License plates, also known as tags, help identify vehicles and ensure that drivers have the proper licensing for their vehicles as required by state law. But when you sell your car, the procedure to follow regarding your tags can be confusing. Each state has its own policy and some states offer multiple options. Before selling a car, contact your department of motor vehicles or browse its website for resources on what to do with the old tags.
Nothing
In some states tags stay on a vehicle for the life of the car. This is the case in California where the tags that a car's first owner affixes to the vehicle are likely to remain on the car until it comes off the road. If tags that stay on the car include valid registration stickers the new owner may be required to pay a transfer fee to allow the registration to remain valid. After it expires, the new owner will be responsible for renewing the registration and affixing the sticker to the old tags.
Transfers
Transferring license plates is an option or standard practice in some states. In California, drivers with custom or special interest plates can apply to retain their tags and affix them to a new vehicle. In New York, transferring tags is more common. All drivers can retain their existing tags and add them to a new vehicle. However, the new vehicle needs a new registration sticker, which does not carry over from the car being sold.
Surrendering Tags
You may need to surrender your tags to the department of motor vehicles when you sell a car. This is an option for drivers in New York State who wish to take a vehicle off the road, sell it to another party or register it in another state. The New York State Department of Motor Vehicles allows drivers to surrender their tags to receive a partial refund from the registration paid on the car. If you sell a car in a state with laws like those in New York and plan to buy your new car in a different state, surrendering your plates is a better option that transferring them to the new car, which will need new tags from the new state.
Penalties
The penalties for failing to comply with your state's vehicle tag laws vary. Some states give buyers two days to display temporary or permanent tags. If you plan to surrender your vehicle tags after selling your car, the new driver is responsible for complying with this law. Fines for driving without valid tags range up to $200 in states such as Wisconsin, as of 2011. Failure to surrender your tags in states such as New York may not carry a specific penalty but will prevent you from receiving a partial refund on your prepaid registration.
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