Vehicle owners in Oregon planning to sell their vehicles must comply with specific legal requirements under state regulations.
For instance, Oregon Revised Statutes (ORS) 803.210 mandates a mandatory vehicle identification number (VIN) inspection for out-of-state vehicles. This inspection guarantees the VIN matches the documentation for fraud prevention and vehicle identification accuracy.
Additionally, Oregon Administrative Rule (OAR) 340-256-0300 requires emissions testing in designated areas like Portland-Metro or Medford-Ashland. This testing upholds environmental standards by verifying that vehicles meet specified emissions criteria before they can be legally sold or registered in Oregon.
Complying with Oregon laws and regulations when selling vehicles minimizes the risk of fines or legal disputes, facilitates smooth transactions, and provides transparency to build trust between buyers and sellers.
Legal Requirements Before Selling a Vehicle in Oregon
Before selling a vehicle in Oregon, owners must comply with several legal requirements, including obtaining a replacement title if necessary, guaranteeing the vehicle passes emissions testing in specific areas, and completing a VIN inspection for out-of-state vehicles.
Title Replacement
A car title is essential proof of ownership required for selling a vehicle in Oregon. Should this document be lost, damaged, or destroyed, selling the vehicle can become significantly more complicated.
To obtain a replacement, vehicle owners must complete an Application for Replacement/Duplicate Title (Form 735-515). All listed owners must sign the application. Replacement requests can be processed either at local Oregon DMV officesor by mailing the application to the following address:
DMV Headquarters
1905 Lana Ave NE
Salem, OR 97314
Note that electronic submissions and online payments are not accepted. Moreover, according to Oregon DMV policy, if a title is suspected or known to be stolen by an identified party, replacements will not be issued.
Emissions Testing
If vehicle owners reside in Oregon's Portland-Metro or Medford-Ashland areas, they must comply with mandatory emissions testing before selling their vehicles.
This testing is a crucial requirement under the Department of Environmental Quality (DEQ) Vehicle Inspection Program, a collaborative effort between the Oregon DMV and the DEQ to enforce emissions compliance.
In the Portland-Metro area, emissions testing is required for all gas-powered, alternative fuel, and hybrid vehicles from model years 1975 and newer and all diesel-powered vehicles from model years 1975 or newer weighing 8,500 lbs. or less.
In the Medford-Ashland area, emissions testing applies to all gas-powered, alternative fuel, and hybrid vehicles 20 years old or newer and all diesel-powered vehicles 20 years old or newer weighing 8,500 lbs. or less.
To undergo emissions testing, vehicle owners must visit a DEQ testing station with a completed and signed registration renewal form, including Sections 1 and 2. Testing fees are $25 for Portland-Metro and $20 for Medford-Ashland, payable separately from registration fees.
Upon passing the test, owners receive a 180-day valid certificate for registration renewal, which is valid for two years. Payment for testing and registration can be made in cash, by money order, or with non-PIN debit/credit cards.
If a vehicle fails its initial emissions test, the first retest is free, provided necessary repairs are made. For vehicles needing to continue operating before repair and reinspection, a 21-day trip permit costing $35 may be obtained.
VIN Inspection
In Oregon, sellers are legally obligated to guarantee that vehicles originating from out-of-state undergo a mandatory VIN inspection.
This inspection is essential as it verifies the VIN against its documentation to prevent potential issues like vehicle theft and fraud. It is pivotal in the registration process for out-of-state vehicles sold in Oregon.
Authorized agents, including state agencies, certified dealers, and law enforcement, conduct these inspections. Sellers are responsible for arranging the inspection, during which applicants must provide a clear VIN photograph or electronic display, complete a Vehicle Identification Number (VIN) Inspection (Form 735-11), and pay the prescribed fee under ORS 803.215.
Law enforcement agencies also inspect vehicles in their custody, including those assembled, reconstructed, or damaged from other jurisdictions. The DMV assigns a VIN to vehicles without one, which is then recorded on the title.
Additionally, the Oregon DMV may authorize inspections conducted by out-of-state agencies or military personnel. As outlined in ORS 803.215, inspection fees apply to vehicles requiring title issuance under specific conditions.
Selling a Vehicle with a Lien in Oregon
In Oregon, specific regulations govern the sale of vehicles with a lien on the title. The lien must be properly documented, and lienholders are required to release their interest once the final loan payment is received.
