Selling a vehicle in Maine is governed by specific regulations outlined in the Maine Revised Statutes, including Title 10, Chapter 204, and Chapter 204-A, as well as Title 29-A. Individuals intending to sell a vehicle in Maine must familiarize themselves with these legal requirements.
To maintain compliance with these regulations, the Maine Department of the Secretary of State (SOS) has delegated the responsibility of managing vehicle-related matters to the Bureau of Motor Vehicles (BMV). These entities establish and enforce strict guidelines that vehicle sellers must follow.
Adhering to these regulations safeguards the interests of both the seller and the buyer, promoting a fair and compliant transaction. Sellers can foster trust and confidence among potential buyers. Doing so will enable them to navigate the selling process smoothly and successfully.
Legal Requirements Before Selling a Vehicle in Maine
Before selling a vehicle in Maine, sellers must fulfill several legal requirements, which include the following:
Duplicate Title
Before selling a vehicle in Maine, the seller must have the official vehicle title. If the original title has been misplaced, destroyed, or stolen, the seller must obtain a duplicate title issued in their name, which will be transferred to the buyer.
Here are key points that sellers must accomplish:
Obtain the Last Titled Owner's Signature
The vehicle owner must complete the Application for Duplicate Title (MVT-8) form to apply for the duplicate title. This form must be signed by the last titled owner(s) on record. If the vehicle is jointly owned, with the names connected by "and," both owners must provide their signatures. However, if the names are connected by "or," either owner's signature will suffice.
Note that if the original title is illegible or mutilated, it must be submitted with the application form when requesting a duplicate. Also, if the vehicle is over 25 years old, it is exempted from a title, so the seller may not have to secure a duplicate.
Lien Release
A lien release is required if the customer states that a recorded lien has been released. Only after the lien is cleared can the seller proceed with the sale of the vehicle. To learn more, check this guide's "Selling a Vehicle With a Lien in Maine" section.
Payment and Application Submission
A duplicate title costs $33 for regular processing and an additional $10 if it has to be rushed. The seller must mail the application form MVT-8 with the appropriate fee to the Title Unit in Augusta:
Bureau of Motor Vehicles
Division of Title Services
29 State House Station
Augusta, Maine 04333-0029
They may also submit the form and the fee to any branch location.
The seller must wait 5-8 business days to finish the regular processing before they can receive the duplicate title. If they paid for rush processing, they could wait only 3-5 business days.
Electronic Lien Titling Program (ELT)
The Maine BMV also has an online Motor Vehicle Title Replacement portal that allows individuals to request the duplicate title online. However, only vehicle owners with a Maine vehicle title without a lienholder can use the portal. They will need the following:
- Valid driver's license or State ID for Maine
- The vehicle's model year, VIN (vehicle identification number) and mileage
- A MasterCard, Visa, or Discover credit/debit card
The online portal cannot be used if the title holder is a company or the vehicle is a 1998 model or older.
The online portal is facilitated by a third-party organization that collaborates with the State of Maine. The $46 fee encompasses not only the cost of the service itself but also contributes to the development, maintenance, and enhancement of the State's official web portal, Maine.gov, and other online services.
VIN Check
Although conducting a VIN check is typically a responsibility buyers undertake when considering a vehicle, sellers can also perform this task. With the VIN information, sellers can streamline the sale and provide potential buyers with valuable details.
Sellers can access this information through the following means:
- Complete the Inspection of VIN by Authorized Person (MVT-10) form
- Access the following online BMV services:
- Interactive Title Records (search for title information using VIN or title number)
- Interactive Registration Records (search for vehicle registration information by plate number)
These online services offered by the Maine BMV allow individuals or businesses to search for vehicle registration details, title information, and lien records. This service can be a valuable resource for sellers, providing them with crucial data about the vehicle they are selling.
In addition to the dedicated free services offered by the State of Maine, sellers can also utilize the free VINCheck Service provided by the National Insurance Crime Bureau (NICB). This service allows sellers to identify any major "brands" or titles, liens, thefts, or other ownership issues associated with the vehicle's VIN.
Vehicle History Report
While it is common for buyers to obtain a vehicle history report for the vehicles they intend to purchase, sellers can also acquire such reports to facilitate a smoother selling process. Sellers can procure a comprehensive vehicle history report on the vehicle they are selling.
To obtain this vehicle history report, sellers can utilize the National Motor Vehicle Title Information System (NMVTIS). However, sellers need to acquire these reports only from NMVTIS-approved data providers.
