New Car Registration in Tennessee

Requirements for Registration

To register a vehicle in Tennessee, several documents and pieces of information are required. The specific requirements may vary depending on whether the vehicle is new or used, as well as other factors such as ownership status and residency.

General Documentation

A properly reassigned title or Manufacturer's Certificate of Origin is necessary to prove ownership of the vehicle. An itemized bill of sale must be provided, detailing the purchase price, any trade-ins, and applicable sales tax collected at the time of sale. Vehicles that are 10 years old or newer require an Odometer Disclosure Statement to confirm the mileage at the time of sale. Applicants must provide a valid state or federal ID along with two proofs of residency if their ID does not match their current address.

Specific Requirements for New Vehicles

For new vehicles, a Manufacturer's Statement of Origin is essential as it indicates that the vehicle is brand new and has not been previously registered. A primary proof of identification document or two secondary documents are needed to verify the applicant's identity.

Specific Requirements for Used Vehicles

When registering a used vehicle, applicants must provide current registration if transferring a license plate from another vehicle, and the registration must be in date and match the name on the new vehicle. If the vehicle is financed, the current registration and the name and address of the lienholder must be submitted.

Additional Considerations

If more than one person is listed on the title, all parties must be present during registration. A power of attorney can be used if one party cannot attend. If applicable, the name and address of any lienholder must be included in the registration process. For leased vehicles or commercial registrations, additional information may be required. Completing these requirements accurately is essential for a smooth registration process in Tennessee.

Registration Process

New Vehicle Registration

When purchasing a new vehicle, the dealership typically manages the title and registration process on behalf of the buyer. They may submit the title application to the county where the purchase occurred or send it to the local Clerk's office for processing. If the title work is handled by the customer, all required documentation must be brought to the appropriate office for processing. The vehicle must be registered at the same time as the title application, and applicants must provide proof of ownership or a notarized Power of Attorney if not the owner.

Required Documentation for New Vehicle Registration

Proof of identification, Manufacturer's Statement of Origin, bill of sale if purchased from a dealership, and current vehicle registration if transferring a license plate from a previous vehicle are generally required for new vehicle registration.

Used Vehicle Registration

Similar to new vehicles, used vehicles require a title application at the local county clerk's office. The buyer must provide documentation, including the current title, proof of identification, and proof of residency. In cases where the vehicle is being purchased from another state, the most recent out-of-state registration must also be submitted.

Online Registration Options

Many vehicle title and registration transactions in Tennessee can be scheduled and completed online. This option provides convenience for vehicle owners looking to renew their registration or complete other transactions. However, it is essential to have all necessary documents prepared before beginning the online process.

Fees and Payments

The standard fee for new vehicle registration is $68.75, which includes the regular auto license plate fee and wheel tax. Renewal fees are typically lower, at around $54.75. Payments can be made using cash, debit, or credit cards, although additional fees may apply for card transactions.

Renewal and Replacement

Once a vehicle is registered, it must be renewed annually. The process for renewal is similar to the initial registration and can often be completed online. In case of a lost or undelivered title, a replacement can be obtained for a fee of $14.00, provided specific conditions are met.

Title Transfer

Seller Responsibilities

The seller is responsible for completing and delivering the Certificate of Title to the buyer. To facilitate the transfer, the seller must complete the section titled "ASSIGNMENT OF TITLE BY REGISTERED OWNER" located on the back of the Certificate of Title. This requires the signature and printed name of the seller, the buyer's name, the date of sale, the sales price, and the odometer reading for vehicles model year 2011 and newer. Any alteration or erasure on the title will void the Certificate of Title. If the transaction is between family members or involves a low selling price, a Non-Dealer Transfer Affidavit must be completed and provided to the buyer.

Buyer Responsibilities

Upon receipt of the Certificate of Title, the buyer must also sign the title to acknowledge the transfer of ownership. If the title has two names joined by "AND," both parties must sign the title. The buyer should then submit the title to the local county clerk's office to apply for new registration and a title. When applying, the buyer will need to provide proof of identification and pay the required fees for sales tax, registration, and titling. In instances where the buyer cannot appear in person, a Power of Attorney form must be completed to authorize someone else to complete the title transfer on their behalf.

Dealer Transactions

For purchases made through a licensed dealer, the dealer typically processes all necessary paperwork. The dealer will require the buyer's most recent registration if a license plate transfer is desired. Only licensed dealers may sign in the REASSIGNMENT BY LICENSED DEALER sections of the title and transfer ownership without titling the vehicle in their name. The fee for new tag and title processing through a dealer is $99.50, while a transfer of plate and title costs $20.50, provided the plate is unexpired and registered in the buyer's name.

Duplicate Titles

If a Certificate of Title is lost, stolen, or altered, a Duplicate Certificate of Title can be obtained. Applicants must submit proof of identification, an application for a duplicate title, and evidence that all liens have been discharged for the vehicle. A fee of $14 is required when applying for a duplicate title.

