Selling a Car With an Out-of-State Title in Indiana

Gary is a short drive from the Illinois line, and cars cross state lines with their owners when they move. Years later, the title in the drawer still says another state. Selling a junk car in Gary, Indiana with that title is normal, and this guide explains who does what.

Your side: sign the title you have

The rules for signing over a title come from the state that issued it. So the most important advice here is plain: follow the assignment instructions printed on your title. Fill in every field it asks for, in the right boxes, and sign exactly as your name appears on the front.

A few things to check before pickup day:

• Is there a lien on it? If the title shows a lender and the loan is paid off, find the lien release. If the loan isn’t paid off, tell us when you ask for an offer.
• Are both owners listed? If two names are joined by “and,” expect both people to sign. Your title’s instructions will say.
• Is the title in your name? If it’s still in a previous owner’s or a late relative’s name, sort that out first. Our guide on selling an inherited car covers the Indiana side of that.

What about the plates? If they came from another state, Indiana’s plate rules don’t govern them. Check with the state that issued them. (For Indiana plates, the BMV asks the seller to remove the plate at the sale.)

The buyer’s side in Indiana

Once you sell, the next owner deals with Indiana. Here’s what the BMV asks of anyone putting an out-of-state vehicle into an Indiana title:

1. A VIN inspection. The BMV’s new-residents page says you bring the vehicle to a BMV branch for the inspection. If that isn’t possible, law enforcement can complete State Form 39530, Physical Inspection of a Vehicle or Watercraft.
2. The out-of-state title (or certificate of origin) as proof of ownership.
3. Fees and tax. The BMV’s out-of-state title checklist lists a $15 title application fee and 7% sales tax on motor vehicle sales to Indiana residents, unless an exemption applies.
4. Timing. The BMV’s Buying and Selling page says the purchaser applies for the title within 45 days, or an administrative penalty applies.

When you sell your junk car to us, those steps are on our side of the deal, not yours.

Moved to Indiana and never re-titled?

It happens, and it doesn’t stop a sale. The BMV gives new residents 60 days to apply for an Indiana title for vehicles they own with an out-of-state title, with an administrative penalty after that. If you’re selling the car for junk anyway, there’s no reason to title it in Indiana first just to sign it away again.

Salvage titles from another state

If your out-of-state title carries a salvage brand, we still buy the car. The BMV’s salvage checklist says a salvage title issued by a state other than Indiana needs State Form 39530 when it’s titled here. Again, that’s the next owner’s paperwork. Our page on salvage title cars explains what the brand means in Indiana.

Title gone missing?

In Indiana a junk car sale runs on one of two papers: the title (lost it? the BMV issues a duplicate for $15) or a BMV certificate of authority, which costs $4 and is applied for with something showing the car is yours, like your current registration. If the car is under 15 model years old, state law requires one of the two. Let us know what you do have, such as a bill of sale, a registration or an insurance card, and on the call we’ll work out which route fits your car. If the registration expired too, see our guide to selling a car with expired plates.

Sources we checked

• Indiana BMV: New Indiana residents (vehicle title and registration)
• Indiana BMV: Transfer of out-of-state title checklist (PDF)
• Indiana BMV: Buying and selling a vehicle
• Indiana BMV: Salvage motor vehicle title checklist (PDF)

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