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When buying a car from a private seller in Delaware, you must obtain the original Certificate of Title. The seller must sign their name in the designated "Assignment of Title" section on the back of the title. Ensure the seller's name and address on their ID match the information on the front of the title.
Instead of a traditional sales tax, Delaware charges a one-time "Document Fee" when you title a vehicle. This fee is 4.25% of the purchase price or the NADA average trade-in value, whichever is higher. This fee is paid directly to the DMV, not to the seller, when you are completing the title transfer.
Yes, a bill of sale is required by the Delaware DMV. The bill of sale must be notarized if the vehicle is less than seven years old. The document must include the vehicle's year, make, model, and Vehicle Identification Number (VIN), the final purchase price, the date of sale, and the names and signatures of both the buyer and seller.
Check the "Lien Information" section on the front of the Delaware title. If a bank or credit union is listed, the seller must provide you with a lien release letter from that financial institution. Without proof that the loan has been paid off, you will not be able to obtain a clean title.
You have 30 days from the date of purchase to transfer the title and register the vehicle at a Delaware DMV location. Waiting longer than 30 days will result in late fees.
Unlock Savings in Delaware's Private Car Market: Essential Tips and Resources.
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