I'm looking at buying a used truck for hauling duties, but I'm not very well versed in the world of buying used vehicles from the prior owners. My past two cars have been bought through a dealership so I was hoping someone could quickly walk me through the process of buying through a prior owner. I'd be paying cash, so basically I just need to know about title transfer and anything else that needs to be done.
Write up a bill of sale. Make sure you get the title. Take truck to mechanic (if you don't feel educated enough) to inspect the car. EDIT: setup the mechanic thing ahead of time so they know you are coming and the sell knows where the car is going.
In state or out of state? Title in hand? Title transactions are state dependent. MN only requires a signature from the seller (all persons named on the title) and the buyer (all persons to be named on title). Some states require a notary. If money is owed on the car, a lien release is required from the bank. MN title transfer fees can be found on the dvs website, but you'll be paying tax (based on purchase amount) and a filing fee. If from out of state, you'll also be paying for a MN plate and registration. Also, if from out of state, check with that state's dmv/dvs/sos/etc... In many states the plates stay with the person, not the car. So you may need to obtain a temporary plate if you plan to transport the vehicle. A bill of sales might not hold up in the event of a dispute. You could go and get a bill of sales notarized. That might help. They aren't required, but might be helpful in the event of a dispute. Contact your insurance beforehand as well. I've heard of more than a few stories about accidents driving to the dmv after a purchase. How much would that suck?
In state and I have the question out to the seller about title being in hand or not. Is the Bill of Sale filled out at the DMV while the title is being transferred over?
Don't lie about the selling price to save a bit on sales tax. It's not worth the potential trouble it can cause you. I still don't understand the reasoning on how a motor vehicle gets taxed every freaking time it is sold. Makes no sense to me other than a blatant money-grab by the state. I believe the seller can sign the appropriate part of the title and send you on your way assuming you will do the proper thing and get the title transferred. I don't think you both have to go to the DMV together, but that is the only way I would do it if I were the seller. You can't trust anyone to follow through on anything.
+1 to what pillboy said... on everything. Re bill of sales it really (potentially) protects the seller in case the buyer doesn't transfer the title. Completely unnecessary if you go to the dmv together. Its essentially a made up receipt that may or may not stand up in court. Again, not required but not a bad idea either.
Alright, I think I've got a good handle on this now...thanks guys. I'd prefer to go to the DMV with the seller to make sure everything is good. Unfortunately, I don't trust most people to get things done right.
