In Wisconsin, vehicle sales are governed by Wisconsin Statutes, Section 342.15, which details the legal process. Understanding this law helps sellers ensure smoother transactions and fosters transparency and trust between the buyer and seller.
Sellers must adhere to the required procedures and paperwork mandated by Wisconsin to streamline the selling process. This includes knowing which documents need to be signed and submitted, handling license plates after the sale, and notifying the Wisconsin Department of Transportation (WisDOT) about the sale.
Additionally, emissions tests are required in certain areas of Wisconsin when selling a vehicle. Compliance with these tests helps protect the environment by reducing pollution and promoting public health.
Legal Requirements Before Selling a Vehicle in Wisconsin
Before selling a vehicle in Wisconsin, in addition to thoroughly cleaning the car to present it well and listing it online, sellers must adhere to these legal requirements to ensure a smooth and lawful transaction:
Title Preparation
Before selling a vehicle, sellers must have the original title. If the title is misplaced or lost, the seller must secure a replacement title, as it is needed during the transfer of ownership.
To obtain a replacement title in Wisconsin, the vehicle owner should complete the Replacement Title Application or MV2119 and submit it to a local Wisconsin DMV office or visit the "Replacement Title Request tool" on the DOT website and prepare the following:
- Vehicle identification number (VIN)
- Current plate number (if applicable)
- Title number (if known)
- Reason for replacement
- Vehicle owner's name and address and any lienholder information
After entering the information, pay the $20 fee online. Ensure all details are correct before submitting, as the transaction cannot be canceled or refunded.
To apply by mail, vehicle owners should complete Form MV2119, available on the Wisconsin DOT website. Then, submit it along with a check or money order for $20, payable to the Registration Fee Trust, to the following address:
WI Dept. of Transportation
P.O. Box 7949
Madison, WI 53707-7949
Safety Inspection
Before a vehicle can be sold, the seller must verify that it has undergone and passed a thorough safety inspection. Conducting a safety inspection with the Wisconsin DMV involves several steps.
First, prepare the vehicle's title, registration, driver's license or ID, and any previous inspection reports. Sellers should ensure that the vehicle is in good working condition by checking brakes, lights, tires, mirrors, and the engine and addressing any minor repairs.
On the inspection day, arrive on time with all required documents. The inspector will examine the vehicle's safety features and overall condition. If the vehicle passes, they will receive a certificate of inspection, essential for the sale. If it does not pass, address the issues listed by the inspector and schedule a re-inspection.
While a DMV safety inspection is not mandatory for private sales in Wisconsin, these steps help ensure the vehicle's safety and build trust with the buyer. For dealer sales, the dealer may conduct their own inspection as part of the appraisal process.
Emissions Testing
In Wisconsin, emissions testing is not mandatory for all vehicles before selling, but specific vehicles in certain counties must undergo testing. Vehicles requiring emissions testing include:
- Natural gas, gasoline, or hybrid vehicles with model years 1996-2006 with gross vehicle weight rating (GVWR) less than 8,501 lbs.
- Natural gas, gasoline, hybrid, or diesel vehicles with model years 2007 and newer with GVWR up to 14,000 lbs.
Emissions testing is required if the vehicle is located in Kenosha, Milwaukee, Ozaukee, Racine, Sheboygan, Washington, or Waukesha counties. The seller should inform the buyer that testing must be conducted under the following circumstances:
- Within 45 days of purchasing a vehicle.
- When adding or removing an owner from a vehicle title.
- When new residents transfer a vehicle to Wisconsin.
- Every other year before plate renewal.
To get an emissions test, the seller should direct the buyer to any authorized Wisconsin emissions testing facility and bring the documents, including:
- Renewal Statement
- Prior emission inspection report
- Emission letter
- Wisconsin title
- Substitute Renewal Notice/Non-operation Statement or MV2016
Getting a Vehicle History Report
Aside from preparing the title, getting a vehicle history report is crucial in facilitating a transparent and trustworthy transaction in Wisconsin. A vehicle history report provides potential buyers with crucial information about the car's past, including previous ownership, accident history, repairs, and any manufacturer recalls.