These vehicle history reports contain crucial details about the vehicle, including:
- Details about the vehicle's title, including its current status and any previous transfers of ownership
- The date when the most recent title was issued for the vehicle.
- A record of any brands, designations, or remarks that have been officially associated with the vehicle's title throughout its history, such as "salvage" or "rebuilt."
- The odometer reading, which can help track the vehicle's mileage over time
- Documentation of any instances where the vehicle was declared a total loss or deemed a salvage vehicle due to extensive damage or other circumstances
Vehicle Inspection
Per Maine's regulations, all motor vehicles must undergo an annual safety inspection. Additionally, vehicles registered in Cumberland County must undergo an emissions test. These inspections are carried out at licensed automobile dealerships, service stations, and garages throughout the State.
When preparing to sell a vehicle in Maine, sellers can have the vehicle they are selling inspected per the guidelines outlined in the Maine Motor Vehicles Inspection Manual. By doing so, sellers can assure potential buyers that the vehicle meets the necessary safety and emissions standards.
Selling a Vehicle with a Lien in Maine
When selling a Maine vehicle with an outstanding lien or financial obligation attached to it, sellers must follow a specific set of steps to achieve a legal and seamless transaction. Generally, the process involves the following steps:
Contact the Lienholder
One of the initial steps for the seller is to contact the lender or lienholder listed on their vehicle's title. The lienholder has ten business days from receipt of the notification to work with the Maine SOS.
If the lien holder doesn't respond within ten business days or if they don't confirm the validity of the lien release, the title will be printed and provided to the owner. However, if the lien holder disputes the lien release, the duplicate title will be mailed to them. Note that the lienholder is responsible for notifying the SOS of the lien release.
Pay off the Vehicle
When selling a vehicle with an existing lien, the seller must address the outstanding lien amount owed to the lienholder. The seller should compare the lien payoff amount provided by the lienholder against the anticipated selling price of the vehicle. If the payoff is lower than the selling price, the seller may request a lien release letter from the lienholder.
This lien release letter confirms that the lienholder will remove the lien once the payoff amount is received. With this letter, the seller can utilize the proceeds from the vehicle sale to pay the lienholder the payoff amount.
However, when the payoff exceeds the vehicle's selling price, the seller must cover the difference out-of-pocket to the lienholder. Once the lienholder receives the full payoff amount, they will release the lien, allowing the seller to legally transfer ownership of the vehicle to the buyer during the sale process.
The seller must clear all outstanding liens before proceeding with the transfer of ownership, as this is a mandatory requirement for a legal and compliant transaction.
Obtain Lien Release
Once the seller has paid the full lien payoff amount to the lienholder, the lienholder will relinquish their legal interest and claim over the vehicle. At this point, the lienholder will return the original title document to the seller.
However, before the title can be fully transferred, the seller and the lienholder must complete and sign the Release of Lien (MVT-12) form and submit it to the Maine SOS to officially release the lien and facilitate the transfer of ownership.
The lienholder may also use the BMV's Motor Vehicle Title Lien Release service to release their lien on a vehicle online. The service enables lienholders to release liens individually or through batch upload.
However, access to this online service is exclusively available to InforME subscribers. Individuals or entities interested in becoming subscribers and obtaining further information about the subscription process can visit the Subscriber Services page provided by InforME.
Get a Duplicate Title
The seller must obtain a duplicate title after receiving the original title from the lienholder. In addition to applying for a duplicate title, the seller must provide the necessary supporting documents, including:
- The lien release document
- Vehicle registration
- Title number
- VIN
The seller will also be required to pay a fee of $33 for regular processing, with an additional $10 charge if they opt for expedited or rush processing.
For more detailed information, sellers can review this guide's "Duplicate Title" section, which outlines the specific requirements and procedures. Alternatively, sellers can seek further assistance directly from the Maine BMV if they require additional guidance or clarification.
Motor Vehicle Sales Tax in Maine
In Maine, all motor vehicle sales are subject to a tax rate of 5.5%, whether purchased from a private seller or a dealer. Also, unlike other states, Maine doesn't have a local sales tax, so vehicle buyers only pay the sales tax.
Buyers will pay the sales tax and purchase price if they buy the vehicle from a licensed Maine dealer. However, if they buy from a private seller, they must pay the sales tax when registering their vehicle to their name after the purchase.
Understanding how much the motor vehicle sales tax in Maine can help vehicle buyers calculate the total cost of their purchase and plan their budget accordingly.
