Selling a vehicle in Nebraska must follow the specific requirements outlined in the Nebraska Revised Statute 60-149. These requirements include those for transferring vehicle ownership within the state. Adhering to these legal stipulations can help prevent potential complications.
The selling process typically involves compiling the necessary paperwork and completing the transaction through the Nebraska Department of Motor Vehicles (DMV). Thorough attention to detail and preparation can significantly simplify the overall procedure, making the vehicle sale a smoother and more streamlined experience.
Legal Requirements Before Selling a Vehicle in Nebraska
Several legal and administrative steps must be followed before selling a vehicle in Nebraska. The first and most critical step is gathering all the necessary documents, including the vehicle's title and registration. These documents comprehensively record the vehicle's history, ownership, and legal status.
Compiling vital documents upfront can save time and potential complications later in the sales process. It sets the stage for a transparent and well-documented transaction, which is essential for both the seller and the buyer.
Duplicate Title
When preparing to sell a vehicle in Nebraska, it's crucial for the owner to have a valid title in hand. If the original title has been lost or damaged, the seller must obtain a duplicate from the state where the vehicle is currently titled before proceeding with the sale.
The Nebraska Department of Motor Vehicles (DMV) offers a streamlined process for obtaining duplicate titles. The vehicle owner must first complete the Application for Duplicate Certificate of Title (Form RV-707a), which requires essential information about the vehicle and an explanation for why the original title is unavailable.
In addition to the application, the owner must provide proof of ownership, such as a bill of sale, vehicle registration, or other documentation that establishes their legal claim to the vehicle.
The fee for obtaining a duplicate motor vehicle title in Nebraska is $14. The owner has two options for submitting the application: in person at their local DMV office or by mail to the address below:
Nebraska Department of Motor Vehicles
P.O. Box 94789
Lincoln, NE 68509-4789
After the county DMV office receives the completed application packet, they will process the request. Typically, the new duplicate title is mailed to the vehicle owner within two to three weeks. This timeframe should be considered when planning the sale of the vehicle, as the seller will need to have the duplicate title in hand before finalizing the transaction.
How To Transfer an Out-of-State Title to a Nebraska Title?
In Nebraska, a vehicle being sold must have a Nebraska title to legally transfer ownership to a new owner within the state. According to Nebraska Revised Statutes Section 60-137, any vehicle driven on Nebraska roads must be registered and titled in Nebraska unless specifically exempted.
If a person brings a vehicle into Nebraska from another state, they must have it inspected before they can get a Nebraska title for it. The inspection requires a nominal fee of $10, payable at the time of service.
Once the seller has the VIN inspection certificate, they can then apply for an NE of title for the vehicle. The other requirements include:
- Existing Title Certificate
- A filled-out Application for Title Certificate
- Current insurance coverage document
- Most recent vehicle registration
- Payments and taxes due
Specific fees and payment options can be obtained by contacting the concerned county motor vehicle office using the Telephone Listing found on the Nebraska DMV County Locations Table page on the DMV website. Individuals who move to Nebraska must get a Nebraska Title Certificate 30 days after their arrival before they can legally sell their property.
Vehicle History Reports
When selling a vehicle in Nebraska, sellers should be aware of the importance of vehicle history reports. These reports have become a standard expectation for many prospective buyers of used cars, as they provide crucial information about the vehicle's past.
One reliable source for obtaining a comprehensive vehicle history report is the National Motor Vehicle Title Information System (NMVTIS). This system allows sellers to input the vehicle identification number (VIN) and retrieve a detailed report on the car's history.
The NMVTIS report typically includes information such as the vehicle's title history, any reported accidents, previous ownership, and whether the vehicle has been salvaged or declared a total loss.
By obtaining and reviewing this report before listing their vehicle for sale, Nebraska sellers can anticipate potential questions from buyers and address any issues upfront. This transparency can help build trust with potential buyers and potentially streamline the selling process.
Additionally, having this information readily available demonstrates the seller's commitment to honesty and can be a valuable selling point in negotiations.
Vehicle Advertisements
Another legal requirement to keep in mind when selling a vehicle in Nebraska is the state's strict regulations regarding vehicle advertisements. According to Nebraska Motor Vehicle Laws, specifically the Motor Vehicle Industry Licensing - Advertising section, there are several key rules that sellers must follow:
Advertisers must be truthful and clear in all aspects of their advertisements, including the vehicle's year, make, model, equipment, price, and any terms or conditions of sale. It is illegal to advertise a vehicle that is not in the seller's possession and is ready to be shown and sold as advertised.
