How To Sell a Car in Illinois

Selling a motor vehicle in Illinois requires compliance with state procedures governing title transfer, ownership documentation, odometer disclosure, tax payment, and post-sale notice requirements. A private sale transaction must be executed in accordance with regulations established by the Illinois Secretary of State and the Illinois Department of Revenue.

What You Need To Know Before Selling a Car in Illinois

Title Law and Ownership Requirements

Under the Illinois Vehicle Code, a valid Illinois certificate of title is required for most private motor vehicle sales. The owner whose name appears on the face of the title must execute the title assignment to convey ownership to the purchaser. When a title lists two owners joined by the word "and," both owners must sign to transfer the vehicle. When names are joined by the word "or," either owner may execute the assignment.

Note: Beginning July 1, 2026, Illinois is implementing an Electronic Lien and Titling (ELT) system for lienholders. Paper titles will remain available to private sellers once liens are satisfied.

Vehicles Exempt From Title Requirements

Certain categories of vehicles are excluded from Illinois title requirements under 625 ILCS 5/3-102. These exceptions include vehicles owned by the State of Illinois or the United States, vehicles held by dealers for sale, implements of husbandry, special mobile equipment, and low-speed electric scooters. Ordinary passenger motor vehicles do not receive an age-based exemption and require title documentation regardless of vehicle age.

Satisfying an Existing Lien

A private motor vehicle cannot be sold while an active security interest remains recorded on the certificate of title. The lienholder must release the security interest before title can be transferred. Under 625 ILCS 5/3-205, the lienholder must execute a release within 21 days after receiving payment to satisfy the security interest and deliver the released certificate of title to the owner. After the lien is fully satisfied and released, the seller is free to execute the title assignment to the buyer.

Inspection and Emissions Requirements

Illinois does not mandate a general safety inspection or emissions test as a condition of private motor vehicle sales. No physical inspection is required prior to title transfer in a private-party transaction. Although emissions testing is required for registration in Chicago and Metro-East areas, it is based on the vehicle's model year, not the sale transaction itself.

Pre-Sale Notice and Filing Requirements

The seller must complete and file a Seller's Report of Sale (Form VSD 703) with the Secretary of State immediately after the sale. The seller may also submit a detachable notice strip from the bottom of the title if a paper title is used. This filing notifies the state that the seller has transferred the vehicle and releases the seller from any ongoing liability for it.

Documents Required To Sell a Car in Illinois

Certificate of Title

The Illinois certificate of title is the primary ownership document required for a private motor vehicle sale. The seller must complete the assignment section of the title with the purchaser's name and address and the date of sale. The seller signs and dates the assignment in the space designated for the owner's signature. If the title is in paper form, the seller may mail the assigned title directly to the buyer or deliver it in person. The title must show the purchaser's name to be valid for registration purposes.

Bill of Sale

A written bill of sale documents the transaction details between seller and buyer. While Illinois does not prescribe a specific bill of sale form, the document should include the vehicle's year, make, model, color, Vehicle Identification Number (VIN), and odometer reading, the date of sale, the selling price, and the signatures of both the seller and purchaser. The bill of sale is not required to be notarized in Illinois, though some parties elect to have it notarized for added protection. Both parties should retain a copy for their records.

Odometer Disclosure Statement

The seller must disclose the vehicle's odometer mileage to the buyer at the time of title transfer. Under 625 ILCS 5/3-112.1, odometer disclosure is required unless the vehicle qualifies for an exemption. The odometer reading is typically disclosed directly on the title in the space provided or on the Odometer Disclosure Statement for Title Transfer (Form VSD 333) when necessary. The seller certifies that the odometer reading reflects the actual mileage, or, if not, indicates whether it does not reflect actual mileage or exceeds the odometer's mechanical limits. Both seller and buyer must acknowledge the mileage disclosure.

Seller's Report of Sale

The Seller's Report of Sale (Form VSD 703) must be completed by the seller immediately following the sale. This form includes the vehicle description, title number, VIN, purchaser name and address, date of sale, and selling price. The completed form is mailed to the Secretary of State's Vehicle Services Division to notify the state of the transfer and to release the seller's registration liability for the vehicle.

