Alabama Title Transfer in a Private Sale: 20 Days, $15 Title, 2% Tax

In an Alabama private sale, the seller signs the title over to you and pulls their plate, and you then have 20 calendar days to apply for the title and register the car with your county licensing official. Expect a $15 title application fee plus a small agent commission, a 2 percent state sales tax on the price plus your county and city rate, ad valorem tax and the plate fee. Cars more than 35 model years old skip the title and only get registered.

I pulled the Alabama Department of Revenue (ALDOR) motor vehicle FAQs on October 16, 2026 while writing this. ALDOR runs the title system, and your county probate judge, license commissioner or tax collector (the name changes by county) is the licensing official who takes your money and hands you the plate. One thing to know up front: the ALDOR pages I read never mention a notary for an ordinary private sale, so do not let anyone charge you for a stamp you were not asked for.

Does the car even need a title?

Alabama uses a rolling age test. ALDOR's title requirement FAQ says every motor vehicle not more than 35 model years old that is domiciled and registered in Alabama needs an Alabama certificate of title, and a vehicle more than 35 model years old is exempt. A 2022 ALDOR designated agent training deck adds that the age exemption moves forward every January 1, with the example that as of January 1, 2020 all 1984 and older vehicles were exempt. Run that same math for 2026 and model year 1990 and older cars are title-exempt, while 1991 and newer need a title. On an old truck, confirm the cutoff with your county first.

For an exempt car you still register it, and the licensing official or a deputy has to inspect the vehicle and your ownership paper, usually a bill of sale, each time ownership changes. Get a bill of sale with the VIN, price, date and both signatures.

What the seller does on the back of the title

The seller fills in the assignment on the back of the current title: your name, the sale date, the price, the odometer reading where the form asks for it, and their signature. Every owner listed has to sign. If there is a lien shown, you need the lender's release in hand; the same training deck says a release not on letterhead has to be notarized and name the recorded lienholder.

Mistakes are where Alabama gets fussy. ALDOR's deck says an error in a private assignment can be fixed with an Assignment Correction Affidavit (Form MVT 5-7) carrying notarized signatures of both buyer and seller, but correction fluid, erasures or heavy blotting on the title mean a replacement title is needed. So tell the seller to write slowly. I would rather wait ten minutes than chase a seller who moved to Georgia for a second signature.

The 20-day clock and the money

ALDOR's deadline FAQ gives you 20 calendar days from the date you bought the car. If day 20 lands on a Sunday, a legal holiday or a day the office is closed, the next working day counts. The title application has to be done before registration can be processed, and the car must already be covered by an Alabama liability policy, which the office checks through the state's online insurance verification system. ALDOR's plate FAQ lists a $15 penalty plus interest for registering a newly acquired vehicle late.

The title cost FAQ puts the application fee at $15. Designated agents add a $1.50 commission, licensing officials may collect another $1.50, and some counties tack on local fees. Then comes tax. ALDOR's casual sales tax page sets a 2 percent state rate on vehicles bought from anyone who is not a licensed dealer, plus local county and city rates, and the licensing official collects it before the car is registered. On an $8,000 sedan the state piece alone is $160. Add your local rate, ad valorem tax, the registration fee and roughly $16.50 to $18 for the title, and the total climbs fast. Our used car sales tax post compares how other states handle private sales.

ALDOR says titles are normally issued 10 to 15 business days after the department gets a correct application, then 3 to 5 more business days to reach you or your lender.

Plates stay with the seller

ALDOR's plate FAQ says the registrant removes the plate when they sell. They can move it to their next vehicle; the state transfer fee is $1.25, and some counties add local issuance fees. You will need your own plate, so plan how you are getting the car home legally before you hand over cash.

Check the car before the paperwork

Alabama sits on the Gulf, and flood cars do turn up with clean-looking titles from somewhere else. Match the VIN on the dash, door and title using our VIN verification for title transfer steps, decode it on NHTSA's vPIC decoder, and search NMVTIS for brands. If the title says salvage or rebuilt, stop and read our Alabama salvage and rebuilt title rules before you negotiate.

A seller who hands you a printed report from last spring has not proven anything about this week. Run your own, as our CARFAX for private-party sales post explains. CarVins is a licensed reseller of CARFAX and AutoCheck reports and is not affiliated with CARFAX, AutoCheck or Experian. As of mid October 2026 one report runs about $5.50 checking out as a guest or about $4.50 as a member, and a CARFAX plus AutoCheck bundle is about $6.75; going direct at retail tends to cost somewhere from $39.99 to $44.99. Confirm the total at checkout. CARFAX's report overview shows what the sections cover.

Sources

• ALDOR: days to title and register
• ALDOR: title application cost
• ALDOR: casual sales tax
• NMVTIS (U.S. Department of Justice)
• CARFAX vehicle history reports