Special Cases

New Vehicles

When registering a new vehicle in Tennessee, applicants must submit several specific documents. These include proof of identification, a Manufacturer's Statement of Origin, and a Bill of Sale. Additionally, the odometer section must be completed, and if the vehicle is being registered using a current license plate, a copy of that registration is also required. It is important for individuals whose names will appear on the vehicle registration to be present during the registration process.

Pre-Owned Vehicles

For pre-owned vehicles purchased from a dealership, the registration process requires proof of identification, an Odometer Disclosure Statement (if applicable), and the title assigned from the dealership. If the vehicle was purchased from an out-of-county dealer, buyers must pay a County Wheel Tax Fee of $25.75, in addition to submitting a Bill of Sale and current registration if transferring license plates.

Leased Vehicles

Leased vehicles present unique registration requirements. Individuals leasing a vehicle must provide out-of-state registration in the name of the leasing company, a notarized Power of Attorney from that company, an Owner's Authorization to Lessee, a copy of the lease agreement, and a valid Tennessee sales tax number for the lease company. Furthermore, all lease vehicles require a $2.00 lease fee at the time of initial registration and for each subsequent renewal.

Temporary Registration

In certain situations, dealerships may issue temporary registration tags to allow buyers to drive their new vehicles legally until the permanent registration and plates are processed. This can be particularly beneficial for those who need immediate access to their vehicles while awaiting final documentation.

Consumer Protection Laws

Tennessee has implemented consumer protection laws that benefit buyers of used vehicles. These laws require private sellers to disclose known defects and ensure that sellers accurately report the mileage of used vehicles manufactured from 2011 onward. The Lemon Law allows buyers a five-day window to cancel a sale if the vehicle does not meet expectations, thus protecting buyers from potential deceptive practices. Additionally, if any odometer discrepancies arise, the title will be marked to inform potential buyers of issues.

Renewing Registration

Renewing a vehicle registration in Tennessee is an essential process that must be completed annually to maintain legal driving status. The registration renewal can be performed through multiple methods, including online, at a kiosk, via the Auto Assistant app, by mail, or in person at the local county clerk's office.

Renewal Process

The renewal process typically requires allowing 10 to 15 business days for title processing after a vehicle is properly titled and registered. Upon renewal, drivers should receive a renewal notice postcard, although this is provided as a courtesy rather than a requirement. It is crucial that all required fields on the application are completed; incomplete applications will be returned.

Renewal Fees

The renewal fees vary depending on the type of vehicle and the timing of the renewal. For instance, the fee to renew a passenger vehicle plate is generally around $103.00 for walk-in customers, with an additional $3.00 for mail renewals. There may also be additional fees applied for registration renewals during specific periods.

In-Person Renewals

If a vehicle owner has changed their county of residence since their last renewal, they are required to renew in person and provide proof of their new residence address. This requirement ensures that vehicle information is accurately transferred from the previous county. Additionally, specialty and personalized plates may only be picked up at the main County Clerk's Office.

Grace Period and Late Fees

A grace period of 90 days is allowed for license renewals, during which a late fee of 50% of the renewal fee may be charged. After the grace period, vehicle owners must complete a new application online to renew their registration.

Special Considerations for Military Personnel

Members of the military may have unique considerations regarding vehicle registration renewals. They can often maintain their vehicle registration in their home state to simplify paperwork during deployments or relocations. Additionally, certain exemptions may apply based on their residency status. Maintaining an updated registration is vital, as driving with an expired registration is illegal in Tennessee.

Common Challenges

Purchasing and registering a new vehicle in Tennessee can present several challenges that buyers should be aware of. One significant issue is related to delays in title transfer and insurance liability concerns following ownership changes. Once a buyer signs over the car title, the new owner must navigate the process of ensuring that the title is properly transferred and that any insurance coverage is in place, which can sometimes lead to complications and extended wait times.

Another common challenge is the risk associated with purchasing vehicles from unlicensed online sellers. The Tennessee Department of Commerce and Insurance has issued warnings regarding the problems that consumers face when buying vehicles from unlicensed companies operating online. Complaints have emerged about vehicles arriving with undisclosed damage and difficulties in obtaining a clear title, which can lead to significant frustration for buyers. This situation underscores the importance of verifying the legitimacy of a seller before proceeding with a transaction.

Engaging with a licensed dealership is generally advisable as it promotes responsible business practices and offers some level of consumer protection. Buyers can check the licensing status of dealerships through the Tennessee Department of Revenue's website to avoid falling victim to dishonest practices. However, purchasing from a licensed dealership may entail higher costs and a more limited selection compared to private sales, compelling buyers to weigh their options carefully.

