How To Sell a Car in Mississippi

Selling a motor vehicle in Mississippi requires adherence to laws governing title transfer, ownership documentation, and tax obligations. Under Mississippi Code Title 63, Chapter 21, both private-party sellers and those transacting with a dealership must comply with specific procedures for title assignment, odometer disclosure, and license plate removal to ensure a legally valid sale. The Mississippi Department of Revenue administers motor vehicle title and registration requirements.

What You Need To Know Before Selling a Car in Mississippi

Title Law and Ownership Requirements

Under Mississippi Code Section 63-21-31, an owner transferring interest in a vehicle must execute an assignment and warranty of title at the time of delivery. Since 1969, Mississippi has required all motor vehicles to be titled to establish ownership and facilitate legal transfer. A properly completed and executed title assignment is essential for the buyer to obtain a new certificate of title through a designated agent or county tax collector.

The owner named on the certificate of title is the legal owner authorized to transfer the vehicle. If the title is held jointly by more than one person, the signature requirements vary depending on the designation used. When joint owners are joined by the word "or," only one owner's signature is required. When joined by the word "and," both owners must sign the title assignment. When the title lists names joined by "and/or," both surviving owner signatures and a death certificate are required.

Vehicles Exempt From Title Requirements

While Mississippi has required motor vehicles to be titled since 1969, certain categories are exempt from the certificate-of-title requirement. Per Mississippi Code Section 63-21-11, vehicles owned by the United States or any agency thereof and vehicles owned by the State of Mississippi or any political subdivision thereof do not require a certificate of title. Additionally, motor vehicles manufactured before 1969 are voluntarily titled rather than required to be titled. Pre-1969 vehicles may be titled, but a title is not required for sale or transfer.

Trailers under 5,000 pounds gross vehicle weight (GVW) are voluntarily titled but may be sold without a title if sufficient proof of ownership is provided. Trailers with a GVW over 5,000 pounds and manufactured homes must be titled. Motorized bicycles manufactured before 1980 are not eligible for title, though motorized bicycles manufactured in 1980 or later with a seventeen-digit VIN meeting National Highway and Traffic Safety Administration standards may be voluntarily titled but will not receive a license plate.

Satisfying an Existing Lien

If an active lien is recorded against a motor vehicle, the lien must be fully satisfied before the seller can transfer a clear title to the buyer. Upon payment of the loan, the lienholder is responsible for releasing the lien. Under Mississippi law, lienholders with a Federal Employer Identification Number (FEIN) must release liens electronically within fourteen days of satisfaction. Failure to electronically release a lien within fourteen days may result in a $250 penalty.

The seller should request a lien release letter or confirmation from the lienholder and obtain the physical certificate of title if it is held by the lienholder before proceeding with the sale. If the title is in the possession of a lienholder and the seller wishes to sell the vehicle, the lienholder may, upon request and unless the transfer would breach the security agreement, deliver the certificate of title to the buyer.

Vehicle Inspection and Emissions Requirements

Mississippi law does not require a private-party seller to obtain a vehicle safety or emissions inspection before completing a sale. Mississippi does not provide for emissions testing of motor vehicles as a condition of registration or sale. A physical vehicle inspection is not required for private sales, though a buyer may arrange one independently before purchase.

Pre-Sale Notice Requirements

No statutory requirement mandates that a seller provide prior written notice to the Mississippi Department of Revenue of an intended sale. However, the seller must remove the license plate upon delivery of the vehicle to the buyer and surrender the plate to the tax collector's office to terminate the seller's registration obligations.

Documents Required To Sell a Car in Mississippi

Certificate of Title

The existing certificate of title is the primary document establishing ownership of the motor vehicle. The seller must complete the assignment section on the reverse side of the title. The seller shall complete all sections on the title assignment except for the buyer's printed name and signature. The information entered on the assignment must exactly match all supporting documentation. The seller's signature must be made in the same manner as the name appears on the face of the title.

The Mississippi Department of Revenue will not accept titles that have been altered, including any use of correction fluid or similar means. If the title is incomplete, improperly assigned, or contains the buyer's name left blank for completion at a later time, the application will be rejected. Never accept or deliver an incomplete title assignment.

If the buyer and seller are related by blood or marriage (spouse, child, parent, grandchild, grandparent, brother, or sister), an affidavit of relationship should be completed at the time of title assignment. Contact your local county tax collector's office for this form, as it is not issued as a standard numbered form by the Mississippi Department of Revenue.

Bill of Sale

Mississippi law requires a bill of sale for the sale or purchase of an automobile. It is unlawful for any person to sell, purchase, or own an automobile unless the seller furnishes a signed bill of sale to the buyer, who takes and reserves it. A valid bill of sale should contain the following information: the full legal name and complete address of both the buyer and the seller, the make and model of the vehicle, the vehicle identification number (VIN), other identifying marks on the vehicle, the seller's signature made in the same manner as the name appears, and the seller's address. Both parties should retain a signed copy for their personal records and reference.

Odometer Disclosure Statement

The Odometer Disclosure Statement (Form 78-015), issued by the Mississippi Department of Revenue, certifies the vehicle's mileage at the time of sale. This federal requirement under the Truth in Mileage Act of 1986 applies to vehicle transfers of vehicles with a Gross Vehicle Weight Rating (GVWR) of 16,000 pounds or less.

The seller must certify one of the following statements on the form: that the stated odometer reading is the actual mileage of the vehicle, that the mileage is in excess of the odometer's mechanical limits, or that the odometer reading is not the actual mileage (discrepancy warning). Both the seller and buyer must sign the completed odometer disclosure statement at the time of transfer.

The odometer disclosure statement is not required for vehicles with a model year of 2006 or older (20 or more years old), vehicles with a GVWR exceeding 16,000 pounds, or non-self-propelled vehicles such as trailers. Failure to complete or providing a false odometer statement may result in fines and possible imprisonment under federal law.

