Purchasing a vehicle in Alaska is regulated under the Alaska Statute Title 45, Chapter 25. This statute outlines the required disclosures for sellers' sales of used motor vehicles. It also requires sellers to have a written motor vehicle sales contract that both the seller and buyer sign.
If the seller arranges financing, additional conditions must be met, including separate agreements and final financing approval. All these details should be according to the statute's guidelines and monitored by the Alaska Division of Motor Vehicles (DMV).
Legal guidelines can help buyers protect themselves from potential fraud or misrepresentations. They can also guarantee that their rights are protected and that the buying process is fair and transparent.
What Is the Process for Buying a Car in Alaska?
The car buying process in Alaska varies depending on whether the car was purchased from a dealer or a private party. The Alaska DMV provides separate guidelines for each below:
Buying from a Dealer in Alaska
When purchasing a car from a dealer in Alaska, the dealer usually handles most of the paperwork. However, the buyer will still have to get involved in the following key aspects:
Dealer Verification
Buyers should check the dealer's credentials. It includes verifying the active status of the dealer's license with the Alaska DMV. Buyers can check if their potential dealer is listed in the DMV's list of registered vehicle dealers.
Moreover, buyers should research the dealer's reputation by examining reviews and feedback from prior customers. Dealers must provide transparent and precise details about their vehicle's history, pricing information, and any warranties or guarantees they offer.
Buyer's Guide
Buyers should carefully review the Buyer's Guide provided by the dealer. The Federal Trade Commission (FTC) requires this guide. The Guide gives important information about the vehicle's warranty coverage. It clearly states whether or not the car is being sold with a warranty. If there is a warranty, the guide explains what type it is and which parts are covered.
Carefully reading the Buyer's Guide helps buyers understand the warranty terms before purchasing the vehicle. It allows them to make an informed decision about their purchase.
Transfer of License Plates
To transfer current Alaska plates to the newly purchased vehicle, buyers must inform the dealer during the sales process. The dealer will provide the Vehicle Transaction Application (Form 812 ) for the buyer to complete. It allows for the seamless transfer of plates.
Buyers must provide the dealer with the license plate number of their current vehicle they wish to transfer. The dealer submits the necessary paperwork and fees to the Alaska DMV on behalf of the buyer. It guarantees a proper and official transfer of the plates.
Alaska law requires the dealer to apply for the transfer of the plates to the buyer within 30 days from the date of purchase. The process will also include submitting the original title or the Manufacturer's Certificate of Origin to any AK DMV office. The buyer will also pay the $15 transfer fee.
When submitting an MCO for vehicle registration in Alaska, at least one of the following must apply:
- The applicant's name is printed on the MCO to indicate they are the original buyer.
- If the dealership's name is on the MCO, they must use the Dealer Reassignment section to reassign/transfer the vehicle to the applicant.
Temporary Registration Permit
Upon successful purchase, the dealer issues the buyer a 60-day temporary registration permit. This permit allows the buyer to drive the vehicle while the registration process is underway legally.
Once the transferred license plate is received, the buyer must remove the temporary permit and attach the transferred plate with the appropriate tabs.
Odometer Certification
The buyer and the dealer must certify the odometer reading of a vehicle less than ten years old. This certification helps maintain transparency and accuracy regarding the vehicle's mileage.
Delivery of Documents
Once the title, registration, and license plates are processed, they will be returned to the dealer. The dealer will then contact the buyer to deliver the registration and plates. In the case of a financed vehicle, the title will be sent directly to the lienholder.
Buying a Vehicle From an Out-of-State Dealer
When buying a vehicle from a dealer outside of Alaska, the buyer must complete the purchase with the out-of-state dealer as usual. The buyer must obtain the following documents:
- Bill of sale (see more details in the next section)
- Vehicle title or Manufacturer's Certificate of Origin (MCO) assigned to the buyer
- Any required emissions/VIN inspection specific to that state
Once the vehicle is in Alaska, have it inspected and issued a Certificate of Vehicle Inspection (Form 811 ) by a peace officer or inspected at a DMV location.
Note that the out-of-state dealer is not responsible for registering the vehicle in Alaska. The buyer must handle the Alaska title transfer and registration within ten days of bringing the vehicle into Alaska. They can visit their local DMV office to apply for an Alaska title and registration and submit the following:
- All the documents obtained from the out-of-state dealer
- Completed Vehicle Transaction Application (Form 812)
- Odometer disclosure statement (Form 839 ), if applicable
- Certificate of vehicle inspection (Form 811)
- Proof of insurance for the vehicle in Alaska
- $15 title fee and registration fees (Additional $10 for in-person transactions)
During the processing period, the DMV will provide the buyer with a 60-day temporary permit to operate the vehicle legally. Once processed, the DMV will mail or have you pick up the new Alaska title, registration, and license plates for the vehicle. The out-of-state title will be canceled.
