Buyers must navigate the state-specific legal landscape that dictates the sales process when purchasing a vehicle in Virginia.
Understanding these regulations, including those about titling and registration, is essential for anyone looking to purchase a vehicle in the state. They enable buyers to make informed decisions and avoid potential legal issues that could arise from improper vehicle purchases.
Generally, the Code of Virginia Section 46.2-1530 requires motor vehicle dealers to provide prospective buyers with a copy of the buyer's order form during the negotiation phase prior to any sales agreement. Additionally, buyers must familiarize themselves with the Virginia Motor Vehicle Safety Inspection requirements.
What Is the Process for Buying a Car in Virginia?
Virginia has established a legal framework that governs the requirements and considerations for purchasing a vehicle within the state's boundaries. Before proceeding with the purchase, individuals must determine whether they buy from a private seller or a dealership, as the processes differ slightly.
Buying a Vehicle from Private Sellers
When acquiring a vehicle from a private seller in Virginia, buyers must adhere to several crucial steps and legal requirements:
Verify Proof of Ownership
To verify proof of ownership when acquiring a car from a private seller in Virginia, the buyer must ask to see the vehicle's original title document and ensure the seller's name on the title matches the seller.
Additionally, an interested buyer can verify proof of ownership in person with the Virginia Department of Motor Vehicles (VA DMV) by providing them with the vehicle's title number, make, year, and vehicle identification number (VIN).
When verifying proof of ownership during a vehicle transaction, it is necessary to balance privacy considerations with legal requirements. While requesting proof of ownership may involve sharing personal information, it is a standard practice in vehicle transactions. Sellers understand that providing necessary documents is part of the process.
Check the VIN and Odometer
A buyer must never forget to inspect the VIN to confirm its accuracy by matching it on the vehicle's dashboard or door jamb with the VIN on the title document.
Additionally, the buyer must check if the odometer reading accurately reflects the vehicle's actual mileage. A car with high mileage is generally worth less than one with lower mileage. A well-maintained car typically has lower mileage, while high mileage may indicate more wear and tear.
Request for a Vehicle History Report
An interested buyer can also obtain a Vehicle History Report (VHR) from the National Motor Vehicle Title Information System (NMVTIS) to check for potential issues. A VHR ensures that the information the seller provides is accurate and transparent.
The report details the car's history, including any past damages or accidents. Through the VHR, the buyer will know if the vehicle has been involved in collisions or suffered significant damage.
Obtain a Bill of Sale
As part of the transaction, the buyer should request and secure a Bill of Sale from the seller. This document serves as a formal record of the vehicle's sale and includes details such as the date of sale, purchase price, and the names and signatures of both parties.
The bill of sale acts as proof of transfer and can be helpful for tax purposes and any future disputes.
Review the Title Transfer Details
When acquiring a vehicle from a private party, the buyer must carefully review and validate the details on the title before accepting an ownership transfer.
The buyer should inspect whether the seller has correctly completed Section A, including providing their signature(s) as the listed owner(s). The buyer's name and address must be entered as the new owner appropriately. Additionally, the buyer should verify that the sale date and purchase price listed match the agreed-upon terms.
The buyer must also sign and print their full name as the "buyer" in Section A of the title. Section E (Personal Property Tax Relief) should also be completed on the title. Section F (Lien Information) must be filled with any lien holder information if applicable.
Once all these sections are correctly filled out, the buyer can visit a DMV Select or VA DMV customer service center or mail the title to the VA DMV to obtain the vehicle's new title and registration under their name.
Apply for a Vehicle Registration and License Plates
When a buyer purchases a vehicle from a private seller in Virginia, registering it with the state DMV grants them legal authorization to operate the vehicle on public roads. Driving the car without proper registration is unlawful. Therefore, the buyer is required to apply for license plates and registration within 30 days of the purchase.
During the registration and titling process, the buyer must complete Section G (Application for Registration) on the vehicle's title, including the insurance certification. They must also fill out Section H (Certification of Buyer) on the back of the title.
Additionally, the buyer must complete the Vehicle Registration Application (VSA 14) form, which can be obtained from VA DMV customer service centers or the DMV website.
