Motor Vehicles
Frequently Asked Questions
Motor Vehicles
Do I have to have my title to transfer a vehicle or trailer?
Yes. The seller must have the original title to complete a transfer. A photocopy is not acceptable. If the original title is lost, the seller must apply for a duplicate title.
Is proof of insurance required on the transfer of a vehicle?
Yes, the buyer must present proof of insurance card at the time of the transfer. The card must list the following:
- Name of buyer Vehicle Identification Number
- Make
- Year Model Policy Number
May a wife sign to transfer a vehicle for her husband or vice-versa?
Not if the vehicle is only in the other spouse’s name. If a spouse has power of attorney for their spouse, they may sign. A copy of the power of attorney must be submitted with the title. If the vehicle is registered to the husband or wife, either could sign. If vehicle is registered to husband and wife, both must sign
.
May a minor have a vehicle registered in their name?
Age of owners is generally not verified. So yes, a minor could have a vehicle registered in their name provided they have signed the necessary papers. However, legally, minors are not able to enter into contracts. Therefore, problems could arise from registering a vehicle in a minor’s name.
What fees are charged for the transfer of a vehicle?
Generally, the following fees are charged:
any delinquent taxes of buyer & seller must be paid before the vehicle can be transferred.
Title fee $6.00 Transfer fee $4.00 Usage tax Six per cent of purchase price or average retail Note-Vehicle must have a current registration &
What is usage tax?
Usage tax is a tax paid any time a vehicle is transferred or registered for the first time in Kentucky. The usage tax rate is six per cent (6%).
When a used vehicle is transferred, how is the taxable value determined?
For used vehicles:
The value is determined using either the total consideration given for the vehicle or the average retail value as listed in the National Auto Dealers Association (NADA) Used Car Guide.
Examples (Used vehicle with no trade-in)
Asking price $15,000 Less discount/rebate - 2,000 Total Consideration $13,000 Tax rate .06 Tax due $780 (Used vehicle with trade-in) Asking price $15,000 Less discount/rebate -2,000 Selling price before trade $13,000 Less trade-in value -5,000 Total Consideration $ 8,000 Tax rate .06 Tax due $480
