Comprehensive Guide to Buying a Used Car in Illinois
1. Determine Your Budget
Before you start shopping for a used car, determine your budget. Consider the total cost of ownership, including taxes, registration fees, insurance, and maintenance.
For more budgeting tips, visit the Illinois DMV Budgeting Guide.
2. Research and Find a Car
Research different makes and models to find a car that meets your needs and fits your budget. Use online resources like Kelley Blue Book and Edmunds to compare prices and read reviews.
3. Check the Vehicle History Report
Obtain a vehicle history report using the VIN number. This report provides information on the car’s past, including accidents, repairs, and title status. Services like Carfax and AutoCheck can provide these reports.
4. Inspect the Car and Take a Test Drive
Inspect the car thoroughly for any signs of damage or wear. Take the car for a test drive to assess its performance.
Use this Test Drive Checklist for guidance.
5. Negotiate the Price
Negotiate the price with the seller. Use the information from your research and the vehicle history report to justify your offer.
For tips on negotiation, visit the Illinois DMV Negotiation Guide.
6. Complete the Purchase Agreement
Once you agree on a price, complete the purchase agreement. Ensure all details are correct and both parties sign the document.
A sample purchase agreement can be found here.
7. Obtain a Bill of Sale
A Bill of Sale is required to document the transaction. This document should include the purchase price, date of sale, and signatures of both parties.
You can download the Bill of Sale form here.
8. Complete the Title Transfer
Both the buyer and the seller need to complete the relevant sections on the vehicle title. The buyer must then submit the title to the Illinois DMV to complete the transfer.
More information can be found here.
9. Register the Car
Register the car in your name at your local Illinois DMV office. You will need to provide the title, Bill of Sale, proof of insurance, and payment for registration fees.
Find your nearest DMV office here.
10. Pay the Required Fees
Be prepared to pay the necessary fees, including sales tax, registration fees, and title transfer fees.
For a detailed fee schedule, visit the Illinois DMV Fees Page.
All Fees for Buying a Used Car in Illinois
1. Sales Tax
Illinois charges a sales tax on the purchase of a used car. The current sales tax rate is 6.25%.
For more information, visit the Illinois State Tax Commission.
2. Title Transfer Fee
The fee to transfer the title of a used car in Illinois is $150.
More details can be found on the Illinois DMV Fees Page.
3. Registration Fee
Registration fees in Illinois vary based on the age and type of the vehicle. The fees are as follows:
- Passenger vehicles: $151
- Motorcycles: $41
- Trucks: Varies based on weight
Additional fees may apply for special plates. More information is available here.
4. License Plate Fee
A standard license plate fee is $151. Specialty plates may have additional costs.
Visit the Illinois DMV Specialty Plates Page.
5. Emission Test Fee
If you live in certain counties, an emission test is required. The fee for the test varies.
For more details, visit Illinois Emissions Testing.
6. Documentation Fee
Some dealerships may charge a documentation fee to cover the processing of paperwork. This fee varies by dealership and should be disclosed during the purchase process.
7. Inspection Fee
If the vehicle is being brought in from out of state, a VIN inspection may be required. The fee for this inspection is $20.
More information can be found here.
FAQ About Buying a Used Car in Illinois
What Kind of Insurance Does My Used Car Need?
In Illinois, you must have liability insurance for your used car. The minimum coverage limits are $25,000 for injury or death of one person, $50,000 for injury or death of two or more people, and $20,000 for property damage.
For more information, visit the Illinois DMV Insurance Requirements.
How to Protect Yourself When Buying a Used Car Privately
When buying a used car privately, take the following precautions:
- Get a vehicle history report
- Have the car inspected by a trusted mechanic
- Verify the seller's identity
- Complete a Bill of Sale and ensure the title is signed over to you.
For more tips, visit the Illinois Attorney General's Consumer Protection Page.
Is Buying a Car Privately with Cash a Good Idea?
Buying a car privately with cash can be a good idea if you take precautions to protect yourself. Ensure you get a receipt, complete a Bill of Sale, and verify the title transfer. It's also advisable to meet the seller in a safe location.
For more information, visit the Illinois DMV.
What Are Temporary Tags?
Temporary tags allow you to drive a vehicle legally while waiting for your permanent registration and plates. In Illinois, temporary tags are valid for 30 days. You can obtain them from the DMV or a licensed dealer.
For more details, visit the Illinois DMV Temporary Permits Page.
