How To Sell a Car in New Mexico

Selling a motor vehicle in New Mexico requires compliance with state requirements governing title transfer, odometer disclosure, lien satisfaction, motor vehicle excise tax, and registration transfer procedures. Both private-party sales and dealer transactions must follow the procedures established by the New Mexico Motor Vehicle Division (MVD), which administers vehicle titling and registration throughout the state.

What You Need To Know Before Selling a Car in New Mexico

Title Law and Ownership Requirements

A certificate of title is required for most motor vehicles before a valid sale can be completed. The certificate of title serves as the primary document establishing ownership and proof that the vehicle has been properly registered. New Mexico law requires that the titled owner possess a current and accurate certificate of title free of encumbrances. If title ownership is shared by two or more persons, both or all owners must authorize the transfer if the names are joined by the word "and." If the names are joined by the word "or," only one owner's signature is required to effect the sale.

Vehicles Exempt From Title Requirements

Not every vehicle requires a New Mexico certificate of title. Vehicles owned by the United States government or any state or political subdivision thereof, as well as vehicles owned by an Indian nation, tribe, or pueblo located wholly or partly in New Mexico, are exempt from titling. Additionally, vehicles that are 35 years old or older do not require a certificate of title if they are not regularly operated on the highways. In such cases, a bill of sale may serve as evidence of ownership transfer. Vehicles exempted from registration and titling include implements of husbandry used only incidentally on highways, special mobile equipment not designed primarily for transportation, motorcycle trailers, tow dollies, and vehicles transferred by manufacturers, dealers, or lien holders being driven for immediate delivery, demonstration, or resale.

Satisfying an Existing Lien

If a security interest is recorded on the vehicle's certificate of title, the lien must be fully satisfied and released before the vehicle can be sold. The lienholder is responsible for releasing the lien upon satisfaction of the loan. The seller must contact the lienholder to obtain a lien release letter and, if applicable, the physical certificate of title. The lien can be released by proper endorsement of the lienholder in the designated area of the outstanding Certificate of Title, by MVD Form 10041 (Release of Lien), or by a notarized release on the lienholder's letterhead signed by an authorized representative of the lienholder indicating their position with the company.

Inspection and Emissions Requirements

New Mexico does not require a private-party seller to obtain a vehicle safety inspection before completing a sale. Emissions testing requirements apply only in Bernalillo County and apply to all vehicles less than 35 years of age with a gross vehicle weight rating not exceeding 10,000 pounds that are registered in Bernalillo County or enter the county on 60 or more days per year. Emissions testing is not required at the point of private sale; rather, it is required at the time of registration of the purchased vehicle if applicable. Vehicles 35 years of age or older are exempt from emissions testing in Bernalillo County.

VIN Inspection Requirements for Out-of-State Titles

All used vehicles with titles from states other than New Mexico, being registered and titled in New Mexico for the first time, must be visually inspected by a certified VIN inspector to verify that the vehicle identification number on the Certificate of Title corresponds with the vehicle. This requirement applies to all vehicles transferred with a U.S. Government Certificate of Release of a Motor Vehicle.

The VIN inspection must be completed on MVD Form 10861 and is valid for 90 days from the date of inspection. If alterations or signs of tampering with the VIN plate are discovered during inspection, the inspection must be stopped and law enforcement must be contacted.

Notice of Sale Requirement

The registered owner of a vehicle is responsible for notifying the Motor Vehicle Division of the sale or transfer of ownership. The seller should complete and file the Notice of Vehicle Sold (MVD Form 10048) with the Motor Vehicle Division as notification of the sale.

Documents Required To Sell a Car in New Mexico

Certificate of Title

The existing certificate of title is the primary document establishing ownership when transferring a used vehicle. The original certificate of title must be provided for processing title transactions. The title must be completed by the seller on the reverse side, providing the buyer's full legal name and address, the date of sale, and the seller's signature signed exactly as the name appears on the face of the title. If joint ownership is shown on the title with names joined by "and," both owners must sign the title assignment. If the names are joined by "or," only one owner's signature is required. The State of New Mexico does not require the title assignment to be notarized. The title must contain the odometer reading at the time of transfer.

Bill of Sale

Although not universally required for all private vehicle transfers in New Mexico, a bill of sale is strongly recommended for all transactions and is required when the assignment section on the reverse of the certificate of title is incomplete or there is no more room on the back of the title to make an assignment.

The Bill of Sale (MVD Form 10009) must include the full name and complete physical address of the buyer, the full name and complete physical address of the seller, the date of sale expressed as month, day, and year, a complete vehicle description including the vehicle identification number, make, year, model or series number, and body type, the purchase price of the vehicle, and the signatures of both the seller and the buyer. Both parties should retain a signed copy of the bill of sale for their personal records.

Odometer Disclosure Statement

Federal law and New Mexico law require that the transferor certify the vehicle's odometer reading at the time of sale or transfer. The Odometer Mileage Statement (MVD Form 10187) must be completed and signed by the transferor, or the odometer disclosure may be attested to in the assignment on the back of the New Mexico Title or on the Bill of Sale (MVD Form 10009). The seller must certify that the odometer reading is actual mileage (AM), exceeds mechanical limits (EL), or is not the actual mileage (NM).

Release of Lien (If Applicable)

If a lien is shown on the certificate of title, the lien must be released before the buyer can obtain a new certificate of title. The lienholder may release the lien by proper endorsement on the designated area of the outstanding Certificate of Title, by completing MVD Form 10041 (Release of Lien), or by providing a notarized release on the lienholder's letterhead signed by an authorized representative. The release letter should be provided to the buyer at the time of sale.

