Buying, Selling And Titling A Vehicle
A completed certificate of title is evidence of vehicle ownership. In Indiana, all motor vehicles, trailers, semi-trailers, mobile homes, recreational vehicles and recreational trailers must be titled. Indiana residents must title a newly-acquired vehicle within 31 days after the date of purchase.
Within 60 days of becoming an Indiana resident, a person must obtain a certificate of title for all vehicles that they own. Indiana residents may title their vehicles at any license branch throughout the state.
Please note that on April 1, 2008, Indiana adopted a seven percent sales tax.
Important information on this page:
- Buying a vehicle
- Selling a vehicle
- Titling a vehicle
- Indiana sales tax
- Speed service titles
- Duplicate titles
- Paying off a lien and obtaining a clear title
- Adding a name to a title
- Removing a name from a title
Buying a vehicle
If you are buying a vehicle, ensure that the seller has signed the appropriate section on the front of his or her copy of the vehicle's title and filled in your information as the vehicle purchaser. The odometer information should be completely filled out, as well as the purchase date and selling price fields. The seller of the vehicle should remove the license plate from the vehicle at the time of the transaction. It is your responsibility as the purchaser to obtain a new title and to register the vehicle.
To title and register your purchased vehicle, you must visit a license branch with the completed title given to you by the seller, as well as your proof of insurance. The cost to apply for a new title is $15, plus a seven percent sales tax based on the purchase price indicated on the front of the title.
When you are purchasing a vehicle, you should confirm the location and possession of the vehicle's title. If you as the purchaser have made all required initial payments, the seller of the vehicle is required to deliver the title to you within 21 days of the date of the sale. If the seller cannot deliver the title at the time of sale, he or she is required to provide you with a 21-day affidavit stating that he or she will deliver the title for the vehicle to you within 21 days of the date of sale.
If you do not receive the title within 21 days, you should write to the seller and request delivery of the title. After receipt of your written request, the seller has an additional 10 days to provide you with the title. If you have not received the title and choose to return the vehicle to the seller, the vehicle must be in the same or similar condition as when it was purchased. Upon return of the vehicle, the seller is required to provide you with a refund of the purchase price plus tax, finance expenses, insurance expenses, and any other amount that you have paid to the seller.
Sellers have a duty to disclose that a vehicle has a salvage or rebuilt condition. Indiana's salvage law applies to vehicles, motorcycles, semis and recreational vehicles that are no older than seven-model-years from the current model year. If you are buying from a dealer or a person who sells at least five vehicles a year, the seller has a legal duty to inform you of the previous salvage or rebuilt condition in writing before you purchase the vehicle. If you are not informed in writing about a purchased vehicle's salvage or rebuilt condition, or if you purchase a vehicle that should have "salvage" or "rebuilt" on it's title but does not, you may file a lawsuit to recover your actual damages and any attorney fees and costs.
Selling a vehicle
If you are selling a vehicle, you must sign the appropriate section on the front of your copy of the vehicle's title and fill in the purchaser's information. The odometer information should be completely filled out, as well as the purchase date and selling price fields.
You, as the vehicle's seller, should remove the license plate from the vehicle at the time of the transaction. It is the purchaser's responsibility to obtain a new title and to register the vehicle. You do not need to return the vehicle's license plate or registration to the BMV; however, you, as the seller, may be eligible for an excise tax refund. To apply for an excise tax refund, please visit any Indiana license branch.
If no money was exchanged during the transaction, you should indicate "GIFT" in the purchase price box.
When you are selling a vehicle, you should confirm with the purchaser the location and possession of the vehicle's title. If the purchaser has made all required initial payments, you, as the seller, are required to deliver the title to the purchaser within 21 days of the date of the sale. If you cannot deliver the title to the purchaser at the time of sale, you are required to provide the purchaser with a 21-day affidavit stating that you will deliver the title for the vehicle to the purchaser within 21 days of the date of sale.
If the purchaser has written to you, as the vehicle's seller, and requested delivery of the title, you have an additional 10 days to provide the purchcaser with the title. If the purchaser has not received the title and chooses to return the vehicle to you, the vehicle must be in the same or similar condition as when it was purchased. Upon return of the vehicle, you are required to provide the purchaser with a refund of the purchase price plus tax, finance expenses, insurance expenses, and any other amount that you have received from the purchaser.
You, as the vehicle's seller, have a duty to disclose that a vehicle has a salvage or rebuilt condition. Indiana's salvage law applies to vehicles, motorcycles, semis and recreational vehicles that are no older than seven-model-years from the current model year. If you are a dealer or you sell at least five vehicles a year, you have a legal duty to inform the purchaser of the previous salvage or rebuilt condition in writing before sale of the vehicle. If you do not inform the purchaser about a vehicle's salvage or rebuilt condition in writing, or if you sell a vehicle that should have "salvage" or "rebuilt" on it's title but does not, the purchaser may file a lawsuit to recover his or her actual damages and any attorney fees and costs.
Titling a vehicle
To title your vehicle in Indiana, you should visit a license branch and present the title to your vehicle, your driver's license, proof of current insurance and proof of a Social Security number.
If you have a lien on your title, you will need to complete a form at the time of your license branch visit that the BMV will then send to your lienholder informing them that you are applying for an Indiana title. The lienholder should then send the title to the BMV. Upon receipt of the title, the BMV will contact you and ask that you visit a license branch to complete your application for the title. Upon completion, you will be able to register and plate your vehicle in Indiana, and the title will be returned to the lienholder.
