How to Buy a Vehicle from a Private Seller in Louisiana: A Comprehensive Guide

Buying any Vehicle from a Private Seller in Louisiana can be a great way to save money, but it comes with its own set of challenges and requirements. For this topic, we can assume that vehicle pertains to anything to any consumer grade motor vehicle, but for applies generally to all.

This guide will walk you (THE BUYER) through the essential steps, paperwork, and common pitfalls to avoid to ensure a smooth and legal transaction.

1. Check Car
2. Check Title
3. Get Insurance
4. Do Paperwork
5. Choose a Title Processor
6. Get New Paperwork & Plate
7. Drive Safe

Step 1 is not our department. We are assuming that you have inspected, test driven, and basically fallen in love with the car. So let’s go to the next step friend.

Step 2: Verify the Title is Lien and Tax Free

Use this CHECKLIST as an extra tool to assist you in inspecting the title.

Louisiana Titles: When Buying a Vehicle from a Private Seller ensure that the a Louisiana-issued title, with the seller’s name printed on the front. The seller is should be the owner. If there are TWO OWNERS listed (Husband/Wife) both must sign the documents. A clean and lien free title looks like this with Seller’s Identity matching the Printed Name:

As you can see in the photos above, the name is listed twice. In some cases it may be listed one time, or the addresses are different. There really isn’t a hard standard. The important thing to look for is the area underneath the Black Line and the word (LIEN). Alternatively if there is no signature, there could be a secondary document called TITLE LIEN RELEASE and it would have all the matching information as the title, and a authorized signature.

Title Branding and Flags

If a vehicle is damaged beyond its total value, the insurance company will SALVAGE the vehicle. Once a vehicle is branded as salvaged, it will be updated on the National Motor Vehicle Title Information System (NMVTIS). Regardless of what state it is originally or currently titled, it will carry the salvage brand/flag.

If the vehicle is repaired back to safe operational standards and can pass an inspection, the title can be converted to a RECONSTRUCTED aka REBUILT/ REBRANDED. It will require a trip to a participating Office of Motor Vehicle for a PHYSICAL INSPECTION performed by an authorized Louisiana Law Enforcement Official.

Note: Driver must be licensed and present with proper documents and valid insurance in order to request inspection.

BEST PRACTICE: When Buying a Vehicle from a Private Seller, only consider buying RECONSTRUCTED, and for SALVAGE – unless you know what you are buying and can do something about it (aka Mechanic, Body Shop, etc) then skip. Below is what the titles look like if there is any branding on them, and remember that you still want the back of the title to be FREE & CLEAR of writing:

Out-of-State Titles

If the title is from another state, verify that the back of the title is free of markings and the seller’s name is on the front. Additionally, ensure the seller has an out-of-state driver’s license to avoid potential tax liabilities. Obtain a copy of the front or back to provide to the Office of Motor Vehicles -OR- if the transaction takes place in another state, get the documents notarized in that state. Read the Louisiana Office of Motor Vehicle’s policy, Out-of-State Rules & Sales Tax on Vehicle Transfers

If you DO NOT obtain the Seller’s Out-of-State ID/License then you WILL OWE DOUBLE OR MORE IN TAXES.

When Buying a Vehicle from a Private Seller, if the Seller has a LOUISIANA License/ID and the Title is from Out-of-State, then the Seller has NOT PAID THEIR TAX DEBTS and if you want to register the car YOU WILL HAVE TO PAY ALL OF IT.

Step 3: Get some Louisiana Auto Insurance

DRIVING IN LOUISIANA WITHOUT INSURANCE IS THE WORST THING YOU COULD DO!

One More Time…

DRIVING IN LOUISIANA WITHOUT INSURANCE IS THE WORST THING YOU COULD DO!

In order to get a vehicle registration and physical License Plate, the car needs to be insured in the state of Louisiana with an authorized Insurance provider. BEFORE DRIVING OFF! Secure insurance on the vehicle. IT IS THE LAW. When you get a vehicle registered in Louisiana, you agree to administrative penalties and maintaining current and valid Louisiana insurance. If you cancel or withdraw your insurance while the registration and plate are still active, you will be subject to HUGE PENALTIES.

Also, If you get pulled over and the vehicle you are driving is uninsured, PREPARE FOR IT BE TOWED. Then prepare for HUGE PENALTIES & HUGE TOW FEES.

Step 4: Meet at a Public Tag Agency or Notary Office

It’s best to meet with the Seller at your local Public Tag Agency or Notary Office to prepare and draft documents. When Buying a Vehicle from a Private Seller, these professionals can assist with filling out and most importantly, notarizing the necessary documents, ensuring everything is completed correctly​​. They will charge you notary fees which can range depending on location.

You do not have to return to your home parish to complete paperwork. If the Seller does not come with you, prepare in advance and bring a witness whose 16 years or older. They will need to see the Seller sign the paperwork but this creates room for issues.