Lastly, navigating the application process for various vehicle-related benefits or registrations can be cumbersome. Buyers are required to gather extensive documentation and meet specific requirements, which can lead to additional delays if any documentation is missing or incorrect. It is crucial for applicants to remain organized and refer to state guidelines to ensure a smooth application process.

Dealership Support

The Dealer Services Department in Tennessee plays a crucial role in facilitating a streamlined and efficient experience for car dealers, fleet owners, and rental agencies. Established to provide personalized services, this department is located at the main office in Davidson County, operating from Monday to Friday, 8:00 a.m. to 4:20 p.m., with a cutoff for dealer work pickups at 4 p.m.

Title and Registration Assistance

When purchasing a vehicle from a licensed dealership, the dealership typically handles the title and registration process on behalf of the buyer. This service includes managing the application for title and registration in the county where the purchase occurs, as well as transferring any valid registration and license plates to the new owner's name. If necessary, the dealership will also issue new plates if the previous ones cannot be transferred.

Disclosure Requirements

Dealers are mandated to disclose important information regarding the vehicle to potential buyers. Essential disclosures include known defects or mechanical issues, accident history, salvage or rebuilt title status, odometer readings, and any active manufacturer recalls. This transparency is vital for consumer protection and informed purchasing decisions.

Financing Options

Tennessee residents looking to purchase vehicles from licensed dealerships have access to various financing options. While many dealerships offer in-house financing, buyers are not obligated to use these services. They can also secure loans from banks, credit unions, or other lenders, which may provide more favorable terms. It is important to note that regardless of the financing option chosen, buyers must pay a 7% sales tax on the vehicle's purchase price.

Dealer Licensing and Consumer Protection

It is essential for buyers to ensure that the dealership they are engaging with holds a valid license and is in good standing with the state. This precaution helps protect consumers from potential fraud or unethical practices within the automotive sales industry. Prospective buyers can verify a dealer's licensing status through the Tennessee Department of Revenue's website.

Frequently Asked Questions

What should I do if I purchase a vehicle online and encounter issues?

If you experience problems after purchasing a vehicle online, such as receiving a damaged car or having trouble obtaining a clear title, it is important to report these issues. Consumers can file a complaint with the Tennessee Attorney General's Division of Consumer Affairs either online or by calling (615) 741-4737.

Can I buy a vehicle from an unlicensed dealer in Tennessee?

No, vehicle sales by unlicensed companies are prohibited in Tennessee, even if the sale occurs online. Consumers have reported issues with vehicles purchased through unlicensed channels, including undisclosed damage and difficulties in obtaining a clear title. It is advisable to verify the licensing of any dealer before making a purchase.

What documents do I need to register a newly acquired vehicle?

When registering a newly acquired vehicle, you will need to provide several documents. These include proof of identification, the Manufacturer's Statement of Origin, and a Bill of Sale. Additional requirements may vary, so it is recommended to check with the local county clerk's office for specific details.

How can I schedule a vehicle title and registration transaction?

Many vehicle title and registration transactions in Tennessee can be scheduled online. It is recommended to make an appointment through the appropriate state department's website to ensure a smooth process.

What should I do if I am a new resident and need to register my vehicle?

New residents must apply for vehicle registration at their local county clerk's office. This requires bringing current out-of-state registration and payment information, or an out-of-state title if applicable. It is important to gather all necessary documents to facilitate the registration process.

What options do I have if I cannot resolve title issues with a dealer?

If you are unable to resolve title issues with a dealer, you can pursue options such as the surety bond process, which is handled by the Tennessee Department of Revenue, or the certification of ownership process through your local county clerk. Resources are available online to help determine the best course of action if you do not have a title.

Are temporary tags available while I wait for my registration?

Yes, many dealerships offer temporary tags that allow you some time before registering your vehicle with the state. This temporary registration will accompany your vehicle until the official registration is completed.

Recent Updates

In June 2023, Tennessee enacted the Transportation Modernization Act of 2023, which introduced significant changes to vehicle registration fees. Notably, this act increased the registration fee for electric and hybrid vehicles, adding an additional charge to the standard registration fees that are applicable at the time of renewal. These modifications reflect a broader trend within state legislatures to impose additional fees on electric vehicles, aiming to address the loss of revenue traditionally generated from fuel taxes due to the rise of alternative fuel vehicles.

Furthermore, as of January 1, 2024, new stipulations took effect concerning the submission of required documentation for vehicle transactions. These changes are part of ongoing efforts to streamline the vehicle registration process and enhance compliance with legal standards. To accommodate these updates, many vehicle title and registration transactions can now be scheduled online, making it more convenient for residents to manage their vehicle-related obligations. However, buyers purchasing vehicles online should remain diligent in adhering to the state's regulations to ensure a smooth transaction. Additionally, the Tennessee Motor Vehicle Commission continues to monitor compliance among dealerships and may take action against those found in violation of laws related to the issuance of temporary tags or deceptive practices in vehicle sales.