How do private party sells work? (insurance, vehicle, best, mileage)
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My Hyundai just hit 300,000 miles and its doing alright, but I want to buy something newer. The thing is, I've never purchased a car from a private seller and the Indiana BMV website isn't that detailed.
Now, I'm not leaving out buying from a dealership, but there is a car online right now that I want to go look at, and its being sold private party... its just I'm clueless.
I understand laws/rules vary from state to state and insurance companies have different policies. I reside in SE Indiana and I'm willing to purchased in: Indiana, Ohio, Kentucky... heck, maybe even further.
As far as I know (think I know):
1) Seller signs and dates the title
2) Buyer (me) signs and dates the title under the buyer section
3) Bill of Sale - both seller and buyer fill out their appropriate sections
4) Odometer Disclosure Statement (Indiana new title requirement) - both seller and buyer fill out their appropriate sections
5) The seller has the right to remove the license plates from the vehicle
6) It is the buyers (me) responsibility to obtain a new title and register the vehicle. In Indiana, there is a 31 day grace period to register & title the vehicle for the first time (however, I believe this is the case for vehicles with an Indiana title, so I'm not sure about out-of-state purchases)
In order to register and title the vehicle for the first time, I must visit a license branch/BMV. I need to provide proof of insurance and proof of my SS number.
Well that's all fantastic... I can actually see a benefit of the dealership
How can I drive the car without a license plate?
Can I get a temporary plate or Trip/Travel permit? Is it legal to drive the car without plates so long as I have a signed title and bill-of-sell? I know some states allow a grace period of driving without plates (Michigan for example allows 3 days), but I can't find any information on the IN BMV website. Keep in mind I may need to drive the car without plates to the BMV branch itself. I'm also considering out-of-state purchasing...
Insurance...
Well, I need proof of insurance to register the car. I'm wondering if my existing policy will temporarily cover my car purchase. I know I know, I should contact my insurance provider (USAA), but I noticed other insurance companies have this in writing on their website... State Farm (for example) has a 14-day grace period. USAA is very secretive and doesn't disclose much information online.
Regardless, I will contact an USAA agent. Also, getting pulled over I will want coverage... and forbid I get into an accident.
Be sure to fill in a purchase price well under what you paid, the government has enough money and if you feel bad about stiffing uncle Sam, give the remainder to a charity (retain for a few years for a lawyer if you get caught). Me, I like going by the book, as private party prices are lowest anyways.
I've never bough a car from a (st)ealership. I just cant justify paying thousands of dollars more for a vehicle, especially when most of that extra cash goes into the pocket of some slimey fast talking car salesman. I always buy Toyotas and Hondas with low mileage too so I know their going to run forever and not leave me stranded.
I do however take the vehicle to a Toyota or Honda dealership to have their certified mechanics do a pre purchase inspection of the vehicle before I hand over the cash to the seller. This typically costs about $150 bucks and gives me peace of mind. If the seller wont agree to meet me at the dealership with the vehicle or let me drive it to the dealership myself then I'll find a seller who will (especially in this economy, as the buyer you definitely have the upper hand right now). I have bought and sold 14 vehicles in my life and I think I've only had a seller refuse an inspection once. The only American vehicle I've ever owned was a Chevy Silverado and when I took it to get it inspected the mechanic pointed out the leaky transmission and advised me not to buy the truck. I was stupid and bought it anyway and sure enough, 20k miles later I had to spend $2000 getting the tranny rebuilt. Will never buy another American vehicle ever again.
As for driving without registration after the purchase, I just do it. After I bought my Tacoma I drove it for almost a week with the plates from my old Accord on it because I just didnt have time to get down to the DMV right away. Honestly, as long as you're not driving like an idiot your chances of getting pulled over in such a short time frame are slim to none. Even if you have no plate at all and do end up getting pulled over you'll probably be ok if you show the officer the signed title and the bill of sale. He'll look at the date of the sale and most likely let you off as long as you dont let it lapse more then a few days.
Advice: Check with your local DMV to see whether or not the seller has to sign the title in the presence of a notary and/or have the title notarized. I had a "friend" convice me that the title didnt need to be notarized before transer when I bought my Suzuki and again, sure enough the Arizona DMV required it. I never did get him to notarize the title so never had the bike in my name. It wasnt a big deal since it was a race bike and was never ridden on the street, but it still irked me just a little bit and it lowered the resale value of the bike.
Get insurance before you drive it home. Ask the seller what the VIN No. is and contact your agent to get the vehicle covered before you drive it home. Explain to them what your going to do and they will work with you. You are not the first person to ever buy a private party vehicle.
Thanks for the reply, I was hoping I would get more help. . .
Please, I'm only asking for details on how to strictly purchase a private party car: licensing, registration, driving without finalized plates, etc... I don't want any financial, test driving advice.