Sellers can obtain a vehicle history report through the National Motor Vehicle Title Information System (NMVTIS). This system allows access to approved data providers who can retrieve records using the VIN.
While there is usually a fee involved, the NMVTIS report covers five key areas: the current state of the title and the last title date, brand history, odometer reading, total loss history, and salvage history.
In addition to a vehicle history report, Wisconsin vehicle sellers can use the Vehicle Record - Entry online tool of WisDOT to access other relevant vehicle records. To obtain a record, users must prepare the necessary information below and pay the applicable fees:
- Wisconsin driver's license or ID card number
- Social Security number
- Date of birth
- VIN
Payment can be made using a credit/debit card or PayPal, which includes a convenience/service fee, or by using checking/savings account numbers to avoid the fee.
Once the transaction is complete, the seller will receive an emailed vehicle record containing details such as the vehicle's title, plate/registration information, and emission test results (if applicable).
Selling a Vehicle with a Lien in Wisconsin
Before selling a vehicle with a lien in Wisconsin, the lien must be fully satisfied before the title can be transferred to a new owner. The process involves several key steps to ensure the lien is released correctly. Initially, the seller must verify the lien status, which can be done through the WisDOT online lien lookup tool using the VIN.
To remove the lien, the owner must pay the payoff amount, which is the total needed to clear the loan. After paying off this amount, the owner should request a lien release from the lienholder. The release can be processed electronically or through a physical document.
If it's electronic, the lienholder will notify WisDOT directly, and the owner will receive a new, clear title by mail. If it's a paper release, the owner must obtain a physical lien release document from the lienholder and submit it to WisDOT along with the original title to clear the lien from the vehicle's record.
Motor Vehicle Sales Tax in Wisconsin
When selling a vehicle privately, the buyer is responsible for paying the sales tax at registration. The state imposes a 5% sales tax on all vehicle transactions, both new and used. There are exemptions from sales tax for specific cases, like family transfers and vehicle trades, where no money changes hands.
No Wisconsin sales tax is charged on vehicles sold to out-of-state buyers who will not use the vehicle in Wisconsin except to transport it out of the state. However, if a car is bought outside Wisconsin and brought into the state, it is subject to a 5% use tax minus any tax already paid to another state.
In addition to sales and use taxes, vehicle transactions in Wisconsin may incur other fees such as a $69.50 title fee, registration fees ranging from $75 to $106 depending on the vehicle type and weight, a $15 plate transfer fee, and a dealership documentation fee which typically averages around $190.
Legal Requirements After Selling a Vehicle in Wisconsin
During or after the sale of a vehicle in Wisconsin, both parties must adhere to various legal obligations to facilitate a correct transfer of ownership from potential liabilities. These obligations include disclosing odometer readings, properly transferring the title, removing license plates, and informing WisDOT about the transaction.
Odometer Disclosure Requirements
Wisconsin Statute Sec 342.155 requires sellers to disclose specific odometer readings. This ensures accurate mileage reporting during vehicle sales transactions and is essential for title transfer.
Sellers must provide the buyer with a written odometer disclosure statement. This statement records the vehicle's mileage at the point of sale or transfer. It must be included on the vehicle's certificate of title or a separate form if the title lacks space for the odometer reading.
However, there are exemptions to this rule. Vehicles exempt from this requirement include those from the 2010 model year or earlier, trailers, or cars with a GVWR over 16,000 pounds.
It is illegal to tamper with a vehicle's odometer to misrepresent the actual mileage. Such actions are subject to penalties, including fines and imprisonment. If an odometer reading is reported as "Not Actual," indicating discrepancies in the recorded mileage, this status remains permanent and may significantly reduce the vehicle's value.
