What paperwork do I need to buy a used car?
Essential documents
The title is the most important document—it proves ownership. The seller must sign it over to you, and you'll need to fill out the buyer section. If there's a lien, the seller must provide a lien release.
A bill of sale records the sale price, date, and both parties' information. Some states require it, but it's always smart to have one for your records and for tax purposes.
If you're financing, the lender will handle the title transfer and may require a power of attorney. You'll also need proof of insurance before driving.
- Signed title (with lien release if applicable)
- Bill of sale (signed by both parties)
- Smog certificate (required in some states like California)
- Proof of insurance
- Loan documents (if financing)
- Odometer disclosure statement (for cars under 10 years old)
State-specific requirements
Paperwork rules vary by state. Some require a notarized title, a vehicle inspection, or a emissions test. Check your state's DMV website for exact requirements.
You'll typically need to transfer the title and register the car within a certain number of days, often 10 to 30. Late fees can apply.
If you buy from a dealer, they usually handle the paperwork for you. Private-party sales put the responsibility on you.
Common mistakes
- Not checking for a lien on the title—if the seller still owes money, you may not get a clean title.
- Skipping the bill of sale, which can cause problems with registration and taxes.
- Forgetting to transfer the title within the state's deadline, leading to fines.
