What must you do if you sell or transfer your vehicle?

Study for the New Mexico Permit Exam. Prepare with flashcards and multiple choice questions. Ace your exam with our detailed hints and explanations!

When you sell or transfer your vehicle, it is essential to notify the DMV within a specified timeframe, typically within 5 days. This notification is important for several reasons. First, it ensures that the vehicle's registration records are updated to reflect the new owner, which helps prevent any future liability issues that may arise if the vehicle is involved in legal matters or accidents after the sale.

Additionally, notifying the DMV helps to protect you as the seller, as it establishes that you are no longer responsible for the vehicle and can help prevent any potential fraud or misuse by the new owner. Failing to notify the DMV can lead to complications or fines, as you remain linked to the vehicle in their records until they are updated.

While other actions, such as informing the police or cancelling insurance, might be considered prudent in certain situations, they are not legally required in the context of transferring vehicle ownership. The focus on notifying the DMV emphasizes the primary legal responsibility drivers have when changing ownership of a vehicle.

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