How to Sell a Car Privately in Michigan
Selling your car yourself in Michigan comes down to a signed title, the right paperwork, and a few steps people often miss. This guide summarizes what the Michigan Department of State and state law say, so you and the buyer can finish the transfer cleanly.
Transferring the title
- The seller must hand over the original paper title (not a copy) with the seller's section completed, signed, and showing the buyer's name and address. michigan.gov
- When a title lists more than one owner, every owner must sign, and crossed-out names or other alterations make the title invalid. michigan.gov
- The VIN on the title must match the VIN on the vehicle. michigan.gov
- The buyer has 15 days from the sale date to transfer the title before a $15 late fee applies. michigan.gov
- If the seller cannot go to a Secretary of State office, the seller signs the seller's portion and the buyer can still complete the transfer, or an agent can act using the Appointment of Agent form. michigan.gov
License plates
- Plates stay with the seller, who must remove them as soon as the vehicle is sold. michigan.gov
- The seller may move the plate to another vehicle they own or buy later, and the plate may stay with the vehicle only in a transfer to an immediate family member. michigan.gov
- The buyer must get their own plate and registration or transfer a plate they already own. michigan.gov
- A buyer may drive the vehicle home without a plate for three days from the sale date, carrying the assigned title and proof of insurance. michigan.gov
- Old plates should be destroyed or recycled so they cannot be misused. michigan.gov
Telling the state you sold the car
- The title stays in the seller's name until the buyer applies for a new title, so the seller cannot remove their name on their own. michigan.gov
- A private seller who makes a genuine sale, delivers the vehicle, and signs over the title is protected from liability for the buyer's later use if the seller goes with the buyer to a Secretary of State office or keeps a record of the sale for 18 months. michigan.gov
- An acceptable record is a copy of the front and back of the signed title or a document with the buyer's name, address, driver's license number, signature, price, and sale date. michigan.gov
- The seller should copy the completed title front and back and keep it for at least 18 months. michigan.gov
Taxes and fees the buyer pays
- Sales tax is 6% of the greater of the purchase price or fair market value, due when the buyer applies for the title. michigan.gov
- Title transfer costs $15, and plate transfer costs $10 to $15. michigan.gov
- Registration fees are set by state law and can be estimated with the state's registration fee calculator. michigan.gov
- Transfers between certain close relatives such as spouses, parents, and children are exempt from sales tax. michigan.gov
- The buyer must show proof of Michigan No-Fault insurance. michigan.gov
Loans and liens
- A paper title with a lien cannot be transferred until the lien is terminated or the lienholder supplies a letter approving the transfer. michigan.gov
- Accepted proof includes a lienholder-signed paid stamp on the title, a separate termination statement listing the VIN, or a lienholder letter on letterhead. michigan.gov
- An electronic title cannot be transferred until the lien is released. michigan.gov
- If the lienholder is still listed on a paper title, the seller must give the buyer the lien release. michigan.gov
Easy-to-miss rules in this state
- Michigan offers an online transfer for a single individual selling to a single individual with a paper title, but the buyer cannot be financing the vehicle. michigan.gov
- A buyer who is asking for the online transfer may need up to 3 days for approval, and a 60-day permit can be printed if a new plate is purchased. michigan.gov
- Buyer and seller are encouraged to visit a Secretary of State office together to complete the transfer. michigan.gov
Frequently asked questions
What happens to the license plates when I sell my car in Michigan?
Plates stay with the seller, who must remove them as soon as the vehicle is sold. The seller may move the plate to another vehicle they own or buy later, and the plate may stay with the vehicle only in a transfer to an immediate family member.
Do I have to tell the state I sold my car in Michigan?
The title stays in the seller's name until the buyer applies for a new title, so the seller cannot remove their name on their own. A private seller who makes a genuine sale, delivers the vehicle, and signs over the title is protected from liability for the buyer's later use if the seller goes with the buyer to a Secretary of State office or keeps a record of the sale for 18 months.
Official Michigan resources
- Michigan SOS buying, selling, or leasing
- Michigan SOS title FAQ
- Title transfer and vehicle registration
- License plates and tabs
- Selling a vehicle and seller liability
- Michigan Vehicle Code odometer disclosure (MCL 257.233a)
Next steps
Once you know the rules, create a free listing and print a QR code sign for the car window. For the general process, see our step-by-step private sale guide, the paperwork checklist, and how to get paid safely. Need paperwork? Use our free bill of sale generator.