Buying a Vehicle From a Private Seller
Buying a vehicle from a private seller in Alaska may offer the potential benefit of a lower purchase price through direct negotiation with the owner. However, it also carries certain drawbacks. Notably, vehicles from private sellers typically lack warranty coverage and provide limited legal protections for the buyer.
Also, sellers may need to conduct a comprehensive inspection to uncover hidden defects or issues. To facilitate a secure transaction, the Alaska DMV advises prospective buyers to exercise prudence and strongly consider taking the following actions when pursuing a private party vehicle:
Title Verification
The buyer must verify the seller's ownership of the vehicle by checking the title and their identification. First, the buyer must verify that the seller is the same owner listed on the vehicle title. They can check the seller's photo ID for their name and address.
Then, the buyer must check the vehicle title, specifically the following details:
Information of the Seller and Buyer
The title must include the buyer and seller's legal names, addresses, and signatures. If someone other than the owner is selling the vehicle, they must have prior authorization, like a Notarized Power of Attorney or court order.
Vehicle's Details
The title must include the following:
- Description of the vehicle, e.g., year, make and model, body color and style
- Vehicle identification number (VIN)
- The vehicle's purchase price and date
Vehicle History Reports
Buyers should obtain a comprehensive vehicle history report to check for any prior damage, accidents, or other relevant information. Buyers can access the National Motor Vehicle Title Information System (NMVTIS). Only get vehicle history reports from NMVTIS-approved data providers.
These reports contain crucial details about the vehicle, including:
- Information regarding the title
- The date on which the most recent title was issued
- Any recorded brands or designations affixed to the title over the course of the vehicle's history
- The documented odometer reading
- A chronicle of any instances where the vehicle was declared a total loss
- Details on whether the vehicle has previously borne a salvage title
Procuring such a report can aid buyers in making a well-informed decision as it gives an in-depth look at the vehicle's past to assess its condition and value.
VIN Check
Buyers should also include a VIN Check when purchasing a car, primarily if used. This check is more basic than a vehicle history report, focusing only on the vehicle's VIN. It verifies the VIN's legitimacy and tracks basic details attached to that number.
The check flags any major "brands" or titles, such as salvage, flood, or rebuilt, associated with the VIN. It also checks for liens, thefts, or other ownership issues tied to the VIN.
Prospective buyers can access the free VINCheck Service the National Insurance Crime Bureau (NICB) provides. The service can help determine if a vehicle has been reported as stolen but not recovered. They can also visit their nearest AK DMV office for assistance.
Emissions Inspection
When buying a vehicle in Alaska, emission inspections are generally not required when purchasing from a private seller. However, there are a few exceptions to be aware of.
An emissions inspection may be necessary if the vehicle is registered or will be registered in certain areas of Alaska with vehicle emissions testing programs. Specifically:
- Vehicles newer than 1968 registered in the Municipality of Anchorage and some surrounding areas
- Vehicles newer than 1975 registered in the Fairbanks North Star Borough area
If the vehicle falls under these area and age requirements, the buyer must arrange an emissions inspection within 90 days of purchase.
Odometer Reading
An odometer reading is required if the vehicle is under ten years old. If the title doesn't have space for this information, the seller should provide a completed Odometer Disclosure Statement (Form 839).
Bill of Sale
While not required by the Alaska DMV, a bill of sale is recommended as a receipt and record of the transaction. It must contain the following details:
- Description and VIN of the vehicle
- Warranty information
- The vehicle's final sale price
- Name of buyer and seller
- County and state of vehicle's purchase or sale
If the seller does not have or has lost the title, they must apply for a duplicate title before transferring ownership.
Ownership Transfer
After the sale, the buyer must register the vehicle to their name within 30 days of the purchase date. They must bring the released title, bill of sale, and odometer disclosure statement to the nearest DMV office. If the vehicle has an out-of-state registration or lien release documents, they must bring them, too.
The buyer then completes the Vehicle Transaction Application (Form 812) and pays the registration fees. For convenience, the buyer can also register online through the "myAlaska" page.