Sellers cannot advertise prices that don't include all charges the customer must pay, except for state and local taxes, license, title, and other fees. It is also prohibited to use misleading terms like "at cost," "below cost," or "wholesale" unless strictly accurate.
Additionally, used vehicles must be clearly identified as such, and sellers cannot advertise in a way that creates the impression that used vehicles are new. These regulations aim to protect consumers and ensure fair practices in vehicle sales across Nebraska.
Selling a Vehicle With a Lien in Nebraska
When selling a vehicle with an existing lien in Nebraska, the seller may either pay off the remaining balance or arrange for the buyer to pay the lender directly. Otherwise, the seller can prepare for the buyer to pay the lender directly.
The title to a vehicle cannot change hands until any existing liens or loans on the vehicle have been fully paid off and released by the lienholder. Hence, the seller must first pay off the lien.
Paying Off the Lien
When selling a vehicle, it is essential for sellers to carefully assess the payoff amount in relation to their expected selling price. If the payoff amount is lower than the selling price, sellers should take the following steps:
- Request a lien release letter from the lienholder.
- Utilize the buyer's payment to pay off the outstanding lien.
- Retain any remaining amount as profit.
However, if the payoff exceeds the selling price, sellers must cover the difference out of pocket. In such cases, it may be wise to negotiate with the buyer or reevaluate the selling price.
Regardless of the situation, sellers must remit the full payoff amount to the lienholder before proceeding with the sale.
Releasing the Lien
In Nebraska, when a seller pays off a vehicle's lien, the lienholder can release their security interest on the title. The most straightforward way for the lienholder to do this is by manually canceling the lien directly on the physical paper title. The lienholder typically notes the cancellation with their signature and the date the lien was cleared.
Alternatively, if the lienholder participates in Nebraska's Electronic Lien and Title (ELT) system, they can release the lien electronically through that program.
However, if the lienholder does not use the ELT system, they must submit a Non-Participating Lender Lien Release Form to the motor vehicle office. It notifies the office that the lien has been satisfied, even though the lienholder did not cancel it directly on the title. The motor vehicle office can then issue a new, clear title to the vehicle's owner.
Motor Vehicle Sales Tax in Nebraska
In NE, the buyer must pay a 5.5% state sales tax on the full purchase price of the vehicle. Sales tax requirements for vehicle purchases in Nebraska can be found on the NE Sales Tax and Use Tax page on the DMV official website.
In addition to the 5.5% state sales tax, local counties and cities can charge up to an extra 2% sales tax on vehicle purchases. The accurate local tax rate depends on where the vehicle is bought.
The process of paying the sales tax differs slightly based on whether the vehicle is purchased from a dealership or in a private-party transaction.
When a buyer purchases from a dealership, the dealer collects the total sales tax amount, including any applicable local taxes, and submits it to the state on the buyer's behalf. However, for private-party vehicle sales, the buyer pays the total sales tax directly to the Nebraska DMV during the vehicle registration process.
In addition to the sales tax, Nebraska imposes a motor vehicle tax that buyers must pay when registering their vehicles. Buyers may refer to the MV Tax Fee Chart to determine the specific motor vehicle tax amount owed for their car.
Sales Tax for Vehicles Sold in Nebraska to Residents of Another State
If someone sells a vehicle to a resident of another state and the buyer takes possession of the car in Nebraska, the state's sales tax typically still applies. However, if the buyer transports the vehicle out of state and registers it in their home state, they may be exempt from Nebraska sales tax.
The seller and buyer must complete a Nebraska Sales and Use Tax Statement for Motor Vehicle and Trailer Sales, commonly known as Form 6. This form verifies that sales tax is either collected or documented as exempt. The buyer must provide proof of residency in another state and evidence that the vehicle will be registered out-of-state.
Legal Requirements After Selling a Vehicle in Nebraska
Both parties must fulfill several legal obligations to finalize the transaction during and after the vehicle sale in Nebraska. These requirements include completing the odometer disclosure statement, securing the bill of sale, transferring ownership through the appropriate documentation, removing license plates, canceling insurance, and applying for a vehicle refund.
