Selling a vehicle in Idaho involves more than simply handing over the keys and receiving payment. The process entails specific legal requirements mandated by the state.
Idaho Code Section 49-502 delineates the seller's obligations. These include executing a bill of sale, transferring the vehicle's title to the buyer, and ensuring the buyer submits the required documents to the Division of Motor Vehicles (DMV) of the Idaho Transportation Department (ITD). Idaho Code Section 49-412 also requires the seller to provide a written odometer disclosure statement to the buyer.
Failing to meet these obligations can lead to legal issues and potential penalties for both parties involved. Non-compliance can also cause delays or nullify the sale, resulting in considerable inconvenience and possible legal ramifications.
Therefore, it is crucial for sellers to comprehend and adhere to these regulations when engaging in vehicle transactions in Idaho.
Legal Requirements Before Selling a Vehicle in Idaho
In Idaho, before selling a vehicle, sellers must take specific legal steps to guarantee a smooth transaction. These steps include providing proof of ownership, disclosing any known issues with the car, and completing the required paperwork accurately. Following these requirements protects both the seller and buyer and helps avoid potential legal disputes.
Title Preparation
In preparation for selling a vehicle in Idaho, the seller must meticulously prepare the title to facilitate a legal and smooth transfer of ownership. The vehicle's certificate of title stands as a legal document evidencing ownership, and its accurate completion and transfer are pivotal in establishing the rightful owner.
Duplicating the Title
Should the original title be damaged or lost, the seller must acquire a duplicate from the Idaho DMV before proceeding with the sale.
To initiate the duplicate title request, sellers must complete the Duplicate Title Application(ITD 3367) form. This form requires comprehensive and accurate information. After completing the form, the seller's signature must be either notarized or witnessed by a designated ITD or DMV employee or agent.
Once the ITD 3367 is completed and notarized/witnessed, sellers can choose their preferred submission method:
- The seller can visit their DMV county office and hand in the application.
- The seller can mail the completed application to their DMV county office.
A duplicate title in Idaho costs $14. If the vehicle/hull identification number (VIN/HIN) and title number are unavailable, a $7 title search will apply. Meanwhile, expedited "RUSH" service costs an additional $26. Each county may also have an administrative fee.
To track the status of the application, utilize the online Vehicle Title Status Checker.
Vehicle History Reports
To maintain transparency and legal compliance, Idaho vehicle sellers must understand the state's vehicle history report requirements. The ITD DMV automatically checks the National Motor Vehicle Title Information System (NMVTIS) during every title transfer. This report is essential to determine if the vehicle qualifies for a new title.
If the NMVTIS report indicates the vehicle was previously reported as "crushed," "scrapped," "junked," or "parts only," the ITD DMV cannot issue a title. This is in accordance with Idaho Code Section 49-525, which aims to protect buyers from purchasing vehicles with hidden damage or salvage history.
Sellers are encouraged to obtain their own NMVTIS report through approved providers or the Idaho VIN Check lookup tool to access additional details about the vehicle's history.
The report includes vital information about the vehicle's title history, odometer readings, and any reported incidents such as accidents, theft, or salvage branding. Accurate representation of the vehicle and a seamless title transfer process are achievable when sellers review this report.
Vehicle Records
Vehicle records are crucial when selling a vehicle in Idaho because they provide legal proof of ownership, maintenance history, and any liens or encumbrances on the vehicle. Accurate records help facilitate a smooth transaction, protect both parties' interests, and comply with state regulations regarding vehicle transfers.
Requesting vehicle records can be done by completing and submitting the Idaho Motor Vehicle Record Request (ITD 3374). The completed request can be delivered in person to any county DMV location or mailed to:
Idaho Transportation Department
P.O. Box 34
Boise ID 83707-0034
Other essential records that can be helpful during the vehicle sale in Idaho include the following:
Motor Vehicle Title and Registration Records
To access official title and registration information for the vehicle, sellers can utilize the Motor Vehicle Title and Registration Records Search application offered by the IDT. This resource confirms the accuracy of the information on the title and ensures no outstanding liens or encumbrances exist.
Driver License Record
While not directly related to the vehicle itself, the seller's driver's license record is essential to establish their driving history and eligibility to sell a vehicle.
This record will reveal any suspensions, revocations, or restrictions on the seller's license. A clean driving record can reassure buyers of the seller's credibility and responsible vehicle ownership. Sellers can access their driver's license record through the Idaho ITD's Driver License Record Search application.
Crash Report Request
Sellers must disclose any accidents involving the vehicle to potential buyers. For this purpose, they can obtain a detailed crash report through the ITD Forms—Crash Reports portal. This transparency builds trust with buyers and protects sellers from potential disputes or legal issues due to undisclosed accidents.
Does Idaho Require a Pre-Sale Inspection?
