How To Sell a Car in Tennessee

Selling a vehicle in Tennessee requires compliance with state rules governing title transfer, odometer disclosure, sales tax, and post-sale procedures. The Tennessee Department of Revenue administers these requirements, which are enforced by county clerks across the state. Both private-party sellers and those transacting through dealerships must follow specific procedures to ensure a legal transfer of ownership.

What You Need To Know Before Selling a Car in Tennessee

Title Law and Ownership Requirements

Under Tennessee Code Annotated Title 55, Chapter 3, a certificate of title is required for most motor vehicles operated on Tennessee roads. The registered owner must hold a valid certificate of title before transferring the vehicle to a new owner. When multiple owners are listed on the title, the requirements for signatures depend on how the names are recorded. If names are joined by "and," all owners must sign the title assignment. If names are joined by "or," only one owner's signature is required to complete the transfer.

Pursuant to Tennessee Code § 55-3-127, the seller must complete the title assignment with specific information. The seller must enter the seller's printed name and signature, the buyer's name, the date of sale, the sales price, and the odometer reading (for applicable vehicles) in the reassignment section on the certificate. All information must be legible and exact to prevent rejection by the county clerk.

Vehicles Exempt From Title Requirements

Certain vehicles are not required to be titled in Tennessee. No certificate of title is required for vehicles owned by the federal government or by government entities at the state or local level when operated exclusively for governmental or fire protection purposes. Additionally, vehicles not required to be titled and registered in Tennessee under certain circumstances may qualify for a "title only" application instead of full titling and registration.

Satisfying an Existing Lien

If a lien is recorded on the certificate of title, it must be fully satisfied and released before the vehicle can be transferred to a new owner. When a debt secured by a lien on a motor vehicle is satisfied, the lienholder must discharge the lien by submitting one of the following to the Tennessee Department of Revenue, Vehicle Services Division: the tear-away portion of the certificate of title signed and dated by an authorized lienholder representative (preferred option), a copy of the certificate of title with the lien release portion signed and dated by the lienholder, or a lien release on lienholder letterhead that contains the vehicle identification number and is signed by an authorized representative.

The lienholder must report the discharge of the lien to the Department of Revenue within 72 hours of discharge and deliver the title to the owner within seven business days of the owner's request. The seller should obtain confirmation of lien release from the lienholder before completing the sale and should deliver the lien-free title to the buyer.

Documents Required To Sell a Car in Tennessee

Certificate of Title

The existing certificate of title is the primary legal document establishing ownership. According to the Tennessee Department of Revenue, a valid certificate of title must be properly assigned for a vehicle transfer. The seller must complete the assignment section on the reverse or designated area of the certificate by entering the buyer's name, the date of sale, the sales price, and the seller's signature, which must match the signature on the face of the title.

If the title has been lost or damaged, the seller must first obtain a duplicate title from the county clerk's office and pay the duplicate title fee before the proper assignment can be completed.

Bill of Sale

While Tennessee does not statutorily require a bill of sale for private vehicle transfers, a bill of sale provides important documentation for both parties. A bill of sale should contain the full name and complete physical address of both the buyer and seller, the date of sale, a complete vehicle description (including the vehicle identification number, make, year, model, and body type), the purchase price, and the signatures of both parties. Both the seller and buyer should retain a signed copy for their records.

Odometer Disclosure Statement

Federal and state law require disclosure of the vehicle's odometer reading at the time of transfer. All states are required to capture odometer disclosures for all vehicles with model year 2011 and forward. The Odometer Disclosure Statement (Form RV-F1317001), issued by the Tennessee Department of Revenue, must be completed for vehicles subject to this requirement.

The seller must certify one of the following on the form: the stated odometer reading is the actual mileage of the vehicle, the mileage is in excess of the mechanical limits of the odometer, or the odometer reading is not the actual mileage (which triggers a discrepancy warning). Both the seller and buyer must sign the odometer disclosure statement.

For vehicles with a 2010 model year or older, the odometer disclosure remains exempt under the 10-year exemption rule. Both parties should retain a copy of the signed odometer disclosure statement.

How To Transfer a Car Title in Tennessee

Step 1: Review the Title Before the Sale

Before listing the vehicle for sale, the seller should verify that the certificate of title is current, valid, and in the seller's name. If the title has been lost or is illegible, the seller must obtain a duplicate title from the county clerk's office prior to completing the sale. The seller should also verify that no liens are recorded on the face of the title. If a lien is shown, the seller must contact the lienholder to confirm the lien is satisfied and obtain documentation of the lien release before proceeding.

