How To Sell a Car in Minnesota

In Minnesota, transferring a motor vehicle from one owner to another involves adhering to specific statutory requirements pertaining to title assignment, odometer attestation, casualty damage declarations, tax obligations, and sale notification. The Minnesota Department of Public Safety's Driver and Vehicle Services (DVS) division manages all vehicle titling, registration, and related administrative functions for both individual transactions and commercial dealer sales.

What You Need To Know Before Selling a Car in Minnesota

Title Law and Ownership Requirements

A certificate of title serves as the legal documentation establishing motor vehicle ownership in Minnesota. Prior to completing any transfer, the seller must possess an original, unaltered title and verify that all identifying information remains current.

Ownership designation on the title—specifically whether names appear with the conjunctions "and" or "or"—determines how many registered owners must authorize the assignment. An "and" designation indicates that all parties share equal interest and must execute the transfer, whereas an "or" designation permits one owner to proceed alone with conveying the property.

Vehicles Exempt From Title Requirements

Minnesota law provides titling exemptions for certain vehicle categories. Under Statute 168A.03, the following classes do not require Minnesota certificates of title:

• Conveyances owned by United States federal agencies
• Automobiles possessed by individuals with non-resident status, where Minnesota law imposes no registration obligation
• Motor vehicles engaged in interstate commerce bearing valid out-of-state certificates of title
• Vehicles propelled exclusively through animal traction
• Agricultural, forestry, or livestock-related equipment vehicles not designed for general road use
• Specialized industrial equipment categorized as special mobile equipment under the statute
• Utility, boat, and snowmobile trailers not exceeding 4,000 pounds gross weight (unless previously titled or encumbered by security interest)
• Recreational motor vehicles, including snowmobiles and all-terrain vehicles, administered by the Minnesota Department of Natural Resources
• Wheelchair or mobility assistance devices that are self-propelled
• Emergency service vehicles, including municipal fire apparatus and licensed ambulance services

Proprietorship of untitled vehicles may be demonstrated through valid registration records or executed bills of sale.

Satisfying an Existing Lien

If a lienholder is recorded on the vehicle's certificate of title, the lien must be fully satisfied and released before the vehicle can be transferred to a buyer. The lienholder must provide a written lien release document or sign off on the title. Some lienholders issue a separate lien release card that must accompany the title during transfer.

If the lienholder is no longer in business or does not respond to requests for lien release, the seller may send a certified letter to the lienholder's address. If the letter is returned undelivered, the sender may present the certified mail documentation to DVS to request lien release. The seller should obtain and retain the lien release documentation before proceeding with the sale.

Documents Required To Sell a Car in Minnesota

Certificate of Title

An unaltered original title document must be transferred to the purchaser and must have binding legal force. The transferor completes the designated seller assignment area on the front of the title form, entering the buyer's full legal designation and residence address, the transaction date, the precise odometer reading, and a personal signature. All mileage entries must verify that the reading reflects genuine miles traveled, does not exceed the odometer's engineering capacity, and is consistent with the instrument's display.

Odometer Mileage Disclosure Statement

Minnesota Statute 168A.11 combined with federal legislation compels odometer disclosure during ownership conveyance. Sellers must provide mileage documentation for all vehicles, excluding those operated ten or more model years, those weighing above 16,000 pounds, or those not possessing self-propulsion capability. The seller verifies odometer integrity through one of three certifications:

• Mileage shown represents the vehicle's true running distance
• Mechanical limits have been surpassed (rollover condition)
• Displayed mileage contradicts actual usage (defect warning)

Deliberate falsification of mileage attestations constitutes a felony-level offense in Minnesota.

Damage Disclosure Statement

Minnesota Statute 325F.6641 mandates written casualty disclosure as a legal prerequisite to private sale. The seller must provide a written statement—appearing on the title form, the registration application, or separate conveyance papers—indicating whether structural, mechanical, or accident-related impairment exceeded 80 percent of the vehicle's pre-incident market valuation. Omitting this disclosure or submitting dishonest statements triggers felony prosecution. Both transacting parties shall affix their signatures to the damage statement.

Bill of Sale

Although Minnesota statutes do not require bills of sale in private transactions, their execution provides valuable evidentiary protection. An appropriate bill of sale identifies both parties' full names and street addresses, specifies the transaction date, furnishes a complete vehicle description (including VIN, manufacturer, model designation, year of manufacture, and body configuration), and bears the authentication signatures of both parties. Sellers derive significant benefit from retaining copies for liability protection after ownership transfer.

