How to Transfer A Car Title in Texas: Can You Do It Online?
Transferring a car title in Texas might sound intimidating, but it’s actually pretty simple when you know what steps to take. Sure, all the paperwork and requirements can feel overwhelming at first, but once you break it down, it’s really not so bad. Whether you’re buying, selling, or inheriting a car, following the right process can spare you a lot of time and stress. We’re in Brownsville and we serve McAllen, Weslaco, Pharr, and the rest of the state including Austin and San Antonio. If you’re looking to buy or sell a new or used car, we can help you!
How Much Is Texas Car Registration? How To Buy A Car In Texas
How to Transfer a Car Title in Texas
1. Gather the Necessary Documents
Before you head to the DMV, make sure you have all the required paperwork. This will include:
- The title: The current title must be signed by the seller and include the sale price and buyer’s information.
- Application for Texas Title (Form 130-U): This form needs to be completed and signed by both the buyer and seller.
- Bill of Sale: While not always required, having one helps document the sale and provides extra proof of the transaction.
- Proof of insurance: The buyer must have valid Texas insurance for the vehicle being transferred.
- Identification: A government-issued photo ID, like a driver’s license, is needed for both parties.
2. Pay the Necessary Fees
You’ll need to pay a title application fee, typically $33, along with any applicable sales tax, which is 6.25% of the purchase price or the car’s standard presumptive value (SPV). There may also be additional county processing fees.
3. Submit the Paperwork at the DMV
Visit your local Texas Department of Motor Vehicles (DMV) office to submit the documents. The DMV will review your paperwork to make sure everything is complete and accurate. If you’re the buyer, you’ll receive the updated title with your name on it once the process is finished.
4. Notify the DMV of the Sale (For Sellers)
As the seller, you’re responsible for notifying the DMV of the sale within 30 days. This step protects you from liability if the new owner gets into an accident or commits a violation with the car. You can submit a Vehicle Transfer Notification online through the DMV’s website or at a local office.
Remember not to procrastinate and be sure to transfer the title within 30 days of the sale to avoid racking up late fees.
When Can You Transfer a Car Title in Texas
You can transfer a car title in Texas whenever ownership changes. This includes buying or selling a car, inheriting a vehicle, or receiving one as a gift. It’s also required when adding or removing a name on the title, like during a divorce. If the car is financed, you’ll need to work with the lender to handle their part of the process.
When You’re Not Allowed to Transfer a Car Title
Sometimes, transferring a car title in Texas isn’t possible due to specific legal or paperwork issues. These situations can delay the process until resolved. It’s super helpful to know the common reasons why a title transfer might not go through so you can address any problems upfront. Here are some examples:
- The vehicle has an unresolved lien. A lienholder must release their claim before the title can be transferred.
- The car is reported stolen. Any flagged vehicles in the system will halt the transfer process.
- The title is missing. You can’t transfer ownership without a valid title, so a replacement must be obtained first.
- The title is flagged for fraud or legal issues. Any disputes or restrictions on the title must be cleared before moving forward.
Associated Fees
As mentioned above, there will of course be fees you’ll need to plan for when transferring a car title in Texas. These costs can vary depending on the situation, so it’s a good idea to bring enough funds to cover them when you visit the DMV. Here’s what you might expect:
- Title application fee: Typically $33, but this may vary by county.
- Sales tax: Generally 6.25% of the purchase price or the car’s standard presumptive value (SPV).
- Local fees: Counties may add small additional fees for processing.
- Late transfer penalty: If you don’t transfer the title within 30 days, expect a $25 penalty, plus $25 for each additional 30 days.
Special Exceptions
The state of Texas has a few special exceptions when it comes to car title transfers. For instance, if a vehicle is gifted, the recipient doesn’t have to pay sales tax. Instead, they must complete a Gift Affidavit (Form 14-317) and pay a $10 gift tax. This exception only applies to gifts between qualifying family members or charitable organizations.
Another exception occurs when a car title is transferred after the owner’s death. The process depends on whether the title has a “right of survivorship” designation. If it does, the surviving owner can transfer the title by presenting proof of death and proper identification. Without that designation, the transfer may require probate documentation or an Affidavit of Heirship (Form VTR-262).
Vehicles being inherited, donated, or transferred to a business may have additional specific steps or forms. Always check with your local DMV for any unique circumstances to make sure the transfer process isn’t held up and runs smoothly.
Title Transfer in Texas at a Dealership
If you trade your car into a dealership, the good news is that they’ll handle the title transfer process for you. Dealerships know the process and transfer titles so often that you can trust they’ll get it done correctly. Once you trade in your vehicle, they’ll take care of transferring the title out of your name and into theirs, so you can focus on enjoying your new car. This is one of the perks of working with a reputable dealership—they take care of the behind-the-scenes work for you.
Dealerships can also help with transferring a car title to another person, whether it’s for a private sale or a gifted vehicle. It’s important to double-check their policies and confirm they’re clear about the process. Some dealerships might charge an administrative fee for handling the title transfer, so be ready for potential additional costs. Verifying that the title transfer has been completed is also a smart step, especially when selling to a third party. This helps make sure there are no lingering liabilities tied to your name after the transaction. Always request proof of completion for your records to prevent issues from popping up down the road.
Pros and Cons of Trading in Your Car
Like most things in life, trading in your car at a dealership has both pros and cons. Sure, you might not get as much cash as selling it yourself, but it’s fast, simple, and even comes with tax perks. Plus, you can roll your old car right into a deal for your new one without breaking a sweat. Here’s a quick look at the pros and cons.
Pros:
- Super convenient: The dealership handles all the paperwork, including the title transfer.
- Tax break: You only pay sales tax on the difference between your trade-in value and the new car’s price.
- Quick and easy: No need to deal with ads, buyers, or waiting around for payment.
- All-in-one deal: Trade your old car and drive home in a new one on the same day.
Cons:
- Less money: Dealerships usually offer less than what you’d get in a private sale.
- Not much wiggle room: They might not negotiate much on your trade-in value.
- Fees might pop up: Some dealerships charge extra for processing the trade-in.
- You lose control: The dealership decides what happens to your car and how much it’s resold for.
How to Transfer a Car Title in Texas Conclusion
Handling a car title transfer in Texas might sound tricky, but it’s really just about having the right paperwork and acting on time. Whether you’re buying, selling, or gifting a car, the key is making sure all the documents are in order. Plus, taking care of it within 30 days helps you avoid late fees and keeps everything running smoothly. A little preparation goes a long way in making the process quick and hassle-free.
When you’re car shopping at Tipton Hyundai, you can feel confident knowing we’ll take care of the paperwork for you. Not only will you get an amazing deal, but we’ll also make the process simple and stress-free, helping you find the perfect vehicle to fit your lifestyle. Let us handle the details so you can focus on enjoying your new car!
How Much Is Texas Car Registration? How To Buy A Car In Texas
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