When buying or selling a non-operational used car, understanding who is responsible for accrued DMV fees is essential. Generally, the seller is responsible for any unpaid DMV fees accumulated before the vehicle’s sale.
However, depending on the terms of the sale and specific state laws, this responsibility can sometimes shift to the buyer. Before completing a transaction, both parties must clarify any outstanding fees and discuss their responsibility to avoid future issues.
Do DMV fees apply if the car is non-operational?
Yes, DMV fees can still apply even if a vehicle is non-operational. In most states, non-operational status must be formally declared to the DMV to avoid ongoing registration fees, penalties or late fees.
For instance, In Colorado, owners of an inoperable vehicle undergoing maintenance, repair, restoration, rebuilding or renovation are required to pay a Specific Ownership Tax (SOT) each year. Once the payment is made, the owner will receive a decal as proof, which must be placed on the inoperable vehicle.
Contact the DMV or check online to learn how to register a non-operational vehicle and avoid further fees.
How do I check if a car has unpaid DMV fees?
To check if a car has unpaid DMV fees, you can take the following steps:
- Contact the DMV: Contact your local DMV office or visit their website. Most states allow you to check the vehicle’s status online using the license plate number or Vehicle Identification Number (VIN).
- Request a vehicle history report: Services like Carfax or AutoCheck can provide a detailed report on the vehicle’s history, including any registration issues or unpaid fees.
- Ask the seller for documentation: If buying from a private party, request a copy of the car’s current registration and any recent DMV paperwork to ensure the fees are up to date.
These steps can help ensure you do not incur unexpected fees when purchasing a used car.
Explore the top-rated DMVs in the U.S.
Final thoughts
When dealing with past DMV fees on a non-operational used car, it’s essential to clearly establish responsibility before completing the transaction. Whether you’re the buyer or seller, make sure to learn about the legal requirements so that you can avoid any liabilities.
Always check for unpaid fees, communicate openly, and make sure all paperwork is in order to make the process smooth and hassle-free.
Resources & Methodology
Sources
- Colorado Department of Revenue. “Inoperable and Stored Vehicles.” Accessed November 2024.
- Carfax. “CARFAX Vehicle History Reports” Accessed November 2024.
- AutoCheck. “Autocheck vehicle history report.” Accessed November 2024.
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