What to Do After You Buy a Used Car from a Private Seller?

We’ll guide you through everything you need to do.

Step 1: Get Emissions Testing

Some states require emissions testing or smog checks in order for you to register a car, while others don’t. Of the states that do require testing, many have an exemption for classic vehicles. Consult your local DMV for your state’s requirements.

Step 2: Finalize with the DMV

After you’ve paid for all the fees, it’s time to complete the final steps with your state’s Department of Motor Vehicles (DMV) or equivalent agency. You’ll register the car in your name, finalize the title transfer, pay vehicle sales tax, and get new license plates.

Pay Sales Tax

Vehicle sales taxes are part of purchasing a used car—unless you live in a state that doesn’t charge sales tax. Even then, you may still owe local taxes, excise taxes, or other taxes that function similarly. For example, at first glance, Delaware appears to be a tax haven for car buyers, as the state does not have a general sales tax. As a result, many people think that private vehicle purchases there are tax-free. But there’s a catch—Delaware charges a “motor vehicle documentation fee” on car purchases, which serves essentially the same purpose as a sales tax. Here’s how sales tax is handled at most state’s DMV post-purchase: 1. Gather required documents: bring your bill of sale, proof of insurance, title, and any other necessary documents. 2. Calculate sales tax: the DMV will calculate the sales tax based on the purchase price of the vehicle. 3. Pay the sales tax fee. 4. Get a payment confirmation: get a receipt or confirmation of payment for the sales tax fee. This proof of payment is required to complete the title transfer.

Transfer the Title

After the previous owner has signed over the title to you and you have signed a release of liability form, you need to finalize the title transfer with your state. Here are some of the most commonly required documents that a state’s DMV will require:

A completed vehicle title transfer form
Proof of auto insurance
Proof of identity (driver’s license or government-issued ID card)
Bill of sale—done through the PrivateAuto mobile app with e-signatures
The original title (or a duplicate title, if the original one was lost)
An odometer disclosure statement—required by some states
A highway safety inspection—required by some states
Proof of payment for your state’s car sales tax (if applicable)

If you want to learn more about vehicle titles, check out our detailed car title guide.

Register the Car

In most states, you register a used vehicle and transfer the title at the same time. This legally establishes you as the owner. Passenger vehicle registration fees cover the costs of updating a car’s ownership in your state’s DMV records. Fees vary by state; some states charge flat rates, while others calculate the cost based on factors like age and value. In some states, the registration fee includes the cost of your license plates. But in most places, you’ll pay an additional fee for your plates. Be sure to research the requirements and registration costs for your state, as they can impact your total fees. Proper registration is mandatory for legally driving your used car purchase. Paperwork requirements will vary from state to state, but you should expect to bring the following documents: 1. Valid driver’s license 2. Proof of auto insurance 3. A bill of sale 4. Completed certificate of title 5. Emissions test certificates 6. A completed registration form 7. Payment for the registration fee In most states, you will have 30 days to register the car. While you are registering your vehicle, you will also apply for new license plates.

Get New License Plates

Unless you are registering a vehicle in California or Minnesota, you will have to get new plates. In most states, during the registration process, you will be able to select the type of license plates you want and pay the associated fees. License plate fees help cover the production costs of your physical plates. Rates depend on factors like the vehicle’s weight class and value. Personalized or specialty plates also cost more in most states. Beyond the standard plate fee, you will pay extra fees if you get any of the following:

Personalized plates with custom letters/numbers
Specialty plates showcasing causes like parks or universities
Premium plates made of materials like stainless steel

Your total plate fees will vary not only based on your state and vehicle details, but also on your selected plate style. Standard plate fees range anywhere from $10 to $50, depending on the state. Personalized or decorative plates can cost up to $200 on top of the standard license plate fee. Be sure to account for license plate fees when buying a used car. You’ll owe these mandatory DMV charges in almost every state. You will get your license plates in mail within 30 days of filing your documentation. In the meantime, you will receive temporary tags on the spot, allowing you to legally drive the car.

Step 3: Follow up with your Insurance Company

Contact your insurance company to update your insurance policy. Discuss with your agent whether your current policy is appropriate for your new vehicle. You should consider adjusting your coverage levels, and deductibles, or adding options like comprehensive coverage or roadside assistance if you don’t already have them.

Step 4: Update Personal Records

Update any personal records and accounts that may be linked to your vehicle information. This ensures that all your vehicle-related matters are current and accurate.

1. Parking permits: if you have residential or workplace parking permits, update them with your new vehicle’s information to avoid potential tickets or towing.
2. Toll tags and transponders: if you use electronic toll collection systems such as E-ZPass, FasTrak, or SunPass, update your account with the new vehicle’s make, model, and license plate number.
3. AAA or roadside assistance: if you’re a member of an auto club or have roadside assistance, update your account with the new vehicle details to ensure seamless service if needed.
4. Work records: if you use your personal vehicle for work or receive any vehicle-related benefits from your employer, inform your HR department of the change.
5. Online accounts: update any online accounts where you’ve previously stored vehicle information (e.g., auto parts retailers, car wash subscriptions, etc.).
6. Emergency contacts: if you keep an emergency information card in your vehicle, create a new one with your current vehicle details.

