What You Need to Do After Buying a Used Car

The haggling is over and you’ve closed the deal, but there are still a few more steps before you get to pull out of the driveway. Here’s what you need to do after buying a used car.

CHECKLIST: WHAT TO DO AFTER BUYING A USED CAR

You’ve done all the hard work: checked the sale ads, walked the lot, secured financing, put up with high-pressure sales pitches, and maybe even negotiated a tricky private sale. Now that the tire-kicking is over and you’ve closed the deal, there are just a few more steps you should take to wrap up a successful used car purchase.

Get Insurance

Proof of insurance is often required prior to signing an auto loan. The car that you just bought shouldn’t move an inch unless you have auto insurance in place. Contact brokers ahead of closing and negotiate a deal that covers both you and any third party who might suffer damage or injury. Knowing how much your insurance payment will increase is important for a tight budget. How much insurance? You need to cover the minimum car insurance requirements in your state, but you should also consider:

• Liability insurance well above the state minimum
• Coverage against uninsured or underinsured drivers
• Additional personal injury protection
• Collision and comprehensive coverage

Get an Inspection

If you’re buying from a dealership, make sure you have documentation that the car has passed an inspection. If you’re buying through a private sale, your agreement should state that the sale is contingent upon the car passing inspection by a qualified, independent mechanic. Some states even require a safety test before transferring ownership of a vehicle.

Get an Emissions Test

Many states or counties will also require you to take a car for an emissions test before it can be registered, especially if it is an older model. A dealership will typically handle this if you’re buying a car through them. But, if you're buying a car through a private sale, then you’ll need to take care of it yourself.

Check Lemon Laws

Six states—Connecticut, Massachusetts, Minnesota, New Jersey, New Mexico, and New York—have passed lemon laws that apply to used cars. The laws effectively provide the buyer with a limited warranty on certain used vehicles bought from a dealership. If you live in these areas, it’s worth finding out if your vehicle is covered.

Transfer the Title and Registration

If you’re buying a car in a private sale, the seller will complete the title assignment section of the car’s registration certificate. You need to bring this offer to your DMV to transfer the title and register the vehicle in your name. You’ll also need to pay the sales tax due on the vehicle at this point. If you’re buying the car from a dealer, they will usually take care of this for you.

Pick Up Your Temporary Tags

Unless you’re transferring a license plate in a private sale, you’ll need to pick up temporary tags for your car when registering your vehicle with the DMV. Check your mail for your permanent license plates, which should arrive in about 10 days. If you bought your car from a dealer, your plates should arrive in the mail along with your completed registration documents.

Get Gap Insurance

If you financed the purchase of your used car, then it’s worth considering taking out gap insurance. This is optional coverage that bridges the difference between what your car insurance policy will pay out in the event of a total loss of your vehicle and what you still owe on your car loan. It can be critical if you’re paying off a zero-down or longer-term auto loan.

Save Your Paperwork

Put your car’s registration form and insurance card in your glove box right away. Your vehicle’s title, bill of sale or purchasing agreement, and financing paperwork should be stored securely in a safe or fireproof box at your home. Don’t keep the “pink slip” title to your car inside the vehicle.

Check for Recalls

If you haven’t already, do a search for recalls affecting your vehicle’s model. Manufacturers regularly recall vehicles to replace parts that could jeopardize the safety of the car. Dealers should make sure you are registered for recalls, but you might want to contact the manufacturer directly to be placed on their contact list.

Plan Your Maintenance

Take a look at any service records you received with your used car and make a note of any forthcoming scheduled maintenance or parts replacements. Talk to a mechanic to get a handle on any wear and tear that may need to be taken care of soon. Schedule oil changes and tune-ups in line with the manufacturer’s recommendations.

LET RED RIVER CREDIT UNION GET YOU ROLLING

Red River Credit Union offers our members and future members affordable, flexible financing^1,2 for all types of vehicle purchases, including even repossessed vehicles.    

Whether you’re looking at a car, truck, motorcycle, or RV, we offer:

• Competitive rates
• Quick approvals
• Convenient online applications
• Multiple payment options
• Extended warranty and GAP³ options.

Click below to learn more about how RRCU can help get you rolling.

AUTO LOANS

¹Terms may be extended on auto loans based on year model with approved credit. Purchase or refinance from other institution $17,000 minimum.
²APR = Annual Percentage Rate. Rate and term based on credit score and year model (auto). Rate subject to change without notice. With Approved Credit.
³GAP Insurance and financial services are available to credit union members, but are not guaranteed or provided by Red River Employees Credit Union. Not NCUA insured