You’ve made your purchase after finding the ideal vehicle, negotiating a reasonable price, and paying a private person for the car! You now have the keys, but what will happen next? Buying vehicles from private sellers can save you money, but you should also take care of all documents associated with the vehicle after you purchased it.
If you do not complete the necessary actions to properly register your vehicle, you may not own a legally registered vehicle. Also, registering a vehicle will help to protect you if you drive that vehicle.
1. Get the Title and Bill of Sale
The first thing you want to focus on is getting the title and bill of sale for the vehicle. Make sure that the assignment of title is properly completed, as this is the most important factor in establishing that you are the legal owner of the vehicle and that the vehicle title has been signed.
This will allow you to register the car. Be sure to verify that the VIN on the title matches with the VIN located on the vehicle dashboard and door jamb. Additionally, when the time comes to list your car for sale, having a properly completed title and bill of sale will make the process much smoother and more credible for potential buyers.
You should consider generating a bill of sale, even though it may not be necessary in your state. On the bill of sale, you should have the date of sale, the price of the vehicle, the details (year, make, model) of the vehicle, and the names and signatures of both buyer and seller. This bill of sale serves as both proof of purchase and proof that the sale occurred.
2. Secure Car Insurance
Before driving your new vehicle, you must first secure car insurance. It is illegal in many states to operate a vehicle without having, at a minimum, the state of residence requirements for liability insurance coverage. To add your vehicle to your insurer’s existing policy or start a new one, you will need your auto insurance company’s contact information, make and model of the vehicle, and VIN. Driving without insurance can result in fines, a suspended driver’s license, and great monetary exposure in the event of an accident.
3. Complete the Title Transfer and Registration
Once you have completed the sale of your vehicle and acquired your bill of sale and proof of insurance, take all documents to your local DMV (or other applicable state agency) to transfer the title and register your vehicle in your name.
Complete the application for the title transfer to your name. In most cases, you will be required to pay a title transfer fee, sales tax on the purchase price, and registration fees. When all is completed, you will receive your new license plates and registration paperwork.
4. Clean Up and Complete the Smog Check/Safety Inspection
Most states will require your newly purchased vehicle to undergo a smog check or safety inspection prior to registering it. It is sometimes the seller’s responsibility to provide you with a current and valid smog certificate. If the seller does not provide the certificate, it is your responsibility to have the vehicle tested. If your vehicle fails the inspection, you will be required to have the repairs made before you can complete the registration process.
5. Preparing for the Future
Now that you’ve completed the legal processes to register your vehicle, it’s time to consider your future with this car. Will you be keeping it for a long time, or is this just a temporary solution until you explore used cars for sale by owner options to offload your old one? Knowing what to expect from the market will give you the information you need when you sell your car privately in the future.
Keeping accurate records of the service performed on your car will also give potential buyers proof of your responsible ownership when you sell it.
When it comes time to upgrade to a newer vehicle, if you have maintained an excellent ownership history, your selling process will be significantly smoother. As you think about the next chapter for your current vehicle or the next vehicle you will own, think about modern solutions. Karkiosk has a simple solution to all of your automotive needs.