Title Application

The purchaser applies for a new certificate of title by submitting the Application for Vehicle Transaction(s) (Form VSD 190) along with the signed assigned title, required supporting documentation, and payment of applicable fees and taxes. The application may be completed online through the Electronic Registration and Title (ERT) System and printed for submission to a Secretary of State facility or currency exchange office.

Notarization of the title assignment is not required in Illinois, though some parties may elect to notarize documents voluntarily for additional protection.

How To Transfer a Car Title in Illinois

Step 1: Review the Title Before the Sale

Before offering the vehicle for sale, the seller must verify that a valid Illinois certificate of title exists and that the seller's name appears as the owner on the title. If the title has been lost or damaged, the seller must obtain a duplicate title before the sale can proceed. Any active lien recorded on the title must be satisfied and released by the lienholder before title assignment can occur. The seller should confirm that all information on the title is accurate and up to date.

Step 2: Complete the Title Assignment

The seller executes the assignment of title by completing the transfer section of the certificate of title, including the purchaser's name and address and the date of sale. If the title lists two owners joined by "and," both owners must sign the assignment. If names are joined by "or," either owner may sign. The seller must sign the title in the space designated for the owner's signature and print the seller's name legibly. The sales price must be entered on the title in the space provided, and the odometer reading must be disclosed.

Step 3: Prepare the Bill of Sale and Disclosure Paperwork

At the time of sale, the seller and buyer should execute a written bill of sale documenting the transaction. The bill of sale should include the vehicle identification information, the date of sale, the purchase price, and the signatures of both parties. The odometer disclosure is completed either directly on the title or on the separate odometer disclosure statement, with both parties signing to acknowledge the mileage. The seller completes the Seller's Report of Sale (Form VSD 703) immediately following the transaction.

Step 4: Deliver the Documents to the Buyer

At the time of transfer, the seller delivers the properly assigned title, signed bill of sale, completed odometer disclosure, and a copy of the Seller's Report of Sale to the buyer. The seller should retain copies of all signed and completed documents for recordkeeping purposes, as evidence of the transfer date and the purchaser's identity.

Step 5: Buyer Submits Application Within 20 Days

The purchaser must complete the Application for Vehicle Transaction(s) (Form VSD 190) and submit it to a Secretary of State facility, a currency exchange office, or other designated agent within 20 days after delivery of the vehicle and assigned title. Submission must include the assigned title, the application form, Form RUT-50 for payment of private party vehicle use tax, proof of insurance, and payment of the title fee.

The purchaser is responsible for ensuring that all applicable taxes are paid and all required documents are submitted to complete the title transfer within the 20-day deadline.

Title Transfer Fee Schedule in Illinois

The fees below are assessed by the Secretary of State. Currency exchange offices and other designated service agents may impose additional local service charges. Registration fees vary depending on the type and weight of the vehicle.

Sales Tax on Private Vehicle Sales

Private party vehicle purchases in Illinois are subject to a use tax imposed by the Illinois Department of Revenue. The rate is 6.25% of the purchase price, or the fair market value, whichever is greater. Certain municipalities and counties may impose additional local use tax on private vehicle sales.

What To Do After Selling Your Car in Illinois

License plates in Illinois remain the property of the owner and do not transfer to the purchaser when a vehicle is sold. The seller must remove both the front and rear license plates from the vehicle before the sale is completed. The seller may transfer the plates to another vehicle that the seller owns or surrender the plates to a Secretary of State facility or a currency exchange office.

The seller must file the Seller's Report of Sale (Form VSD 703) immediately following the sale by mailing it to the Secretary of State's Vehicle Services Division. Submission of this report notifies the state that the seller has relinquished ownership and releases the seller from liability for any violations or damage associated with the vehicle after the sale date.

The seller should retain copies of the signed and assigned title, the bill of sale, the completed Seller's Report of Sale, and any odometer or damage disclosures as proof of the transfer date and purchaser identity. These records may be necessary to document the end of the seller's responsibility for the vehicle.

Contact Information

Illinois Secretary of State – Vehicle Services
501 S. Second St., Room 312, Springfield, IL 62756
Phone: (217) 785-3000
Official Website: Illinois Secretary of State Vehicle Services