Selling a Vehicle in New Mexico

Preparing a Certificate of Title

When preparing to sell a vehicle in New Mexico, the owner must ensure they have a valid Certificate of Title. This document is crucial for transferring ownership to the buyer. If the original title is missing or damaged, the seller must obtain a duplicate before proceeding with the sale.

To get a duplicate title in New Mexico, the vehicle owner must complete an Application for Duplicate Certificate of Title form (MVD-10901). This form requires basic information about the owner, the vehicle, and any lienholders. The owner must provide their name, address, contact details, and the vehicle's year, make, model, and identification number.

The application also asks about the status of the original title - whether it was lost, stolen, mutilated, or never surrendered by a previous seller. The owner must certify that the information provided is true and correct.

There is a $5 fee to obtain a duplicate vehicle title without adding or deleting a lien. The owner can submit the application in person at a local NM MVD office or by mail to the address specified on the form.

When applying, the owner must present their driver's license and the most current registration certificate for identification. If an outstanding lien on the vehicle is present, a release of the lien may be required.

Having a Vehicle History Report and Other Essential Records

Comprehensive records can significantly enhance the sale process when selling a vehicle in New Mexico. One of the most essential documents to obtain is a vehicle history report. This report provides potential buyers with crucial information about the car's past, including details on previous ownership, accident history, repairs, and any manufacturer recalls.

To get a vehicle history report, sellers can use the National Motor Vehicle Title Information System (NMVTIS). This system offers access to approved data providers who can retrieve records using the vehicle's identification number (VIN).

While there's usually a fee involved, the report covers five key areas: current state of title and last title date, brand history, odometer reading, total loss history, and salvage history.

In addition to the history report, sellers should gather all service and maintenance records. These documents, including receipts and service summaries, demonstrate that the vehicle has been well-maintained. This information can reassure potential buyers about the car's condition and potentially increase its value.

Other essential records to have on hand include vehicle registration documents and any lien information. These can be obtained from the New Mexico MVD through their online Record Request Services system. With all these documents ready, sellers can build trust with potential buyers and facilitate a smoother, more transparent sales process.

Getting a Vehicle Identification Number (VIN) Inspection

Before selling a vehicle in New Mexico, mainly if it's coming from another state, a VIN inspection is often necessary. This process is crucial for verifying the vehicle's identity and ensuring its legal status.

The VIN inspection is required for all used vehicles with out-of-state titles registered in New Mexico for the first time, including cars transferred with a U.S. Government Certificate of Release. A certified VIN inspector conducts a visual examination to confirm that the VIN on the Certificate of Title matches the vehicle.

During the inspection, if any alterations or signs of VIN plate tampering are discovered, the process is halted, and law enforcement is contacted for a more thorough investigation.

The inspector completes MVD Form 10861, which is valid for 90 days from the inspection date. This form proves that the vehicle has passed the VIN inspection, making it easier for the new owner to register the car in New Mexico.

Complying with Emissions Requirements

When selling a vehicle in New Mexico, it is vital to understand the emissions requirements, especially in Bernalillo County. Most vehicles need to pass an emissions test before changing ownership in this area.

The rules apply to vehicles made in 1989 or later, weighing up to 10,000 pounds. These cars must pass an emissions test every two years and when being sold. This includes gas-electric hybrid vehicles.

There are a few exceptions to these rules. Brand-new vehicles don't need an emissions test for the first four years after their initial registration. Also, fully electric vehicles and diesel vehicles are exempt from these tests.

For sellers in Bernalillo County, having a current emissions test certificate can make the sale process smoother. It shows potential buyers that the vehicle meets local environmental standards and is ready for immediate registration under new ownership.

Preparing the Bill of Sale

Preparing a Bill of Sale is essential in selling a vehicle in New Mexico. This document is especially crucial when the Certificate of Title's assignment section is incomplete or lacks space for additional information.

The Bill of Sale, also known as MVD-10009, serves as a legal record of the transaction between the seller and buyer. It must include comprehensive details about the vehicle, such as its year, make, and VIN. This form also requires the seller and buyer to provide their names, addresses, and signatures. Furthermore, the sale price should be clearly stated.

