retain a copy of all documents for personal records.

Step 6: Buyer Applies for New Title

The buyer must apply for a new certificate of title within 5 days of receiving the seller's endorsed title, per Louisiana Revised Statutes § 32:707. The buyer submits the Vehicle Application Form (DPSMV 1799), the endorsed certificate of title, the odometer disclosure statement, proof of payment of sales and use taxes, and the applicable fees to an Office of Motor Vehicles location or authorized agent.

During a sixty-day grace period following the the purchase of a vehicle from a private individual, the buyer is protected from citations for failure to have a current license tag while the title application is being processed, provided proof of timely application can be demonstrated.

Title Transfer Fee Schedule in Louisiana

The following fees may be collected when transferring a title in Louisiana. Additional fees may apply for specialized title services. Certain counties and municipalities may also assess additional service fees.

Sales Tax on Private Vehicle Sales

Motor vehicles sold in Louisiana are subject to sales and use tax. Under Louisiana Revised Statutes § 47:303(B), the state sales tax is due at the time of registration or transfer of registration. The state-based sales tax rate is 5% of the purchase price. In addition, local city and parish sales and use taxes apply, which vary by location.

For vehicles purchased within ninety days of the sale date, Louisiana state and local use taxes will be levied, not to exceed $90.00. Credit is available for sales or use taxes paid on the same vehicle in another state, provided that state grants a similar credit.

What To Do After Selling Your Car in Louisiana

Remove and Cancel the License Plate

The seller must remove the license plate from the vehicle at the time of sale. License plates remain the property of the state and do not transfer to the new owner. The seller may retain the license plate for transfer to a future vehicle purchase, or surrender or cancel it through the Office of Motor Vehicles.

To cancel a license plate online, the seller can use the Express Lane plate cancellation service, providing the vehicle identification number, Louisiana license plate number, driver's license number, and owner name. Alternatively, the seller may visit an Office of Motor Vehicles location to surrender the plate in person.

File a Notice of Transfer

The seller should file a Notice of Vehicle Transfer (Form DPSMV 1697) with the Office of Motor Vehicles to notify the department that the vehicle has been sold, donated, or traded. This notification can be submitted online through the Express Lane service or by mail. Filing this notice immediately flags the seller's record in the Office of Motor Vehicles system, indicating the vehicle's disposition and protecting the seller from liability for subsequent violations or registration issues related to the vehicle.

Cancel Insurance Coverage

Once the vehicle is sold and the title has been transferred, the seller should contact the insurance provider to cancel the motor vehicle policy or transfer the coverage to a replacement vehicle. Maintaining insurance on a vehicle no longer owned by the seller is unnecessary and may result in avoidable premium charges. Louisiana law does not require coverage on a vehicle no longer owned by the seller.

Retain Copies of All Documents

The seller should retain a copy of the signed and notarized bill of sale, the Odometer Disclosure Statement, proof that sales and use taxes were paid, and any other transaction documents. These documents may be needed to prove the sale in the event of future liability disputes or registration issues.

Contact Information

Louisiana Office of Motor Vehicles
7979 Independence Boulevard, Baton Rouge, Louisiana 70806
Phone: (225) 925-6146
Official Website: Office of Motor Vehicles