How To Transfer a Car Title in Minnesota

Step 1: Review the Title Before the Sale

Before conducting the sale, the seller should verify that the title is in proper order, is free from alterations or damage, and accurately reflects current ownership. The seller must check that all lienholder information is current and inspect for any title brands such as SALVAGE, PRIOR SALVAGE, FLOOD, RECONSTRUCTED, REBUILT, or LEMON LAW VEHICLE. The seller should determine whether the lienholder has been satisfied and is prepared to release the lien upon sale.

Step 2: Complete the Seller's Portion of the Certificate of Title

Upon sale agreement, the seller records the purchaser's full legal name and residential address in the title's seller assignment section, documents the transaction date, enters the precise odometer reading, and signs. Should dual ownership exist and be conjoined by "and," both proprietors must authorize the assignment. Singular authorization suffices if names bear "or" designation.

Step 3: Complete the Odometer and Damage Disclosure Statements

The seller must complete the odometer mileage disclosure on the certificate of title, certifying whether the mileage is actual, exceeds mechanical limits, or is not actual mileage. The seller must also complete the damage disclosure statement on the title, certifying whether the vehicle has sustained damage in excess of 80 percent of actual cash value. Both parties must sign and date these statements before the vehicle is delivered to the buyer.

Step 4: Deliver Required Documents to the Buyer

At the time of sale, the seller delivers the following documents to the buyer:

• The original certificate of title, properly completed and signed by all owners
• The completed odometer disclosure statement
• The completed damage disclosure statement
• A copy of the bill of sale, if one was executed
• A lien release document or lien release card, if applicable

Documentation duplicates retained by the seller serve evidentiary purposes for prospective liability defense and record maintenance.

Step 5: Buyer Transfers Title Within 10 Business Days

The buyer must apply to transfer the title into their name within 10 business days from the date of sale. If the transfer is not submitted within 10 business days, a $2 late fee applies. The buyer may transfer the title in person at any deputy registrar's office or by mail to the Minnesota Department of Public Safety. At the time of application, the buyer must submit the completed and assigned certificate of title, the Application to Title and Register a Motor Vehicle (Form PS2000), proof of valid Minnesota vehicle insurance, and payment for applicable fees and taxes.

Step 6: Seller Reports Sale to Driver and Vehicle Services

Within 10 days of selling the vehicle to a private individual, the seller must report the sale to the Minnesota Department of Public Safety. The seller may report the sale online through the DVS online self-services portal by selecting "Notice of Sale" or may submit a paper Motor Vehicle Report of Sale form by mail. This report protects the seller from liability for the vehicle after the sale date.

Title Transfer Fee Schedule in Minnesota

The buyer pays these fees at the time of title application in Minnesota.

Additional registration and plate fees may apply depending on the vehicle's age, manufacturer's suggested retail price (MSRP), and whether the buyer applies for a new plate or transfers an existing plate.

Sales Tax on Private Vehicle Sales

Minnesota imposes a 6.875% motor vehicle sales tax on the vehicle's acquisition price. Application occurs when the title transfer and registration take legal effect. The purchaser is responsible for remitting the tax percentage to the deputy registrar upon the title application. An alternative in lieu of sales tax of $10 applies to vehicles that are 10 model years old or older. Local taxes in certain cities may also apply to the sale in addition to the state sales tax rate. The buyer pays applicable sales taxes at the time of title transfer and registration application.

What To Do After Selling Your Car in Minnesota

Plate Ownership and Vehicle Retention

In Minnesota, license plates belong to the vehicle and transfer with ownership to the new owner. Unlike other states, the seller is not required to remove the license plates when selling a car. The plates automatically transfer to the buyer, who is responsible for registering the vehicle and obtaining new registration tabs in the buyer's name.

Report the Sale Within 10 Days

The seller must report the sale of the vehicle to the Minnesota Department of Public Safety within 10 days of the sale date. The seller may report the sale online through the DVS online self-services portal or by completing and mailing a Motor Vehicle Report of Sale form. Timely reporting protects the seller from liability for parking violations, tollway violations, or damages involving the vehicle after the sale date. If the vehicle is sold to a licensed dealer, the seller is not required to file a report of sale.

Maintain Records of the Sale

The seller should retain a copy of the certificate of title assignment, the odometer and damage disclosure statements, and any bill of sale for personal records and as evidence of the sale date. These materials become invaluable if future liability allegations arise.

Cancel or Transfer Insurance Coverage

Once the transaction is closed and the sale notification is submitted, the seller should promptly notify the automobile insurance provider to cancel coverage for the sold vehicle or to transfer the policy to a replacement vehicle. Continuing insurance payments on vehicles no longer owned creates an unnecessary financial burden and constitutes avoidable premium expenditure.

Contact Information

Minnesota Department of Public Safety – Driver and Vehicle Services
445 Minnesota Street, Suite 195, Town Square Building, Saint Paul, MN 55101-5190
Phone: (651) 297-2126
Official Website: Minnesota Department of Public Safety