Step 2: Complete the Title Assignment

At the time of sale, the seller must complete the reassignment section of the title certificate. The seller must legibly print and sign all required information on the title. The seller must enter the seller's printed name and signature, the buyer's full legal name, the date of sale, the sales price, and the odometer reading (for vehicles model year 2011 and newer). The seller's signature must match exactly as it appears on the face of the title. If multiple owners are listed and joined by "and," all owners must sign the assignment. The information entered must match exactly on all documents to prevent rejection by the county clerk.

Step 3: Prepare the Bill of Sale and Disclosure Paperwork

The seller should prepare a bill of sale containing both parties' names, addresses, contact information, vehicle description, vehicle identification number, purchase price, and the date of sale. Both the seller and buyer must sign the bill of sale. For vehicles of applicable model years (2011 and newer), the seller and buyer must complete the Odometer Disclosure Statement (Form RV-F1317001) together and both must sign it. If a lien was previously on the vehicle, the seller must ensure the lien release documentation is included.

Step 4: Remove the License Plate and Deliver Documents to the Buyer

Prior to delivery of the vehicle, the seller must remove the license plate from the vehicle. Tennessee license plates follow the owner, not the vehicle. The seller then delivers to the buyer the following documents: the original certificate of title with the assignment completed and signed, a signed copy of the bill of sale, the completed Odometer Disclosure Statement (where applicable), and any lien release documentation. Both parties should retain copies of all signed documents for their records.

Step 5: Buyer Submits Application Through County Clerk

The buyer must apply for a new certificate of title at the county clerk's office in the county of the buyer's residence. The buyer must present proof of identification, proof of residency, the properly assigned certificate of title, the odometer disclosure statement (if applicable), and a copy of current registration if transferring the license plate, along with payment of the applicable title and registration fees. The county clerk processes the application and issues a new certificate of title in the buyer's name.

Title Transfer Fee Schedule in Tennessee

Title and registration fees vary by county and transaction type. The following are standard state fees for title transactions based on official county clerk information:

County-specific fees, wheel taxes, and surcharges may apply in addition to state fees. The buyer should contact the county clerk's office in their county of residence to obtain the complete fee schedule for their county, as each county administers additional fees for title and registration services. Payment is typically accepted in cash, check, or credit card.

Sales Tax on Private Vehicle Sales

In Tennessee, private-party vehicle sales are subject to a state sales tax of 7% of the gross purchase price. The buyer is responsible for calculating and paying the sales tax at the time of registration with the county clerk's office. If the vehicle is purchased through a trade-in transaction, the trade-in value is subtracted from the purchase price before calculating the taxable amount. Many county clerks provide online sales tax calculators to assist buyers in determining the exact tax liability.

Local city and county surtaxes may apply in addition to the state rate, and the total tax liability depends on the county and municipality where the vehicle will be registered. The buyer should verify the total tax obligation with the county clerk's office prior to completing the purchase.

What To Do After Selling Your Car in Tennessee

Remove and Manage License Plates

The seller must remove the license plate from the vehicle at the time of sale. Tennessee license plates are registered to the owner and follow the owner to a new vehicle rather than remaining with the vehicle. If the seller intends to use the plate on another vehicle, the plate may be transferred to a new vehicle for a $1.00 fee at the county clerk's office. Alternatively, if the seller does not plan to reuse the plate, it may be surrendered to the county clerk's office, or the registration may be cancelled.

Cancel Insurance Coverage

After the sale is finalized and the license plate is removed, the seller should contact the automobile insurance provider to cancel coverage for the sold vehicle. Maintaining insurance on a vehicle no longer owned results in unnecessary premium charges. The seller should provide the insurance company with the date of sale and request cancellation or policy termination effective as of the sale date.

Retain Copies of Sale Documents

The seller should retain a copy of the completed bill of sale, the odometer disclosure statement, and any other transaction documents for a minimum of three to five years. These documents may be necessary to establish proof of sale in the event of future liability disputes or inquiries from the Department of Revenue regarding the vehicle.

Contact Information

Tennessee Department of Revenue — Vehicle Services Division
500 Deaderick Street, 7th Floor, Nashville, TN 37242
Phone: (615) 741-3101
Official Website: Tennessee Department of Revenue — Title and Registration