How To Sell a Car in Wisconsin

Selling a motor vehicle in Wisconsin requires compliance with state law governing title assignment, ownership documentation, odometer mileage disclosure, sales tax obligations, and seller notification procedures. The Wisconsin Department of Transportation administers motor vehicle title and registration functions, and the Wisconsin Department of Revenue oversees sales tax collection for vehicle transfers.

What You Need To Know Before Selling a Car in Wisconsin

Title Law and Ownership Requirements

A certificate of title in the seller's name is a prerequisite for any legal motor vehicle sale in Wisconsin. The seller must hold the existing title before the vehicle can be conveyed to another party. If an original title has been lost, the seller must apply for a replacement title before proceeding with the sale. Under Wisconsin Statute Section 342.15, the transfer of ownership requires the proper assignment of the certificate of title to the buyer.

When multiple owners are listed on the title with their names separated by the word "and," all named owners must execute the title assignment. If the names are joined by "or," only one owner's signature is required to complete the transfer.

Vehicles Exempt From Title Requirements

Certain categories of motor vehicles in Wisconsin are exempt from the certificate of title requirement. Among the exempt vehicles are implements of husbandry, such as farm tractors and farm trailers used exclusively for agricultural purposes, as well as various non-highway vehicles. Trailers and recreational vehicles used for personal, non-commercial purposes may be exempt depending on their specific use and configuration. For vehicles not requiring a title, the seller may transfer ownership by bill of sale accompanied by any applicable registration documentation.

Satisfying an Existing Lien

If the vehicle's certificate of title contains a notation of an existing lien or security interest, that lien must be paid off and released before the vehicle can be transferred free and clear. The seller must contact the lienholder to obtain a formal lien release document, which the lienholder is responsible for issuing once the loan is paid in full. If the lien has been released electronically through the Department of Transportation's records, the electronic notation serves as proof of release. The lienholder's release letter or other documentation demonstrating payment and lien removal must be provided to the buyer at the time of sale. There is no fee assessed by the Department of Transportation to remove a released lien notation from the title record.

No Vehicle Inspection or Emissions Testing Required for Private Sales

Wisconsin does not impose a mandatory safety inspection requirement on the private sale of motor vehicles. However, emissions testing may be required in certain Wisconsin counties. Vehicles in Sheboygan, Washington, Ozaukee, Waukesha, Milwaukee, Racine, and Kenosha counties are subject to emissions testing upon a change of ownership if the vehicle is more than five model years old. Emissions testing occurs at the time of the buyer's new registration, not at the time of the private sale itself. The seller has no obligation to obtain emissions testing or emissions compliance verification before transferring the vehicle.

Odometer Mileage Disclosure Requirement

For motor vehicles of model year 2011 or newer, the seller must disclose the vehicle's odometer reading in writing to the buyer at the time of transfer. This requirement is mandated by federal law and enforced under Wisconsin Statute Section 342.155. The disclosure must specify whether the mileage reading is actual, not actual, or exceeds the odometer's mechanical limits. Vehicles with a model year of 2010 or earlier are exempt from the odometer disclosure requirement. False statements regarding odometer mileage are prohibited and subject to criminal penalties.

Seller Notification Requirement

Under Wisconsin Statute Section 342.41, a seller who transfers a motor vehicle from one individual to another individual must report the sale to the Wisconsin Department of Transportation within 30 days of the transaction. This notification must include the vehicle identification number, the buyer's identity, the sale price, and the date of sale. Failure to complete seller notification does not prevent the buyer from obtaining a title but creates potential liability exposure for the seller if the vehicle is subsequently involved in accidents, traffic violations, or other incidents that could be attributed to the seller. Seller notification can be completed online through the Department of Transportation's website.

Documents Required To Sell a Car in Wisconsin

Certificate of Title

The original certificate of title is the principal document establishing the seller's ownership of the vehicle. The seller must sign the title on the reverse side in the designated area for the transferor's signature. The signature must be executed in the same name and format as it appears on the face of the title. If the title bears more than one owner and the names are joined by "and," both or all owners must sign. The title assignment is a binding transfer of ownership rights and must not be altered, damaged, or corrected with erasure or correction fluid. The Department of Transportation will reject any title document that has been altered or contains evidence of prior corrections.