How To Transfer a Car Title in New Mexico

Step 1: Review the Title Before the Sale

The seller should review the existing certificate of title to verify that it is current and accurate and that the seller's name exactly matches the name on the front of the title. The seller must also verify that there are no outstanding liens or encumbrances that would prevent the transfer of ownership. If a lien is present on the title, the seller must contact the lienholder to arrange satisfaction and release of the lien before the sale can proceed.

Step 2: Establish the Sale Price and Verify Information

The seller and buyer must agree upon a sale price or transfer method (such as a gift transfer with a notarized affidavit). For gift transfers, both donor and recipient must complete and submit a notarized Affidavit of Gift of Motor Vehicle (MVD Form 10018) affirming under oath and under penalty of perjury that the vehicle was transferred as a gift without consideration.

Step 3: Complete the Title Assignment and Odometer Disclosure

The seller must complete the assignment section on the reverse side of the existing certificate of title, providing the buyer's full legal name and address, the date of sale, the odometer reading at the time of transfer using the appropriate odometer code (AM, EL, NM, or EX), and the seller's signature signed exactly as the name appears on the front of the title. If joint ownership is shown, both owners must sign. The Odometer Disclosure Statement (MVD Form 10187) may be used alternatively or in addition to the odometer statement recorded on the title assignment. Both the seller and buyer must sign the odometer disclosure.

Step 4: Prepare the Bill of Sale

The seller and buyer should complete the Bill of Sale (MVD Form 10009) if the title assignment space is inadequate or if the seller and buyer desire additional documentation of the transaction. The bill of sale must include the full name and complete physical address of both parties, the date of sale, the vehicle identification number, make, year, model or series number, body type, the purchase price, and the signatures of both the seller and the buyer. Both parties should retain a signed copy.

Step 5: Deliver All Documents to the Buyer

At the time of sale, the seller must deliver to the buyer the properly assigned original certificate of title, a signed copy of the bill of sale (if completed), and the completed Odometer Disclosure Statement (MVD Form 10187). The seller must also remove the license plate from the vehicle and deliver it to the buyer or inform the buyer that the plate remains the property of the seller and must be returned to the Motor Vehicle Division or transferred to another vehicle within 30 days.

Step 6: Buyer Submits Application Through Motor Vehicle Division or Agent

The buyer must apply for a new certificate of title within 30 calendar days of the date of transfer. Failure to apply within 30 days results in a $20.00 late transfer fee. A penalty of 50% of the motor vehicle excise tax is imposed if the buyer fails to apply for a certificate of title within 90 days of the date of transfer for a vehicle transferred in New Mexico, or within 90 days of bringing the vehicle into New Mexico if transferred outside the state.

The buyer applies through any Motor Vehicle Division office, county tax collector office, or authorized fee agent. The buyer must submit the Application for Vehicle Title and Registration (MVD Form 10002) along with the properly assigned certificate of title, the bill of sale, proof of identity and New Mexico residency, proof of insurance, and payment of the motor vehicle excise tax, title fee, and registration fee.

Title Transfer Fee Schedule in New Mexico

New Mexico collects these title-related transfer fees during application. Certain counties may also impose local fees.

Sales Tax on Private Vehicle Sales

Private vehicle sales in New Mexico are subject to a Motor Vehicle Excise Tax (MVET) of 4% of the price paid for the vehicle, less any trade-in credit. For private-party (non-dealer) sales, if the declared purchase price of the vehicle is lower than 80% of the National Automobile Dealers Association (N.A.D.A.) average trade-in or wholesale value for the vehicle's year, make, model, and actual mileage, the tax is calculated on 80% of the N.A.D.A. value rather than the stated price.

The buyer is responsible for paying the Motor Vehicle Excise Tax at the time of application for a certificate of title. The tax is paid to the Motor Vehicle Division or one of its authorized agents at the time of title application. If a vehicle is legitimately transferred by gift, no excise tax is due; however, both donor and recipient must execute a notarized Affidavit of Gift of Motor Vehicle (MVD Form 10018) affirming under oath and under penalty of perjury that the transfer was without consideration.

What To Do After Selling Your Car in New Mexico

Remove and Handle the License Plate

The registered owner of a vehicle is responsible for removing the registration plate from the vehicle at the time of sale or transfer of ownership. The plate belongs to the owner, not to the vehicle. Within 30 days of the transfer, the seller must either have the plate assigned to another vehicle of the same class or have it cancelled by the Motor Vehicle Division.

If the registration was for a two-year period and is still within the first year of registration, and the seller transfers the plate to another vehicle of the same class, an automatic credit for the unused second year of registration will be applied to the seller's vehicle account.

Notify the Motor Vehicle Division of the Sale

The seller should complete and file the Notice of Vehicle Sold (MVD Form 10048) with the Motor Vehicle Division to formally notify the state of the sale or transfer. This notice protects the seller from liability for the vehicle after the sale and ensures that the seller's name is removed from the vehicle's registration and title records.

Cancel Insurance Coverage

After the sale is finalized, 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.

Retain Documentation of the Sale

The seller should retain a copy of the completed bill of sale, the Notice of Vehicle Sold (MVD Form 10048), the odometer disclosure, and any other transaction documents. These records may be needed to prove the sale in the event of future disputes or liability claims related to the vehicle after the date of transfer.

Contact Information

New Mexico Taxation and Revenue Department – Motor Vehicle Division
PO Box 1028, Santa Fe, New Mexico 87504
Phone: (505) 827-0000
Official Website: Motor Vehicle Division