How To Sell a Car in South Carolina

Motor vehicle sales in South Carolina require compliance with state regulations governing title transfer, ownership documentation, odometer disclosure, sales taxes, and post-sale filings. The process involves completing the certificate of title assignment, preparing the required documentation, and ensuring the buyer registers the vehicle within a legal timeframe. The South Carolina Department of Motor Vehicles (SCDMV) administers these requirements.

What You Need To Know Before Selling a Car in South Carolina

Title Law and Ownership Requirements

Under Section 56-19-210 of the Code of Laws, it is unlawful to sell or offer to sell any motor vehicle in South Carolina unless a valid certificate of title has been issued for the vehicle. The owner named on the certificate of title possesses the legal right to sell the vehicle.

If two owners are listed on the title, the relationship between them determines how many signatures are required. When names appear on the title joined by "or," either owner may sign off and complete the sale without the other's participation. When names appear joined by "and," both owners must sign all documents related to the vehicle and be involved in any transactions affecting it.

Vehicles Exempt From Title Requirements

Certain vehicles are not required to obtain a certificate of title under Section 56-19-220. These include vehicles owned by the United States government, vehicles owned by a manufacturer or dealer and held for sale, vehicles owned by nonresidents not required to be registered in the state, mopeds, pole trailers, implements of husbandry, and special mobile equipment not required to be registered. For vehicles not subject to title requirements, a valid bill of sale and registration documents may serve as proof of ownership.

Satisfying an Existing Lien

If an active lien is recorded on the vehicle's South Carolina certificate of title, the lien must be fully satisfied before the vehicle can be transferred. The seller must contact the lienholder to obtain a lien release. The lienholder releases the lien either by signing the lien release form on the face of the title or by submitting an electronic lien release to the SCDMV.

Once the lien is satisfied and released, the seller obtains a clear title and may proceed with the sale. If the vehicle is being sold to a buyer who will finance the purchase through the seller, the seller must complete Section 2 of the Title Application (SCDMV Form 400), and the title will be mailed to the seller as lienholder until the buyer completes payment.

Vehicle Inspection and Emissions Requirements

South Carolina does not require private-party sellers to obtain a vehicle safety inspection or emissions test before completing a sale. No routine safety or emissions inspection is mandated by state law for passenger vehicles.

Documents Required To Sell a Car in South Carolina

Certificate of Title

The existing certificate of title is the foundational document establishing ownership and must be delivered to the buyer. The seller must sign the title in the space provided on the reverse side and ensure the signature matches exactly how the name appears on the front of the title. The back of the title must include the odometer reading at the time of sale, the date of sale, and the purchase price. The title must not be altered in any manner, and no correction fluid or similar materials may be used. The State of South Carolina does not require that the title assignment be notarized.

Bill of Sale

A bill of sale is strongly recommended for all private vehicle transactions. A signed bill of sale/buyer's order is required for all title transactions and must show the total sale price of the vehicle, minus any trade-in value. If the space on the back of the title does not include a section to record the sale price, a bill of sale must accompany the paperwork submitted to the SCDMV. The bill of sale does not require notarization and should be signed by both the seller and the buyer, with each party retaining a copy for their records.

Odometer Disclosure Statement

Federal law requires the transferor to disclose the odometer reading at the time of sale. The odometer disclosure statement must be completed on the Application for Certificate of Title (SCDMV Form 400) by the buyer when applying for a new title. The seller must certify that the odometer reading reflects the vehicle's actual mileage or provide a statement if the mileage cannot be verified or if an odometer discrepancy exists. The form requires signatures from both the transferor and transferee and acknowledgment of the mileage statement.

How To Transfer a Car Title in South Carolina

Step 1: Review the Title Before the Sale

Before proceeding with a sale, the seller should examine the existing certificate of title to ensure it is current and valid. If the title is lost, stolen, or damaged, the seller must apply for a duplicate title from the SCDMV prior to the sale. The seller should also verify that the vehicle is free of any liens or that any liens will be satisfied at closing.

