Buying a car is as much of a hassle as it is an overwhelming sense of joy. There’s just so much paperwork, documentation, and legal wrangling that you need to do, and a lot of it has to do with the DMV. So, if you’re wondering about whether or not you have to go to the DMV after buying a used car, the short answer is ‘Yes’. However, what exactly are you supposed to do at the DMV once you bought a used car?
There are a bunch of things that need to be done once you’ve bought a used car, including doing a title transfer, registering the vehicle, updating the license plate, paying any sales tax or fees, and much more. Ultimately, you need to go to the DMV after buying a used car to legally have it transferred to your name, and make it know the change in ownership. So, here’s what you need to know about whether or not you have to go to the DMV after buying a used car.
It’s worth bearing in mind, just in case any of you think it’s not necessary to go to the DMV, if you don’t officially and legally record the change in ownership of a used car, you might face a bevy of legal problems. Some of the consequences of not properly transferring the ownership of a used car include (but are not strictly limited to):
Why Do You Need To Go To The DMV?
- Disputes over the ownership of the vehicle
- Difficulty in selling or insuring the car
- Fines for failing to meet titling and registration requirements
- Late fees for unpaid taxes and other fees
- Suspended vehicle registration
- Not being able to legally drive the vehicle on public roads
- Risk of getting the vehicle impounded
- Liability for the previous owner’s actions
- Potential criminal charges in cases of fraud or theft
- Negative impact on your credit score and financial standing
- Issues when you come across accidents or traffic violations
So, with all that in mind, I hope I’ve stressed just how important it is to visit the DMV after you buy a used car, to ensure that the transfer of ownership is processed and verified correctly. Plus, the DMV will help you each step of the way to guarantee that it’s done right, such as the vehicle’s title, registration, and insurance, and the DMV could also help you spot discrepancies. Just remember that each state has its own set of regulations and requirements to follow.
Overall, the legal processes are somewhat similar across state lines, though some specifics, such as how much the fees are or the specific forms that you need to fill out, will vary from one state to another. If you’re not sure about what your specific state’s DMV needs from you, the best and easiest thing you can do is just call up your local DMV office and ask them. Otherwise, here are the basics of what you’ll be doing at the DMV to finalize the ownership transfer over the car.
1) Title Transfer
The title (aka a ‘certificate of title’) is a legal document that functions as proof of ownership over a car. Therefore, after you buy a used car, the title has to be transferred from the old owner to you, which legally confirms that you are now the owner of said car. In other words, if the title wasn’t transferred properly, that car is still legally owned by the previous owner.
The process for transferring the title is usually done between the buyer and the seller. In short, the seller has to sign over the title to you (the buyer), and this signed document has to be sent to the DMV. However, some states might require more than just the title, and they will ask you for extra forms or notarization. So, make sure you check specific state requirements for how to transfer the title the right way.
2) Vehicle Registration
While the title is proof of ownership over a car, the registration legally certifies that the car in question could be allowed to legally drive on public roads. This is the DMV’s way of linking a car with its owner, keeping a record of it on their books. Furthermore, a car’s registration makes it known that the car meets all state requirements, from emissions standards to insurance.
If you bought a used vehicle with an expired (or near enough expired) registration, you’ll have to renew it. This usually involves going to the DMV and submitting proof of insurance, as well as completing a smog or emissions test, and paying the vehicle registration fees. This process will vary from state to state, so be sure to check your state’s DMV for what you need to do.
3) License Plate Updates
Aside from the title and registration, another thing you might have to do is transfer or replace the license plate. This happens during the registration process, and it’s only applicable in some states, where you have to transfer the existing plates to your name. Or, you might have to get new ones, instead. Remember that in certain states, the license plate is tied to the car, not the owner.
Additionally, if you’re crossing state lines – like buying a used car from a different state – you’ll have to apply for new state-specific plates at your state’s DMV. There are more extra steps to out-of-state transfers too, such as moving that used car from one state to another. Mostly, it involves surrendering the old plates and registering the vehicle in its new, home state. Other than that, you might have to go through additional inspections and tests on the car.
TL;DR, here are just some of the documents that you’ll need to bring to the DMV when you buy a used car:
- A signed title, as proof of the ownership transfer from the seller to the buyer
- Bill of sale, which details the sale of the car (i.e. purchase price, date, and signatures)
- Proof of insurance, detailing the current insurance coverage for the car
- Smog or emissions certification, proving that the car has passed smog testing
- A valid form of identification, such as your driver’s license or government-issued ID
- State-specific forms, where different state DMVs might require different forms to be filled out
4) Sales Tax And Fees
When you’re buying a used car, most states levy some sort of sales tax on the purchase price, or in some cases, it’s based on the car’s fair market value. Most DMVs that I’ve known collect this sales tax during either the title transfer or the vehicle registration stage. So, make sure to have some extra cash on you! The exact amount of sales tax also varies between states – and sometimes, it varies between counties, too – so make sure you’re aware of this beforehand.
Depending on the state, your local DMV might charge other fees on top of that when you’re buying a used car. The most common ones that you’ll be dealing with are title transfer fees, registration fees, documentation fees, and other outstanding fees that the previous owner might’ve stacked up. These can add up, so it’s a good idea to take this into account when you’re buying the used car, in the first place.
5) Smog/Emissions And Safety Inspections
Besides all that, other legal obstacles that you’ll have to deal with include state-specific safety or emissions inspections. Smog inspections are self-explanatory, ensuring that your car meets environmental standards, and helping to reduce air pollution. Meanwhile, safety inspections make sure that the used car you just bought can be safely operated on public roads, not causing a hazard to you or other motorists.
Also, not all states require smog and safety inspections, and even in those states that do, their standards might vary a lot, as well. For example, some states only require emissions testing on cars that pass a certain age. Normally, the seller (previous owner) needs to do all that testing, but on the off-chance that they didn’t or forgot about it, you’ll have to do it instead. Once this is done, the DMV will require proof that these inspections have been completed.