Can I sell a car with expired registration?
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Updated on by Steven Gin
Suppose you have a car that you haven't been driving a while and you've let the registration expire. It's just sitting there occupying space. Why not sell it?
But, can you just sell the car as is, without renewing the registration?
The simple answer is YES. So long as you have the vehicle title and it's in your name, you CAN sell your car with an expired registration.
But, there are a few legal, ethical, and practical considerations you should be aware of before doing so. Sometimes it is worthwhile to pay for a renewal.
KeySavvy experts can guide you through the private sale of your vehicle and take on the administrative, legal, and paperwork burden so that you can feel safe and focus on what to do with the extra money and space in your garage.
1. Background: What is car registration?
Vehicle Registration is the official documentation that states keep to record the motor vehicles that are allowed to be operated. It is represented by a slip of paper along with a dated sticker or "tag" on your license plate.
It is a legal requirement to have current registration (along with license plates) in order to drive a motor vehicle in the US and it needs to be renewed every 1-3 years, depending on the state.
2. Background: Title Vs. Registration
A title is a legal document that provides proof of ownership of a vehicle. You must have a title registered in your name to sell your vehicle. If it is lost, it must be replaced first!
3. Background: What happens when you sell a car?
When you complete the sale of a vehicle, you sign the title over to the buyer.
It is then up to the buyer to register the vehicle with the DMV to legally operate it. They also must insure the vehicle and sometimes get new plates.
Some states allow the buyer a limited amount of time to transport the vehicle back home or to the DMV to get it registered. Always check with the DMV before driving an unregistered vehicle!
Check out How to Safely Sell a Car Privately for more tips
4. Late Renewal Penalties Might Affect the Buyer
In many states, if you do not renew your car's registration on time, there is a late penalty fee.
In the state of California, when you sell an unregistered car, the buyer has to pay the penalty fee for the time the car was unregistered. These can really add up, so you should make your buyer aware!
This late penalty gets attached to the vehicle, so the buyer will have to pay it when they register the vehicle in their name.
5. Let the Buyer Know
If you are selling a vehicle with expired registration, you should disclose this to the buyer in your ad, so they are aware there might be extra costs associated and there are no surprises. It may be expected that you lower your price if the registration is expired. You might also check with your state DMV about the process and cost for your potential buyers to renew and transfer the registration.
This puts the buyer in an uncomfortable situation and might make them less likely to buy from you, or they might ask you to lower the price.
6. Non-Operative Vehicle Registration
If you want to get around registering a vehicle you're not using, in some states (like CA), you can register your vehicle for Planned Non-Operation. Note that with a PNO the vehicle cannot be driven on public roads or parked on public streets. This means that if you sell the vehicle, the owner must pay the registration fee before driving it.
7. Temporary Registration (for Test Drives, Delivery, etc.)
If your vehicle does not have current registration, it cannot legally be driven, which introduces issues if you need to deliver the vehicle or want to allow the buyer to test drive it. Some states issue temporary permits for such occasions.
Do not allow a buyer to test drive an unregistered vehicle! Any fines will come back to you as the titleholder.
With KeySavvy, we will provide the buyer with temporary plates and registration so that they will be able to drive it right away.
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8. Why You Might Still Want to Renew Your Registration Before Selling
a. It might be a selling point that the registration is still current. Some state DMVs pro-rate registration from the previous owner, so the buyer only has to pay the transfer fee.
b. The buyer might feel less confident buying a car with expired registration because it suggests disuse and lack of maintenance. It may require you to lower your asking price.
Summary
1. You can legally sell a vehicle with expired registration.
2. Buyers may be more hesitant to purchase a vehicle without registration as it may incur extra costs and cause hassles.
3. It's a good idea to check with your state DMV to see if the buyer will run into any problems.
We support both the buyer and seller in private auto sales by verifying both parties, securing payment, and handling the transfer of title. We also have experts on call to guide you through the process.
About Steven Gin
Steven is a content specialist and digital interaction designer who also holds a doctorate in English literature.
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