Buying a Used Car From a Private Seller in New Jersey

Buying a Used Car From a Private Seller in New Jersey

When buying a used car from a private seller in New Jersey, the following info should keep you on track.

Quick links

What is the used car buying process in New Jersey?

How to complete a New Jersey title transfer?

What are New Jersey's fees for buying a used car?

Where to find used cars in New Jersey?

When shopping for used cars, it’s important that you stay safe and secure. Let’s talk about how to navigate the New Jersey vehicle-buying process.

By the way, PrivateAuto has private-party used vehicles for sale in NJ and also provides an end-to-end platform to get the transaction done, from immediate payment transfers to secure messaging.


Image highlighting Financing by PrivateAuto

The Process of Buying a Used Vehicle in New Jersey

In New Jersey, you will go through the following steps when buying a used car from a private seller.

  1. Find a seller who has the car you want
  2. Set a price you both can agree on
  3. Go for a test drive
  4. Deal with the paperwork
  5. Pay the seller
  6. Have the seller transfer the ownership of the used car title
  7. Register your newly-bought car in your name and pay fees and sales taxes
  8. Acquire new license plates

Let’s go over the process in more detail.

Choose a Car

You’re better off purchasing from a private party than from New Jersey dealerships. Dealerships have an incentive to buy as low as possible and sell as high as possible; it’s how they make money. You’re far more likely to get a better deal by going directly to the vehicle’s seller.

PrivateAuto has a wide selection of used vehicles for sale in Princeton, Atlantic City, Hoboken and elsewhere across the state of New Jersey. We offer security and many convenience features no other competitor has to offer.

We verify the identity of every seller, so you’ll always know who you’re negotiating with. You can go through the used vehicle listings and make offers within our app, and when the seller accepts your offer, you can go on and schedule the test drive. It all happens within the app and you never have to give out your personal info to strangers.

Take it For a Test Drive

When you find a car that will work for you, and settle on a purchase price, it’s time to take the car for a test drive.

Organize the Meetup

Other used vehicle marketplaces leave the meetup coordination up to you to deal with. Organizing a meetup requires exchanging personal info and having a lot of back-and-forth with the seller. With PrivateAuto, your personal info is kept private. Our handy in-app scheduler allows the two of you to arrange the perfect time and place.

Look at The Vehicle History Report

It’s always good to research the vehicle's history before committing to it. You can get a detailed history report through a service like CarFax. Or, you can get a car history report when you purchase it through PrivateAuto.

PrivateAuto now partners with AutoCheck to provide buyers with a motor vehicle information check and report. When PrivateAuto sellers go for a Premium listing, we include the vehicle history report for your inner piece.

Optional Mechanical Inspection

Before purchasing the used vehicle, you might want to perform a mechanical inspection on it.

This is at your discretion and is more advisable for vehicles that have high mileage. If you are experienced enough, you can perform the inspection at the time of the test drive. Or, you can make a deal with the seller and get it inspected by a professional mechanic.

PrivateAuto gives you all the tools and technology necessary to close the deal at the test drive meeting. If you’re opting for a professional vehicle inspection, you’ll be adding at least a couple extra days onto the closing process.

Take Care of The Paperwork

Paperwork is an essential part of the transaction process. Different states have different document requirements, but here are the most common documents involved in a used vehicle transaction:

  • Title
  • Odometer statement
  • Bill of sale

Certificate of Title

Both you and the seller will fill out the Certificate of Title. Required information includes the following:

  • Buyer's name and address
  • Date of sale
  • Mileage odometer reading
  • Sale price
  • A Vehicle Registration Application (BA-49 form)

Odometer Disclosure

When you purchase a used car that’s less than 10 years old, Federal law requires the seller to fill out the odometer disclosure on the back of the title.

If there’s no room on the title, fill out the Federal Odometer Disclosure Statement

You can verify the accuracy of the odometer readings the seller enters on the title by checking the odometer yourself. Keep in mind that there are severe penalties for sellers tampering with car odometers in order to provide inaccurate readings.

Our app includes an odometer reading entry, where both the buyer and the seller confirm mileage before taking the next step.

NJ Bill of Sale

In New Jersey, a bill of sale is not required if purchasing a vehicle from a private seller. Even though it’s not required, we recommend a bill of sale, because it provides legal proof of the transaction and purchase price.

PrivateAuto includes a New Jersey bill of sale as part of our standard in-app transaction process. At the appropriate stage in the transaction, both you and the seller will be prompted to e-sign the bill of sale within their mobile PrivateAuto app.

The whole transaction, the bill of sale included, can be completed in a few minutes when you meet for the test drive and approve the car. It’s very fast and convenient. You won't have to keep track of all your paperwork: you will always have the electronic bill of sale accessible in your PrivateAuto account to prove that the transaction was legitimate.