These documents, along with the applicable fees and taxes, can be submitted in person at any VA DMV customer service center or DMV Select location. Alternatively, the buyer can mail them to the Virginia Department of Motor Vehicles at P.O. Box 27412, Richmond, VA 23269-0001.
Once the VA DMV processes the registration, it will issue new license plates and a registration card for the vehicle under the buyer's name. Virginia law mandates that every vehicle display license plates on both the front and back, as these plates serve as visual identification for law enforcement, other drivers, and pedestrians.
Buying a Vehicle from a Licensed Dealer
When purchasing a vehicle from a licensed dealer in Virginia, consumers are afforded certain protections and informational requirements outlined in the Code of Virginia.
The state regulates all licensed vehicle dealers to prioritize consumer protection. Section 46.2-1530 of the Code of Virginia requires motor vehicle dealers to supply prospective buyers with a copy of the buyer's order form during negotiations before any sales agreement is reached.
There is also a specific section that mandates dealers to provide certain disclosures about the history, condition, and warranties of vehicles being sold.
License Dealer Check
Verifying the dealer's license in Virginia is vital when purchasing a vehicle. It helps confirm legal compliance, prevents fraud, provides recourse in case of issues, and ensures protection under state laws.
The VA DMV maintains a list of reputable dealers through the Motor Vehicle Dealer Board (MVDB) to assist buyers in making informed purchasing decisions.
Additionally, prospective buyers can locate a licensed dealer using the MVDB search tool. This tool allows for various input criteria, including the dealership address, name, city, certificate number, dealer-operator name, and zip code.
Advantages of Buying Vehicles From a Licensed Buyer
When purchasing a vehicle from a dealership in Virginia, there are several advantages to consider.
Convenience
Dealerships typically offer a wide selection of makes, models, and trim levels. They provide detailed vehicle history reports and have performed inspections, which gives buyers peace of mind about the car's condition. Dealerships also handle most of the paperwork and registration processes.
Financial Security
Many dealerships offer warranties from the manufacturer or a third-party provider for added protection. Additionally, dealerships provide in-house financing options and may have special rates or incentives, which makes it easier for buyers to secure financing.
Furthermore, dealerships allow buyers to trade in their current vehicle and apply its value toward the new purchase, which is impossible when buying from a private seller.
Price
While dealership prices tend to be higher due to overhead costs, there is always room for negotiation, and the added conveniences and protections can make the higher cost worthwhile for some buyers.
Buyer's Order
In Virginia, a Buyer's Order is a crucial document state law requires for every vehicle sale transaction. It serves as a comprehensive record of the agreement between the dealership and the purchaser, providing transparency and protecting both parties' interests.
The Buyer's Order must include specific details as mandated by the Code of Virginia. These include the dealership's and buyer's names and addresses, the sale date, a full vehicle description (make, model, year, VIN, and body style), trade-in details, and all financial aspects of the transaction.
It itemizes costs such as sales tax, title fees, registration fees, and dealer-specific charges like processing fees or business license taxes.
Importantly, it must disclose if the vehicle is sold "as is" without warranties, incorporate the federally-required Buyer's Guide, and include notices about dealer-arranged financing and the absence of liability insurance.
Buyer's Guide
The Federal Trade Commission requires dealers to provide and prominently display a Buyer's Guide for each used car they sell.
It provides essential information about the car's condition and warranty status. The guide discloses whether the vehicle is sold "as is" or with a warranty, detailing coverage terms if applicable. It also highlights any known defects.
Vehicle Inspection
In Virginia, new vehicle buyers are exempt from undergoing the initial annual safety inspection if the manufacturer or distributor has already inspected the vehicles according to their established standards.
Licensed automobile dealers can affix an inspection sticker on the windshield of these newly purchased vehicles. When a dealer chooses to conduct this inspection, it fulfills the first inspection requirement outlined in Section 46.2-1158 of the Virginia Code.
However, these new vehicle owners must present their vehicles for re-inspection within 12 months of the initial inspection or purchase date. After this initial period, state law mandates that vehicle owners continue to have their vehicles inspected at least once every twelve months and display a valid inspection decal.