Step 2: Complete the Title Assignment

At the time of delivery of the vehicle to the buyer, the seller signs the title assignment section on the back of the certificate. The seller enters the buyer's full legal name and address, the date of sale, the odometer reading, and the purchase price in the spaces provided on the title. The seller's signature must exactly match the name printed on the front of the title. If the title has been issued to more than one owner joined by "and," both owners must sign the assignment section.

Step 3: Prepare the Bill of Sale and Disclosure Paperwork

The seller and buyer should prepare and sign a bill of sale documenting the transaction, including the names and addresses of both parties, the date of sale, the vehicle identification number, make, model, year, body type, the purchase price, and signatures of both parties. If applicable, the seller certifies the odometer reading by signing the odometer disclosure section of Form 400 or a separate odometer disclosure statement, acknowledging the actual mileage or indicating if mileage cannot be verified.

Step 4: Deliver the Documents to the Buyer

The seller delivers to the buyer the properly completed and signed certificate of title, a signed copy of the bill of sale, the completed odometer disclosure statement, and any other documentation related to the sale. These documents must be provided to the buyer at the time the vehicle is delivered.

Step 5: Buyer Submits Application Through a Local SCDMV Branch

The buyer is required to apply for a new certificate of title within 45 calendar days of the purchase date. The buyer completes the Application for Certificate of Title (SCDMV Form 400) and submits it along with the assigned title, payment of the required title fee, and the odometer disclosure statement to a local SCDMV branch office. Applications are not processed after 45 days unless the buyer demonstrates valid cause for the delay.

Title Transfer Fee Schedule in South Carolina

The fees listed above are state fees for title transactions. The SCDMV also collects an Infrastructure Maintenance Fee (IMF) equal to 5% of the purchase price, not to exceed $500, for all vehicle purchases, including private sales. Local county fees may also apply.

Sales Tax on Private Vehicle Sales

Private-party vehicle sales in South Carolina are subject to a specialized tax structure. Motor vehicles sold by private parties are subject to a Maximum Tax (Max Tax) rate of 5% of the purchase price, not to exceed $500. This means the maximum amount of state tax owed on any private vehicle sale is $500, regardless of the purchase price. Local sales and use taxes do not apply to the sale of motor vehicles under the Max Tax provision. The buyer is responsible for paying the applicable tax at the time of registration with the county tax assessor. The Infrastructure Maintenance Fee (IMF), at 5% of the purchase price and capped at $500, is collected by the SCDMV as part of the registration and title application process.

What To Do After Selling Your Car in South Carolina

Notify the SCDMV of the Sale

The seller is required to notify the SCDMV when a vehicle is sold. The seller must complete the Notice of Vehicle Sold (SCDMV Form 416) and submit it to any SCDMV branch office or mail it to the SCDMV at the address provided below. Completing and submitting this form does not legally transfer ownership but protects the seller from liability until the buyer completes the actual transfer of ownership. It is recommended that this form be submitted promptly after the sale.

Remove and Surrender the License Plate

The seller must remove the license plate from the vehicle upon sale. If the plate is active (not expired), it may be voluntarily surrendered to the SCDMV or transferred to another vehicle if the seller acquires a replacement. If the plate cannot be physically surrendered, the seller may use Form 452 (Application to Replace or Surrender Plate, Decal, or Registration) to formally notify the SCDMV.

Cancel Automobile Insurance

After the sale is finalized and the license plate is removed from the vehicle, the seller should contact the automobile insurance provider to cancel coverage for the sold vehicle or transfer the policy to a replacement vehicle. Continuing to maintain insurance on a vehicle no longer owned is not required and may result in unnecessary premium charges.

Retain Copies of All Sale Documents

The seller should retain copies of the completed bill of sale, the Notice of Vehicle Sold form, and any other transaction documents. These copies may be needed to prove the sale in the event of future liability disputes or if the SCDMV issues a verification notice related to the sold vehicle.

Contact Information

South Carolina Department of Motor Vehicles
10311 Wilson Boulevard, Building C, Blythewood, SC 29016
Phone: (803) 896-5000
Official Website: SCDMV