Selling a car in Hawaii isn’t quite the same as selling one on the mainland. With interisland shipping, strict local regulations, and unique DMV requirements, it is essential to follow the correct steps to avoid delays.
Whether you're selling locally or to someone on the mainland, this guide walks you through everything, including documents, inspections, listings, and vehicle shipping.
What You’ll Learn
Before you begin, here are three key takeaways this guide will help you with:
How to prepare the proper paperwork and avoid delays
Where to find buyers locally and off-island
What to expect during the transfer and shipping process
Synopsis
Selling a car in Hawaii involves several steps to ensure a legal transfer that protects both the seller and the buyer. The process is similar across all islands, but you must follow local county procedures and state laws. Here’s a comprehensive overview of what you need to do:
1. Prepare for the Sale
Agree to a Third-Party Inspection: Allow the buyer to inspect the car, often at their expense. It builds trust and can speed up the sale.
Gather Documentation: Collect all relevant documents, including:
Certificate of Title (must be in your name, or you’ll need a notarized bill of sale if not).
Last-issued Certificate of Registration.
Current Hawaii Safety Inspection Certificate.
Maintenance records and a vehicle history report (optional, but recommended).
Check for Liens: If there’s a lien on the title, pay it off or obtain a lien release from the lender before proceeding.
2. Complete the Sale
Bill of Sale: Not required for most private party sales, but recommended for your records. In Honolulu County, a notarized bill of sale is necessary if the title is not in your name.
Odometer Disclosure: Record the accurate odometer reading on the title at the time of sale.
Endorse the Title: Both buyer and seller must fill out and sign the back of the title, including legal names, addresses, signatures, and the sale date. For jointly owned vehicles, all owners must sign.
3. Notify the DMV
File a Notice of Transfer: Complete and submit the Notice of Transfer form (CS-L(MVR)53 for Honolulu, or the appropriate form for your county) within 10 days of the sale.
It protects you from liability for tickets or violations after the sale.
Failure to file can result in a fine of up to $100.
4. Final Steps
Remove License Plates: Before handing over the car, remove your license plates. It ensures you won’t be held responsible for any future violations by the new owner.
Cancel Insurance: Cancel your insurance after removing the plates to avoid unnecessary charges.
Provide Required Documents to the Buyer: Give the buyer the endorsed Certificate of Title, the most recent registration, and the current safety inspection certificate.
5. Dealer License Consideration
Limit on Private Sales: You may sell up to three vehicles per year in Hawaii without a dealer’s license. Selling more requires you to obtain a dealer’s license from the state.
Important Reminders
Always use your legal name and provide accurate information on all forms.
Double-check county-specific requirements, as forms and procedures may vary from one county to another.
The buyer is responsible for registering the car in their name and paying any applicable fees or taxes.
By following these steps, you’ll ensure a smooth, legal sale and protect yourself from future liability when selling a car in Hawaii.
When the Buyer Disappears: A Real-World Wake-Up Call
You cleaned the car, printed out the title, and even left work early to meet the buyer. But then nothing. No call. No show. No sale.
For many sellers in Hawaii, this is how it starts. What seems like a straightforward transaction quickly turns into frustration. You’re left dealing with ghosted meetups, unclear DMV rules, and processes that vary between islands. Without preparation and the correct information, it’s easy to waste hours or even days just trying to complete a sale.
Understand Hawaii’s Unique Car-selling Rules
Hawaii has several distinctive regulations governing vehicle sales that set it apart from mainland states. These rules reflect the state's unique geographical challenges as an island chain and aim to protect consumers from fraud while ensuring proper vehicle documentation and safety standards.
Mandatory Documentation and Transfer Requirements
Title and Sale Documentation: What to Complete and When
When selling a car in Hawaii, two documents are central to the legal transfer of ownership: the Certificate of Title and, in some cases, a Bill of Sale.
Certificate of Title (Title Transfer)
Required for All Sales
Seller must complete Section A (front of title):
Printed name and signature
Odometer reading (for vehicles 10 years old or newer)
Date of sale
Both owners must sign if jointly owned
If there’s a lien, the lienholder must fill out Section B, or you must provide a lien satisfaction letter
Buyer completes Section D (back of title) with their signature and application for registration
Avoid mistakes: No cross-outs, missing fields, or incorrect VINs
Bill of Sale
When Required:
If the title isn’t in the seller’s name
For vehicles with out-of-state titles
Honolulu County requires a notarized Bill of Sale in those cases
When Recommended:
Even if not legally required, a Bill of Sale is a best practice that documents the transaction clearly
Must Include:
Vehicle details (make, model, year, VIN)
Sale price
Date of sale
Full names and signatures of both buyer and seller
Your county requires notarization
Tip: Always double-check your documents before visiting the DMV. A minor error can significantly delay the process.