Through fulfilling these procedures, both parties can seamlessly complete the transaction while mitigating any legal risks or complications that may arise.
Odometer Disclosure
In Nebraska, sellers are legally required to disclose the vehicle's odometer reading when transferring ownership. The Odometer Certification Section, located on the Certificate of Title, must be completed by both the buyer and the seller to verify the odometer reading.
However, there are several types of motor vehicles that are exempt from this odometer certification requirement:
- Vehicles 20 years old or older
- Vehicles with a gross vehicle weight rating (GVWR) of more than 16,000 pounds
- Non-motorized vehicles such as trailers
- Not self-propelled vehicles such as mobile homes
For more details about odometer disclosure, visit the NE DMV's Odometer Certification page.
In certain situations in Nebraska, a separate Odometer Disclosure Statement may be required. This occurs when a title must be issued by court order or when a dealer has voided an assignment on a manufacturer's statement of origin and is reassigning. This supplemental form allows proper documentation of the odometer reading when the title is unavailable during the sale.
Note that failing to disclose the odometer reading accurately or altering the odometer can result in significant penalties in Nebraska, including fines of up to $10,000, imprisonment of up to five years, and the possibility of civil lawsuits from the buyer.
Bill of Sale
The Bill of Sale is an essential document that formalizes the transaction details between the seller and the buyer. This serves as evidence that the sale has occurred and that ownership of the item has been transferred from the seller to the buyer.
The bill of sale records the key details surrounding the sale, including:
- Full names and complete residence of the seller and buyer
- Vehicle details such as the VIN and the year model
- The sale price
- The date of the sale
- Signatures of both the buyer and seller
Note that the seller must provide the buyer with the completed and signed bill of sale at the time of the transaction. It is important that the bill of sale is witnessed and signed by a notary public to make the document legally valid and enforceable.
Transferring the Title to the New Owner
When selling a vehicle in Nebraska, transferring the title to the new owner involves several critical steps. The seller must complete the Seller's section of the Certificate of Title, with all listed names signing off. Before reassignment, the lienholder and County Official must release any existing liens.
The seller is responsible for completing the Odometer Certification and providing a Bill of Sale or Nebraska Department of Revenue Form 6.
The buyer's information, including name, address, and signature, must be entered in the purchaser's section at the time of sale to avoid an illegal "Open Title" situation. Spouses cannot sign for each other during this process. Most Nebraska titles have these sections on the lower half of the face, though older titles may have them on the back.
Careful attention is required when completing the title, as errors or alterations necessitate obtaining a Duplicate Certificate of Title. The buyer must obtain a Certificate of Title within 30 days of purchase by submitting an Application for a Certificate of Title to the County Treasurer, along with a $10 fee.
Removing License Plates
In Nebraska, transferring vehicle ownership involves removing the license plates from the sold vehicle. This procedure is mandated by Nebraska Revised Statute 60-399, which governs the state's vehicle registration protocols.
When someone sells a car in Nebraska, the license plates must be detached and remain with the previous owner. The previous owner must surrender the license plates and vehicle registration to the county office where they were originally obtained.
This approach protects the seller, who might otherwise face complications if the plates were left on the sold vehicle. It also helps to prevent any misuse or fraudulent activities related to the license plates.
Canceling Insurance
The seller should promptly contact the concerned insurance provider to cancel the insurance. The sale will officially terminate the coverage on the sold vehicle, effective on the date of the deal.
The insurance provider will typically require the seller to provide specific details about the sale, such as the date of the transaction, the buyer's information, and the vehicle's identification. By taking this action, the seller can avoid legal or financial complications.
How To Apply for a Vehicle Registration Refund?
In Nebraska, registered vehicle owners may be eligible to apply for a refund of unused registration fees, motor vehicle taxes, and associated fees if the vehicle's status has changed, such as its sale.
To qualify, the owner must gather the necessary documents, including a fully completed Application for Refund, the vehicle's license plates, registration, and validation decals. The application must be filed within 60 days of the vehicle's status change.
Submitting these documents on time allows the owner to receive a prorated refund for the unused portion of the registration. This process helps vehicle owners reclaim a portion of their fees when they no longer possess the vehicle, preventing them from being financially burdened by the remaining registration period.