Bill of Sale
Although a bill of sale is not legally required when selling a vehicle in Wisconsin, it serves as a valuable transaction record for both parties. To draft a bill of sale, sellers can include the following:
- Make, year, model, vehicle identification number, and an odometer reading for the vehicle
- Name, address, and telephone number of the buyer
- Name, address, and telephone number of the seller
- Signatures of both buyer and seller
- Selling price and date sold
Alternatively, the WisDOT provides an optional form, the Instructions for Selling a Vehicle (MV2928). This form also includes detailed guidance on the necessary steps for legally transferring ownership of a vehicle to the buyer.
Completing the document with the signatures of both parties, the selling price, and the date of sale not only provides clear evidence of the transaction but also ensures transparency and helps prevent potential disputes.
Transferring the Title to the New Owner
Transferring a vehicle title in Wisconsin can be done efficiently either online or in person to avoid potential delays associated with mail applications, where incomplete or illegible information could result in the application being returned unprocessed.
To begin the title transfer process, the seller listed on the vehicle's original title must print, sign, and date the back of the title. As mentioned earlier, both parties should accurately fill out the odometer reading to validate the sale.
Next, the new owner alone needs to complete the Title/License Plate Application or MV1, ensuring the VIN on the application matches that on the title. If the buyer is under 18 and purchasing their first car, a parent or guardian must sign and have their signature notarized on the application.
If the original title is unavailable, acquiring a vehicle without it requires obtaining a surety bond after completing forms MV2082 and MV1.
Removing the License Plates
After selling a vehicle in Wisconsin, sellers should typically remove the license plates unless the vehicle falls into specific exempt categories. These exceptions include:
- Trucks registered at 10,000 pounds or more
- Farm trucks registered at 16,000 pounds or more
- Moped
- Trailers
- Recreational vehicle trailers
When a license plate is due for re-issuance because it has exceeded its lifecycle or is damaged, WisDOT mandates its replacement. This process is initiated automatically when the vehicle registration is renewed, and the plates are ten or more years old.
An additional fee of $8 is required for the new plates, which will be provided with updated year and month stickers. If the plates are peeling or faded, the vehicle owner can request an early replacement through the WisDOT website, which ensures that they will not be automatically replaced again during the re-issuance cycle.
On the other hand, the buyer must acquire new license plates for the vehicle. This action properly registers the vehicle in the buyer's name and complies with the state's regulations.
Seller Notification
In Wisconsin, the seller must notify WisDOT when a vehicle is sold from one individual to another. This obligation is outlined in Wis. Stat. 342.41, which specifies that the seller must report the sale within 30 days.
This notification helps WisDOT maintain accurate vehicle ownership records and protects both the buyer and seller. It also helps prevent fraud and ensures that the vehicle's title is transferred properly.
The information that needs to be reported includes:
- The seller's Wisconsin driver's license or identification card number
- The last four digits of the social security number
- The seller's date of birth
- VIN of the vehicle sold
- The buyer's information (name and address)
- The sale price
- The date of sale
How To Notify WisDOT of the Sold Car?
As mentioned earlier, when a vehicle is sold in Wisconsin, the seller must notify WisDOT of the sale within 30 days.
To notify WisDOT of a sold vehicle, sellers can use a convenient online service called "Seller Notification." This platform is accessible through the official WisDOT website and allows sellers to submit their sale notifications easily.
The service is designed to be user-friendly and compatible with mobile devices and desktop computers. It enables the real-time submission of sale data directly to WisDOT.
Once the notification is completed online, the user can print, email, or save a confirmation. Note that this notification will not be recorded on the vehicle's official record.
Those who prefer not to use the online service can report the sale by completing and submitting an MV 2870 by mail or at a local DMV service center.
Failing to notify the DMV within the 30-day window can lead to complications in vehicle records and potential legal issues. Ensuring the notification is promptly made is crucial to avoid any negative consequences.