What To Do After Buying a Used Car: A Simple Guide

When you buy a used car, whether from a private seller or dealership, there are important steps to ensure a smooth ownership experience. Here’s a checklist covering key actions like transferring the title, registering the car, obtaining insurance, paying necessary taxes, and scheduling an inspection to keep your car in top shape.

Steps After Buying from a Private Seller

After purchasing from a private seller, be sure to:

Transfer the Title: Complete the title transfer with the seller, including odometer reading and sales price, for DMV processing.
Get Insurance: Contact your insurance provider to add the vehicle to your policy.
Pay Taxes and Fees: Pay any applicable sales tax, title, and registration fees based on your location.
Inspect the Vehicle: Have a trusted mechanic inspect the car for maintenance issues and check for recalls.

Steps After Buying from a Dealership

When you buy from a dealership, they typically handle title and registration, but you should still:

Show Proof of Insurance: Provide proof of insurance before driving off the lot.
Check the Title Transfer: Expect to receive the permanent title in the mail if you financed the vehicle.
Inspect the Vehicle: An inspection provides extra peace of mind, and you may also consider an extended warranty.

California-Specific Requirements

If you’re in California, remember:

Transfer Ownership Quickly: You have 10 days to transfer ownership, and sellers have five days to report it.
Complete a SMOG Check: A SMOG inspection may be required, especially if your car has an illuminated check engine light.

Frequently Asked Questions

What should I do first after buying a used car?

After purchasing a used car from a dealership or private seller, the first steps are to transfer the title, get insurance, register the vehicle, and pay any applicable taxes and fees at the DMV. It’s also a good idea to have the car inspected by a trusted mechanic. Check your state’s emissions requirements, as an emissions test may be needed for registration. If financing, you can often include taxes and fees in your monthly payment or pay them upfront to reduce loan costs.

How long do I have to get insurance after buying a used car?

The insurance grace period after buying a used car varies by state and insurance provider. If you already have an auto insurance policy, the period may range from a week to 30 days to add your new car. It’s best to confirm with your carrier and ideally add the vehicle at the time of purchase. If this is your first car, you’ll need to set up insurance before driving off the lot, as driving without insurance is illegal.

When do I need to install license plates after buying a used car?

If you buy a used car from a dealership, it generally comes with temporary plates or registration, and permanent plates should arrive in 4-6 weeks. You’ll need to install the new plates as soon as they arrive, along with any registration tags. When buying from a private seller, the car may already have plates if it’s registered and in use.

How long do I have to register a used car after purchase?

After buying a used car, you typically have 10 days to register it with the DMV. Dealerships often handle the registration process, including tax, title, and license (TTL) fees, which you can pay upfront or add to your loan. For private sales, both you and the seller must complete and sign the title transfer form and submit it to the DMV to complete registration.

What to do after buying a used car