Buying a car is tricky plenty without involving the other side of auto shopping: selling your quondam one. Whether you use Craigslist, an auction site like Bring a Trailer or Cars and Bids or merchandise it in at a dealer, at that place'south a lot of paperwork involved. But fifty-fifty when that's all done, at that place's still one matter left: dealing with your license plates. For some, that'due south an afterthought. But if you're not careful, those old plates could come dorsum to haunt y'all.

What are you supposed to do with your license plates when you sell your car?

Various old license plates for sale
Former license plates for sale | Robert Alexander/Getty Images

Each state has its own laws regarding license plate placement and contents. And it's the same situation regarding what you tin and should do with the plates once the machine they were on is sold.

In some states, the seller retains the plates, Autoblog reports. Only in others, they become with the automobile itself. For example, in Illinois, where I reside, the license plates stay with the car's original possessor, AAA reports. And the same goes for Michigan, where I used to alive. Withal, in California, unless the license plates are personalized, they stay with the car, SellMax reports.

If you're selling your car, these distinctions are vital to keep in heed, the Augusta Free Press explains. License plates are your vehicle'south ID and are linked to its title. And whoever is listed on that title is the legal possessor, e.g. on the hook for any possible incidents, the Providence Journal explains. That'due south why you need to be conscientious with how you handle the license plate transfer or retention.

Can you lot go along your former license plates and/or use them on your new motorcar?

2 Postal Service workers dispose of old license plates in Denver in 1971
License plates being recycled in Denver in 1971 | David Cupp/The Denver Post via Getty Images

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If you lot retain ownership of your old auto'southward license plates, you can but dispose of them at your local DMV. In that location, they'll either be recycled/destroyed or reissued to another vehicle, CarsDirect.com reports. However, if you desire to proceed your plates—for case, if they're personalized—you can do then, YourMechanic reports.

The exact procedure varies slightly betwixt states, but the overall process is adequately simple, ItStillRuns explains. Take your new vehicle's title, the plates, besides as your sometime car'southward title or a re-create of it to the DMV. There you'll fill out a class and likely pay a small fee. Afterwards that, your old license plates can be installed on your new auto.

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Of course, if your country laws land that the license plates stay with the car, so they're out of your hands. Merely that doesn't mean you can dawdle with transferring the title and reporting that transfer to the DMV.

If you're not careful, you could finish upwards with a massive headache

One of my close relatives is currently experiencing one of the problems that can arise from improper license plate handling.

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Roughly a decade ago, they gave their sedan to another family unit member. Said family member moved around multiple times, earlier giving the sedan back to the original possessor. However, in the concurrently, the original license plates were misplaced—until they wound up on the back of someone's pickup truck. A truck that went through a tollway without paying, so naturally, the tollway authorities traced the plate. And the last registered owner was my relative; so, now they're stuck with the bill.

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And this isn't the only legal problem that can arise from license plates. Many owners of exotic cars register their rides in Montana to avert paying certain taxes, even if they don't live in that location, Autotrader reports. Which, despite looking legit on newspaper, is really illegal unless you actually alive in Montana, Jalopnik explains.

So, in the interest of your own sanity, make sure y'all dispose of your license plates properly when y'all sell your auto. Or, if that'south not an choice, get all the legal paperwork filled out and sent in quickly.

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