Quote:
Originally Posted by Scottay
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As for driving without registration after the purchase, I just do it. After I bought my Tacoma I drove it for almost a week with the plates from my old Accord on it because I just didnt have time to get down to the DMV right away. Honestly, as long as you're not driving like an idiot your chances of getting pulled over in such a short time frame are slim to none. Even if you have no plate at all and do end up getting pulled over you'll probably be ok if you show the officer the signed title and the bill of sale. He'll look at the date of the sale and most likely let you off as long as you dont let it lapse more then a few days.
I can't find anything on the IN BMV website or IN gov website. I want to see what the law is in writing, whey do they make it so hard?
Anyways, in some states you CANNOT drive without a plate legally registered to that car. In MA for example they will impound the car and arrest you for that. Since Indiana's BMV website sucks, I'm lost...
Quote:
Originally Posted by Scottay
Advice: Check with your local DMV to see whether or not the seller has to sign the title in the presence of a notary and/or have the title notarized....
Please, I'm only asking for details on how to strictly purchase a private party car: licensing, registration, driving without finalized plates, etc...
I can't find anything on the IN BMV website or IN gov website. I want to see what the law is in writing, whey do they make it so hard?
You're looking for specific answers that only someone who's intimate with IN laws can answer. While there MAY be someone on here that can help, I wouldn't rely on the information to be accurate.
So, your best solution is to use your phone. Call the BMV ~ I've never encountered one who didn't have a phone, nor one who wouldn't answer my questions about these things. One even emailed me the documents stating that no plate was required for 30 days from the signed title and BoS so I could present it to any LEO that investigated.
And you're right, the IN BMV page is woefully unhelpful. Looks like they DO sell a temporary tag (one for 96 hours and one for 30 days). Usually if a temp tag is available, it's very illegal to drive a vehicle without a tag displayed.
The only "gotcha" I've encountered is that some states only require one party to sign for a title if 2 are listed (husband/wife), others require both. Just be safe, if there are 2 names on the title, make sure both sign the title. It REALLY sucks to have to track the seller back down again, more with they live in another state, and get that 2nd signature.
As for insurance, again, use your phone. It'll only take a few minutes to find out. Most of my experiences point to needing to have the VIN on file with the insurance company, if not a full policy up and running.
As for paying the dealer, it's all just time. You either put in the time at work to earn the money to pay a dealer to pay someone a wage to do the simple work, or you skip the middle man and just spend your own time. Last time I compared buying a vehicle via the dealer and through private channels, there was easily a 10% difference.... for $2,000 on a $20k car, I'll take the ~hour it takes to do the paperwork and save the difference.
Call your insurance company and add the car to your insurance..easy to do// Then you can take the tag from your old car and put it on the new car "pending transfer of tag" You wont have any problems with the cops as long as you get the transfer of the old tag or a new one in place within the time allowed... very easy
Phone your insurance agent and ask what you should do. They will probably tell you that your existing insurance is valid on a replacement or additional vehicle for a certain grace period.
As far as I know, the DMV in every state will issue a 30-day plate for a car you intend to register in another state. You need to show proof of insurance (usually on any vehicle registered in your name) and the signed-over title to your new car. It takes about a minute and cost maybe 5 bucks, I've done that in Wisconsin and Missouri. I also bought a car in Indiana, and if memory serves, I just drove it without plates to Michigan. I bought a car in Michigan with no plates, and I was stopped by the cops within a mile of where I bought it. I showed him the title and my insurance, he said I was legal and have a nice day. I bought a car in Texas with plates (which stay with the car), and the plates/registration were considered legal until their expiration date, regardless of whether it changed owner, and were even honored by a Michigan cop.
On the car you are selling, your only responsibility is to sign in the Seller's space on the back of the title. But I highy recommend getting a signed dated bill of sale from the buyer, bearing his DL number and/or SSN. Otherwise, if he abandons the car or commits a crime in it or hits-and-runs before he retitles it himself (which might be years), you need to prove that you legally absolved yourself of any responsibility for the vehicle.
been buying and selling cars on craigslist for years. Very happy.
not sure, what you freaking out about.
Guy sells you car, as in - signs title and hands it to you. He has to mark sale price on it. Usually, I downmark it, if I like buyer, to somewhere shy of KBB, so that they do not question it, to lower their tax.
Then you take title and go to license place. Give it to the nice girl in window, staying charming, of course, she takes your money, which is registration fees and sale tax, and issues you registration in your name. Title shows up in mail about a month down the road.
I have, on average, spent about an hour total time doing this with every car we bought. Is it worth many thousands over paid to dealer to you or not?
If you know seller will keep license plates, which I do, as mine are custom, I tell them upfront, they pay $10 or $15 or so for 3 day driving permit, and stick it onto the rear window.
DONE.
...I have, on average, spent about an hour total time doing this with every car we bought. ...
Funny, if I followed your advice I would get stuck and it would take me more than 8 hours...
Quote:
Originally Posted by ukrkoz
Is it worth many thousands over paid to dealer to you or not?...
exageration
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