Virginia Trade-In Reporting: A Reminder for Dealers and Customers

October 21, 2026

In a recent meeting with John O’Donnell & Joe Koch, Virginia DMV Commissioner Sandy Jack asked WANADA to help raise awareness about an important issue affecting vehicle owners and local tax administration across the Commonwealth. Many customers do not realize that when they trade in a vehicle, it is their responsibility to notify the Virginia DMV that they have disposed of that vehicle. This process, often referred to as updating a vehicle’s disposition, is separate from the paperwork completed by the dealership during the purchase transaction.

According to Virginia DMV procedures, customers who trade in a vehicle should report the transaction through the DMV’s online vehicle disposition system, by phone, or at a DMV customer service center. The official DMV Disposition Reporting page is available here. The process requires the owner to identify the vehicle and provide the date it was traded. The customer should also confirm that the disposition has been reflected in the records of their local Commissioner of the Revenue, particularly if personal property taxes are involved.

Failure to report a trade-in can create problems for customers and local governments alike. Commissioners of the Revenue routinely receive notice when residents acquire a new vehicle, but they may not receive timely information indicating that a previously owned vehicle was traded in. As a result, traded vehicles can remain on local tax rolls until the owner provides documentation showing that ownership was transferred.

While Virginia dealers properly process title and registration transactions for replacement vehicles, the trade-in disposition itself is not automatically reported as part of that process. To help avoid confusion and unnecessary tax issues, WANADA encourages Virginia dealers to remind customers of their responsibility to report traded vehicles to DMV and retain documentation related to the transaction.

A simple reminder at delivery could save customers significant time and frustration while helping improve the accuracy of local tax records throughout Virginia. For more information, dealers and customers can visit the Virginia DMV’s vehicle disposition reporting page. Please contact Joe Koch at 202-821-5824 or jk@wanada.org if you have any questions.