Classic Car Dealers in Minnesota

In Minnesota the title comes from Driver and Vehicle Services (DVS), through a deputy registrar office or by mail, and sales tax is paid when the title transfers. The plate class is what shapes the cost of buying a classic: Minnesota's collector plates replace the usual 6.875% sales tax with a flat $150.

Titling the car

The seller signs the assignment on the title, writes in the actual selling price and the odometer reading, and hands the title over at delivery. The seller then reports the sale to DVS within 10 days. As the buyer you have 20 calendar days to apply for the new title; a late transfer adds a $2 fee, and DVS suspends the registration if nothing is filed within 30 days. A title transfer costs an $8.25 title fee, a $12 filing fee, a $2.25 technology surcharge and a $10 transfer fee, with a $1 surcharge more at a deputy registrar and a county wheelage tax on top.

A car from another state needs a Minnesota title, and DVS issues it only when the most recent out-of-state title is submitted. Until the title arrives, DVS can register the car from the latest registration card or a title copy. The statute also lets DVS ask for a certificate that the VIN was inspected and matches the application. New residents have 60 days to register a vehicle.

Age does not exempt a car from titling. If an older car comes without a title, Minnesota has a bonded route: for a vehicle more than five model years old where earlier owners or lienholders cannot be found, DVS will issue a title on an affidavit describing the search and a bond for one and a half times the vehicle's value, which expires after three years if no one makes a claim.

Collector class plates

• Collector: a car at least 20 model years old (or at least 10 with a body or engine style built in fewer than 500 a year), built after 1935. You must show you also have a vehicle with regular plates.
• Pioneer (built before 1936), Classic (a full classic built 1925 to 1948, no commercial vehicles) and Street Rod (modernized, built before 1949 or made to resemble one; also needs a regular-plated vehicle).
• Use: collector, not general transportation. DVS says driving to shows and parades is acceptable and that Minnesota sets no mileage limit for the class.
• Cost: a one-time $25 registration tax plus the plate fee. The plate carries no date and does not need renewing for as long as the vehicle exists in Minnesota.
• Original plates: a collector-class car can display original Minnesota plates from its model year, with DVS approval.
• Plates can move: a collector plate can be assigned to a new owner, who pays the $25 tax and the plate fee, or moved to another eligible vehicle for $5.
• Equipment: the car must carry the equipment that was legally required when it was first sold, in working order.

Sales tax

• The standard rate is 6.875% of the purchase price, paid at titling, on private sales as well as dealer sales and on cars bought outside Minnesota.
• A passenger car registered or applying to be registered in a collector class pays a flat $150 instead, whatever the price. If it moves to a regular class within a year, the full tax applies.
• A gift or very low price is taxed on the average value of similar cars. Gifts between spouses, parent and child, and grandparent and grandchild are exempt, as are inheritances.
• A trade-in lowers the price when you trade a vehicle to a licensed dealer.
• Tax paid to another state is credited only if that state gives Minnesota a similar credit.
• Some cities and counties add a $20 vehicle excise tax.

Inspections

Minnesota has no emissions testing program for passenger cars. DVS does require a safety certification for reconstructed or specially constructed vehicles, so a rebuilt or custom classic can face an extra step before it is titled.

Salvage titles

A title branded salvage lets the holder own and move the car but not register it. Titles can also be branded prior salvage, flood damaged or reconstructed, and a car that carries an out-of-state salvage or rebuilt brand receives a prior salvage title in Minnesota.

Dealers and private sellers

The five-sales-a-year allowance that lets a private person sell without a dealer license does not cover pioneer or classic cars. Any seller who knows a car took damage above 80% of its value must say so in writing, and a licensed dealer must also disclose known title brands and flood damage. Minnesota's used car warranty law gives dealer-sold cars a written warranty of 15 days to 60 days, but it excludes many older cars, cars sold under $3,000 and cars with 200,000 miles or more, so for most classics the dealer's written terms and the Buyers Guide are what count.

Sources: Minnesota Driver and Vehicle Services (new residents, vehicle fees, vehicle sales tax, collector class and original plates, exempt vehicles), Minnesota Department of Revenue (motor vehicle sales), Minnesota Pollution Control Agency, and Minnesota Statutes chapters 168, 168A, 297B and 325F. Rules and fees change; confirm with DVS or a deputy registrar before you buy.