Comprehensive Guide to Buying a Used Car in Wisconsin
Buying a used car in Wisconsin requires completing a series of steps to ensure the transaction is legal, and the vehicle is properly registered. Below is a comprehensive guide to the used car buying process, including helpful links for each step.
1. Research the Vehicle
Before buying a used car, research the vehicle's history, condition, and price. You can check the vehicle’s history using a VIN lookup service to review its accident history, ownership records, and more.
Wisconsin Department of Transportation VIN Check
2. Inspect the Vehicle and Take a Test Drive
Always inspect the vehicle in person and take it for a test drive to assess its condition. Consider hiring a professional mechanic to inspect the car to ensure there are no hidden issues.
3. Negotiate the Price
Once you’re satisfied with the vehicle’s condition, negotiate the price with the seller. Ensure that both parties agree on the final amount and any terms of the sale, such as repairs or included warranties.
4. Obtain a Bill of Sale
A Bill of Sale is recommended for the purchase of a used vehicle. This document should include the vehicle’s details, the purchase price, and the names of the buyer and seller. While not required in Wisconsin, it can serve as proof of the transaction.
Wisconsin DMV Bill of Sale Template
5. Check the Title
Ensure the seller provides a valid Wisconsin Certificate of Title. Check that the title is clear of any liens and verify the odometer reading. The seller must sign the title over to you during the sale.
Wisconsin DMV Title Transfer Guide
6. Pay the Required Fees
When you buy a used car in Wisconsin, you’ll be responsible for paying sales tax, title fees, and registration fees. The Wisconsin Department of Transportation (WisDOT) provides a fee calculator to help you estimate these costs.
7. Apply for a New Title and Registration
After purchasing the vehicle, you must apply for a new title and registration in your name. This can be done at a Wisconsin DMV office or online through the DMV website. Be sure to bring the completed title, a lien release (if applicable), and payment for fees.
Wisconsin DMV Title and Registration Application
8. Get Vehicle Insurance
Before driving the vehicle, you must have it insured. Wisconsin requires liability insurance for all registered vehicles. Contact an insurance provider to set up coverage for your new car.
Wisconsin Insurance Requirements
9. Verify Emissions Test (if applicable)
Depending on the county where you live, your vehicle may be subject to emissions testing. Check whether an emissions test is required and make sure the vehicle passes before registration.
Wisconsin Vehicle Emissions Testing
10. Complete the Registration
Once you've completed the necessary paperwork and ensured the vehicle meets all legal requirements, complete the registration process. You'll receive your new license plates and registration documents in the mail.
Wisconsin DMV Registration Information
Additional Tips
- Keep copies of all documents for your records.
- Verify that all information on the title is correct before signing.
- Consider purchasing a warranty or service contract for added protection.
Fees for Buying a Used Car in Wisconsin
When buying a used car in Wisconsin, you'll need to account for several fees beyond the purchase price of the vehicle. These fees cover the title transfer, registration, sales tax, and other related costs. Below is a list of all the common fees you may encounter during the used car buying process in Wisconsin.
1. Sales Tax
Wisconsin charges a state sales tax of 5% on the purchase price of the vehicle. Depending on the county and municipality, you may also be required to pay additional local sales taxes.
Wisconsin Department of Revenue Sales Tax Information
2. Title Transfer Fee
When you purchase a used car, you must transfer the title into your name. The title transfer fee in Wisconsin is $164.50.
Wisconsin DMV Title Transfer Information
3. Registration Fee
You'll also need to register the vehicle with the Wisconsin DMV. The standard registration fee for most passenger vehicles is $85, but this fee may vary based on the type of vehicle and where you live.
Wisconsin DMV Registration Fees
4. Wheel Tax (if applicable)
Some municipalities in Wisconsin charge a local wheel tax, which is an additional fee imposed on vehicle registration. The amount varies by location, with some counties charging up to $50.
Wisconsin Wheel Tax Information
5. Temporary License Plate Fee (if needed)
If you need to drive the vehicle before completing the registration, you may apply for a temporary license plate. The fee for a temporary plate is $5.
Wisconsin DMV Temporary License Plate Information
6. Emissions Test Fee (if applicable)
Certain counties in Wisconsin require emissions testing before a vehicle can be registered. The cost of an emissions test is generally $15.
Wisconsin Vehicle Emissions Testing Information
Additional Tips
- Make sure to budget for these fees in addition to the purchase price of the vehicle.
- Check with your local DMV office for any additional or updated fees that may apply.
FAQ About Buying a Used Car in Wisconsin
Below are common questions and step-by-step answers for individuals buying a used car in Wisconsin. Each answer includes helpful links to guide you through the process.
1. What kind of insurance does my used car need?
In Wisconsin, all vehicles must have liability insurance to cover bodily injury and property damage in case of an accident. Here are the minimum requirements:
- $25,000 for bodily injury per person
- $50,000 for bodily injury per accident
- $10,000 for property damage per accident
You may also choose to purchase additional coverage like collision, comprehensive, and uninsured/underinsured motorist protection.
Wisconsin Insurance Requirements
2. How to protect yourself when buying a used car privately?
When buying a used car privately, follow these steps to protect yourself:
- Inspect the vehicle in person or hire a mechanic to do so.
- Get a Vehicle History Report using the car's VIN to check for accidents, previous owners, and title issues.
- Ask the seller for a written Bill of Sale with the agreed-upon price and vehicle details.
- Verify that the seller has a clear title (no liens).
Vehicle History Check and Title Information
3. Is buying a car privately with cash a good idea?
Buying a car privately with cash can be a good idea because you avoid financing fees and interest. However, it's essential to follow these tips:
- Meet the seller in a safe, public place like a bank or DMV.
- Get a written Bill of Sale and proof of the transaction (e.g., receipt).
- Verify the title is clear and ready for transfer before handing over the money.
Wisconsin Bill of Sale Information
4. What are temporary tags?
Temporary tags, also known as temporary license plates, allow you to drive the vehicle while you wait for permanent registration and plates. In Wisconsin, you can apply for a temporary tag for $5, which is valid for 90 days. This is useful if you need to drive the car immediately after purchase before the title transfer and registration are complete.
Wisconsin DMV Temporary License Plate Information
