How To Sell a Car in Rhode Island

Selling a motor vehicle in Rhode Island requires compliance with state regulations governing title transfer, sales tax, documentation, and odometer disclosure. The process differs depending on whether the vehicle is titled or previously untitled, and all private-party sellers must provide specified documentation to transferees and pay applicable state taxes. The Rhode Island Division of Motor Vehicles (DMV) administers these requirements.

What You Need To Know Before Selling a Car in Rhode Island

Title Law and Ownership Requirements

As of January 1, 2024, all motor vehicles sold in Rhode Island, regardless of model year, require a certificate of title. A motor vehicle must be transferred through a process that includes odometer disclosure. The titled owner must establish clear ownership before proceeding with a sale.

For vehicles titled in Rhode Island, the seller must sign the back of the certificate of title and deliver it to the buyer. For vehicles with model year 2000 or older that were previously registered in Rhode Island but not titled under the prior law, sellers must now obtain a title to transfer to the buyer.

Vehicles Without Active Liens

A lien-free title is required for lawful transfer. Rhode Island does not require a person to apply for a new title once a lien has been satisfied. Instead, the lienholder must release the lien by signing off on the title and providing a letter of lien release. The seller should obtain this lien release letter from the lienholder and have it available for delivery to the buyer. If the title cannot be located after the lien is satisfied, the seller must obtain an original lien release statement from the lienholder to attach to the title before the transfer.

Out-of-State Titled Vehicles

If a motor vehicle is being transferred from out of state to a Rhode Island buyer, the seller's state title must be in the seller's name and properly assigned to the buyer. If an out-of-state vehicle was not previously titled in its state of origin, proof of ownership, such as an old registration or paid sales tax form, must be available.

Safety and Emissions Inspection Before Sale

Rhode Island does not require a private-party seller to obtain a vehicle safety inspection or emissions test before completing a sale. The buyer, however, must ensure the vehicle passes inspection within five days of registration in Rhode Island. Vehicles purchased from licensed dealers have different requirements—all used vehicles from Rhode Island dealers must have a valid inspection no more than 90 days before the sale date and cannot have accumulated more than 500 miles since the inspection.

Odometer Disclosure Requirement

Any sales agreement for a motor vehicle transfer must contain explicit language stating that both the buyer and the seller have examined the title certificate and that it correctly reflects the mileage as shown on the odometer. The seller must disclose the vehicle's mileage in writing, sign the disclosure, and ensure the buyer acknowledges it.

Documents Required To Sell a Car in Rhode Island

Certificate of Title

For vehicles that require Rhode Island titling, the seller must provide the original certificate of title. The seller completes the assignment section on the reverse of the title by signing exactly as the name appears on the front of the document. If two owners are listed and joined by "and," both must sign. The title must include the buyer's name and the sale date.

Rhode Island law does not require title assignments to be notarized. However, the title document must not be altered using correction fluid or any other means; any alteration will result in rejection by the Division of Motor Vehicles.

Bill of Sale

Under Rhode Island law, any bill of sale must be sequentially and numerically identified, dated on the day of sale, and valid for not more than 30 days following the date of the original dated document. The Rhode Island DMV provides an official Bill of Sale form that contains all required elements.

The bill of sale must include the following information:

• Date of sale (month, day, and year)
• Sale price
• Full legal names and complete addresses of both seller and buyer
• Vehicle identification number (VIN)
• Year, make, model, body type, cylinders, and color
• Odometer reading in whole miles (no tenths)
• Signatures of both seller and buyer

If two owners are listed and joined by "and," both must sign. The form includes an odometer disclosure statement confirming the actual mileage, mileage exceeding mechanical limits, or a discrepancy warning.

Both parties should retain a signed copy for their records.

Odometer Disclosure Statement

The odometer disclosure is incorporated into the bill of sale or may be completed as part of the application for title (Form TR-2/TR-9). The seller must certify one of the following:

• The odometer reading reflects the actual mileage of the vehicle
• The mileage is in excess of the vehicle's mechanical limits (odometer started at zero again)
• The odometer reading is not the actual mileage (odometer discrepancy warning)

Both the seller and buyer must view the odometer and sign the disclosure. Providing a false odometer statement is unlawful under state law.

Application for Title

Depending on whether the vehicle is being titled for the first time in Rhode Island or is already titled, the buyer will need the Application for Title for Vehicles (Form TR-2/TR-9). This form must be completed by the buyer and submitted to the Division of Motor Vehicles after the sale. It includes space for odometer disclosure and requires signatures from both parties.

How To Transfer a Car Title in Rhode Island

Step 1: Review the Title Before the Sale

Before completing any sale, examine the certificate of title to confirm that the seller is the legal owner and that no liens are recorded. If a lien is present, the seller must obtain written confirmation from the lienholder that the lien will be or has been released. For vehicles that are currently titled in Rhode Island, ensure the title is in hand. For vehicles with model year 2000 or older that may not have been previously titled, verify that a title has been obtained, or confirm that the seller has obtained the necessary title, before completing the sale.