Note: The Office of Motor Vehicles cannot assist drafting paperwork or with notarization.

• Bill of Sale: This document should include the sale price, vehicle identification number (VIN), and the names and signatures of both the buyer and the seller followed by the notarization.
• Vehicle Title: The Notary or Agent will make sure the title is properly signed over to you by the seller. If the title has multiple transfer blocks filled out, avoid purchasing the vehicle as you may incur multiple back taxes​​.
• Valid Driver’s License, ID Card, or Passport: Buyer and Seller will need to provide the Notary/Agent with valid identification. There are no restrictions as far as buying and selling with International Passports. The problem arises in registering the vehicle to drive on Louisiana roads.
• Odometer Disclosure Statement: Required if the vehicle is less than ten years old​ and most of the time incorporated on the title itself.

When it comes to registering the vehicle Remember that unlike a dealership, individual to individual transactions do not provide a temporary license tag. Meeting at Public Tag Agent (where notaries also work) will get you same day access to a hard plate and registration. Notaries alone do not always have the set up like the tag agencies.

Step 5: Choose a Title Processor

PUBLIC TAG AGENT

Let’s face it, everything Louisiana charges fees, here, there, everywhere. If you choose to use a Public Tag Agent (PTA) to process the paperwork, (not prepare) then you will pay (Extra). When Buying a Vehicle from a Private Seller, you are NOT REQUIRED to use the PTA, and can schedule an appointment at the Office of Motor Vehicle. All you need is prepped and finished paperwork before using the Office of Motor Vehicle. Below is a table that lays out the approximate fees.

OFFICE OF MOTOR VEHICLES

Schedule an appointment ahead of time to visit the Louisiana Office of Motor Vehicles (OMV). Or you can completed paperwork. As the Buyer When Buying a Vehicle from a Private Seller, the Office of Motor Vehicles requires you to submit or bring with you for your appointment:

• A completed vehicle application form (DPSMV 1799).
• “Current” certificate of title assigned before a notary by seller to purchaser, with the properly released lien, if applicable. If the bill of sale, invoice, or title is notarized, the file will be acceptable.
• If the vehicle is not exempt from odometer requirements and the back of the title does not contain an Odometer Disclosure Statement, a supplemental Odometer Statement must be submitted.
• Original notarized bill of sale or invoice specifying the actual consideration involved and full description of vehicle. If an invoice from a dealer is submitted, the full description of the trade-in vehicle (if any), and the dealer’s current permit number must be indicated.
• It is only necessary to notarize the bill of sale, invoice, or title. However, if a trade vehicle is listed on the bill of sale, it must be notarized.
• If a tax credit is shown on an invoice, the invoice must be notarized.
  • Exception: If the state is a non-notary state, then the invoice is not required to be notarized.
• A separate bill of sale is not required if the selling price is included on a title with a notarized assignment.
• If the vehicle sale occurs in a state with a notarial requirement, the itemized invoice submitted must be the original and notarized. If the original is lost, a certified true copy can be accepted.
• A carbon copy of a bill of sale can be accepted if being submitted from a state that does not require notarization.

If you wish to obtain a license plate, in addition to the items above, the following must be included:

• A copy of each vehicle owner’s current and valid photo identification (driver’s license or identification card issued by this state or another state).
• Proof of liability insurance coverage (unless the vehicle transfer is being submitted by a licensed vehicle dealer).

Step 6: You’re Good to Go!

You should now have your new PHYSICAL LICENSE PLATE and your REGISTRATION SLIP. Install your plate and off you go. Remember to drive safe and be mindful of the road.

Common Mistakes to Avoid When Buying a Vehicle from a Private Seller

• Incomplete Titles: Ensure there are no filled-out transfer blocks on the back of the title to avoid additional tax liabilities. Under normal circumstances a title should be free and clear of any excessive writing or filled out transaction blocks on the back side. If there is an this transaction is between a private Seller and Buyer, than the Buyer is liable for unpaid taxes for each block filled.
• Seller Information: Confirm the seller’s identity with a driver’s license, especially for out-of-state titles. It never hurts to grab a copy of the seller’s ID front and back. If the seller is uncomfortable providing the information, they can block out or redact any sensitive information. Getting the Seller’s contact information can help you in the long run in case of issues.
• Skipping Professional Help: Utilize tag agencies or notary services to avoid errors and ensure all documents are correctly completed and notarized​​.

Legal: How To Louisiana, it’s stakeholders, and it’s affiliates do not practice law, do not advise in any legal manner, and are not admitted to practice law. If you do not feel comfortable conducting transactions at your own discretion please seek trusted legal advice. We are unable to provide any guidance related to any legal matter, now or in the future.

Disclaimer: We don’t always hit the marks and mistakes happen. If you see anything that is in error or believe that something should be revised, please do not hesitate to reach out to our team at support@howtowlouisiana.com