For vehicles previously owned by the Federal Government, the Bill of Sale must match the information on the Certificate of Title or U.S. Government Release Assignment.

By carefully preparing this document, sellers can facilitate a smoother transfer of ownership and assist the buyer with the vehicle registration process.

Complying with the Odometer Disclosure Requirements

When selling a vehicle in New Mexico, both federal and state laws require the seller to provide an accurate odometer reading at the time of sale. This is a crucial step in the transfer process to maintain transparency and prevent fraud.

The seller can provide this information in several ways:

• On the back of the New Mexico Title
• On the MVD Form 10009
• On MVD Form 10187 or "Odometer Disclosure Statement"
• On MVD Form 10002 or "Application for Vehicle Title and Registration"

The odometer statement must include specific language indicating whether the mileage is:

• Actual (AM)
• Exceeds mechanical limits (EL)
• Has an odometer discrepancy (NM)
• Is exempt (EX)

This requirement applies to all motor vehicle title transactions except off-highway vehicles.

Transferring the Title to the New Owner

When selling a vehicle in New Mexico, transferring the title to the new owner is a crucial step in the process. This transfer officially changes the legal ownership of the vehicle.

To transfer a title, both the seller and buyer need to sign the title document. The seller signs in the designated area to release their ownership, while the buyer signs to accept ownership. It is essential to accurately fill out all required information, including the odometer reading, purchase price, and date of sale.

All owners must sign the document if multiple owners are listed on the title with "AND" between their names. A notarized power of attorney is required in cases where a representative is signing on behalf of the owner. However, if a company owns the vehicle, an officer can sign without a power of attorney.

As of March 2022, New Mexico has introduced an online title transfer service for vehicles already titled in the state. This new system allows buyers to upload scanned copies or photographs of the signed title, current insurance, and New Mexico license or ID. However, photocopies are not accepted.

Once submitted, MVD staff will review the documentation. If everything is in order, the buyer will receive an approval email with instructions for online payment. After payment, the new title, registration, and plate will be mailed to the buyer.

Note that this online service is unavailable for out-of-state vehicles or transactions requiring a VIN inspection, which must still be done in person at an MVD office.

Notifying the New Mexico MVD of the Sold Car

After the transfer of ownership, the seller must notify the MVD that the car has been sold. This notification helps protect the seller from potential liabilities associated with the vehicle after the sale.

To do this, the seller should complete the MVD-10048 form titled "Notice of Vehicle Sold." This form requires several key pieces of information:

• The VIN
• Make, model, and year of the vehicle
• License plate number
• Date of sale
• Odometer reading at the time of transfer
• Whether the license plate was removed from the vehicle
• Buyer's name and address
• Seller's name and address

The seller must sign and date the form, certifying that the information provided is accurate. Giving false information on this form is considered perjury, which is a serious offense.

After completing the form, the seller should mail it to the New Mexico MVD at the address provided on the form.

Removing the License Plates

When selling a vehicle in New Mexico, it is vital to understand the rules about license plates. The seller is responsible for removing the license plate from the sold vehicle. This should be done at the time of sale.

Once the plate is removed, the seller has 30 days to either:

• Put it on another vehicle of the same class that they own, or
• Return it to the MVD to be canceled

If the registration on the plate is still valid for another year, the seller may get credit for this unused time when transferring the plate to another vehicle.

For the buyer, they should not use the seller's plate on their newly purchased vehicle. Instead, they need to:

• Use a plate from another vehicle they own (if it's the same class of vehicle), or
• Get a new plate from the MVD

These rules help ensure that vehicles are properly registered and that license plates are correctly associated with their owners. This is part of the process of keeping vehicle records accurate and up-to-date in New Mexico.

Canceling Insurance

During a vehicle sale in New Mexico, the seller should cancel their insurance on that vehicle. They should do this only after the sale and the title has been transferred to the new owner. The seller should contact their insurance company directly to cancel the policy or remove the sold vehicle from their existing policy.

It is crucial not to cancel the insurance too early, as this could leave the seller liable if an accident occurs before the sale is finalized. On the other hand, canceling promptly after the sale can prevent unnecessary payments. The seller should also keep documentation of the sale and insurance cancellation for their records.