So you’re ready to buy a car, right? Not looking for something brand-new, just a good solid pre-owned car with decent mileage and everything in working order, and hopefully at a great price!
In today’s internet-fueled market, it’s easier than ever to buy a car from a private seller. And naturally, you as a buyer will be determined to get yourself a good bargain. So, you do your homework, you research comparative prices, you bring in a mechanic to check out all the vital signs, and you negotiate a satisfactory deal. And you’re ready to sign!
But wait a minute – what about the paperwork side? Have you done your homework there? The fact is, there are all kinds of problems and pitfalls to consider before you sign off on a deal, and many consumers out there are simply unaware of the dangers until it’s way too late.
Common mistakes that car buyers make can wind up costing them a lot of money. Some are as simple as not getting a bill of sale. You may get a great bargain on a car, but if you don’t get a bill of sale that proves your purchase price, you will wind up paying higher taxes based on the full market value of the car.
Or you might neglect to fully inspect the title. Lots of people will go on Craig’s List and buy a car cheap, for the express purpose of re-selling it at a higher rate. And in their haste, they may forget to inspect the title, and purchase a car with an outdated title. Now if you in turn purchase the car from them without checking, you have a title problem that will cost you time and money to untangle. And your seller has already unloaded the car, it’s not his problem anymore.
There are so many ways to get stuck if you’re not paying attention. That’s why, before you buy that car, I recommend that you put seven basic points on your checklist, and follow through on all of them:
1. Make sure the title is not altered
By alterations I mean erasures, damage titles, scrawl marks, and white-outs. Anything that changes the title in the tiniest way will cause it to be void. Once I had a situation where someone put a piece of tape over the document number of the title, and when they removed the tape, a digit came off with it. That single missing digit voided the title.
2. Make sure the vehicle identification number (VIN) on the title matches the VIN on the car
It might sound obvious, but a lot of people forget to check. If the VIN doesn’t match, have the seller correct it before you buy the car. I bought a used car years ago before I started this business and didn’t check the VIN against the title, and it turns out that a mistake had been made on the title since the original dealer sale – one digit of the VIN was wrong. My registration was delayed until I provided DMV VIN verification.
3. Check for odometer discrepancy
Make sure that the miles on the title are less than the miles displayed on the odometer of the car. Conceivably the numbers on the title can be the same (if the car was parked in the driveway and never moved), but they can’t possibly be more. That would suggest that the odometer has been illegally rolled back.
4. Make sure you’re dealing directly with the vehicle title owner
Check the driver’s license to compare against the title. Why is this important? Say you lose the title, your dog eats it, or you wash it in the laundry, and you need the current owner to get a replacement. If you bought the car through a third party, that person might disappear with the money, and you’re stuck. Or there could be a suspension on the vehicle. If you didn’t buy directly from the owner, you have no recourse to remedy your situation.
5. Check the DMV website for liens on the vehicle
https://process.dmv.ny.gov/TitleStatus/
If the vehicle has unpaid liens, the bank can repossess it. Don’t go by the lien information on the title: liens can be listed on the title, but sometimes no longer exist. That’s the good news; conversely, and more likely, there are liens that are not listed but are still very active. If you do find a lien, you can ask the seller to provide you with a lien release. This can be obtained in one of two ways: with an MV-901 form completed and signed by the lienholder or the bank; or by a letter written on the lienholder’s official letterhead, that includes the vehicle information (year, make, VIN), which states that the lien has been satisfied, and signed by an authorized officer.
6. Make sure you have the latest issued title document
https://process.dmv.ny.gov/TitleStatus/
This information is also available on the DMV website. Sometimes an owner will misplace the title and order a duplicate. That duplicate is now the only valid title. The owner may later find the original title and sell you the car with that. But that title is no longer valid, and you’re stuck with it. Again, another headache for you.
7. Run the VIN through the National Insurance Crime Bureau
https://www.nicb.org/how-we-help/vincheck
Make sure the car is not stolen or hasn’t been in a flood (you could be buying a Sandy car!).
Once you’ve run through your title checklist and found everything satisfactory, you can proceed to pay for the vehicle and sign the title. Oh, one thing about the signature: this may sound crazy, but make sure you are using a good dependable pen that will not run out of ink while you’re signing. If the ink does run out, DO NOT retrace the signature. It will never come out right. I had a customer who signed over his old signature – the title was immediately void. Instead, simply start a new signature next to the other, without overlapping. Or, to play it safe, the better option is to leave the signature as is and ask the DMV representative if you need to re-sign.
If you are buying the car for a corporation, an officer from the company will need to sign his/her personal name, put his/her official title next to the signature, and then print the name of the company where it says, “Buyer’s name (print in full)”.
Bill of Sale
You must obtain a bill of sale. For titled vehicles I recommend form DTF-802, all you have to do is fill it out and have the seller sign Section 6. If you don’t obtain a DTF-802 completed by the seller, DMV will use the fair market value, which can be greater or less than the price you paid to determine the sales tax due.
A bill of sale is required when the vehicle is a non-titled vehicle. Vehicles with a transferable registration or a certificate of origin requires a bill of sale.
Non-title vehicles
What if there is no title? If the vehicle is a 1972 make or older, and you’re buying it from a New York owner, there will be no title available. You can still purchase the vehicle with a TRANSFERABLE registration and a bill of sale. You can obtain a DTF-802 form with section 6 completed, but a separate bill of sale is also required. Since there is no actual title, you can’t do a lien check on the DMV website, but you can do a lien check by contacting your County Clerk’s office.
These rules and tips apply to vehicles bought in New York State from a private seller. But be aware, there may be complicating factors if:
- You’re buying the vehicle from the estate of a deceased owner
- You’re buying the vehicle with an out-of-state title or out-of-state non-title
- You are buying the vehicle from an out of state dealer
- The vehicle is salvage
In such cases, you may want to consult a vehicle registration expert before proceeding.
Feel free to contact us at 85Quick DMV Services, and we’ll be happy to provide guidance, advice, and speedy solutions to registration problems. Licensed by the New York State DMV, we’ve been in business for almost 10 years now, and we’re well versed in all aspects of vehicle DMV services, including vehicle registration, title transactions, plate surrender, etc.
We deal with individuals, companies, and dealerships. If you have questions, we’ll have the answers.
The 85Quick office at 45 Cedar Swamp Road in Glen Cove, NY, is open 10am – 5pm, Monday thru Friday, 10am – 2pm on Saturday, and can be reached at (516) 857-8425 (516-85-QUICK). Also, we do home or office pick-ups and deliveries outside business hours. Our goal is to make things as convenient as possible for our customers.
So, to reiterate my seven basic points for the prospective car buyer:
- Make sure the title is not altered
- Make sure the VIN on the title matches the VIN on the car
- Check for odometer discrepancy
- Make sure you’re dealing directly with the vehicle title owner
- Check the DMV website for liens on the vehicle
- Make sure you have the latest issued title document
- Run the VIN through the National Insurance Crime Bureau
In most cases this should assure you a safe and painless trip through the registration process. Good luck, and happy buying!