In order to receive a title for your vehicle, you must complete the following documents:
For new vehicles:
- Application for Certificate of Title - State Form 44049
- Properly assigned Certificate of Origin
- Conforming Odometer Statement (generally found on the Certificate of Origin)
- Proof of sales tax paid (State Form 48842, also known as ST-108, provided by the dealership)
- Vehicle Inspection Number (VIN) Inspection (if the vehicle was not purchased in Indiana)
- Social Security number or Federal Employer Identification number
For used vehicles:
- Application for Certificate of Title - State Form 44049
- Conforming Odometer Statement (generally found on the Certificate of Origin)
- Bill of Sale
- Vehicle Inspection Number (VIN) Inspection (if the vehicle was not purchased in Indiana)
- Social Security number or Federal Employer Identification number
Any vehicle coming into Indiana from another state, including those assigned to an Indiana resident on a manufacturer's certificate of origin, must receive a VIN inspection. This inspection may be done at any Indiana license branch for no charge, or may be completed by a law enforcement officer who may charge up to $5. The officer must fill out an Affidavit of Police Officer/Physical Inspection of an Indiana Resident's Vehicle/Watercraft - State Form 39530 when completing a VIN inspection.
- Download an Application for Certificate of Title - State Form 44049
- Download an Affidavit of Police Officer/Physical Inspection of an Indiana Resident's Vehicle/Watercraft - State Form 39530
Indiana sales tax
State law requires Indiana residents to pay a seven percent sales tax on any newly-purchased vehicle. If a vehicle is purchased from a dealership, the dealer will collect the sales tax. If a vehicle is sold privately, the sales tax must be paid at a license branch when the purchaser titles the vehicle.
Motorists who purchase a vehicle from an out-of-state dealer or individual will receive credit for taxes paid in that other state. If the motorist paid less than seven percent they will need to pay the difference to Indiana.
Some states will allow a person to purchase a vehicle and not pay taxes on it when taking it out of that state. Other states will tax the transaction. Depending on the percentage of tax paid to the other state, the Indiana resident may be charged or credited the difference between the other state's sales tax and Indiana's sales tax.
An out-of-state individual becoming an Indiana resident, who has previously titled and registered the vehicle in another state, is not subject to the Indiana sales tax.
Speed service titles
It usually takes between four and six weeks to deliver a title from the time that the title application is made until the time that it is delivered.
Speed service titles are mailed the next business day. The BMV cannot guarantee an actual delivery date as that varies and is determined by the U.S. Postal Service. One business day after the speed service title application is made, the title may be picked up from 1 p.m. to 4:30 p.m., Monday through Friday, at the Indianapolis-Midtown license branch - unless the vehicle does not clear the National Motor Title Information System Inquiry. Please call (317) 547-3572 to ensure that a title is available.
An Indiana driver license or ID card is required to pick up a speed service title. Speed service titles not picked up will be mailed the next business day to the address on the title. All speed service titles are assessed an additional $25 fee.
Duplicate titles
You may purchase a duplicate title online by creating a myBMV account, by visiting any Indiana license branch or by mail. The cost for a duplicate title is $9.
Please note that if there is a lien on the vehicle, a duplicate title purchased online or by mail will be sent to the vehicle's lienholder.
To purchase a duplicate title by mail you must download, print and complete the Application for Certificate of Title - State Form 44049. Once you have completed the application, you should mail the application with a check or money order for $9, payable to the Indiana Bureau of Motor Vehicles, to:
Indiana Bureau of Motor Vehicles
1629 Eastway Drive
Crawfordsville, IN 47933
(765) 362-5707
When completing an Appliction for Certificate of Title in order to obtain a duplicate title, you do not need to provide information such as selling price, purchase date or odometer reading. The BMV cannot accept the title application if any of these fields are filled out, as it invalidates the application. Required fields include: applicant's name; applicant's Social Security number; vehicle year; vehicle make; VIN number; signature; and date signed. All owners of the vehicle must sign the application.
- Learn more about creating an online myBMV account
- Download an Application for Certificate of Title - State Form 44049
Paying off a lien and obtaining a clear title
If you have paid off your vehicle and received a lien release from your vehicle’s lienholder, you may either apply for a clear title or hold the lien release until you sell the vehicle.
You may visit any license branch with your lien release to apply for a free and clear title. If you choose to hold the lien release until you sell the vehicle then you must give the title and lien release to the vehicle's purchaser so that he or she may apply for a new title in their name.
Adding a name to a title
To add another person's name to the title of a vehicle in order to establish joint ownership you must apply for a new title at a license branch. You may obtain an Application for Certificate of Title - State Form 44049 from the BMV's Web site or by visiting a license branch.
The current owner of the vehicle should fill in the purchaser's section of the title with his or her own information as well as the information of the individual whose name is being added to the title. The current owner of the vehicle and the person whose name is being added to the title must sign the title application at a license branch; however, one of the individuals may give the other power of attorney to sign the title application in his or her name at the license branch. Power of attorny must be granted by completing a Power of Attorney - State Form 1940.
The vehicle's registration must also be changed at the license branch to reflect the new title.
- Download Application for Certificate of Title - State Form 44049
- Download Power of Attorney - State Form 1940
Removing a name from a title
To remove a name from a title, the person whose name is being removed should fill in the seller's section of the title as if he or she were selling the vehicle. The remaining owner should fill out the purchaser's section of the title as if he or she were purchasing the vehicle, and then visit a license branch with the completed title to apply for a new title in his or her name only.