Buying a Car From a Private Seller FAQ

How many days do you have to insure a used car after purchase in California?

After purchasing a used car in California, you have 10 to 30 days to insure the vehicle.

How long do you have to register a car after purchase in California?

In California, you have 10 days to register a newly purchased vehicle with the Department of Motor Vehicles (DMV) if bought from a private party.

When I buy a car from a private seller, can I drive it home in Florida?

You can drive a car home after buying it from a private seller in Florida if you get temporary insurance coverage.

Should I do a vehicle inspection before or after purchasing the car?

Before you say yes to the car, you should inspect it. Even better, arrange a professional pre-purchase inspection.

You can order a pre-purchase inspection in your PrivateAuto service hub and a Lemon Squad inspector will come to your location.

Here are some of the things your Lemon Squad inspector will examine. Or, if you’re attempting to perform your own inspection, here’s what to look at:

– Undercarriage: inspect the car for leaks, rust, and damage. Look at brake lines, exhaust, and suspension components.
– Tires: examine tire treads and make sure there is sufficient tread depth. Also look for any cracks, bulges, or other tire damage. Check the spare as well.
– Body: check for obvious damage, body panel alignment, uneven gaps, mismatched paint, and signs of damage repair. Look closely for any indications of collision repair. Check for rust underneath and around body panels. Check headlights, brake lights, and other lights.
– Fluids: check all fluid levels, including engine oil, transmission fluid, brake fluid, power steering fluid, and coolant. Look for leaks and make sure the fluids look clean and at proper levels.
– Interior: ensure all controls, electronics, air conditioning, and heating work properly. Look for any warning lights on the dash when the car is started. Check for water damage, stains, or tears inside.
– Test drive: drive the car under different conditions to test acceleration, braking, steering, and transmission, and to feel and listen for any mechanical issues.
– Maintenance records: review the vehicle history report and check maintenance logs to understand repair and ownership history.

How do I avoid buying a faulty car?

The best way to avoid buying a faulty car is to get a vehicle history report.

We have partnered with AutoCheck to provide vehicle history reports on premium listings. AutoCheck gets its data from the following sources:

– Salvage auctions.
– Collision repair shops.
– Service records from maintenance facilities.
– OEM manufacturers.
– Car dealerships and extended warranty companies.
– Auto auctions.
– State Departments of Motor Vehicles (DMVs).
– Insurance companies.
– Vehicle inspection and state inspection stations.
– Import and export companies.
– Rental and fleet companies.

Running an AutoCheck on a vehicle uncovers valuable insights into the car’s background.

– Regular maintenance (or lack thereof).
– Title history: salvage titles, junk titles, flood damage, hail damage, storm damage, fire damage, and more.
– Lien information, ownership transfers.
– Manufacturer buybacks or lemon titles.
– Collision repair history.
– Structural or frame damage.
– Service, repair, and maintenance performed.
– Total loss and reason for the loss.
– Stolen cars.
– Major repairs.
– Open recalls.
– City and state of previous registration, number of owners.
– Accidents and damage reports, stolen vehicles.
– Rental, taxi, lease, or government use.
– Emissions records.
– Odometer rollback.
– And lots more…

Can I pay for a car with a credit card?

Credit cards are a terrible way to pay for a private-party car. Credit card companies charge exorbitant interest rates, and even if you pay your balance off within 30 days, you’ll still have to pay a bunch of fees to Stripe or some other credit card processor. And then there’s the hassle.

Is paying with a check better than paying in cash?

Many buyers prefer a cashier’s check rather than paying for a car with physical cash, which is risky and cumbersome. A cashier’s check holds more credibility than a personal check. However, unless you’re in the issuing bank during business hours and they verify the funds, the seller—if they’re smart—won’t see it as foolproof. Criminals have forged cashier’s checks to con sellers.

To be absolutely sure your cashier’s check is valid, some sellers wait for it to clear their bank before releasing the title. This puts pressure on you to pay a large sum while trusting the seller to sign over the car later. It also means meeting twice, which is inconvenient.

PrivateAuto is safe, instantaneous, and guaranteed. With PrivateAuto Pay, funds instantly appear in the seller’s account. The entire transaction can be concluded when you meet for a test drive.

Which day of the week is best to buy a car?

When you find the perfect car for sale by owner at the right price, that day is the best day to buy a car. With PrivateAuto Pay, you can buy a private-party car any day, any time.

How can I stay safe when meeting up for the test drive?

Platforms force you to exchange contact info with a stranger to schedule the test drive. The best way to stay safe is to use PrivateAuto. If that is not an option, always meet in a public space such as a grocery store parking lot or in front of a bank.

Do I need a notary public when buying a car from a private seller?

Some states require a notary public to notarize a private-party car transaction. Check with your DMV (or equivalent agency for your state) to see if your state requires notarization.