Notice of Transfer: What It Is and Why It Matters
The Notice of Transfer, Form CS-L(MVR)53, is one of the most essential documents you'll submit when selling a car in Hawaii. Here's why:
Who Must File: The seller of the vehicle.
Deadline: Within 10 calendar days of the sale.
Where to File:
Online: Through your county DMV website (Oʻahu, Maui, Kauaʻi, or the Big Island)
In-Person: At your local DMV office
Purpose: To officially remove your name from the DMV’s vehicle record. It protects you from being held liable for tickets, taxes, accidents, or other issues that occur after the vehicle registration in Hawaii changes hands.
Details Required:
Vehicle information (VIN, make, model)
Buyer’s name and address
Date of sale
Seller’s signature
Penalty for Non-Compliance: Up to a $100 fine
Best Practice: Keep a photo or scanned copy of the completed notice for future reference. Hawaii recommends saving it for at least one year in case of disputes.
Always file this notice, even if the buyer promises they’ll handle everything. Your liability continues until the DMV updates its records.
Hawaii Safety Inspection Requirements
Before a vehicle can be legally sold and registered in Hawaii, it must pass a state-mandated safety inspection, especially if the car is two years or older.
This requirement applies to all vehicles registered in the state and is a critical step in the sales process, whether the buyer is local, inter-island, or located on the mainland.
Why the Safety Inspection Matters
The safety inspection serves to verify that the vehicle meets Hawaii’s roadworthiness standards. It ensures that essential systems that protect both the driver and other road users are functioning correctly.
Failing to provide a valid inspection certificate not only delays the sale but also prevents the buyer from completing their registration, potentially creating liability issues for the seller.
What the Inspection Covers
Certified technicians assess a comprehensive list of safety components during the inspection. These include:
Braking System: Checks for worn brake pads, leaks, and the proper functioning of emergency brakes.
Steering and Suspension: Verifies no excessive play, leaks, or worn components.
Tires: Ensures adequate tread depth, no bulges, cracks, or significant wear.
Lighting and Electrical Systems: Confirms all lights and dashboard indicators are operational and correctly aimed.
Exhaust System: Checks for leaks, loud noises, or damaged components. Must be safely routed and sealed.
Windshield, Mirrors, and Wipers: Verifies no major cracks, intact mirrors, and functional wipers.
Body and Frame Integrity: Looks for structural damage, rust near critical joints, or sharp protrusions.
Interior Safety Features: Check seatbelts, horn, and warning lights.
This detailed evaluation ensures that any vehicle being transferred to a new owner is safe for operation on Hawaii’s roads.
Cost and Validity of the Certificate
A standard safety inspection typically costs around $25, though prices can vary slightly between providers. Once passed, the inspector affixes a dated certificate to the vehicle and provides documentation for DMV use. This certificate is generally valid for one year from the date of inspection.
When selling a car, the certificate must be current on the day of transfer. An expired certificate must be renewed before the buyer can register the vehicle, which can cause inconvenience and potentially slow down or derail the transaction.
Dealer Licensing and Advertising Restrictions
Licensing: Motor vehicle dealers and salespeople must be licensed and operate from a permanent site capable of displaying at least three vehicles.
Advertising: Ads must avoid terms like "wholesale," "free," or "factory sale," and must be honest. Vehicles must be for sale, and discounts must be based on the Manufacturer's Suggested Retail Price (MSRP). Used car ads must display the license plate number.
Consumer Protection Measures
Lemon Law Disclosure: Dealers must disclose the defect history of a vehicle that has been repurchased and resold under the lemon law.
Third-Party Inspections: Though not required by law, Hawaii encourages pre-purchase inspections. Buyers typically pay for them, and both parties must agree on time and location.
Legal Penalties and County Variations
Violating licensing laws or selling multiple vehicles without authorization may result in fines of up to $1,000 per day. Each county may require different forms or submission methods, so it’s essential to comply with the rules of the county where the car will be registered and driven.
Ultimately, selling a car in Hawaii involves much more than just handing over the keys. It requires understanding both state-level regulations and county-specific procedures, ensuring safety compliance, and protecting yourself through timely documentation and legal safeguards.
Vehicle Sale Process For Hawaii
Selling a car in Hawaii involves a specific sequence of steps that must be followed to ensure legal compliance and protect both the seller and buyer. The process is more complex than in many mainland states due to Hawaii's unique regulations and island-specific requirements.
