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Sorry if this question is really basic. I'm most likely going to buy my next car from a private owner and I need to know the logistics of doing all of the paperwork to make the sale legal and get license plates.
Suppose I go see a car at the owner's residence. I like the car and we agree on a price.
Would I give the seller a deposit and then we agree to meet at the DMV on another day to file the papers and complete the payment? The owner would then physically turn the car over to me at the DMV?
Or would I just give the seller all of the money upfront and drive away with the car (and the current license plates)? Wouldn't I have to bring the registration papers for the seller to sign to transfer the title?
Again, sorry if this question is really basic but I don't know how all the logistics would work.
If you've bought/sold a car as a private sale, how did you handle things?
I've only paid cash for private sales, but basically I handed over the money and the seller signed the transfer section on their title and handed it over...
A lot of this can be different depending on your state. Your state department of motor vehicles or secratary or state of other licensing agency is the best place for particulars. I understand some of these function are handled at a county level? One really can't issue a blanket statement on these particulars.
In general, how you handle the money is between buyer and seller. I myself wouldn't give them the money if I wasn't taking the car home with me. You need to see a title or a registration in the sellers' name, sometimes the title might not be available if the bank or other institution holds a lien and that always makes me nervous with a private sale. A common scam with "flippers" is to not transfer the title to themselves before selling ti to you and I would refuse to buy a car like that. If you lose the title or they don't have it you will be hard pressed to get the title in your name.
How much money are we talking, and is the car within the prices from KBB, NADA, and Edmunds true value?
how the documentation for the sale and subsequent title and registration process is done is very dependent upon the state where you're buying the car and where you reside (if different from where the sale is taking place).
Generally speaking, however, you'll want:
1) to verify that he seller is the legal owner of the vehicle named on the title. Do not accept skipped title chains of ownership nor buy a car from somebody who doesn't own it.
2) verify that the title is clear or find out what the current payoff amount is from the lender so that the lien is released by the lender when the payment is made
3) get a Bill of Sale for the vehicle from the seller. At a minimum, it should describe the vehicle year/make/model, color, engine size, the VIN, and the seller's information and your info as the buyer.
4) unless an older exempt vehicle or very high mileage, you need an odometer statement on the Federal form.
5) if there's an emissions or physical safety inspection of the car, you need the seller to have that in current compliance. Many states will require a new inspection upon transfer of ownership. Will the vehicle pass the inspection?
6) In some states, the license plate will stay with the vehicle. In other states, they stay with the owner. You need to know which applies to your state. Don't assume that you can drive off on somebody else's license plates.
7) You'll want to have your state compliant required car insurance on the car before you drive it away. Get this lined up with your insurance agent/agency in advance.
8) You'll want to get a signed over to you Title from the seller. Be sure that names, VIN numbers, and vehicles match the car and the paperwork. If it needs to be notarized in your state, then you need to have the seller get that done before accepting the deal and paying any money.
9) Don't hand over any money unless you are satisfied that the paperwork is correct. As well, be sure to get a pre-buy inspection performed by a knowledgeable tech/shop before handing over any money for the car so that you know what you are buying.
10) Don't use cash for the deal. Use a traceable form of payment, such as cashier's check, bank draft, bank wire transfer, personal check, etc.
Sorry if this question is really basic. I'm most likely going to buy my next car from a private owner and I need to know the logistics of doing all of the paperwork to make the sale legal and get license plates.
Suppose I go see a car at the owner's residence. I like the car and we agree on a price.
Would I give the seller a deposit and then we agree to meet at the DMV on another day to file the papers and complete the payment? The owner would then physically turn the car over to me at the DMV?
Or would I just give the seller all of the money upfront and drive away with the car (and the current license plates)? Wouldn't I have to bring the registration papers for the seller to sign to transfer the title?
Again, sorry if this question is really basic but I don't know how all the logistics would work.
If you've bought/sold a car as a private sale, how did you handle things?
This might be a question better asked of people local to where you live. Here in Maine, you don't need anything more than a title with the transfer section filled in and signed by the owner(s), a bill of sale, and proof of insurance. The bill of sale is only used to determine how much sales tax you pay, which you only pay the first time you register it. If the car is older than 1995, they don't care if you have a title or not.