Motor Vehicle Use Tax for Out-of-State Purchases
If a Maine citizen buys a vehicle out of State, they may be required to pay a use tax of 5.5%. It is the equivalent of the sales tax for out-of-state purchases of tangible property to be used, stored, or consumed in Maine.
However, if the buyer has legally paid sales tax in another state, they could be entitled to a tax credit for the amount paid to the other State against the tax due in Maine. Doing so prevents the buyer from being double-taxed.
For example, the buyer purchases a vehicle in Nebraska. Nebraska has a sales tax of 5.5%. They wouldn't have to pay Maine's use tax if they paid the sales tax there. However, if the buyer purchased the vehicle in Alaska, they will still have to pay the 5.5% use tax in Maine since Alaska doesn't impose any sales tax.
The buyer can obtain the Maine Use Tax Certificate for the tax credit. However, if the buyer paid less than Maine's tax rate, they must pay Maine the difference. If the buyer paid more than Maine's sales tax in another state, they won't be refunded the difference.
Legal Requirements After Selling a Vehicle in Maine
For a smooth and legally compliant transfer of ownership when selling a vehicle in Maine, sellers must adhere to specific obligations and follow the prescribed transaction process. The required steps involve several key components:
Bill of Sale
Sellers must provide the buyer with a comprehensive Bill of Sale document, which records the transaction details and the transfer of ownership. The document must include the following information:
- Names of the seller and buyer
- The vehicle's final purchase price
- Details about the vehicle, such as year, make, model, body type and color
- The vehicle's VIN
- The odometer disclosure statement
- Lien holder information (if applicable)
- Signatures of seller and buyer
Report the Sale to the Maine BMV
Upon completing a vehicle sale, dealers must report the transaction to the BMV by submitting the Dealer's and Lessor's Supplemental Report (ST-MV-8). This report must encompass relevant details about the sale, including:
- The purchase price of the vehicle
- The amount of sales tax collected
- Any applicable exemptions or deductions
Dealers must file the form with the BMV when they file for their Sales and Use Tax Return (ST-7), typically on or before the 15th of each month. To learn more about the reporting, dealers can read the Sales, Fuel & Special Tax Division Instructional Bulletin No. 24 of the Maine Revenue Services.
Private sellers don't have to report the sales to the BMV as they don't collect the sales tax from buyers during the vehicle sale. The buyer will pay the sales tax directly to the BMV or any branch.
Title Transfer
The seller is responsible for properly transferring the vehicle's title to the buyer, adhering to the instructions outlined in the title document. When the vehicle had an existing lien at the time of sale, the seller should provide the buyer with the lien release documentation received from the lienholder.
Sellers must verify with the BMV if they can provide the buyer with a copy of the MVT-12 form or if a written lien release letter will suffice. The lien release document proves that the lien has been satisfied and the lienholder's claims on the vehicle have been relinquished upon the seller's payment of the outstanding lien payoff amount.
Odometer Information
If the vehicle's title doesn't have an odometer disclosure section, the seller must provide the buyer with an Odometer Information (MVT- 32) form.
Note that the National Highway Traffic Safety Administration (NHTSA) outlined some updated requirements regarding the odometer disclosure of vehicles during sales. Sellers can download the Odometer Disclosure Requirements - Final Rule for more information.
License Plate Removal
Maine regulations mandate that sellers remove the license plates from a vehicle before transferring ownership to the buyer. Neglecting to do so and leaving the plates affixed to the sold vehicle can potentially expose the seller to legal liabilities.
If the new owner commits violations, incurs unpaid tolls, receives traffic citations, or engages in criminal activities while the plates are under the seller's, the seller could be held accountable for those infractions. To safeguard against potential repercussions, sellers must properly remove the license plates from the vehicle before finalizing the transfer to the buyer.
Cancel Vehicle Insurance
After completing the sale, the seller can cancel their current insurance on the vehicle sold as an extra measure. Here are a few additional important tasks for sellers:
Notifying the Auto Insurance Company
The seller should promptly contact their auto insurance provider and inform them about the sale of the vehicle. The insurance company may request specific details such as the sale date, buyer information, and any other relevant details.
Canceling Insurance Coverage
The seller will need to request cancellation of the insurance coverage for the sold vehicle, specifying the effective cancellation date as the sale transaction date.
Updating Insurance Policy
Since the seller no longer owns the sold vehicle, they must update their insurance policy accordingly. This involves completely removing the sold vehicle from the policy coverage. If the seller has any remaining insured vehicles, their policy coverage and premiums should be adjusted solely based on those vehicles.