Pre-Sale Preparation
Step 1: Gather Required Documentation
To avoid repeating information covered in the main "Required Documents" section above, this step is a quick checklist to ensure you're ready to proceed with your sale. Confirm you have the following in hand:
All ownership paperwork (Title, Registration, Safety Inspection)
Supplemental items like maintenance records and the owner’s manual
All keys and remotes for the vehicle
Your valid government-issued photo ID
This preparation helps keep the transaction smooth, especially when meeting buyers or attending a DMV appointment together.
Step 2: Obtain Current Safety Inspection
Ensure your vehicle has a valid Hawaii Safety Inspection Certificate. This inspection must be current and cover critical safety components, including steering, brakes, lights, exhaust systems, and other safety features. The inspection typically costs around $25 and is mandatory for registration transfer.
Step 3: Research Vehicle Value and Set Price
Determine your vehicle's fair market value considering Hawaii's unique market conditions. Used cars in Hawaii often sell for 15–20% above mainland Kelley Blue Book values due to shipping costs and limited inventory. Research similar vehicles in your area to set a competitive price.
Marketing and Showing the Vehicle
Step 4: Create an Advertisement
When advertising your vehicle, ensure compliance with Hawaii's advertising regulations. Avoid prohibited terms such as "wholesale," "free," "invoice price," "fleet," or "factory sale." Include accurate vehicle information and ensure the vehicle is available for sale as advertised.
Step 5: Arrange Third-Party Inspection
Allow potential buyers to have the vehicle inspected by a qualified mechanic. While not legally required, this practice is strongly recommended in Hawaii. The seller and buyer must agree on the timing and location of the inspection, with the buyer responsible for the cost. Keep inspection records on file, regardless of the results.
Completing the Sale Transaction
Step 6: Meet with the Buyer
Conduct the sale transaction in a safe, public location, or consider meeting at a designated motor vehicle office. It's highly recommended that both buyer and seller go together to complete the title transfer at a satellite city hall. It ensures proper documentation and protects the seller from future liability.
Step 7: Complete the Title and Bill of Sale
Accurately completing the Certificate of Title and preparing a Bill of Sale (if required) are critical steps. Refer to the "Title and Sale Documentation" section for detailed instructions. Ensure both the buyer and seller sign where necessary, and confirm all lienholder requirements are met to avoid delays.
Step 9: Prepare Bill of Sale (If Required)
While not generally required for private sales, a notarized bill of sale becomes mandatory in specific situations, particularly in Honolulu County, when the title is not in the seller's name. Even when not required, a bill of sale provides additional documentation of the transaction.
Post-Sale Legal Requirements
Step 10: File the Notice of Transfer
Complete and submit the Notice of Transfer, Form CS-L(MVR)53, within 10 calendar days of the sale. This crucial step officially removes your name from the vehicle's record, protecting you from future liability for tickets, accidents, or taxes.
Refer to the "Notice of Transfer" section earlier in this guide for detailed instructions on how to file and where to submit it.
Step 11: Handle License Plates
There's conflicting information about license plate handling in Hawaii. Some sources indicate that plates should be removed before sale, while others suggest that plates should stay with the vehicle.
Best practice: Consult with your local transportation office to confirm the current requirements for your specific county.
Step 12: Cancel or Modify Insurance
Contact your insurance company to cancel your policy or remove the vehicle from coverage once the title has been correctly transferred and the Notice of Transfer has been filed with the relevant authorities. Keep the car insured until the transfer is legally complete.
DMV Processing for Title Transfer
Step 13: Buyer Completes Registration Transfer
The buyer must complete the title and Hawaii vehicle registration transfer within 30 days of the sale. Required documents include:
Properly endorsed Certificate of Title
Last-issued Certificate of Registration
Current Hawaii Safety Inspection Certificate
Completed Application for Registration,Form CS-L(MVR)1, if required
Step 14: Transfer Fees and Appointments
The title transfer fee is $10 if completed within 30 days; a $50 penalty applies for late transfers. Appointments are required in Honolulu County through AlohaQ.org. Other countries may use different systems. Joint buyer-seller appointments are allowed.
Private Seller Limits and Licensing Penalties in Hawaii
Hawaii restricts the number of vehicles a private individual can sell per year without being classified as a licensed dealer. These laws are intended to protect consumers by preventing unregulated car flipping and ensuring transparency in vehicle sales.
Private Sale Limitations
If you're selling your vehicle, Hawaii law permits you to complete up to three (3) vehicle sales per calendar year without needing a dealer’s license. This limit applies statewide and is enforced by the Hawaii Department of Commerce and Consumer Affairs (DCCA).