The Alaska DMV will issue a new title and registration in the buyer's name as the new owner. The seller's old title will be canceled. The buyer can obtain a 60-day temporary permit from the DMV to operate the vehicle while the new title and registration are processed.
Alaska Lemon Law
Alaska's lemon law requires manufacturers to fix any defect the warranty covers, even after the warranty period ends. If they can't fix the defect after several reasonable attempts (three or more tries or the vehicle being out of service for 30 days), they must repurchase or replace the vehicle.
To get this repurchase/replacement, the consumer has to send a written notice to the manufacturer and dealer within 60 days after warranty expiration or one year after delivery. This notice describes the defect, states the failed repair attempts, and demands a refund or a new vehicle.
The manufacturer gets 30 more days to try a final repair. If still unsuccessful, they must buy back or replace the vehicle within 60 days of the notice and refund the full purchase price minus deductions for use and owner-caused damage.
However, the manufacturer or dealer may not be liable if:
- The problem doesn't significantly affect the vehicle's function or value.
- The problem stems from abuse, neglect, or unauthorized modifications to the vehicle.
What Are the Fees for Buying a Car in Alaska?
When buying a car in Alaska, there are different fees that buyers must pay, such as:
Sales Tax
Alaska's statewide sales tax on car purchases is 0%. However, local governments can impose a sales tax of up to 7.5%. On average, the combined sales tax rate is 1.803%.
Many Alaskans are exempt from sales tax by default. In addition, residents in areas with local sales tax rates can apply for exemptions by filling out a form through the local DMV. Exemptions may be granted for individuals who belong to these categories:
- They hold a permanent registration.
- They represent a charitable or church organization.
- They have a disability.
- They are active in the military and stationed in Alaska.
- They are a senior citizen.
- They are a member of an Alaska Tribal Village Council.
Other Fees
Buyers may also need to pay additional fees, including the following:
- Title fee: $15
- Registration fee: $100 or above for a 2-year registration period for passenger cars, vans, and trucks under 10,000 lbs., but may vary per state, vehicle year, and so on.
- Plate transfer fee: $5
- Duplicate registration: $2
- Documentation fee: Negotiable
What Are the Insurance Requirements for Vehicles in Alaska?
In Alaska, individuals who own a vehicle subject to registration must comply with the Mandatory Insurance Statutes by maintaining a liability insurance policy as outlined in Alaska Statute 28.22.101.
The insurance policy must meet specific minimum requirements, including:
- Bodily injury or death liability: $50,000 per person and $100,000 per accident
- Property damage liability: $25,000 per accident
Vehicle owners must always carry proof of motor vehicle liability insurance while operating a vehicle and present it for inspection upon request by law enforcement or authorized representatives.
Failure to maintain the required insurance can result in the suspension of the driver's license. In the Municipality of Anchorage, failure to provide proof of insurance may lead to vehicle impoundment, requiring communication with the Anchorage Police Department for retrieval procedures.
Exceptions to insurance requirements exist in areas where vehicle registration is not mandatory, but drivers with significant violations must obtain liability insurance. Check the DMV's official list of Exempt Communities on the official AK DMV website's "Mandatory Insurance" page for more information.
Can a Non-Resident Buy a Car in Alaska?
Non-residents have the opportunity to purchase and register vehicles in Alaska. However, they must adhere to the following requirements:
- Non-residents are not required to provide proof of residency or an Alaska address for vehicle registration.
- They must present a valid government-issued photo ID as proof of identity.
- Non-residents can operate a vehicle with a current out-of-state registration for up to 60 days in Alaska.
After the 60 days, regardless of establishing residency, non-residents must register their vehicle in Alaska. To register a vehicle, they must provide the following documents to the DMV office:
- Current out-of-state registration
- Vehicle title (if applicable)
- Completed Vehicle Transaction Application (Form 812)
- Payment of registration fees
The dealer typically handles the registration process if the vehicle is purchased from an Alaska dealer. However, if the vehicle is purchased outside of Alaska, the non-resident buyer must submit the required documents directly to the Alaska DMV within ten days of entering the state.
If the non-resident is working in Alaska or establishing residency, they must apply for registration within ten days of entering or taking a job within the state. The non-resident must also conform to Alaska's liability insurance requirement.
A non-resident may also have to pay a Motor Vehicle Registration Tax (MVRT) if they register the vehicle in a borough or municipality that implements MVRT as a form of personal property tax. It will be calculated as part of the registration fees they must pay.
Read more about the registration process in the DMV "General Vehicle Registration" page.