Buying a Car: Legal Paperwork and Registration Process

The legal paperwork and registration process for buying a car can vary slightly depending on your location, but there are some general steps that are followed in most places.

General Overview of the Process

1. Bill of Sale
   • This document states the purchase price of the car, the names and addresses of the buyer and seller, and the date of sale.
   • Both the buyer and seller should sign the bill of sale.
   • View an example of a Bill of Sale
2. Vehicle Title
   • This legal document proves ownership of the car.
   • The seller must sign the title over to the buyer.
   • In some states, the buyer will need to take the title to the Department of Motor Vehicles (DMV) to register the car.
   • View an example of a Vehicle Title
3. Proof of Insurance
   • You will need to show proof of insurance before you can register the car.
   • Most states require you to have at least liability and collision insurance.
   • View an example of Proof of Insurance
4. Registration
   • You will need to register the car with the DMV in your state.
   • This typically involves paying a registration fee and providing proof of insurance and ownership.
   • Find your local DMV
5. License Plates
   • You will need to get new license plates from the DMV or a licensed dealer.
   • Some states allow you to transfer your old plates to your new car.

Additional Documents

In some cases, you may also need to provide additional documents, such as a vehicle history report or an emissions inspection certificate.

Tips for Buying a Car

• Do your research before you buy.
• Get pre-approved for a car loan.
• Have the car inspected by a mechanic before you buy it.
• Be prepared to negotiate.