How To Transfer a Car Title in Mississippi

Step 1: Review the Title Before the Sale

Before the sale, the seller should carefully review the certificate of title to confirm that all information is accurate and that the title is properly issued. The title should not contain any alterations or corrections made with correction fluid or similar means.

If the title has been lost, stolen, damaged, or mutilated, a replacement title must be obtained before the sale can proceed. The seller should contact the county tax collector to apply for a replacement or duplicate title using Form 78-006 (Application for Replacement Certificate of Title) if a replacement title is needed. Replacement titles are issued within three to four weeks unless additional documentation is required. Fast Track replacement service is available for $39.00 with issuance within seventy-two hours.

The seller should also verify that no liens are recorded against the title. If a lien exists, the lienholder must release it before a clear title can be transferred to the buyer.

Step 2: Complete the Title Assignment

At the time of delivery, the seller must complete the assignment section on the reverse of the certificate of title. All sections must be filled in except for the buyer's printed name and signature. The seller must provide the buyer's full legal name and address, the date of sale, and the odometer reading (if applicable), and sign in the exact manner the name appears on the face of the title. Both owner signatures are required if the title lists both owners joined by "and." Only one owner's signature is required if names are joined by "or."

Under no circumstances should the buyer's name be left blank for completion later. Incomplete title assignments will be rejected by the tax collector or the Department of Revenue. The title must not be altered in any manner. A completed but unexecuted title (one not yet signed by the seller) should not be delivered to the buyer.

Step 3: Prepare the Bill of Sale and Disclosure Paperwork

The seller and buyer should prepare a bill of sale containing all required information. Both parties should sign the document in each other's presence. Each party should retain a signed copy for their personal records.

For vehicles with a GVWR of 16,000 pounds or less, the seller and buyer must complete the Odometer Disclosure Statement (Form 78-015). The seller must certify the odometer reading and sign the form. The buyer must also sign the odometer disclosure statement at the time of transfer. For vehicles with a model year of 2006 or older (20 or more years old), or for non-self-propelled vehicles, the odometer disclosure statement is not required.

Step 4: Deliver the Documents to the Buyer

At the time of transfer, the seller delivers to the buyer the properly assigned original certificate of title, a signed copy of the bill of sale, and, if applicable, the completed Odometer Disclosure Statement (Form 78-015). The license plate must be removed from the vehicle at this time. The seller retains the license plate and must surrender it to the county tax collector or local licensing official within a reasonable timeframe.

Step 5: Buyer Submits Application Through a Designated Agent or Tax Collector

The buyer must apply for a new certificate of title promptly after taking delivery of the vehicle. Applications are submitted at a county tax collector's office or through a designated agent. The buyer must submit the assigned title, the completed Application for Mississippi Title and Registration (Form 78-002), the odometer disclosure statement (if applicable), and proof of payment of applicable sales or use tax. The buyer should provide proof of Mississippi residency and a valid state-issued photo identification.

The buyer should complete the application promptly and deliver all documents to the tax collector or designated agent. The buyer has 30 business days from the purchase date to register the vehicle.

Title Transfer Fee Schedule in Mississippi

The following fees apply to motor vehicle title transactions as established by Mississippi Code Section 63-21-63:

County tax collectors collect these fees and may add local administrative fees. Fast Track replacement service incurs an additional $30.00 fee and does not include mail time to and from the office. Fast Track titles must be submitted using Form 78-026 (Application for Fast Track Replacement Certificate of Title).

Sales Tax on Private Vehicle Sales

In Mississippi, private-party motor vehicle sales (referred to as "casual sales") are subject to a 5% state use tax on the net purchase price. This 5% rate applies to cars, vans, buses, and trucks with a gross vehicle weight under 10,000 pounds. A 3% rate applies to trucks over 10,000 pounds used to carry property. The buyer pays the applicable use tax when registering the vehicle at the county tax collector's office. The tax rate is calculated on the purchase price after any dealer discounts or trade-in values but does not include manufacturer rebates.

Local city or county surtaxes may also apply in addition to the state rate. The buyer is responsible for payment of all applicable taxes during the registration process.

What To Do After Selling Your Car in Mississippi

Remove and Surrender the License Plate

Under Mississippi Code Section 27-19-141, the seller must remove the license plate from the vehicle at the time of delivery to the buyer. The license plate remains the seller's property and must be surrendered to the county tax collector's office in the county where the vehicle was registered. The license plate cannot remain on the vehicle and cannot be transferred to the buyer.

Upon surrender of the license plate to the tax collector, the seller's registration obligations are terminated. If the seller cannot physically surrender the plate, they may contact the county tax collector's office to request termination of registration.

If the seller subsequently acquires another vehicle, the surrendered license plate may be eligible for credit toward a new registration. Credit is issued from the first day of the month following surrender of the plate to the tax collector.

Notify Insurance Provider and Cancel Coverage

After the sale is finalized and the license plate has been removed, the seller should contact the automobile insurance provider to cancel coverage on the sold vehicle or transfer the policy to a replacement vehicle. Maintaining insurance on a vehicle no longer owned by the seller is not required under Mississippi law and may result in unnecessary premium charges.

Retain Copies of All Sale Documents

The seller should retain a copy of the executed title (front and back), the completed bill of sale, the odometer disclosure statement, and any other transaction documents for personal records. These documents may be needed to establish proof of sale in the event of future liability disputes or inquiries from the tax collector's office.

Contact Information

Mississippi Department of Revenue — Motor Vehicle Services
500 Clinton Center Drive, Clinton, MS 39056
Phone: (601) 923-7700
Official Website: Mississippi Department of Revenue Motor Vehicle Services