Step 2: Complete the Title Assignment

The seller signs the back of the certificate of title. The assignment must include the buyer's full name and address, the date of sale, and the odometer reading as required. The signature must match exactly the name printed on the face of the title. If two owners are listed and the names are joined by "and," both owners must sign. Any alterations, white-out, or erasure will render the title invalid.

Step 3: Prepare the Bill of Sale

Complete the official Bill of Sale form with all required information. The form includes an odometer disclosure section where both parties declare the vehicle's mileage and certify which condition applies (actual mileage, mileage exceeding mechanical limits, or discrepancy). Both the seller and the buyer sign the form and retain a copy. The bill of sale must be dated on the day of sale and remains valid for 30 days from that date.

Step 4: Deliver Documents to the Buyer

At the time of sale, the seller delivers the following to the buyer:

• The original certificate of title, signed on the reverse side
• The signed bill of sale (with odometer disclosure)
• Any lien release letter from the lienholder if applicable

The buyer has 30 calendar days from the date on the bill of sale to register the vehicle in Rhode Island. During this 30-day period, the buyer may operate the vehicle using the bill of sale.

Step 5: Buyer Submits Application Through DMV or Authorized Agent

The buyer must submit the application for title and registration at a Rhode Island Division of Motor Vehicles location or at an authorized AAA Northeast location. The buyer will need to bring the original title (signed over), the bill of sale, proof of insurance, a valid Rhode Island identification, and then complete the Application for Registration (Form TR-1) and Application for Title (Form TR-2/TR-9). The buyer must also complete a sales tax form. For out-of-state titled vehicles, the buyer must present proof of a VIN inspection performed by a local municipal police department.

All transactions may be processed by mail. Mail documents and payment to: Division of Motor Vehicles, 600 New London Avenue, Cranston, RI 02920.

Title Transfer Fee Schedule in Rhode Island

Rhode Island title-related fees include:

All fees include a $3.50 technology surcharge. If paying by credit card, an additional fee of $1.55 per transaction, or 2.40% on transactions of $65 or more, applies. Acceptable payment forms are cash, money orders, personal checks, or credit cards. Checks should be payable to the Division of Motor Vehicles.

Sales Tax on Private Vehicle Sales

Under state law, private-party vehicle sales are subject to a 7% state sales tax. The tax rate depends on the vehicle's age and classification:

For vehicles 7 years old or less, the sales tax is 7% of the greater of the NADA Clean Retail book value or the sale price. For vehicles between 8 and 29 years old, the sales tax is 7% of the sale price, provided the vehicle is not on the Cars of Particular Interest (CPI) list. For vehicles 30 years old or older and for vehicles on the CPI list, the sales tax is 7% of the NADA Clean Retail book value, the CPI book value, or the purchase price, whichever is greater.

Sales tax must be paid by the 20th of the month following the month in which the sale took place to avoid interest and penalty charges. The buyer pays sales tax at the Division of Motor Vehicles or at the Rhode Island Division of Taxation. Sales tax can also be paid prior to registration and titling at the Rhode Island Division of Taxation.

What To Do After Selling Your Car in Rhode Island

Remove and Handle License Plates

The seller is responsible for removing the license plates from the vehicle upon sale. Plates do not transfer to the buyer. The seller should return the plates to the Division of Motor Vehicles as soon as possible to avoid ongoing registration obligations and excise tax liability.

Plates may be canceled in three ways:

Online cancellation is available through the Rhode Island DMV online services portal. The seller enters information exactly as it appears on the registration certificate and provides the plate number. Upon completion, a confirmation email is sent, and the plates may be destroyed or recycled. The seller should retain the confirmation email as proof of cancellation for tax purposes.

Alternatively, plates may be canceled at the Drop Box at each DMV branch during branch hours. The seller must include the Affidavit for Cancellation of Registration form with the plates, along with a photocopy of the owner's photo identification or a copy of the vehicle registration. To receive a receipt of cancelation, a postage-paid self-addressed envelope must be included.

Plates may also be mailed for cancellation via certified mail to the RI DMV, ATTN: Plate Office, 600 New London Avenue, Cranston, RI 02920. The same documentation (a photocopy of ID or registration) and a postage-paid, self-addressed envelope are required.

Release of Liability

The seller should notify the state that liability for the vehicle has transferred to the new owner. This notification protects the seller from liability for accidents or violations that occur after the sale. The most effective means is to ensure that the buyer registers the vehicle promptly and that the seller's name is removed from the registration.

Cancel Insurance and Notify Provider

After the sale is finalized, the seller should contact the automobile insurance provider to cancel the policy or transfer it to a replacement vehicle. It is not necessary to maintain insurance on a vehicle no longer owned. The seller should confirm cancellation with the insurance company in writing.

Retain Copies of Sale Documents

The seller should retain a signed copy of the bill of sale and any other transaction documents, including lien release letters if applicable. These documents protect the seller in the event of future liability disputes and provide proof of the sale date and price for tax purposes.

Contact Information

Rhode Island Division of Motor Vehicles
600 New London Avenue, Cranston, RI 02920
Phone: (401) 462-4368
Official Website: Division of Motor Vehicles