Sellers of used vehicles with clear titles are not obligated to conduct a pre-sale safety inspection. However, sellers are advised to maintain records of the vehicle's maintenance history, which can be presented to potential buyers to demonstrate the vehicle's upkeep.
However, when selling a used car, especially a salvage title vehicle, demonstrating its condition is critical to building buyer trust.
Salvage vehicles, those declared a total loss due to damage or theft, have a unique selling process. Two crucial inspections are mandatory: the VIN and Major Component Parts Inspection, which verifies the vehicle's identity and checks for stolen parts, and the Repaired Vehicle Inspection, which guarantees it meets safety standards if the damage is found.
To complete these inspections, the Salvage Certificate of Title Application (ITD 3312) proving ownership is necessary. Upon seeking a Rebuilt Salvage Vehicle title, the Salvage Vehicle Statement (ITD 3311) details all repairs done.
For vehicles new to Idaho, a VIN inspection might be needed. This involves verifying the VIN against the vehicle's title for accuracy and preventing fraud. Law enforcement or authorized IDT agents can conduct this inspection using the VIN Inspection Certification form (ITD 3403).
Selling a Vehicle with a Lien in Idaho
When selling a vehicle in Idaho with an existing lien, specific steps must be taken to complete the transaction legally and smoothly.
First, the seller must obtain a Lien Release from the lienholder confirming that the loan has been paid in full, thus relinquishing the lienholder's interest in the vehicle. The lienholder will then issue a Release and Satisfaction Of Interest validating the lien's satisfaction.
With these documents, the seller must complete the Application for Certificate of Title (Form ITD 3337) and submit it to the ITD with:
- The Lien Release document
- The original vehicle title
- Payment for title transfer and registration fees
Upon verification and payment confirmation, the ITD DMV will issue a new, lien-free title in the seller's name.
If the buyer is assuming the existing loan, both parties must jointly complete form ITD 3337 and submit it to the ITD. The buyer should also communicate with the lienholder to complete the loan assumption.
Electronic Lien and Title (ELT) System
Idaho's Electronic Lien and Title (ELT) system simplifies vehicle title management for sellers. With ELT, titles are electronic throughout the duration of a loan. Upon satisfaction with the lien, the lienholder sends an electronic request to the ITD DMV to issue a paper title, which is typically delivered through mail.
The ELT program offers several benefits for sellers:
- Electronic titles are processed more quickly than traditional paper titles, expediting the sale and transfer of vehicles.
- Certain title transactions, such as lien transfers between electronic lienholders, incur no fee.
- After the loan is paid off, sellers receive a clear title automatically without needing to file additional paperwork or pay extra fees.
To learn comprehensively about how the program works, review the ELT Fact Sheet.
Motor Vehicle Sales Tax in Idaho
The sale of a motor vehicle in Idaho is subject to a 6% sales tax and a 6% use tax. While sellers collect sales tax, it is ultimately the buyer's responsibility to pay it. Sellers simply act as agents for the state in collecting the tax.
Sales Tax Collection
Sellers must have a permit from the Idaho State Tax Commission to collect sales tax. This can be obtained by completing Form ST-101, Sales Tax Resale, and submitting it to the Tax Commission.
Use Tax on Motor Vehicles
A use tax applies to motor vehicles purchased outside of Idaho and brought into the state for use. The use tax rate is also 6%, and the buyer must pay the use tax. However, sellers can assist buyers by providing information on how to pay the use tax. This can be done when the buyer registers the vehicle with the local DMV office.
For more information on motor vehicle sales tax in Idaho, sellers can consult the Idaho State Tax Commission's website or contact the Tax Commission directly.
Legal Requirements After Selling a Vehicle in Idaho
During or after a vehicle sale in Idaho, sellers must follow several legal requirements to ensure a proper transfer of ownership and protect themselves from potential liabilities. These requirements revolve around the following:
Odometer Disclosure Requirement
In the interest of transparency and consumer protection, the federal government mandates the completion of an Odometer Disclosure Statement Form for specific vehicles during the transfer of ownership. As a seller, understanding these requirements and accurately filling out this form is legally necessary and fosters trust with potential buyers.
The requirement hinges on the vehicle's model year. Since January 1, 2021, this has been mandatory for vehicles with model years 2011 or newer. Over time, older model years will gradually become exempt from this requirement. For instance, by 2031, vehicles 20 years old or older (model year 2011 and older) will be exempt.
Meanwhile, vehicles with a Gross Vehicle Weight Rating exceeding 16,000 pounds and those that are not self-propelled remain exempt regardless of their age.
Ownership Title Transfer
The seller plays a critical role in the title transfer process by accurately completing the "Assignment of Title by Registered Owner" section on the back of the vehicle's title.
