What to Do After You Buy a Used Car from a Private Seller?

When buying a used car from a private seller, you’ll need to wrap up some administrative tasks after the purchase.

We’ll guide you through everything you need to do.

Some states require emissions testing or smog checks in order for you to register a car, while others don’t. Of the states that do require testing, many have an exemption for classic vehicles. Consult your local DMV for your state’s requirements.

After you’ve paid for all the fees, it's time to complete the final steps with your state's Department of Motor Vehicles (DMV) or equivalent agency.

You'll register the car in your name, finalize the title transfer, pay vehicle sales tax, and get new license plates.

Vehicle sales taxes are part of purchasing a used car—unless you live in a state that doesn’t charge sales tax. Even then, you may still owe local taxes, excise taxes, or other taxes that function similarly.

For example, at first glance, Delaware appears to be a tax haven for car buyers, as the state does not have a general sales tax. As a result, many people think that private vehicle purchases there are tax-free.

But there's a catch—Delaware charges a “motor vehicle documentation fee” on car purchases, which serves essentially the same purpose as a sales tax.

Here’s how sales tax is handled at most state’s DMV post-purchase:

1. Gather required documents: bring your bill of sale, proof of insurance, title, and any other necessary documents.
2. Calculate sales tax: the DMV will calculate the sales tax based on the purchase price of the vehicle.
3. Pay the sales tax fee.
4. Get a payment confirmation: get a receipt or confirmation of payment for the sales tax fee. This proof of payment is required to complete the title transfer.

After the previous owner has signed over the title to you and you have signed a release of liability form, you need to finalize the title transfer with your state.

Here are some of the most commonly required documents that a state's DMV will require:


If you want to learn more about vehicle titles, check out our detailed car title guide.

In most states, you register a used vehicle and transfer the title at the same time. This legally establishes you as the owner.

Passenger vehicle registration fees cover the costs of updating a car’s ownership in your state's DMV records. Fees vary by state; some states charge flat rates, while others calculate the cost based on factors like age and value.

In some states, the registration fee includes the cost of your license plates. But in most places, you'll pay an additional fee for your plates.

Be sure to research the requirements and registration costs for your state, as they can impact your total fees. Proper registration is mandatory for legally driving your used car purchase.

Paperwork requirements will vary from state to state, but you should expect to bring the following documents:

1. Valid driver's license
2. Proof of auto insurance
3. A bill of sale
4. Completed certificate of title
5. Emissions test certificates
6. A completed registration form
7. Payment for the registration fee

In most states, you will have 30 days to register the car.

While you are registering your vehicle, you will also apply for new license plates.

Unless you are registering a vehicle in California or Minnesota, you will have to get new plates. In most states, during the registration process, you will be able to select the type of license plates you want and pay the associated fees.

License plate fees help cover the production costs of your physical plates. Rates depend on factors like the vehicle's weight class and value. Personalized or specialty plates also cost more in most states.

Beyond the standard plate fee, you will pay extra fees if you get any of the following:


Your total plate fees will vary not only based on your state and vehicle details, but also on your selected plate style. Standard plate fees range anywhere from $10 to $50, depending on the state. Personalized or decorative plates can cost up to $200 on top of the standard license plate fee.

Be sure to account for license plate fees when buying a used car. You'll owe these mandatory DMV charges in almost every state.

You will get your license plates in mail within 30 days of filing your documentation. In the meantime, you will receive temporary tags on the spot, allowing you to legally drive the car.

Contact your insurance company to update your insurance policy. Discuss with your agent whether your current policy is appropriate for your new vehicle. You should consider adjusting your coverage levels, and deductibles, or adding options like comprehensive coverage or roadside assistance if you don't already have them.

Update any personal records and accounts that may be linked to your vehicle information. This ensures that all your vehicle-related matters are current and accurate.

1. Parking permits: if you have residential or workplace parking permits, update them with your new vehicle's information to avoid potential tickets or towing.
2. Toll tags and transponders: if you use electronic toll collection systems such as E-ZPass, FasTrak, or SunPass, update your account with the new vehicle's make, model, and license plate number.
3. AAA or roadside assistance: if you're a member of an auto club or have roadside assistance, update your account with the new vehicle details to ensure seamless service if needed.
4. Work records: if you use your personal vehicle for work or receive any vehicle-related benefits from your employer, inform your HR department of the change.
5. Online accounts: update any online accounts where you've previously stored vehicle information (e.g., auto parts retailers, car wash subscriptions, etc.).
6. Emergency contacts: if you keep an emergency information card in your vehicle, create a new one with your current vehicle details.