How To Sell a Car in Iowa

The Iowa Department of Transportation administers vehicle title and registration requirements through county treasurers statewide. Selling a motor vehicle in Iowa requires compliance with state procedures governing title transfer, ownership documentation, odometer and damage disclosure, registration fees, and post-sale filing requirements.

What You Need To Know Before Selling a Car in Iowa

Title Law and Ownership Requirements

All motor vehicles operated on Iowa public roads must be titled under Iowa Code Chapter 321. The individual whose name appears on the certificate of title holds the legal authority to execute the transfer to another party. When ownership is held jointly, both owners must sign the title assignment on the back of the certificate. The title must be endorsed and assigned by the previous owner and presented by the buyer to any county treasurer within thirty days of purchase or transfer.

Vehicles Exempt From Title Requirements

Farm tractors, farm trailers weighing 2,000 pounds or less, and implements of husbandry used exclusively for agricultural operations are exempt from Iowa titling and registration requirements under Iowa Code §321.1(32), §321.123(1)(b), and §321I.9. ATVs used exclusively as farm implements may obtain a certificate of title, but are not required to register for recreational use. All other motor vehicles require current certificates of title and registration. Purchasers should consult with the county treasurer or the Iowa Department of Transportation regarding exemptions applicable to specific vehicle types.

Satisfying an Existing Lien

No title transfer may proceed while a security interest or lien is recorded on the certificate. When a vehicle is financed, the lienholder must release the security interest in writing as provided by Iowa Code §321.50. The lienholder may release the lien by endorsing cancellation on the certificate of title or by submitting a separate notarized release form or letter to any county treasurer. The seller must obtain evidence of the lien release from the lienholder and deliver the endorsed certificate of title (with the released lien noted by the county treasurer) to the buyer. The county treasurer will note the cancellation in the county records system and deliver the certificate of title to the buyer or next lienholder, if applicable.

Odometer Disclosure Requirement

Federal and state law requires odometer disclosure upon transfer of a vehicle. For vehicles of model year 2011 or newer, an odometer statement must accompany the application for title through December 31, 2030. Beginning January 1, 2031, all vehicles less than 20 model years old will require odometer disclosure, rather than just those model year 2011 or newer. The statement must indicate the current mileage reading and whether the odometer reflects actual miles, exceeds mechanical limits, or does not reflect actual mileage.

Damage Disclosure Requirement

Iowa Code §321.69 requires that a damage disclosure statement be provided by the transferor to the transferee. The disclosure is required for all motor vehicles except trucks or truck tractors with a gross vehicle weight rating of 16,000 pounds or more, motorcycles or motorized bicycles, and vehicles more than seven model years old. Damage disclosure statements must be completed and furnished with the application for a certificate of title.

Documents Required To Sell a Car in Iowa

Certificate of Title

The certificate of title is the primary document evidencing motor vehicle ownership in Iowa. The seller completes the title assignment by endorsing the back of the certificate with the buyer's name and address, the sale date, and the seller's signature. Both the seller and buyer must sign the back of the title. The title shall not be altered using correction fluid or erasure; corrections must be made through official amendment procedures.

Bill of Sale

Iowa requires a bill of sale when transferring titles to motor vehicles between parties. The bill of sale must include the seller's and buyer's names and addresses, the vehicle description including year, make, model, and Vehicle Identification Number (VIN), the sale date, and the purchase price. Both the seller and buyer must sign the bill of sale. Notarization is not required by state law for private vehicle bill of sale documents, though individual county treasurers may have specific requirements.

Odometer Disclosure Statement

For vehicles requiring odometer disclosure, the seller completes an odometer statement on the certificate of title or on a separate Odometer Disclosure Statement Form. The statement must show the current mileage reading and indicate whether the reading represents actual mileage, exceeds the odometer's mechanical limits, or does not reflect actual mileage. Both the seller and buyer must acknowledge the odometer statement.

Damage Disclosure Statement

For vehicles seven model years or newer, the seller must complete the Damage Disclosure Statement (Form 411108). The statement requires the seller to disclose any damage sustained by the vehicle and provide specific information about the extent of damage. Damage disclosures must be provided to the buyer at or before the time of sale and must accompany the buyer's title application.

