How To Sell a Car in Oregon

Selling a motor vehicle in Oregon requires compliance with state title transfer procedures, notification requirements, odometer disclosure rules, and registration deadlines. The Oregon Driver & Motor Vehicle Services (DMV) administers these regulatory requirements to ensure the legal transfer of vehicle ownership between private parties.

What You Need To Know Before Selling a Car in Oregon

Title Law and Ownership Requirements

Under ORS Chapter 803, most motor vehicles require an Oregon certificate of title or equivalent ownership document. The certificate of title serves as the primary evidence of vehicle ownership. An owner selling a vehicle must hold a valid certificate of title or a qualifying ownership document, and the title must be free of any outstanding liens or security interests before the sale is completed.

Vehicles Exempt From Title Requirements

Certain motor vehicles are not required to obtain an Oregon certificate of title. Vehicles exempt from title requirements under ORS 803.030 include federal government-owned and operated motor vehicles, implements of husbandry, and other limited categories. Individuals selling exempt vehicles should verify their vehicle's status with the Oregon DMV, as registration requirements may still apply regardless of the title status.

Satisfying an Existing Lien

If a security interest or lien is recorded on the vehicle title, the lienholder must release that interest before the vehicle can be legally sold to a new owner. The seller must contact the lienholder to obtain an original, signed release of interest or lien release statement. The lienholder will typically provide either a separately signed release document or a signature on the front of the title to evidence the satisfaction of the loan. Under ORS 803.094, all recorded security interests must be released by their holders in a manner specified by the Department of Transportation.

No Vehicle Inspection or Emissions Testing Required for Private Sales

Oregon does not mandate a vehicle safety inspection or emissions test for private-party vehicle sales. Inspection and emissions-testing requirements apply only to certain situations, such as commercial vehicle registration or out-of-state title transfers. A private seller may sell a vehicle without obtaining an inspection or emissions certification from the state.

Odometer Disclosure Requirements

Vehicles that are model year 2011 or newer and under 20 years old are subject to federal odometer-disclosure requirements. For these vehicles, the seller must provide the buyer with a written odometer disclosure at the time of sale, and both parties must sign it. Older vehicles, including those 20 model years or older, are exempt from odometer disclosure requirements.

Documents Required To Sell a Car in Oregon

Certificate of Title

The Oregon certificate of title is the primary ownership document and must be provided to the buyer at the time of sale. On the back or transfer section of the title, the seller must sign and date the assignment to release ownership interest in the vehicle. The seller's signature must match the name as it appears on the front of the title. If the title lists more than one owner, all owners must sign the release unless the title designates ownership as "or" (rather than "and"), in which case only one owner's signature is required. If the current title cannot be located and a replacement is needed, the seller must obtain a duplicate Oregon title before selling the vehicle.

Bill of Sale

A bill of sale is not legally required for private-party vehicle transfers in Oregon, but it is strongly recommended to create a written record of the transaction. Oregon provides a Vehicle Bill of Sale form (Form 735-501) that may be used, or a seller may use any separate document containing the same information. The bill of sale should include the vehicle identification number, a statement that the seller is releasing interest in the vehicle, and original signatures of both the seller and buyer. Both parties should retain a signed copy for their personal records.

Odometer Disclosure Statement

For vehicles with a model year of 2011 or newer and under 20 years old, an odometer disclosure must be completed and signed by both the seller and the buyer at the time of transfer. This disclosure may be completed on the transfer section of the title itself or on a separate odometer disclosure form. The disclosure must certify the actual odometer reading at the time of sale. Both parties must sign this disclosure.

Lien Release

If the sold vehicle has an outstanding loan, the lienholder must provide a signed release of interest. This release must be an original, signed document from the security interest holder, not a photocopy. The release is delivered to the buyer along with the other transfer documents. If the lienholder has signed the front of the title releasing their interest, a separate release document is not required.

Notice of Sale or Transfer

The seller should submit Form 735-6890 (Notice of Sale or Transfer of a Vehicle) to the Oregon DMV within 10 days of the sale using the DMV2U online portal. This form notifies the Department of Transportation that the vehicle has been sold, includes the buyer's name and address, and limits the seller's liability for the vehicle after the sale. The notice does not transfer ownership; it merely notes on the vehicle record that the vehicle has been sold.