Check the Vehicle Information Number

When purchasing a used car, always check the vehicle identification number that the seller has written on the title. Carefully compare it to the actual VIN on the car. You want to avoid the problem of having the wrong VIN on the title when you go to register your newly-bought car with the State of New Jersey.

The PrivateAuto app has a VIN field where buyers and sellers individually confirm the vehicle identification number. This helps eliminate errors (or the rare case of outright seller fraud).

Emissions Certificate

New Jersey laws require the seller to provide the buyer with a passing emissions test that hasn't yet been used to register or renew a vehicle registration.

Exemptions:

  • Vehicles model year 2013
  • New vehicles for the newest five model years
  • Historic vehicles
  • Collector vehicles less than 25 years old
  • Electric vehicles
  • Diesel vehicles

If the car that you are buying does not meet any of these criteria, find a New Jersey MVC-authorized emissions check station and proceed with the test.

For locations of smog check stations visit the New Jersey MVC website.

For most cars, the fee for performing this test will be $50.

Send Payment to the Seller

It’s time for you to pay the seller for the vehicle. Until PrivateAuto arrived on the scene there haven’t been a lot of safe ways to send large amounts of money in a private vehicle transaction.

Welcome to PrivateAuto Pay

Our integrated banking gateway, PrivateAuto Pay, allows you to instantly send any amount of cash. The seller will get the payment in a matter of seconds, whether it's late at night or a national holiday. We charge no payment processing fee. It’s truly revolutionary.

So, if you don’t like the idea of carrying a briefcase full of money or waiting for a check to clear, you’ll love PrivateAuto Pay.

Vehicle Financing Available

Oh, and if you didn't want to pay out-of-pocket for your next vehicle, you can apply for a used car loan right within the PrivateAuto app. Once you get approved, your profile will show that you have verified funds, making you stand out from other buyers.

When closing the deal and sending payment, our lending partner will pay the seller in full. You'll make monthly car payments to the lender. It's that easy. Wondering how much your payments will be? Our vehicle loan calculator will tell you.

NJ Title Transfer

The key component of the entire transaction is transferring a New Jersey car title from seller to buyer. Once the seller signs the title and hands it to you, the vehicle is legally yours. There are still some steps remaining for you to take following the title transfer, but you now own the car.

To transfer New Jersey vehicle titles successfully, sellers must complete the Transfer of Title by Seller section on the front of the title certificate and include the name and address of the buyer, odometer information, the selling price, and the date sold.

What to Do When There is More Than One Vehicle Owner

If there is more than one seller listed on the title, both sellers will need to sign the document in order for the title transfer to be legitimate.

Should You Conduct Title Research?

Before going to meet up with the seller, it’s always good to do preliminary research on the vehicle title.

Any New Jersey attorney will recommend using the National Insurance Crime Bureau website to research the title of a potential used car purchase to protect yourself from fraud. It doesn't happen often, but sometimes sellers will attempt to mislead or outright deceive. For instance, they may try to pass off a salvage title as a clean title.

Good title research will help you check for:

  • The car having been declared a total loss in an insurance claim
  • Reports of the car having been stolen

Finalize with New Jersey MVC

When the seller is out of the picture and you own the vehicle, you need to finalize the process by visiting your local New Jersey Motor Vehicle Commission (MVC) location.

You’ll need to complete the following at your the MVC:

  1. Finalizing the transfer of title with the State of New Jersey.
  2. Registering the car in your name and getting new registration tags
  3. Paying taxes and fees
  4. Getting new license plates

Transfer the Title in New Jersey

After buying a used car in New Jersey from a private seller, you’ll need to complete an Application for Certificate of Title, attach it to the title, and submit it to the MVC along with the required documentation and payment.

When you purchase a car from a private party, you will be required to complete the title transfer within 10 business days. If you don't meet that deadline, you will have to pay a fee of $25.

In the state of New Jersey, transferring the car title and registering your vehicle will be done at the same time. When purchasing a used car, you will need to provide your local NJ motor vehicle commission office  with additional paperwork:

  • The vehicle title with your signature and driver's license number
  • Proof of a valid New Jersey car insurance policy
  • Payment for the car title transfer fee of $60
  • Sales tax unless the car is exempt

License Plates and Registration

States have different regulations for license plates in car sales. Some states allow the plates to remain with the vehicle and pass to the buyer. Unfortunately, New Jersey is not one of those states.  When you buy a used car in New Jersey from a private owner, New Jersey laws mandate that the seller must remove the license plate from the car.

New Jersey doesn't offer online registration, so you will have to visit your local NJ MVC office to complete the registration process and apply for new license plates.

