Alabama

July 27, 2016
Posted by: admin10

What to know when buying a vehicle in Alabama

If you live in Alabama or plan too its best to know when purchasing a vehicle some important facts.

What to know when buying a vehicle in Alabama, whether you are leasing, financing or paying cash, (How much tax rate, it is 2% to 4% in Alabama depending on county)

Alabama’s state auto sales tax rate is 2 percent of the purchase price. Also depending on local county taxes can be applied as well, up to about 4 percent. Please visit the Sales tax rates from the Alabama Department of Revenue.

The decision to buy a car whether a used one, or a new one is big in itself. It does not matter whether you are leasing, financing or paying cash for the vehicle, there are certain things that you need to know when you are buying a vehicle in Alabama. It is a big investment and you cannot handle it just like that. For this reason, you need to adhere to certain rules so that the vehicle does not get confiscated at any point of time.

There is an extensive paperwork involved in the process of buying a vehicle in Alabama. As the car buyer, you need to ensure that you get certain important papers like the vehicle title, bill of sale and an odometer reading statement. The car dealership from where you purchase the car usually handles the complexities of the paper work. But, in case the seller is a private dealer, then as the car owner all responsibilities of handling the paper work is on your shoulders. Once all the paperwork in in place, take them to the Alabama Motor Vehicle Commission for registering the vehicle. Once the fees are paid, and the process is complete, the vehicle owner will issue the license plates.

As part of the car buying process in Alabama, the first and foremost important thing that you need to take care of is getting the Vehicle Title.

How Can You Get The Title For Your New Car In Alabama?

When you buy a car from the Alabama dealer, then the vehicle will be titled as part of the sales process. If the dealer is not providing with the title, then it comes on you to get the vehicle title within 10 days of purchasing the same. If this does not happen, then one can face a penalty fee. There are a few things to note her here as well like:

  1.  The vehicle title can be acquired at any MVC agency but the owner must be present.
  2. The Manufacturer’s Certificate of Origin (MCO) carrying the sales tax satisfied stamp should be displayed. The vehicle owner needs to pay a 2% to 4% sales tax on the purchase price of the vehicle. If there is a trade-in on the dealer’s invoice, then the trade-in price is to be subtracted from the vehicle’s actual price and then calculate the sales tax on the adjusted price.
  3.  In case the vehicle is financed, then the owner needs to submit the address and corp code of the lien holder. The lien holder receives the original title.

Vehicle History Reports

A new car is unlikely to give you any trouble. But if you are buying an used car, then there is no guarantee that it will give you a flawless service. That is why when you are buying an used car in New Jersey, then ask for the vehicle history report. On the basis of the car’s VIN or Vehicle Identification Number, the vehicle history report provides details of:

  • The accident history
  •  Damage history
  •  Current or recent odometer reading

Alabama Lemon Law

Alabama’s Lemon Law protects new motor vehicle buyers when that same car shows signs of warranty defects that are beyond any repair either by the manufacturer or the dealer. Under this law vehicles are covered during the first two years from the actual date of delivery or 24,000 miles, whichever is first. For used cars, this law is applicable to vehicles that meets the following criteria:

1. Claim’s must be made within the first year or 12,000 miles, whichever occurs first.

2. The manufacturer must have an opportunity to repair or fix the vehicle three (3) times, and one more time after notice is given.

3. Lemon notice must be sent via certified mail.


Here are the main questions we receive about buying a vehicle in Alabama

  • What does Al state license plate look like?
  • Can I buy my vehicle out of state if I live in Alabama? Like buying in New York?
  • What are the main insurance companies available in Alabama?
  • Can I keep my old license plates in AL?
  • What discounts are available for seniors, disabled and programs available in Alabama?
  • How to renew my license in AL?
  • How to inspect my vehicle, car, truck in Alabama?
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