How To Transfer a Car Title in Oregon

Step 1: Review the Title Before the Sale

Before completing a sale, the seller must verify that the title is in hand and valid. If the title is lost or cannot be located, the seller must obtain a replacement Oregon title prior to selling the vehicle. For vehicles with a model year of 2011 or newer and under 20 years old, a replacement title is required before sale because odometer disclosure is required at the time of transfer.

Step 2: Verify Lien Status

The seller must confirm that any outstanding loan on the vehicle has been paid off or will be paid off prior to the transfer. If a lien is recorded on the title, the seller must contact the lienholder to obtain a signed release of interest. The lien cannot remain on the title after sale; it must be fully satisfied and released.

Step 3: Complete the Title Assignment

The seller completes the assignment on the back or transfer section of the Oregon title by signing and dating the form. The seller must enter the date of sale and, if applicable, the odometer reading. The seller's signature must exactly match the name as it appears on the front of the title. If the title shows multiple owners connected by "and," both owners must sign. If connected by "or," only one owner needs to sign. The original title, along with the completed assignment, must be delivered to the buyer.

Step 4: Prepare the Bill of Sale and Odometer Disclosure

The seller should prepare a bill of sale using the Oregon Vehicle Bill of Sale form or a comparable document containing all required information. For vehicles subject to odometer disclosure, both the seller and buyer must sign the odometer disclosure statement on the title or on a separate form. The seller retains a signed copy of the bill of sale for personal records.

Step 5: Deliver Documents to the Buyer

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

• The originally issued Oregon title with the completed assignment signed and dated by all required owners
• A signed copy of the bill of sale or other written agreement
• The completed odometer disclosure statement, if applicable
• Any original lien release documents from previous security interest holders

The buyer must then apply for a new Oregon title for passenger vehicles through the Oregon Department of Transportation DMV office, by mail, or through the DMV2U online application. The buyer has 30 calendar days from the date of purchase to submit the title application, or a late fee will be assessed.

Step 6: Notify the Oregon DMV of the Sale

The seller must notify the Oregon DMV of the sale using the DMV2U portal to submit Form 735-6890 within 10 days of the transfer. This notification should include the buyer's name and address. The Department of Transportation will note on the vehicle record that the vehicle has been sold, but the seller remains listed as the owner until the buyer completes the title transfer application.

Title Transfer Fee Schedule in Oregon

The following fees apply to motor vehicle title transactions in Oregon:

County registration fees may apply in addition to state title fees. Multnomah County adds $56 per year of registration, Washington County adds $30 per year, and Clackamas County adds $30 per year (light trailers are exempt in Clackamas County).

Sales Tax on Private Vehicle Sales

Oregon does not impose a general sales tax on any vehicle purchased in the state. Private-party sales between individuals do not generate state or local sales tax obligations. The vehicle privilege tax of 0.5%, imposed under Oregon Revenue Department vehicle privilege and use tax statutes, applies only to sales by vehicle dealers, not to casual sales between private owners. Buyers purchasing from private sellers in Oregon incur no tax liability.

What To Do After Selling Your Car in Oregon

Remove License Plates

The seller should remove Oregon license plates from the vehicle before the transfer to the buyer. License plates remain the property of the seller and do not transfer with the vehicle. The plates may be transferred to another vehicle owned by the seller or surrendered to the Oregon DMV. The buyer will receive new plates when the title application is processed.

Notify the Oregon DMV of the Sale

Within 10 days of the sale, the seller must submit Form 735-6890 (Notice of Sale or Transfer of a Vehicle) through the DMV2U online portal to formally notify the Department of Transportation. This submission includes the buyer's name and address and releases the seller from liability for the vehicle after the sale date.

Cancel Vehicle Insurance

After the sale is completed and the license plate is removed, the seller should contact the automobile insurance provider to cancel the policy for the sold vehicle or transfer coverage to a replacement vehicle. Maintaining active insurance on a vehicle that is no longer owned is unnecessary and will result in ongoing premium charges.

Retain Copies of All Sale Documents

The seller should retain a signed copy of the bill of sale, the Notice of Sale form, and any other transaction documents. Copies of these documents may be needed to demonstrate proof of sale in the event of future disputes or insurance claims related to the vehicle.

Contact Information

Oregon Department of Transportation – Driver and Motor Vehicle Services Division
1905 Lana Avenue NE, Salem, OR 97314
Phone: (503) 945-5000
Official Website: Oregon DMV