There is a specific process for noting and releasing a lien, along with requirements for providing a notice of satisfaction.
Removing a Lien from a Vehicle Title
Before selling a vehicle, owners must follow several steps to remove a lien from the vehicle's title. These steps include obtaining a lien release, applying for a new title, and renewing the vehicle's registration.
Obtaining a Lien Release
The first step in removing a lien from a vehicle title is obtaining a lien release from the lienholder. Once the final loan payment is made, the lienholder is responsible for signing off on the title and mailing it to the vehicle owner. If the lienholder cannot sign the title directly, they must provide a separate Statement of Lien Satisfaction (Form 735-524).
If the lienholder is a business or financial institution, the form must include the business name and the signature of an authorized representative. Financial institutions should use their unique line stamp or provide the release on official letterhead.
The lien release must identify the vehicle with at least one of the following:
- Plate number
- Title number
- VIN
- The names of the registered owners
Applying for a New Title
Once the vehicle owner receives the title from the lienholder, they must apply for a new title at the DMV. The vehicle owner should bring the title and the signed lien release, if applicable, to their local DMV office.
If the lienholder has sent a release of interest but not the title, the owner must complete Form 735-515 and pay additional fees. The title transfer fee ranges from $101 to $192, and payment must be made in cash, money orders, or checks.
Securing a Lien-Free Title
Once the DMV processes the application, they will update their records to reflect the current status of any liens on the vehicle. If all prior liens have been satisfied, the new title issued to the vehicle owner will be clear of any liens. The DMV will then mail the updated title to the owner.
Renewing Vehicle Registration
Vehicle owners should also take the necessary steps to renew their vehicle registration if applicable. Depending on the requirements in their area, this may include passing an emissions inspection.
The DMV details the specific requirements for different regions to ensure that vehicles meet all local environmental standards.
Motor Vehicle Sales Tax in Oregon
Oregon implemented two distinct vehicle taxes starting January 1, 2018, which deviate from traditional sales tax models.
The vehicle privilege tax applies to Oregon vehicle sellers. In contrast, the vehicle use tax is levied on vehicles purchased from out-of-state dealers that require registration and titling within Oregon.
Both taxes are calculated at a rate of 0.5% of the vehicle's retail price.
Taxable Vehicles
To be subject to these taxes, vehicles must meet specific criteria:
- Purchased from a dealer or an individual required to be registered as a dealer in Oregon.
- Acquired on or after January 1, 2018.
- Driven 7,500 miles or less with an odometer or sold with a Manufacturer's Certificate of Origin (MCO) if without an odometer.
- Have a gross vehicle weight rating (GVWR) of 26,000 pounds or less.
- Never previously registered or titled in Oregon, except as a dealer demonstrator
Retail Sales Price Exclusions
The retail sales price of a vehicle, which serves as the basis for tax calculation, excludes several components. It does not encompass cash down payments and/or trade-ins.
Furthermore, it doesn't include charges for warranties, optional maintenance contracts, document processing fees, or registration and licensing fees.
Starting June 1, 2018, the retail value of ADA (Americans with Disabilities Act) modifications to medium-duty trucks with a GVWR of 10,000 to 26,000 pounds is excluded from the taxable retail sales price. ADA modifications are adjustments made to vehicles so they are accessible and usable by individuals with disabilities.
Effective from the same date, the retail value of customized industrial modifications to the chassis of these trucks is also excluded from the taxable retail sales price.
Responsibilities of Dealers
In Oregon, vehicle dealers, both in-state and out-of-state, have distinct responsibilities regarding tax obligations and documentation.
In-State Dealers
Oregon-based vehicle dealers must pay vehicle privilege tax based on each taxable vehicle's sale price. This tax and document processing fees are collected during the sales transaction.
Dealers must comply with these obligations if they have a significant presence in Oregon, such as employees or contractors regularly working in the state or ownership of real property.
Out-of-State Dealers
Out-of-state dealers lacking a physical Oregon presence can opt to collect and remit vehicle use tax for their Oregon customers. If chosen, they must detail the tax amount on sales receipts or proof-of-sale documents and register for a vehicle use tax account with the Oregon Department of Revenue.
They must also report and remit taxes quarterly and submit a certificate of use tax paid to the DMV for each taxable vehicle sold.