This requires legibly printing their full legal name, affixing their signature, and noting the exact date of the sale. If the vehicle is less than ten years old, the current odometer reading is also mandatory. Idaho law mandates the transfer of a vehicle title within 30 days of the sale to avoid penalties.
When a vehicle is sold to an Idaho-licensed dealer, the seller's responsibility regarding the title transfer is minimal. The dealer takes charge of completing and processing the necessary title application, relieving the seller of any further action.
If the vehicle buyer finances the purchase through a lending institution and the sale is made to a private party or out-of-state dealer, the lending institution may handle the title application on behalf of the buyer. In this scenario, the seller's involvement in the title transfer process is also limited.
Ownership Transfer from a Deceased Owner
In the unfortunate event of a vehicle owner's passing, transferring the vehicle's title often falls to the surviving spouse or heir(s).
Surviving Spouse Listed on Title
To sell the vehicle to an unrelated individual, the surviving spouse fills out the seller's section of the title, signs it, and enters the buyer's full legal name and the agreed-upon purchase price in the buyer's section. The completed title and a bill of sale are given to the new owner when they pay for the vehicle.
If the vehicle is being gifted or sold to a family member (parent, child, sibling, grandparent, or grandchild), the surviving spouse and the new owner(s) must complete a Sales Tax Exemption Certificate (STT-133) form instead of a bill of sale. This form exempts the new owner from paying sales tax.
No Surviving Spouse
In the absence of a surviving spouse, the individual responsible for transferring the title depends on the estate's probate status. If the estate underwent probate, the personal representative, executor, or administrator can transfer the title. If the estate was not and will not be probated, the priority heir can claim ownership and proceed with the transfer.
Signing on Behalf of Another
When the registered owner cannot be present to sign the title, someone else can sign on their behalf by appointing another person using a Limited Power of Attorney For Specific Motor Vehicle/Vessel (ITD 3368). The ITD DMV will not issue a new title until it receives an original, certified, or verified copy of this authorizing document.
Bill of Sale
In Idaho, the sale of a vehicle necessitates completing the ITD Bill of Sale (ITD 3738) form.
The seller is responsible for obtaining and accurately filling out the bill of sale. Key information required includes the seller's and buyer's full legal names and addresses, VIN, make, model, year, odometer reading, sale price, and date of sale. The seller must also disclose any known brands associated with the vehicle, such as salvage or rebuilt titles.
The completed bill of sale should be signed by both the seller and buyer, signifying their agreement and understanding of the terms of the sale. The seller should retain a copy for their records, and the buyer will need to submit it when applying for a new title and registration.
License Plates Removal
After the sale of a vehicle in Idaho has been finalized and ownership transferred, the seller must promptly remove the license plates from the vehicle.
Idaho offers the option to transfer license plates to another vehicle the seller owns. To initiate this process, the vehicle's title and a transfer fee must be submitted to a local DMV office.
If the seller chooses not to transfer the license plates, they must remove them from the sold vehicle. Unlike many other states, Idaho does not require sellers to surrender license plates after a sale. However, it is strongly advised to do this to prevent any potential misuse or misidentification of the vehicle.
Insurance Cancellation
After removing the license plates, the seller must immediately cancel the vehicle's insurance. To cancel the insurance, the seller should contact their insurance provider and inform them of the sale. The insurance company may require a copy of the bill of sale or other proof of transfer of ownership.
In cases where the new owner is relocating the vehicle to another state, promptly removing the license plates and canceling the insurance becomes even more critical. Failing to do so could lead to confusion and potential legal issues if the vehicle is involved in any incidents or violations in the new state.
To streamline this process, sellers can utilize the Report My Insurance tool. This tool simplifies the cancellation process by offering a centralized platform. It allows users to report the sale and start the insurance cancellation process, helping to avoid potential complications with insurance coverage.
How To Notify the IDT-DMV of the Sold Car?
Following the sale of a vehicle, the seller must promptly notify the ITD. This notification transfers liability from the seller to the buyer and updates vehicle ownership records.
The seller must file the completed Notice of Release of Liability(ITD 3858) form within five days of the vehicle's delivery to the buyer, as mandated by Section 49-526, Idaho Code.
The seller can submit the notice online, in person, or by mail.
To submit online, the seller must visit the ITD's online services portal. The vehicle registration and plates must be current, and only the primary owner listed on the registration can submit the notice online.
For in-person submission, sellers need to visit a local DMV office personally. These visits offer direct assistance, immediate feedback, submission confirmation, clarification, and peace of mind for vehicle transactions.
To submit by mail, the seller must complete the same form attaching a check. The completed form and payment ($3.50) must be mailed to the following address:
Idaho Transportation Department
Division of Motor Vehicles
3311 W State Street - P.O. Box 7129
Boise, ID 83707-1129