Exceeding this limit, even unintentionally, means you are operating as an unlicensed motor vehicle dealer, which violates both state business regulations and consumer protection laws.
This restriction is designed to prevent "curbstoning," a practice where individuals flip cars for profit while evading regulation. Curbstoners often don’t disclose mechanical issues or title problems, putting unsuspecting buyers at risk. The state combats this by tightly enforcing limits on private sales.
Penalties for Non-Compliance
Violating the three-vehicle limit can result in steep penalties, including:
Fines of up to $1,000 per day for each day a person operates as an unlicensed dealer.
Potential suspension or revocation of any existing business licenses.
Investigation or enforcement actions from the DCCA or county-level authorities.
Even if the vehicle being sold is your own, selling more than three without a license can lead to serious consequences. Anyone planning to sell multiple cars for profit in a single year must apply for a motor vehicle dealer license, which involves meeting location, insurance, and advertising requirements.
How to Stay in Compliance
Track how many vehicles you sell each year to avoid exceeding the legal threshold.
Listing vehicles under friends’ or family members’ names to skirt the limit can be considered fraud.
If you’re unsure, contact the Hawaii DCCA for clarification on your selling status.
If you're planning a one-time sale or even selling two or three personal vehicles in a year, you’re well within your rights. However, if vehicle sales become frequent or business-like, ensure you’re operating legally.
Deciding How and Where to Sell Your Car in Hawaii
Selling a car in Hawaii involves choosing from a variety of outlets, each offering distinct benefits depending on your priorities, including speed, convenience, price, and geographic reach.
Private Party Sales
These typically yield the highest returns as you set your price and negotiate directly. However, they demand more effort in vetting buyers, arranging test drives, and handling paperwork. Consider listing on platforms like Craigslist Hawaii, Facebook Marketplace, and local bulletin boards. Always include the vehicle's price, mileage, inspection status, and note any shipping availability.
Used Car Dealerships
Ideal for those prioritizing convenience over top-dollar returns. Dealerships often purchase vehicles outright, handling all paperwork for a hassle-free transaction.
Trade-ins
A convenient option if you're buying another vehicle, as your car's value is applied towards your next purchase. However, trade-in offers are typically lower than private sale prices.
Cash Buyers
Services like Cash for Cars Honolulu or Autozilla offer immediate assessments and payments, appealing to sellers who seek a quick closure. These buyers specialize in purchasing vehicles in various conditions.
Auto Brokers and Consignment Services
Companies like Aloha Auto Buying Center or CARMARK Hawaii market your car for you, leveraging their networks for promotion and staging. This approach blends the higher returns of a private sale with reduced effort on your part.
Auction Houses
Hawaii Auction Services, for example, provides a competitive bidding environment, particularly for specialty or salvage vehicles. It can result in strong prices if your car targets a niche market.
Selling to Out-of-County or Mainland Buyers
It introduces logistical challenges, requiring coordination for inter-island or mainland shipping. AmeriFreight Car Shipping can facilitate this by transporting your vehicle to a California port, from which a trusted freight provider, such as Matson, takes over. For inter-island sales, ensure the car is properly registered and inspected for the destination county.
Safety Tips for Selling Your Car:
Always meet in public, well-trafficked areas during daylight hours.
Do not release keys or documents until payment is verified.
Utilize a signed written agreement to document the sale formally.
Selling a Car in Hawaii with an Outstanding Loan
Selling a car with an outstanding loan, also known as a lien, requires careful coordination with your lender to ensure the title can be legally transferred to the buyer. Whether you’re selling privately or trading in at a dealership, handling the lien adequately protects both parties and ensures the sale complies with legal requirements.
Step 1: Understand Your Loan Status
Before listing your car for sale, contact your lender and request the following:
Payoff Statement: It includes the remaining loan balance, interest, and any additional fees that may be applicable. Lenders usually provide a 10-day or 30-day payoff quote.
Lien Status: Confirm whether the lien is listed electronically or physically on the vehicle title.
Title Holding: Determine whether the lender holds the physical title or whether it’s an e-title (electronic title).
Step 2: Evaluate Your Equity Position
Assess your vehicle's equity, which is the difference between its market value and your outstanding loan balance.
Positive Equity: If your vehicle’s market value exceeds the payoff amount, you’ll receive the difference after the sale.
Negative Equity: If you owe more than the car is worth, you’ll need to pay the difference upfront or roll the balance into a new loan if you're buying another vehicle.
Knowing your equity position will help you price the car appropriately and negotiate confidently with buyers.
