Use this Best Practices Guide to help navigate the process of selling your car or motor vehicle in Louisiana. This assumes that it is titled and registered in your name and in the state of Louisiana. The two parties involved with this transaction are Buyer(s) and Seller(s); The signature of the Seller(s) must be notarized by a Louisiana Notary Public, and generally the process is as follows:
- Determine Current Situation
- Plate Status
- Insurance Status
- Find Buyer
- Do Paperwork
- Notice of Transfer
- Notary / PTA
- Maintaining Records
Step 1: Determining Your Current Situation
There are two scenarios when it comes to selling your car or motor vehicle. The car is either parked and not being driven, or it is being used normally day to day. Only one thing to mention before going any further.
There is only ONE rule to memorize!
Make it stick – If the car has an active License Plate, there needs to be Active & Valid Auto Insurance for it.
The worse thing is as the registered owner of any vehicle, is to let the auto insurance lapse, or drive without insurance. Both are equally the root of your worst experience ever!
If the car is parked, and there is no driving involved, and there is no Active Plate then it is not required to have Auto Insurance for the State Requirements. You can however insure it against other things such as weather, theft, etc. Seek Insurance Guidance from a reputable Louisiana Agent.
If the car is being driven up until it is to be sold, then it the step you take when you sale the car are critical to avoiding Fees & Penalties, even worse, having administrative blocks on your driving record.
Remember: Cancelling your insurance is the last thing and you can check your Driver’s License status by performing an inquiry.
Alternatively, if there is a specific amount of time that the vehicle will be Out of Service, whether for maintenance or while posted for sale, there is a Statement of Non-Use available for registered owners to use AND not have to cancel the plate.
Step 2: Find a Buyer
We do not have any guidance on Step #2, but you know how Social Media is, just spam the listing everywhere. Take good pictures and use good common sense!
Step 3: Do the Paperwork
Best Practice: Schedule and coordinate to meet with the Buyer at a local Public Tag Agent or Notary Office. The professionals at these establishments can assist you (For a Fee) in completing the necessary paperwork. The Office of Motor Vehicles is unable to notarize anything nor particularly like to do paperwork for anyone.
Here is a Free Louisiana Bill of Sale in PDF Form.
- As the Registered Owner (your name is printed on the front) the Title can be used as a Bill of Sale.
- This is only available to you as the Registered Owner to take advantage of.
- Below, in the Red Box, the Name, Address, and Sale Amount are entered.
- The information on the car is already available on the front side since the Title will be serving as a 2 in 1.
IMPORTANT: PAPERWORK IS ONLY PART 1
The keys and the money have been exchanged, and the you have parted ways with the Buyer. It doesn’t mean all is done because the vehicle is still in your name until it registered to the Buyer. Sometimes life happens and it is never registered but that is not your worry. You will want to put in for a Notice of Vehicle Transfer.
If you haven’t done so yet, you can also Cancel Your License Plate, both of which will require your Registration Slip (white paper registration). ONLY CANCEL THE PLATE AFTER THE INSURANCE IS CANCELLED.
Step 4: Maintaining Records
Keep the necessary documents for safe keeping, where sometimes out of the blue, they become necessary. For Commercial Business, Trusts, and Organizations these records can be used for the annual Minutes or Board Meetings exhibits.
