Delaware law allows a vehicle owner who trades in a vehicle when purchasing another vehicle to deduct from the purchase price the value of the trade-in vehicle. This will reduce the amount of document fee paid when titling the new vehicle. The dealer normally processes the trade-in credit when the owner trades the vehicle to the dealership when purchasing a new vehicle. Trade-in credit is only allowed for one motor vehicle or trailer per application.
Vehicle owners who sell their vehicle privately and purchase a replacement vehicle may also apply for a credit/refund.
The Document Fee Credit/Refund Application (MV347) must be submitted to the Division when applying for credit/refund when your vehicle was not traded to a Delaware dealer.
- Vehicles that are sold prior to the titling of a new vehicle can be credited at the time of titling the new vehicle. The Document Fee Credit/Refund Application (MV347) must be submitted with the new vehicle title work for immediate credit.
- The vehicle that you are claiming a credit/refund for must have been sold within 60 days prior to or 60 days after the new vehicle was titled in Delaware.
- The credit/refund vehicle must be a Delaware titled vehicle, and the name on the title must be the same as at least one of the applicant(s) who is applying for the title on the new vehicle.
- When the sale of the credit/refund vehicle occurs after titling a new vehicle, the Document Fee Credit/Refund Application (MV347) must be received by the Division's Administrative Office within 15 days after the sale. The title to the credit/refund vehicle must be transferred into the new owner's name(s), or you must notify the Division that the vehicle was transferred before a refund will be processed. Notification must be accomplished by returning the "Seller's Report of Sale" from your Delaware title or the registration card with the buyer's information completed.
- Owners turning in a leased vehicle may also apply for the credit/refund when leasing or purchasing a replacement vehicle. A copy of the lease contract showing the residual value of the leased vehicle must be supplied to obtain the credit.
- When replacing a vehicle deemed a total loss by your insurance company, refer to Item 2A on the Document Fee Credit/Refund Application (MV347) for specific information required.