Comprehensive Guide to Buying a Used Car in Minnesota
1. Determine Your Budget
Before you start looking for a used car, determine how much you can afford to spend. Consider all associated costs including insurance, registration, and maintenance.
2. Research and Choose a Car
Research different makes and models to find a car that fits your needs and budget. Check reviews and reliability ratings.
3. Find a Car
Look for cars online, at dealerships, and in classified ads. Make a list of potential cars to inspect.
4. Inspect the Car
Inspect the car thoroughly or hire a professional mechanic to do it. Check for signs of damage and test drive the car.
5. Check the Vehicle History
Obtain a vehicle history report to check for any accidents, title issues, or previous damage.
6. Negotiate the Price
Negotiate the price with the seller. Be prepared to walk away if the price is too high.
7. Complete the Sale
Once you agree on a price, complete the sale with the seller. Make sure all paperwork is in order.
8. Transfer the Title
Transfer the title to your name at a Minnesota Department of Public Safety office.
9. Register the Car
Register the car in your name and get new license plates.
10. Get Insurance
Purchase insurance for your new car.
Fees for Buying a Used Car in Minnesota
When buying a used car in Minnesota, you will encounter various fees. These include:
1. Sales Tax
6.5% of the purchase price.
2. Title Transfer Fee
$8.25.
3. Registration Fee
Varies based on vehicle type and weight.
4. License Plate Fee
$10 plus additional fees for specialty plates.
5. Insurance
Varies based on provider and coverage.
FAQ about Buying a Used Car in Minnesota
1. What kind of insurance does my used car need?
Your used car needs at least the minimum liability insurance required by Minnesota law. Comprehensive and collision coverage are optional but recommended.
2. How to protect yourself when buying a used car privately?
To protect yourself when buying a used car privately, always:
- Get a vehicle history report.
- Have the car inspected by a mechanic.
- Complete a bill of sale.
- Verify the seller’s identity.
3. Is buying a car privately with cash a good idea?
Buying a car privately with cash can be a good idea as it may save you money on interest and finance charges. However, be cautious and ensure all paperwork is in order.
4. What are temporary tags?
Temporary tags are temporary license plates that allow you to drive your car legally while waiting for your permanent plates. They are typically valid for 21 days.
