What to Do After Buying a Used Car: 7 Essential Steps to Know
Picture this: you finally purchased your first used car after taking it for a test drive and satisfying your needs. However, you can’t simply drive off and claim it’s yours. As its new legal owner, you must take several steps and ensure it is in pristine condition.
Do you know what to do after buying a used car? We’ve listed seven things you must do after completing your purchase. Continue reading to find out.
What To Do After You Buy a Used Car?
Here are a few simple steps you need to follow once you buy a used car:
Transfer the title.
A car title transfer will typically involve the seller and the buyer. During a private transaction between the two parties, the buyer must ensure no liens against the car title and that everyone on the document has signed everything to the buyer. Get proof indicating any loans have been paid.
We recommend knowing the requirements before finalizing a deal. For instance, the process may require you to complete an odometer reading and provide your contact information. Some states might also require the notarization of the seller’s signature. You can find this information for the title release on the document or contact the DMV for state-specific prerequisites.
Buying from a dealer makes the turnover and title transfer easier. The merchant would typically be the one to handle the transfer instead of the buyer.
Obtain car insurance.
Before you leave the dealership, getting your newly purchased vehicle insured is always a good idea. It is one of the most important things to do after buying a used car. You’ll want to have your expenses covered when you get in an accident and wreck your ride.
Don’t wait a few days to get a quote for your car model. Choose an insurance plan early on to know how much it will cost and how it will affect your overall budget for maintenance, repairs, and other auto expenses.
Know your state’s minimum car insurance requirements. Getting one is a great investment as it protects you from financial liability in case of an accident. Moreover, it safeguards your pre-owned car’s value, shielding you and those you have loaned from.
Register your vehicle.
Another thing to do after buying a used car is to get it registered. If your dealership didn’t already do it for you, you’d have to visit the Department of Motor Vehicles to start the process.
You’ll need to prepare various requirements in registering the pre-owned car in your name. These vary from each state, but they will most likely include the following:
- Bill of sale showing the purchase price
- Car title in your name
- Vehicle identification number
- Insurance policy document
- Driver’s license or any government-issued ID
- Proof of address in the state
- Lien information (from your car loan, if applicable)
- Lien release information (from the seller’s car loan, if applicable)
- Passed inspection and emissions document
After successfully registering your vehicle, you will be given a license plate and a sticker with an expiry date to remind you when to renew your car registration. Always keep the registration paper on your ride to avoid complications on the road.
Check for existing recalls.
The National Highway Traffic Safety Association can issue vehicle recalls, which usually involve quality control issues with performance and safety. Some manufacturers can also issue recalls for faulty builds, quality issues, and the like.
Recalls are classified into two categories: safety and non-safety related. Safety recalls impose a safety risk, such as problems with the gas or brake pedals, steering components, airbags, and wiring. Meanwhile, non-safety recalls cover cosmetic issues, such as poor paint quality, rust, and improper wear on various components. It also tackles defective audio systems, air conditioning, and heating.
Pay sales tax due.
After purchasing a used vehicle, you’ll need to pay the sales tax that comes with it. New York collects a 4% sales tax upon purchasing a ride, whether brand-new or pre-owned.
The statewide tax does not include any county or city taxes. The fee can be as high as 4.75% in some areas, which means you could potentially pay up to 8.75% sales tax for your vehicle. Some districts like Saratoga, Warren, and Washington County have lower sales tax with a combined rate of 7%.
To get an idea on how much you’ll need to pay, you can visit the New York State Department of Taxation and Finance website. Use the tool provided to input your zip code and address. It will give you the total state and local taxes you may be subject to pay. Afterward, multiply the value of your vehicle with the rate provided for your address.
If the dealership or private seller from which you bought the vehicle didn’t pay the sales tax, you could contact your local county tax office or the DMV to know your sales tax obligations. They will also inform you of the deadline to avoid unwarranted late charges.
Schedule necessary repairs.
Have an expert inspect your vehicle to get a full picture of its condition. Doing so allows you to know if repairs or replacements must be done. Some cars will require more frequent repairs for specific components, such as spark plugs, rotors, and other auto parts.
Have your mechanic inspect your car thoroughly and go over which parts you’ll need to keep an eye on for repairs and maintenance. You need to address these concerns to have your ride feeling and driving like new.
Read the owner’s manual.
Like any new appliance or device, it’s always essential to go over its user’s or owner’s manual and know it inside and out. Doing so will help you understand its various features, from its various dashboard lights to navigating its infotainment system to the fullest.
The last thing you want to happen is to have your radio in full blast while driving or have a malfunction while you’re on the road. Knowing how your car functions other than taking care of its engine goes a long way in terms of comfort and safety.
Claim Ownership of Your Used Car Purchase Today
Searching for a pre-owned vehicle and purchasing one can be a daunting task as it also involves legally owning the car on top of buying it. After buying a used car, there are several things to do, from transferring titles to paying sales tax.
Completing the whole process can be time-consuming, but once everything is done, you can get down to the fun stuff, like personalizing your vehicle to reflect your personality and make it your own.
Find everything you need to know about used and pre-owned cars by visiting the VIP Automotive Group blog today.