The seller must fill in the vehicle's odometer reading on the title if the vehicle is model year 2011 or newer. The seller must also enter the sale price on the title and the buyer's name and complete address. If the vehicle has a brand designation (such as salvage, flood damage, or taxi use), the seller must ensure the brand is properly disclosed on the title. Any lien notation must be addressed through a lien release document before the title is delivered to the buyer.

Bill of Sale

Although Wisconsin does not mandate a bill of sale form for private vehicle transfers, maintaining a record of the transaction is advisable for both parties. The seller may draft a bill of sale or use the Instructions for Selling a Vehicle form (MV2928), which contains a bill of sale template provided by the Department of Transportation for convenience. The Department of Transportation does not require this form to be submitted; it is retained by the seller and buyer as private documentation.

A valid bill of sale should include the complete vehicle description, including the year, make, model, vehicle identification number, odometer reading, and body type; the names, addresses, and telephone numbers of both seller and buyer; the sale price; the date of sale; and the signatures of both the seller and buyer. No notarization of the bill of sale is required by Wisconsin law.

Lien Release Document

If the vehicle title shows a recorded lien, the seller must obtain and deliver to the buyer a lien release document or confirmation of lien removal issued by the lienholder. This document evidences that the secured party has released its interest in the vehicle. The format of the lien release may vary depending on whether the lien holder has released the lien electronically through the Department of Transportation or issued a paper release. The buyer will need both the properly assigned title and the lien release documentation in order to obtain a clear title in the buyer's name.

Odometer Mileage Statement

For model year 2011 and newer vehicles, the odometer reading and mileage statement must be recorded on the title itself in the spaces provided on the reverse side. The statement must indicate whether the mileage is actual, not actual, or exceeds mechanical limits. This disclosure serves as the formal mileage statement required by federal law and Wisconsin statute. No separate form is required; the disclosure is made directly on the certificate of title.

How To Transfer a Car Title in Wisconsin

Step 1: Review the Title Before the Sale

Before offering the vehicle for sale, the seller should verify that the title is in the seller's name and that the seller possesses the original title document. If the title has been lost, the seller must apply for a replacement title before the sale can proceed. The seller should review the title to confirm the current owner information, identify any lien notations, and note any brand designations such as salvage or flood damage. The seller may use the Lien Holder Search tool provided by the Department of Transportation to verify whether any liens are recorded against the vehicle. If a lien exists, the seller must arrange payment and release of the lien before marketing the vehicle for sale.

Step 2: Obtain Lien Release if Necessary

If a lien is noted on the title, the seller must contact the lienholder and arrange for payment of the outstanding loan balance. Upon receipt of final payment, the lienholder issues a lien release document. The seller should request the lien release in writing and confirm its date. The release document must be retained and later provided to the buyer at the time of sale. If the lienholder has released the lien electronically, the seller may contact the Department of Transportation to verify that the release has been recorded in the department's electronic system.

Step 3: Complete the Title Assignment

Once the purchase agreement is finalized and payment is received, the seller executes the title transfer by completing the assignment section on the reverse of the certificate of title. The seller writes the buyer's full legal name and complete address, the date of sale, and the vehicle's odometer reading (if the model year is 2011 or newer). The seller signs and dates the title in the designated area for the transferor's signature. The signature must exactly match the name as it appears on the face of the title. No erasures, correction fluid, or alterations are permitted.

If the title lists multiple owners and the names are separated by "and," all owners must sign. If "or" separates the names, only one owner needs to sign. The seller must also fill in the selling price on the title for Department of Revenue verification.

Step 4: Disclose Brand Information and Complete the Title

If the vehicle has a title brand such as salvage, flood damage, or police vehicle use, the seller must complete the brand disclosure area on the title. Failure to disclose a title brand may subject the seller to penalties.

Step 5: Prepare a Bill of Sale (Optional but Recommended)

The seller may prepare a bill of sale incorporating the vehicle information, sale price, date, and signatures of both parties. This document serves as evidence of the transaction and may be retained by both seller and buyer for their records. The MV2928 form provides a template, or the seller may draft a bill of sale independently. Both seller and buyer should retain a signed copy.

Step 6: Deliver Documents to the Buyer

At the time of sale, the seller delivers to the buyer the properly completed and signed original certificate of title, any lien release documents (if applicable), and a signed copy of the bill of sale if one has been prepared. The seller retains copies of all documents for personal records.

