How To Sell a Car in Montana

Selling a vehicle in Montana requires compliance with state motor vehicle laws governing title transfer, ownership documentation, and registration procedures administered by the Montana Motor Vehicle Division (MVD). Private-party sellers must follow specific procedural steps to transfer legal ownership, disclose the odometer reading where applicable, and deliver all required documents to the buyer within a defined timeframe.

What You Need To Know Before Selling a Car in Montana

Title Law and Ownership Requirements

Under Montana Code Annotated Section 61-3-201, a certificate of title is required for motor vehicles, trailers, semitrailers, pole trailers, campers, motorboats, personal watercraft, sailboats, and snowmobiles unless a specific exemption applies. A motor vehicle cannot be titled in Montana without simultaneous registration.

The titled owner named on the certificate of title must transfer ownership to convey legal rights in the vehicle. Montana law requires that all owners listed on the title document sign the title assignment to effectuate a valid transfer.

Vehicles Exempt From Title Requirements

Certain vehicles are exempt from Montana's titling requirements under Section 61-3-201. Vehicles owned by the United States federal government or held by manufacturers, dealers, wholesalers, or auto auction facilities for sale are exempt. Nonresident-owned vehicles for which a current certificate of title has been issued in another state or jurisdiction are also exempt if not registered in Montana. Additionally, vehicles propelled solely by human or animal power, implements of husbandry, self-propelled wheelchairs or tricycles for disabled persons, mobile homes, dolly or converter gear, and golf carts operated without a low-speed restricted driver's license are exempt from titling requirements.

Satisfying an Existing Lien

If a security interest or lien is recorded on the vehicle title, the lienholder's name and address appear on the front of the certificate of title in a section labeled "This vehicle/vessel is subject to the following security interest" or similar language on out-of-state titles. The security interest must be fully satisfied and released before the vehicle can be legally sold. The lienholder is responsible for releasing the lien once the loan has been paid in full. The seller must obtain a Release of Security Interest or Lien (Form MV37A) from the lienholder and deliver it to the buyer, along with the title, to certify that the vehicle is free of all claims.

Inspection, VIN Verification, and Emissions Requirements

Montana does not require private-party sellers to obtain a vehicle safety inspection, emissions test, or VIN verification prior to sale. A VIN inspection by law enforcement is required only when the vehicle's identity is in question, when a Canadian registration or bonded application is submitted, or when a first certificate of title is issued for a vehicle with an altered or missing identification number.

Odometer Disclosure Requirement

Under Montana Code Annotated Section 61-3-206, each seller of a motor vehicle must record the odometer reading on the certificate of title at the time of transfer. Odometer disclosure is required for all vehicles with a model year of 2011 or newer.

The seller must certify one of the following: that the stated odometer reading reflects the vehicle's actual mileage, that the mileage exceeds the odometer's mechanical limits, or that the odometer reading does not represent actual mileage and is a discrepancy.

Vehicles with a Gross Vehicle Weight Rating exceeding 16,000 pounds are exempt from odometer disclosure. Falsifying or failing to complete an odometer statement is unlawful under federal and state law and may result in criminal penalties.

Documents Required To Sell a Car in Montana

Certificate of Title

The existing certificate of title is the primary document establishing legal ownership. The seller must complete the title assignment section by providing the buyer's full legal name and address and entering the date of sale. For vehicles with a model year of 2011 or newer, the seller must also record the odometer reading on the title. All fields must be completed in blue or black ink only. The use of correction fluid, erasures, or any alterations to the title renders the document void and unacceptable to the Montana Motor Vehicle Division.

All owners listed on the title must sign the assignment section. The buyer must also sign the title and must be the same person or entity named in the assignment section. The seller must deliver the original properly assigned certificate of title to the buyer.

Bill of Sale

Although Montana law does not mandate a bill of sale for private vehicle transfers, many county licensing officials require one, and it is strongly recommended for all transactions to establish a clear written record of the sale.

A bill of sale should contain the full legal name and complete address of both the seller and buyer, the date of sale, the complete vehicle description, including the vehicle identification number (VIN), year, make, model or series number, and body type, the purchase price, and the signatures of both parties. Both the seller and buyer should retain a signed copy of the Bill of Sale (Form MV24).

Odometer Disclosure Statement

For vehicles with a model year of 2011 or newer, the Odometer Disclosure Statement (Form MV90A) documents the odometer reading at the time of transfer as required by federal law. The seller certifies that the stated mileage is actual, exceeds the odometer's mechanical capability, or reflects a discrepancy. This form is not required for vehicles with a model year of 2010 or older, vehicles with a Gross Vehicle Weight Rating exceeding 16,000 pounds, or non-self-propelled vehicles. Both the seller and buyer must sign the odometer disclosure form.

