July 27, 2016
Posted by: admin10

What to know when buying a vehicle in Alaska

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

What to know when buying a vehicle in Alaska, whether you are leasing, financing or paying cash, (How much tax rate, it is 0% in Alaska)

There is no state sales tax on cars in Alaska. You are required to pay a motor vehicle registration tax in select Cities.
You can see the Motor Vehicle Registration chart for Alaska.

Alaska’s state auto sales tax rate is 0% . Also depending on local county registration fee can be applied.

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 Alaska. 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 Alaska. 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 Alaska 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 Alaska, 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 Alaska?

When you buy a car from the Alaska 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.

 The Manufacturer’s Certificate of Origin (MCO) carrying the sales tax satisfied stamp should be displayed.  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.

 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

Alaska Lemon Law

  • For a single defect or condition that defies repairs, the Lemon Law says: The car has a serious problem that the owner has attempted to repair at least three times within that year.
  • The vehicle has been out of service for repairs for at least 30 days during that year.
  • If either situation occurs, the owner must submit a written claim to the car manufacturer, who has a further 30 days to attempt one final repair. If that fails, the owner can receive either a replacement or a refund.

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

What does AK state license plate look like?


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

To purchase a single sample license plate please send your request and a check drawn on a U.S. bank or a U.S. Postal Service money order to:

Alaska Division of Motor Vehicles
1300 W. Benson Blvd., Ste. 200
Anchorage, AK 99503-3600


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