Alabama title and registration, step by step

Which forms, which fees and which deadlines. For a car bought in the state and for one you bring from another.

In Alabama the title is issued by Alabama Department of Revenue — Motor Vehicle Division (ALDOR). Alabama issues electronic titles (ELT) when the lender is enrolled; otherwise the title is paper. The title is usually issued in 10–15 business days and arrives 3–5 business days later. Cars more than 35 model years old have no title: they sell with a bill of sale and an inspection (§ 32-8-31(13)).

Where it happens. At the license plate office in your county (probate judge, license commissioner or revenue official, depending on the county). There an ALDOR designated agent files the title application, and then the car is registered. Alabama has no "DMV" offices for this. Confirm the deadline and the event that starts it for your transaction: a purchase, receipt of the signed title or a move into the state can have different rules. Late-fee information in the state sources: $15 + interest.

Case 1: you bought a car in Alabama (private seller)

What the seller hands you

• The title with the transfer section completed: your name and address, sale price, date, odometer reading and the seller's signature (both owners if two names are joined by "and").
• If there was a loan: a lien release from the bank, or the lien already removed from the title.
• A bill of sale with VIN, price and signatures. You need it for the sales tax.

What you bring to the office

• The state forms (below), completed.
• The signed title and the bill of sale.
• Applicable insurance or financial-responsibility documents: Minimum liability 25/50/25: $25,000 for injury or death of one person, $50,000 for two or more people and $25,000 for property damage, with an insurer licensed in Alabama (§ 32-7-6(c)). Alabama is a tort (at-fault) state; no PIP is required.
• Valid photo ID.
• Payment: title, registration, plate and sales tax if not paid yet.

Case 2: you bring a car from another state

• Everything above, plus: Yes. For a first Alabama title (including a car coming from another state), the VIN, make, year, model and color are physically inspected on form MVT 5-9. It is signed by a government official or law enforcement officer appointed by the plate office (rule 810-5-75-.55). A simple transfer of an existing Alabama title does not need it (rule 810-5-75-.55(3)). Even so, ALDOR says the licensing official or an appointed deputy must inspect the vehicle before issuing the registration.
• The original out-of-state title (or the bank's letter if it holds it for the loan).
• Tax: Reduced 2% state rate for vehicles, plus the local city and county tax (both can apply). If you buy from a dealer, the dealer collects it. In a private sale you pay the same 2% plus the local tax at your county plate office when you register the car (casual sales and use tax, § 40-23-101). With a trade-in at a dealer the tax is figured on the net difference (rule 810-6-1-.22); a car you hand over without buying another one does not count as a trade-in. If you already paid tax to another state, you get credit for that amount (§ 40-23-106).

Forms

• MVT 5-9 — Vehicle Inspection Form (VIN, make, year, model and color)
• MVT 5-5 — Odometer Disclosure Statement
• MVT 5-7 — Affidavit to correct an assignment on a title
• MVT 5-13 — Power of Attorney (so someone else can sign for you)

Fees — confirm current amounts (ALDOR)

Amounts come from the linked state sources and can change. This guide distinguishes source checkpoints from narrow claim reviews; confirm the total for your transaction before you go. A dash means an amount has not been confirmed here.

Sales tax

Reduced 2% state rate for vehicles, plus the local city and county tax (both can apply). If you buy from a dealer, the dealer collects it. In a private sale you pay the same 2% plus the local tax at your county plate office when you register the car (casual sales and use tax, § 40-23-101). With a trade-in at a dealer the tax is figured on the net difference (rule 810-6-1-.22); a car you hand over without buying another one does not count as a trade-in. If you already paid tax to another state, you get credit for that amount (§ 40-23-106).

If you sell: protect yourself

Confirm which sale notice, plate return or registration cancellation applies to your situation; keep written proof of the handover. The plate belongs to the owner: the seller removes it at the sale and can transfer it to the next car ($1.25 state fee). The buyer has 20 calendar days to get title and plate without a penalty. If a plate cannot be issued right away, the plate office can issue a 20-day temporary tag. Keep copies of the title, filed notices and handover date to answer later registration, toll or ownership questions.

Mistakes that cost

• Missing the deadline. Check the deadline and consequence for your transaction; filing periods and penalties do not all start from the same event.
• Title with cross-outs or correction fluid. Ask the issuing agency which correction or replacement document it accepts before using it.
• Buying with an "open" title (signed by a previous owner, not the person selling to you). Confirm the ownership chain and the documents the agency requires before paying.
• Showing up without in-state insurance. Confirm the insurance or financial-responsibility documents required for your situation.