Title Application

The buyer submits an Application for Certificate of Motor Vehicle Title and Registration (Form 411007) to the county treasurer. The application must be accompanied by the endorsed certificate of title, the bill of sale, odometer and damage disclosure statements if applicable, proof of ownership, and the required fee.

How To Transfer a Car Title in Iowa

Step 1: Review the Title Before the Sale

Before offering a vehicle for sale, the seller must verify that a valid, unencumbered certificate of title exists in the seller's name. The title must be free of alterations, damage, or erasures that would render it invalid for transfer. Any recorded lien must be confirmed in writing as satisfied and released by the lienholder. If the title has been lost or damaged, the seller must obtain a replacement certificate from a county treasurer before completing the sale.

Step 2: Prepare and Complete Disclosures

The seller completes the odometer disclosure statement on the back of the certificate of title or on a separate form, indicating the current mileage and its accuracy. For vehicles seven model years old or newer, the seller completes and signs the damage disclosure statement, certifying the vehicle's condition. Both disclosures must be signed by the seller and presented to the buyer.

Step 3: Execute the Title Assignment

The seller signs the back of the certificate of title, providing the buyer's name and address, the date of sale, and the seller's signature. If the vehicle has a lien, the lienholder must also sign the title assignment releasing the security interest. The seller and buyer both sign the bill of sale, which includes the sale price, vehicle description, and both parties' information.

Step 4: Deliver Documents to the Buyer

At the time of sale, the seller transfers the properly endorsed certificate of title, the completed and signed bill of sale, the odometer disclosure statement, the damage disclosure statement (if applicable), and any lien release documentation to the buyer. The seller retains a copy of all documents for records.

Step 5: Buyer Applies for New Title and Registration

The buyer must apply for a new title and registration within thirty days of the purchase date to avoid penalties. The buyer presents the endorsed certificate of title, bill of sale, odometer disclosure, damage disclosure, and the completed application to any county treasurer's office. The buyer shall provide proof of identity and any other documentation required by the county treasurer. Upon approval, the county treasurer issues a new certificate of title and registration card to the buyer.

Title Transfer Fee Schedule in Iowa

County treasurers may collect these fees directly at the time of application.

The buyer is responsible for paying the title transfer fee, the annual registration fee prorated for the remaining months of the registration year, and the fee for new registration. A credit may be claimed for the unexpired portion of the previous owner's registration fee, subject to certain limitations.

Sales Tax on Private Vehicle Sales

Motor vehicles subject to registration in Iowa are subject to a one-time fee for new registration equal to $10 plus 5% of the sales or lease price, rather than state sales tax. This fee replaces the sales tax that would otherwise apply. The buyer is responsible for paying this fee at the time of title application. The fee is calculated based on the actual sale price reported on the title application and bill of sale.

What To Do After Selling Your Car in Iowa

License Plates

License plates in Iowa remain the property of the owner. The seller may remove the license plates from the vehicle and either transfer them to another vehicle owned by the seller or forward them to the county treasurer for the county in which the vehicle is registered. The plates need not be returned to the state unless the seller requests cancellation of registration.

Notice of Sale

The seller may file a Notice of Sale of Vehicle and Delivery of Title (Form 411107) with any county treasurer certifying the sale or transfer of ownership of the vehicle. Upon receipt of the affidavit, the county treasurer shall file the affidavit and note receipt in the vehicle registration system. Filing the affidavit establishes that the seller has assigned and delivered the certificate of title and records the transfer date.

Document Retention

The seller shall retain copies of the endorsed title, bill of sale, odometer disclosure, damage disclosure, and affidavit of sale for a minimum of three years. These documents establish proof of sale, the date of transfer, and the buyer's identity. Retained documentation protects the seller from liability for the vehicle after ownership has been transferred.

Insurance Cancellation

After the title has been properly transferred and the affidavit of sale has been filed, the seller should contact the insurance provider to cancel coverage for the sold vehicle or transfer the policy to a replacement vehicle. Maintaining insurance on a vehicle no longer owned may result in unnecessary premium charges and does not provide coverage to the seller after ownership transfer.

Contact Information

Iowa Department of Transportation
6310 SE Convenience Boulevard, Ankeny, IA 50021
Phone: (515) 237-3000
Official Website: Iowa DOT Vehicle Registration