Step 3: Coordinate with Your Lender for the Sale
There are three common paths for handling the lien:
Option A: Dealership Trade-In or Sale
Most Hawaii dealerships are familiar with lender procedures. They will:
Contact your lender directly
Pay off the loan
Handle all lien release and title transfer paperwork
Roll over positive or negative equity into your following financing agreement if applicable
It is the most straightforward route, but it may yield a lower sale price compared to a private sale.
Option B: Private Sale with Lender Coordination
If you're selling to a private buyer:
Notify your lender and schedule a meeting at their office.
The buyer pays the lender directly, not you.
The lender will:
Process the final payment
Issue a lien release letter
Either hand over the title (if available) or mail it once the lien is cleared
This method builds trust with buyers and protects everyone involved.
Option C: Use an Escrow Service (Recommended for Remote or High-Value Sales)
Escrow services act as neutral third parties:
Buyer deposits funds into the escrow account
Escrow pays the lender
The lien is released, and the title is transferred
Escrow releases remaining funds to the seller (if applicable)
Although this incurs a service fee, it minimizes risk and is especially helpful when the buyer and seller are in different locations.
Step 4: Obtain and Submit Lien Release Documentation
After the loan is paid off, the lender must provide:
Lien Release Letter (also called a Satisfaction of Lien)
Or, complete Section B on the back of the Certificate of Title
The title cannot be transferred to the new buyer until the lien is officially cleared. Submit these documents to the DMV with the rest of the sale paperwork.
Step 5: Finalize the Title Transfer and Sale
Once the lien has been released:
Complete the Certificate of Title following standard transfer rules (see Title and Sale Documentation section)
Provide the last-issued registration and a valid Hawaii Safety Inspection Certificate
File the Notice of Transfer, theCS-L(MVR)53,within 10 days to remove your liability
Inform your insurance company and update or cancel your coverage
Important Reminders
Continue making loan payments until the lender confirms that the payoff has been processed. Missing a payment during the sale can result in delays or damage to your credit.
Always retain a copy of your lien release and title transfer documents for your records.
Selling a financed vehicle requires more coordination, but it can still be completed smoothly if you prepare in advance and communicate clearly with both your lender and the buyer.
Selling Your Car In Hawaii Doesn’t Have To Be Complicated
With the proper prep, the process is straightforward. From documents and inspections to choosing a buyer and managing shipping, each step helps ensure a smooth sale.
If your buyer is located on the mainland, AmeriFreight Car Shipping can assist you in transporting the car to a port in California for the first leg of its journey. Our team coordinates logistics and works with a trusted network of carriers, so you’re not navigating the process alone.
Need Help Shipping Your Car?
Arranging transport can be one of the most complex steps in the sales process, but with AmeriFreight, it doesn’t have to be so complicated. Hawaii’s unique geography necessitates careful planning and coordination for vehicle shipping.
Frequently Asked Questions (FAQs)
What factors affect used car prices in Hawaii?
Several factors, including supply and demand, vehicle condition, mileage, brand reputation, and seasonal trends, influence the prices of used cars in Hawaii.
How does the salt air environment in Hawaii impact the resale value of a used car, and what can I do to address it?
Salt air and high humidity in coastal areas can accelerate rust and corrosion, particularly undercarriage and body damage. To maintain resale value, sellers should:
Regularly wash and wax the car, especially underneath
Use rust-inhibiting treatments
Provide maintenance records showing proactive corrosion prevention
Include clean inspection reports that note no visible rust issues
Are there particular car models that hold their value better in Hawaii compared to the mainland, and why?
Yes. Compact SUVs, hybrids, and Japanese brands like Toyota, Honda, and Subaru often retain higher value due to their durability, fuel efficiency, and ease of repair. Models like the 2024 Toyota RAV4, known for its reliability and fuel efficiency, are particularly popular in Hawaii’s used car market. Four-wheel drive vehicles are also popular on the Big Island and Maui for rural roads.
What is the demand like for electric vehicles or hybrids in Hawaii's used car market due to rising gas prices?
Demand for electric vehicles (EVs) and hybrids is strong and growing in Hawaii, driven by high gas prices, green energy incentives, and a commitment to sustainability.
Used Prius, Leaf, and hybrid SUVs often sell quickly. Charging infrastructure is improving statewide, making electric vehicles (EVs) more viable, especially in urban areas.
Disclaimer: The information provided in this guide is for general educational and informational purposes only and does not constitute legal, financial, or DMV-specific advice. Regulations and procedures may vary by county in Hawaii and are subject to change. For the most accurate and up-to-date requirements, consult your local DMV office or an authorized legal professional for the most accurate and up-to-date information. AmeriFreight does not provide legal services and assumes no liability for errors or omissions in this content.