Once you make an appointment with NJ MVC you will need:

  • Title
  • Driver’s license or another form of ID
  • New Jersey insurance card or company name & policy number
  • Completed Vehicle Registration Application Form
  • Lien holder information and financing statement if the vehicle is leased or financed

Payment fees for registration will differ depending on the type of car purchased, while license plates are included in the price of registration.


New Jersey Fees When Buying A Used Car

The car buying price never includes the used vehicle sales tax, registration, and title transfer fees, which the buyer will pay on top of the car itself.

Here are additional fees you'll pay beyond the purchase price when buying a used car in New Jersey:

  • Title fee: $60
  • New Jersey sales tax: 6.625% on the purchase price of the car
  • License and registration fees: $35 to $84

By the way, PrivateAuto charges no buyer fees. The buyer pays for the vehicle only and has no transaction-related costs on our platform.


Purchasing a Used Car in New Jersey with PrivateAuto

PrivateAuto makes buying a used car fast and hassle-free. No matter if you’re looking for Land Rovers, Jeep Grand Cherokees, Teslas, or Volkswagen Jettas, you’re sure to find a great deal on the ride of your dreams.

We are the only end-to-end car-buying platform that gives you everything you need to get the deal done, from making offers to sending payments.

Browse our used cars for sale in New Jersey.

The PrivateAuto purchasing process consists of a few simple steps:

Register and get verified on PrivateAuto

To make PrivateAuto a safe place for everyone, we require email, phone, and driver’s license verification, including facial recognition.


PrivateAuto Identity Verification

Look through the listings

It’s so easy to browse listings of used vehicles for sale on PrivateAuto. Filter by make, model, mileage, year, and other criteria to make your search simpler and faster.

Make offers on cars you like

Make offers on cars that catch your eye. It’s up to you whether to accept the seller’s asking price, or to offer a lower price. You can also decide whether to accept ID-verified sellers only.

Go for a test drive

As the buyer, you will want to test drive the car. No more back-and-forth texts. You never have to give out your phone number. Rather, use our handy scheduling feature to coordinate a time and place for a test drive. (Oh, and you’ll be able to finalize the transaction instantly at the test drive location, FYI.)

Fill out the paperwork

After you are satisfied with the car and the two of you have agreed on a purchase price, you can easily e-sign the Bill of Sale within our app, from your phone. With our shared documents feature, you can easily locate the paperwork needed after the sale.

Pay the seller on the spot

Before PrivateAuto, receiving funds was the most stressful part of the entire purchasing process, especially for any used vehicle purchases over $5,000. There just aren’t a lot of good ways to move large amounts of money quickly and conveniently.

Those days are over! Verify and send out the funds instantaneously with PrivateAuto Pay, our innovative banking integration. Guaranteed funds for transactions large and small.

Transfer the car title

When purchasing a used vehicle, you must fill out the necessary information on the title transfer document.

Selling your vehicle? Choose PrivateAuto to get the best price and transact efficiently and safely!


New Jersey Car Buying Frequently Asked Questions

What kind of insurance does my newly-bought used car need?

Used cars, just like new cars, are required to have liability auto insurance at a minimum. Every insurance company will have different rates, so shop around.

New Jersey requires you to carry evidence of your auto insurance in your car.

Liability insurance is mandatory in New Jersey. You can consider purchasing collision, comprehensive, and gap insurance, but these are not required.

What is a temporary tag?

Paper license plates, also known as temporary tags, are issued to car buyers as a temporary registration. They are also issued for demonstration cars in dealerships, vehicle transfers, or loaned cars. In NJ, temporary tags are usable for 30 days.

Is buying a car privately for cash a good idea?

Buying a car in New Jersey privately for cash can be a good idea, but only if you’re buying it from a trusted seller.

Choosing a private party will get you better deals than working with a car dealership.

PrivateAuto offers the immediacy of a cash payment without risk. Our PrivateAuto Pay feature is a full banking integration; when the buyer authorizes the funds to transfer through our app, money instantly moves from their PrivateAuto account into the seller’s—24/7.

Who pays for the title transfer fee in New Jersey?

When transferring a title in New Jersey, the buyer is responsible for paying the title transfer fee. The buyer will also pay registration fees, sales taxes, and license plate fees.

Can I drive a used car I just bought in New Jersey?

As long as you have a valid bill of sale, you can operate the used, newly-purchased vehicle for up to 36 hours before registering it.

How to protect yourself when buying a car privately?

To protect yourself when buying a car privately, we recommend the following practices:

  1. Never give out your contact information
  2. Deal with verified sellers only
  3. Have a bill of sale to legally validate the transaction
  4. Send the payment through PrivateAuto Pay

The best way to protect yourself when buying a car privately is by buying it on a secure platform that offers these features (such as PrivateAuto).

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