Vehicle Privilege Tax Exemptions
Exemptions from the vehicle privilege tax include sales to non-Oregon residents, sales to businesses where vehicles will be primarily used outside Oregon, and sales at auctions lasting fewer than seven consecutive days where admission is charged and vehicles are auctioned.
Exemptions also apply when the seller obtains a resale certificate from a buyer actively engaged in vehicle sales.
Vehicle Use Tax Exemption
The vehicle use tax exemption applies only when the seller receives a resale certificate from a buyer active in vehicle sales.
Legal Requirements After Selling a Vehicle in Oregon
Throughout and following the sale, vehicle owners must fulfill several requirements for legal compliance and proper documentation. These include:
Odometer Disclosure
According to ORS 803.120, accurate odometer disclosure is required during vehicle transfers. Exemptions include vehicles without odometers, those older than 2010, trailers, and vehicles over 16,000 pounds. Class 1 ATVs, snowmobiles, and transfers where at least one owner remains are also exempt.
For vehicles requiring disclosure, sellers and buyers must record odometer readings on the title or a Secure Odometer Disclosure form. If a title is lost for 2011 or newer vehicles, sellers must obtain a replacement to disclose mileage accurately.
Once noted, discrepancies like "not readable" or "not actual" cannot be removed. If an odometer rolls over, this must be clearly stated.
Oregon permits the use of a Secure Power of Attorney for odometer disclosure when titles are lost, mutilated, or held by a security interest holder. Vehicle owners must contact the DMV for guidance on this.
Ownership or Title Transfer
In Oregon, the process for transferring a vehicle title varies depending on whether a licensed dealer or a private seller conducts the sale.
Licensed car dealers typically manage most of the title transfer paperwork for the buyer so they can accurately complete and submit all required documents to the Oregon DMV.
Private sellers follow different procedures and requirements based on whether the vehicle is used or new. For used cars, the seller signs over the title to the buyer and releases their interest in the car. This process involves signing the back of the vehicle's title certificate or completing a Vehicle Bill of Sale(Form 735-501).
If the vehicle had a lien during the seller's ownership, the seller must provide a statement of lien satisfaction from the lienholder.
For vehicles under 20 years old, the seller must also provide an odometer disclosure, which can be documented on the title certificate or a Secure Odometer Disclosure/Reassignment form. The buyer then submits these documents to a local Oregon DMV office in person or by mail to the state DMV to finalize the title transfer.
When selling a new vehicle, the private seller must provide the Manufacturer's Certificate of Origin and the required documents mentioned above. Additionally, depending on the type of vehicle, the seller may need to provide proof of passing Oregon's low vehicle emissions requirements.
License Plate Surrender or Transfer
After selling a vehicle in Oregon, owners have two options for managing their license plates. They can surrender or transfer them to another vehicle of the same class.
To surrender plates, owners should render them unusable by bending, removing stickers, and recycling them, or they can surrender them in person at their local DMV office or by mail to the DMV in Salem.
If choosing to transfer plates to another vehicle they already own, owners must complete an Application for Registration, Renewal, Replacement, or Transfer of Plates (Form 735-268) and pay a $30 transfer fee per plate.
Insurance Cancellation
Vehicle owners in Oregon should promptly cancel their car insurance after selling their vehicles to avoid unnecessary premiums and maintain accurate records. Once the sale is finalized, they should request cancellation and provide their policy number and specific vehicle details to guarantee accuracy.
To prevent complications, owners must settle any outstanding premiums before initiating cancellation. They should also seek written confirmation of the cancellation from their insurance company and follow any instructions regarding the return of documents or license plates.
Owners should also explore alternative options, such as transferring insurance to a new vehicle if they plan to purchase one soon or adjusting coverage to suit driving needs or ownership status changes.
How To Notify the Oregon of the Sold Car?
When vehicle owners sell their cars, they need to inform the Oregon DMV to prevent future liabilities related to the vehicle. The buyer will be responsible for registering and titling the car in their name. Sellers have two options to notify the DMV of the sale.
They can use the DMV2U Online Service Center (eServices) by selecting the "Submit a notice of vehicle sale" tab under "Notify the DMV." They must provide their last name, date of birth, the last six digits of their Social Security number, and driver's license/permit/ID number.
Alternatively, they can complete and print a Notice of Sale or Transfer of a Vehicle (Form 735-6890) and mail it to the Oregon DMV.