Release of Security Interest or Lien

If the vehicle is encumbered by a lien or security interest, the lienholder must complete a Release of Security Interest or Lien (Form MV37A) certifying that the loan has been paid in full and the lien is removed from the title. The seller must obtain and deliver this form to the buyer.

How To Transfer a Car Title in Montana

Step 1: Review the Title Before the Sale

The seller must verify that the certificate of title in the seller's possession is the current and most recent version issued by Montana or the state where the vehicle was previously titled. If the title is lost or unavailable, the seller must apply for a Replacement Certificate of Title (Form MV7) prior to the sale. The seller should also verify that any liens or security interests have been resolved and that the title is free of all encumbrances.

Step 2: Check for Liens and Obtain Lien Release

The seller must examine the front of the certificate of title to verify whether any liens or security interests are listed. If a lien is present, the seller must contact the lienholder, pay the outstanding loan balance, and obtain written confirmation that the lien has been released. The lienholder should provide the Release of Security Interest or Lien (Form MV37A) or lien release letter.

Step 3: Complete the Title Assignment and Odometer Disclosure

The seller completes the reverse side of the certificate of title by entering the buyer's full legal name and address, the date of sale, and the odometer reading for vehicles with a model year of 2011 or newer. The seller certifies the accuracy of the odometer reading or indicates if a discrepancy exists. All entries must be in blue or black ink. All owners listed on the title must sign the assignment section with their signatures appearing exactly as printed on the face of the title. The buyer must sign the title as well.

Step 4: Prepare Documentation and Deliver to Buyer

The seller prepares a Bill of Sale (Form MV24) and, if applicable, an Odometer Disclosure Statement (Form MV90A). The seller delivers the following documents to the buyer at the time of sale: the original properly assigned certificate of title, a signed copy of the bill of sale, the completed odometer disclosure statement (if applicable), and if applicable, the Release of Security Interest or Lien (Form MV37A). Both parties should retain signed copies of all documentation.

Step 5: Remove License Plates

The seller must remove the license plates from the vehicle before delivering it to the buyer. License plates are the seller's property and do not transfer with the vehicle. If the seller fails to remove the plates, the seller may be liable for parking or traffic violations occurring after the sale. The seller may voluntarily surrender the plates to the county treasurer's office or request that they be transferred to another vehicle the seller owns.

Step 6: Buyer Submits Title Application Within Required Deadline

The buyer must apply for a certificate of title and register the vehicle at the county treasurer's office in the buyer's county of residence within 40 calendar days from the date of sale. A $10 late fee is imposed if the application is submitted after the 40-day deadline. The buyer completes an Application for Certificate of Title for a Motor Vehicle (Form MV1) and provides it along with the assigned title, bill of sale, odometer disclosure statement (if applicable), and proof of insurance to the county treasurer's office.

Title Transfer Fee Schedule in Montana

County treasurers collect these fees and process applications.

Certain counties may impose an optional county option tax of up to 0.7% of the vehicle's taxable value at registration.

Sales Tax on Private Vehicle Sales

Montana does not impose a state sales tax or use tax on vehicle purchases. Private-party vehicle sales in Montana are not subject to a sales tax at the time of purchase. The buyer registers the vehicle and pays registration fees and any applicable county option tax to the county treasurer's office, but no state or local sales tax applies to the vehicle purchase price.

What To Do After Selling Your Car in Montana

Remove License Plates and Handle Registration

The seller must remove the license plates from the vehicle prior to the sale, as plates remain the property of the seller and do not transfer with the vehicle. The seller may request that the county treasurer transfer the license plates to another vehicle the seller owns, or the plates may be voluntarily surrendered to the county treasurer's office. If the seller cannot physically return the plates, they should contact the county treasurer to request cancellation or revocation of registration. The buyer must purchase new license plates and register the vehicle at the county treasurer's office.

Cancel Insurance

The seller should contact the automobile insurance provider and cancel coverage for the sold vehicle or transfer the policy to a replacement vehicle. Maintaining insurance on a vehicle no longer owned by the seller is not required under Montana's mandatory liability insurance law and may result in unnecessary premium charges.

Retain Documentation

The seller should retain copies of the bill of sale, the odometer disclosure statement (if applicable), and the release of lien documents (if applicable) for personal records. These documents may be needed in the future to establish proof of sale or to resolve liability disputes related to the vehicle.

Address Future Registration Notices

After the sale is finalized and the title transfer is recorded, the seller will no longer be responsible for registration renewal or other motor vehicle notices related to the sold vehicle. If a registration renewal notice is received after the sale, the seller may disregard it, as the ownership has been transferred to the new owner.

Contact Information

Montana Motor Vehicle Division
302 North Roberts Street, Scott Hart Building, Helena, MT 59601
Phone: (406) 444-3661
Official Website: Montana Motor Vehicle Division