Step 7: Remove License Plates and Complete Seller Notification

For most standard vehicles, the seller must remove the license plates at the time of sale. The specific plate removal requirements vary depending on vehicle type and registration classification under Wisconsin statutes. Plates remain the property of the seller. If the seller does not intend to transfer the plates to another vehicle, the seller must destroy them. Plates should not be returned to the Department of Transportation. The seller may transfer unexpired plates to another vehicle registered to the seller, the seller's spouse, or the seller's registered domestic partner without additional charge, provided the vehicle is the same type.

Within 30 days of the sale, the seller completes seller notification through the online seller notification portal operated by the Department of Transportation. The notification requires the vehicle identification number, the buyer's identity, the sale price, and the date of sale. Seller notification fulfills the statutory requirement under Section 342.41 and protects the seller from liability for subsequent violations, accidents, or damage involving the vehicle.

Step 8: Buyer Applies for New Title

The buyer must apply for a new certificate of title in the buyer's name promptly after taking possession of the vehicle and purchase documentation. The buyer applies for title and registration through the eMV Public online portal or through a county license plate issuing office. The application requires the signed and completed title assignment, any lien release, the sale price, and the purchase price information. If the vehicle is to be operated on Wisconsin public roads, the buyer should complete this application without delay to ensure compliance with registration requirements.

Title Transfer Fee Schedule in Wisconsin

The fees listed above are state-level fees charged by the Department of Transportation. A county or local service provider may impose an additional service fee for processing the title application in person. The buyer is responsible for payment of the title transfer fee at the time of application. No fee is charged for removing a lien once the secured party has released it.

Sales Tax on Private Vehicle Sales

Private vehicle sales in Wisconsin are subject to the state sales and use tax imposed by the Wisconsin Department of Revenue. The applicable tax rate is 5% of the purchase price. Many Wisconsin counties have adopted an additional county sales and use tax of 0.5% or higher, depending on the county where the vehicle will be customarily kept. The city of Milwaukee imposes an additional 2% local sales tax on motor vehicle purchases. Tax is calculated based on the vehicle's location of use, not the location of the sale.

The buyer is responsible for reporting and paying the applicable sales tax when the vehicle is titled and registered with the Department of Transportation. The Department of Transportation will not issue a new title or registration unless proof of tax payment has been provided. The seller does not collect sales tax in a private-party transaction; the buyer pays tax directly to the county tax authority at the time of registration. The purchase price reported on the title will be examined by the Department of Revenue to verify that the price is reasonable and to detect suspiciously low values that may indicate tax avoidance.

What To Do After Selling Your Car in Wisconsin

Remove License Plates

For most standard vehicles, the seller must remove the license plates at the time of sale. Plates remain the property of the seller. If the seller does not intend to transfer the plates to another vehicle, the seller must destroy them. Plates should not be returned to the Department of Transportation. The seller may transfer unexpired plates to another vehicle registered to the seller, the seller's spouse, or the seller's registered domestic partner without additional charge, provided the vehicle is the same type.

Cancel or Transfer Insurance Coverage

Once the vehicle has been sold and the title transferred, the seller should promptly contact the seller's automobile insurance provider to cancel coverage for the sold vehicle or to transfer the policy to a replacement vehicle. Continued insurance payments on a vehicle no longer owned by the seller constitute an unnecessary expense. Wisconsin's mandatory liability insurance law does not require a vehicle owner to maintain coverage on vehicles no longer owned.

Complete Seller Notification

Within 30 days of the sale, the seller must complete seller notification by submitting the required information to the Department of Transportation through the online seller notification system. The notification protects the seller from liability for subsequent violations, accidents, or damage involving the vehicle. A seller who fails to notify the department may face liability if the vehicle is used to commit traffic violations or other illegal activity after the sale.

Retain Sale Documentation

The seller should retain a copy of the bill of sale, odometer statement, and all other transaction documentation. These records may be necessary to prove the sale in the event of a subsequent dispute, insurance claim, or legal action involving the vehicle.

Contact Information

Wisconsin Department of Transportation
2135 Rimrock Road, Madison, WI 53713
Phone: (608) 266-2353
Official Website: Wisconsin Department of Transportation