What is the Purpose of License Plates?
Upon registration of your vehicle, you usually receive a license plate. It’s number corresponds to your registration number as a means of identification. In some states, you receive two license plates. One of them goes on the front of the car while the other gets mounted on the back.
They are used to identify the car’s legal owner, something that’s helpful for situations like accidents and thefts.
Do You Have to Remove License Plates When Selling a Car?
The trouble with leaving your license plates on a car you’ve sold is that it still looks like it belongs to you. This makes you legally liable for anything that happens while your plates are on the car.
While each state has different procedures and views regarding license plates, we can discuss some general principles. Liability is tied to vehicle registration; that’s how responsibility is assigned. If a vehicle is registered in your name and it’s involved in a crime, accident, or other incident, you are held accountable. So, if something happens, you’re the one who bears the blame.
Title and Registration: What’s the Difference?
The certificate of title gets signed over to the new owner at the time of sale. Then, they will take this to the DMV and register the vehicle in their name. At that time, the title is issued in their name.
Registration occurs as part of this process as well. If the buyer of your car doesn’t go to the DMV to transfer the title and get a new registration, you are still considered the legal and liable owner in many states.
What Should You Do With the Old Plates?
If you’re selling your car to a dealership, the dealer will take care of the license plates for you.
When selling to a private party, the best way to protect yourself is to meet the buyer at the DMV office.
You can then sign the title over to them and watch them register it. While you are there, you can return the license plates to the DMV if your state requires this. Another option would be to meet them at the police station.
Some buyers will ask that you make it easier on them by leaving your license plates on the car. Doing this opens you up to liability if the buyer commits a crime, gets in an accident, or incurs a ticket or citation with your license plates still active.
In fact, many states demand the plates back to prove you aren’t using the car anymore. Return the license plates along with a completed Release of Liability form to absolve yourself from all liability for the new owner’s actions.
Should You Remove the Plates When You Junk a Car?
If you are having a tow truck take your car to its final resting place at the junkyard, you might not think about taking the plates off. Remember how we talked about that plate being the way of determining the owner?
That still applies, even if the car is getting junked. You don’t want someone to get their hands on your license plate and then use it for something illegal.
Sure, you might be able to prove that it wasn’t you who did the crime, but do you really want to invest your time in that? It’s far easier to remove the license plate and turn it in or dispose of it as per your state regulations.
As you are gathering everything together for the junkyard, just take the plate off. It only takes a moment and that’s why it should be part of your usual car clean-out. Most reputable junk yards will remind you when you sign the paperwork, but you still want to be responsible and ensure it happens.
It’s Important!
We can’t stress enough how many things could go wrong if you don’t remove your plates at the time of sale unless you have a legal reason not to. Between getting scammed by the buyer and worrying about your safety, you have a lot of things to consider when you want to get some money for your vehicle.
Ensure you follow the procedure for removing license plates when selling a car, particularly if your state mandates it. Failing to do so might cause issues later.
Dirt Legal offers VIN Checks and title replacements for cars, motorcycles, and almost anything with wheels. Click the links to learn more about our services.
