Classic Car Dealers in Alabama

In Alabama the Department of Revenue issues titles, but you apply for one at your county license plate office, and the 2% state sales tax is collected there when you register the car. Two Alabama specifics matter for classics: cars 35 model years old and older are exempt from titling, and the vintage plate comes with strict use rules.

Titling and registering the car

Title applications go through a designated agent of the Department of Revenue: the county license plate office (probate judge, license commissioner or revenue commissioner), a licensed Alabama dealer, or an Alabama bank or credit union. The title fee is $15, plus small agent and sometimes local fees. You have 20 calendar days from the purchase date to register the car, and a late registration adds a $15 penalty plus interest. A title application has to be completed before the registration can be processed, and an Alabama liability insurance policy is required.

Alabama does not require the seller's signature on a title to be notarized. If a title is assigned to someone who is not a licensed dealer, that person must first get it titled in their own name before reselling, so a seller who never titled the car is a warning sign.

Vehicles 35 model years old and older are exempt from titling. For those, you register the car with a bill of sale or other ownership documents, and the licensing official or a deputy inspects the car at every change of ownership. If a car that does need a title comes without a usable one, the Department may issue a title under a surety bond: for a passenger vehicle 10 or more model years old the bond is $10,000, the application follows within 90 days, and the title is marked as secured under a three-year surety bond.

A car from another state needs a VIN inspection by the licensing official or a deputy, or a law enforcement officer completing Form MVT 5-9, and the out-of-state title is surrendered for the Alabama title. If a lender holds the original, the owner can register with a copy of the title record. New residents have 30 days from the day the vehicle enters Alabama to register it.

Vintage plates

• Who qualifies: an Alabama resident's car more than 30 years old, counted by model year, with its original or substantially similar body, chassis, engine and transmission. Replicas, kit cars, street rods and beach buggies do not qualify, and neither do buses, trailers or taxis.
• Use: trips to maintenance or repair, and club activities, exhibitions, tours and parades, including car shows in other states. Not for work, school or shopping, commercial use, or carrying passengers or property.
• Cost: a one-time $10 state fee plus a county issuance fee, and the car is exempt from the annual ad valorem tax. The plate is permanent.
• Original plates: for 1976 and earlier models you can register with a legible original Alabama plate carrying a vintage decal instead.
• Misuse: the application form lists a minimum $100 fine, loss of the plate and three years of ineligibility.
• When the car is sold: the plate must be transferred to the new owner or returned to the licensing official, and a new owner who will not use the car under the vintage rules has to surrender it and register normally.

Inspections and emissions

The Department of Revenue states that Alabama law does not provide for emissions testing of motor vehicles, so a classic is not tested in any county. The inspection you will meet is the VIN and ownership check by the licensing official described above.

Sales tax

• The state rate on vehicles is 2%, new or used, and county and city rates are added on top, so the total depends on where you live.
• A licensed dealer collects the tax. In a private sale, or when you buy out of state, you pay the state and local use tax to the county licensing official in your county of residence when you register.
• Sales tax legally paid to another state on a car brought into Alabama is credited against the use tax.
• A first vintage plate registration requires proof that the sales or use tax was paid.

Salvage and rebuilt titles

A car is a total loss when the insurance settlement covers damage of 75% or more of its retail value. A salvage car must be restored in Alabama and pass a Department of Revenue rebuilt inspection before it gets a rebuilt title; the fee is $90. A Flood Vehicle legend stays on every later title, in any state.

Dealers, private sellers and "as is"

Alabama dealers are licensed by the Department of Revenue and must carry a $50,000 bond. The Attorney General warns that "as is" means no warranty, that problems that appear right away are not covered, and that the lemon law covers only new vehicles, so a used car has no lemon law protection. Inspect the car or have a mechanic do it, and get your own history report.

Sources: Alabama Department of Revenue (Motor Vehicle Division FAQs, title fee, rebuilt inspection and dealer license pages, Automotive Sales, Use and Lease Tax Guide), Alabama Administrative Code chapters 810-5-1 and 810-5-75, the vintage vehicle plate application (Form MVR 40-12-290), the Alabama Attorney General and the Houston County probate office. Rules and fees change; confirm with your county license plate office before you buy.