Comprehensive Guide to Buying a Used Car in Vermont
Buying a used car in Vermont is a straightforward process, but it’s important to follow all the necessary steps to ensure a smooth transaction. This guide outlines the steps you need to take, from research to title transfer, with helpful links for each step.
1. Research the Car’s History
Before purchasing a used car, it's essential to research the vehicle’s history. A Vehicle History Report (VHR) can tell you if the car has been in accidents, has a salvage title, or has any liens against it. Websites like Carfax and AutoCheck offer this service.
2. Get the Car Inspected
Even if a car looks good on the outside, it’s crucial to get it inspected by a certified mechanic. This will help you identify any hidden issues. The inspection will provide peace of mind and save you from expensive repairs down the road. You can find certified mechanics in Vermont through websites like AAA.
3. Negotiate a Fair Price
After confirming the car’s history and condition, you can negotiate the price. Websites like Kelley Blue Book and Edmunds can give you an estimate of the car's fair market value based on its make, model, year, and condition.
4. Check for Outstanding Recalls
Before purchasing a vehicle, it's good to check for any open recalls that need addressing. You can use the National Highway Traffic Safety Administration (NHTSA) website to check for recalls using the vehicle’s VIN.
5. Purchase Insurance
Vermont requires all vehicles to be insured before they can be driven legally. You will need to provide proof of insurance to register the car. Compare insurance quotes from providers like Geico or State Farm to find the best rates.
6. Complete the Sale
Once you and the seller agree on the price, you will need to complete the Bill of Sale. Both parties should keep a copy of this document for their records. The Bill of Sale should include the purchase price, VIN, odometer reading, and signatures from both parties.
Vermont Bill of Sale template.
7. Title Transfer
The seller must sign over the vehicle’s title to you. Ensure that the title is free of liens before the transfer. If you need to apply for a new title, you can do so at your local Vermont DMV office.
More information can be found here.
8. Register the Vehicle
After the title transfer, you must register the vehicle in your name. You can register it at the DMV by providing the title, proof of insurance, and a completed registration form.
Registration forms can be found here.
9. Pay the Sales Tax and Fees
In Vermont, you must pay sales tax on the vehicle’s purchase price when registering it. The current sales tax rate can be found on the DMV website.
10. Obtain New License Plates
When registering the vehicle, you’ll also receive new license plates. Be sure to bring the old plates to the DMV, if applicable.
More information about Vermont’s license plates can be found here.
By following these steps, you’ll ensure a smooth and legal used car buying process in Vermont. Be sure to check all documents carefully, and don’t hesitate to consult the Vermont DMV or other relevant authorities if you have any questions.
Fees for Buying a Used Car in Vermont
When buying a used car in Vermont, there are several fees you’ll need to account for. These fees vary based on factors such as the price of the vehicle, its weight, and how you plan to register the car. Below is a list of the common fees you can expect.
1. Sales Tax
In Vermont, the sales tax on the purchase of a vehicle is 6% of the purchase price. If you are transferring a vehicle as a gift or buying it from a family member, different tax rates may apply.
More information can be found here.
2. Title Fee
The title fee for most vehicles in Vermont is $35. This fee is required when transferring ownership of the car and registering it in your name. For vehicles that are exempt from titling (such as those more than 15 years old), this fee may not apply.
For more details, check here.
3. Registration Fee
The cost to register a vehicle in Vermont depends on the weight of the vehicle and the type of registration. As of the latest DMV schedule, the fee for a standard passenger vehicle is $76 for a one-year registration, or $140 for a two-year registration.
For a full breakdown of registration fees, see the Vermont DMV fee schedule.
4. Plate Fee
If you need to get new license plates, the fee is $6. For those transferring existing plates to the newly purchased vehicle, the transfer fee is $25.
License plate information is available here.
5. Title Transfer Fee (Private Sales)
If you're buying the vehicle through a private sale, you'll be responsible for paying a $35 title transfer fee when submitting the title to the Vermont DMV. The DMV must process the title transfer to reflect the new ownership.
6. Inspection Fee
Vermont requires an annual vehicle inspection, which is typically completed at a certified mechanic or auto repair shop. The cost of an inspection can vary but usually ranges from $35 to $50, depending on the facility.
For more information on vehicle inspections, check here.
Make sure to include all these fees in your budget when purchasing a used car in Vermont. For the most up-to-date fees, it’s always a good idea to visit the Vermont DMV website or contact your local DMV office.
FAQ About Buying a Used Car in Vermont
Buying a used car in Vermont involves several important decisions, especially if you're buying privately. Below are answers to frequently asked questions to help you through the process, with helpful links included for each topic.
1. What Kind of Insurance Does My Used Car Need?
In Vermont, all vehicles must be insured with liability coverage. This coverage protects you financially if you are responsible for an accident. The minimum liability coverage required in Vermont includes:
- $25,000 for bodily injury per person
- $50,000 for bodily injury per accident
- $10,000 for property damage
You may also want to consider comprehensive and collision coverage to protect your car from damage outside of accidents (theft, weather, etc.). To compare rates, you can visit providers like Geico or State Farm.
More details about Vermont's insurance requirements can be found on the DMV's website.
2. How to Protect Yourself When Buying a Used Car Privately?
When buying a car from a private seller, take the following precautions to protect yourself:
- Get a Vehicle History Report: Use services like Carfax to check the car’s history for accidents, title issues, or outstanding liens.
- Inspect the Car: Have a trusted mechanic inspect the car for any hidden problems.
- Meet in a Safe Location: Avoid meeting the seller in secluded places; instead, meet in a public area.
- Complete the Bill of Sale: Ensure that both parties sign a Bill of Sale. You can use Vermont’s template.
- Verify Title: Make sure the seller has a clear title with no liens. This can be verified at the Vermont DMV.
3. Is Buying a Car Privately With Cash a Good Idea?
Buying a car privately with cash can be a good idea if you have the funds available, but it comes with both pros and cons:
- Pros:
- No financing fees or interest.
- Sellers may offer a better deal for a quick cash transaction.
- Cons:
- You may not have as much leverage if there are future problems with the car.
- Carrying large amounts of cash can be risky. It's safer to use a certified check or wire transfer for larger sums.
If you decide to pay in cash, ensure the Bill of Sale reflects the amount and that you receive the title at the time of payment. Be cautious and always meet in a public, secure location.
4. What Are Temporary Tags?
Temporary tags, also known as temporary registration plates, allow you to drive your newly purchased vehicle while you complete the process of permanent registration. In Vermont, temporary tags are issued for a period of up to 60 days, giving you time to obtain permanent plates.
You will need to provide proof of ownership (such as the Bill of Sale and title), proof of insurance, and an application for registration.
More information about temporary tags in Vermont can be found here.
These FAQs should help you navigate the process of buying a used car in Vermont. Be sure to consult Vermont DMV resources and verify all details during your transaction. If you have further questions, contact the Vermont DMV.