When I've sold cars, I just fill in and sign the transfer section on the back of the title, and write up a bill of sale with the buyer's information (name and address), car's information on it (VIN and mileage) and an "as-is" disclaimer, and call it good.
Contact your local DMV or look up their website. It will have the instructions for you on buying a used car from private seller in and out of state. There may be forms on there that you can use to make the process easier when you are ready to register your vehicle.
The most important thing is to get title transfer using a notary.
Don't hand over any money without getting a title. You agree on a price first. The owner signs the title over to you via bill of sale on the back. You then get insurance on the vehicle and then go to the DMV to get plates. Then you go back to the seller and pick the car up.
In some cases, you can risk it and use your current cars plates just to get the car home and save a second trip.
1. Give the owner the money. The form of payment is up to the seller.
3. The owner signs the back of the title and hands you the title and the keys.
3. Make sure it is covered by somebody's insurance before you drive it away. In most cases, your insurer you already have will automatically cover a newly acquired car, but let them know as soon as possible, and beforehand if you can. If the car was already insured by the previous owner, that will at least make driving it legal..
Most states, title transfer does not require notarization. If the seller forgets, just write his name in the space. Tell the seller to leave the date blank, and not write in the amount paid. Fill those in yourself, because you may be sales-taxed on the amount shown (varies by state) and there will be a token penalty if you don't transfer the title within 30 days.
In some states,, the plates stay on the car. Otherwise, you can drive without plates directly from the place of purchase to your home or a DMV office, and if stopped, show the police the title (and proof that a car you own is insured).
Originally Posted by jtur88;38273021 In most cases, your insurer you already have will automatically cover a newly acquired car, but let them know as soon as possible, and beforehand if you can. If the car was already insured by the previous owner, that will at least make driving it legal.
Absolutely NOT! Once the vehicle is "sold", the seller is no longer the owner of the vehicle and their coverage no longer applies.
It's not like the seller has given you permission to drive their owned car. It's YOUR car now.
Be sure that you have insurance coverage under your existing car policy or have arranged for new insurance as needed in your state BEFORE driving the car on public roads.
Most states, title transfer does not require notarization. If the seller forgets, just write his name in the space. Tell the seller to leave the date blank, and not write in the amount paid. Fill those in yourself, because you may be sales-taxed on the amount shown (varies by state) and there will be a token penalty if you don't transfer the title within 30 days.
[COLOR="Blue"
not good advice here ...
What jtur88 is advising you to do here is commit FRAUD by misrepresenting two main areas:
1) signed release of ownership by the seller on a legal document, and
2) the sales price to minimize your sales tax liability. This has become so blatant an area of fraud that some states don't even use the sales price as the basis for the sales tax, they use the blue book value and you pay sales tax on that amount no matter what you paid for the vehicle. IIRC, TX is one of those states where this is the case now.
In other states, if the "sold" price per a Bill of Sale looks unusually low, they may impose a higher sales tax based upon a blue book valuation; in any event, the county clerk (or similar tax authority) may require you to sign an additional affidavit swearing out that the low price you claim to have paid is correct. In some cases, they may then investigate the seller and any paper trail of the transaction for further proof of the purchase price and you're looking at the prospect of criminal charges if they find out you've perjured yourself. The key element here is that the TAX authorities are getting rather jealous of their money and don't like getting defrauded. If you pay a really low price for a car, best to have some documentation of condition that reflects the low price ... vehicle not in drivable condition, etc.[/color]
In some states,, the plates stay on the car. Otherwise, you can drive without plates directly from the place of purchase to your home or a DMV office, and if stopped, show the police the title (and proof that a car you own is insured).
Some states allow for you to drive your new purchase home without plates if the transaction took place between private parties during a time frame when the motor vehicle departments are closed, such as on a weekend. But you still have the responsibility of proof of the transaction to show a peace officer if stopped, so you'll need that signed over title, bill of sale, and proof of insurance in your possession ... and that also applies even if the plates stay with the car in your state.
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