Aside from the safety inspection, the Virginia Code, Section 46.2-1178, delineates the state's emissions inspection program's applicability. This program applies to motor vehicles weighing 8,500 pounds or less that were registered in the following counties:
- Fairfax
- Arlington
- Prince William
And in the cities of:
- Fairfax
- Alexandria
- Manassas
- Falls Church
- Manassas Park
Vehicle Buyer Protection Law (Lemon Law)
The state of Virginia has implemented specific regulations to safeguard the rights of consumers when purchasing vehicles.
The Virginia Motor Vehicle Warranty Enforcement Act, commonly known as the state's Lemon Law, aims to provide legal recourse for buyers who acquire defective vehicles that fail to meet warranty standards even after reasonable repair attempts.
Under Virginia's Lemon Law, manufacturers must either refund or replace vehicles classified as "lemons." A vehicle typically falls into this category if it meets specific criteria, such as having undergone three or more unsuccessful repair attempts for the same recurring issue or defect.
The Lemon law also covers all vehicles that have been out of service for an extended period, usually more than 30 cumulative days within the first year of ownership, due to one or more defects covered under warranty.
If an owned vehicle qualifies as a lemon, the owner must reach out to the Office of the Attorney General before initiating a claim under this act. It is mandatory to file all claims within 18 months from the date of the vehicle's initial receipt.
What Are the Fees for Buying a Car in Virginia?
Buyers must also be aware of the various fees and taxes associated with the transaction when purchasing a vehicle in Virginia. These include:
Sales and Use Tax (SUT)
The present sales tax rate for vehicle purchases in the state is 4.15%. This tax is imposed on the total purchase price or the actual value of the vehicle, whichever is higher.
Fee Exemptions
There are certain exemptions that buyers may qualify for, which can reduce or eliminate some of the fees:
Additional Fees
In addition to the sales tax, buyers may also need to pay the following fees:
- A Title Transfer Fee of $15 is required when ownership of the vehicle changes
- Registration Fee ranging from $18.25 to $116.49 depending on the type of vehicle
- Vehicle Emissions Inspection Fee : $28 (required in certain counties)
- Vehicle Safety Inspection Fee : ranging from $12 to $51 depending on the vehicle type
Sales Tax Exemption for Gifts
If the vehicle is received as a gift, the individual may be exempt from paying sales tax by completing the Purchaser's Statement of Tax Exemption (SUT-3) form.
Trade-In Credit
If a vehicle is traded in when purchased new, the trade-in value can be deducted from the purchase price, reducing the amount of sales tax owed.
Military Exemption
Active-duty military personnel may be exempt from paying the 4.15% sales tax if they purchase a vehicle within one year of discharge or reassignment to Virginia.
Other exemptions generally include government vehicles, vehicles for churches, off-road motorcycles, ATVs, mopeds, and senior citizens over the age of 65.
Other Fee-Related Information
When budgeting for a vehicle purchase, buyers should account for additional expenses beyond the vehicle's price. This includes the cost of insurance coverage and potential repairs or maintenance that may be needed.
Furthermore, dealerships commonly add supplementary fees to the transaction, such as documentation or advertising charges. These additional fees must be disclosed to the buyer for transparency in the purchase process.
What Are the Insurance Requirements for Vehicles in Virginia?
In Virginia, individuals seeking to acquire license plates or decals for their vehicles are obligated to verify that their insurance aligns with the state's mandated minimums or remit the Uninsured Motor Vehicle (UMV) Fee. This requirement also applies to owners of antique motor vehicles.
Authorized insurance providers within Virginia must offer coverage that adheres to the minimum limits outlined in Section 46.2-472 of the Code of Virginia. Vehicle owners must ensure that insurance policies comply with these prescribed minimums to eschew penalties or the risk of registration refusal.
Liability Insurance
The state mandates that all vehicle owners secure liability insurance with at least the following coverage:
- $30,000 for injury or death of a single individual
- $20,000 for property damage
- $60,000 for injury or death of multiple individuals
This liability insurance is crucial as it protects the driver in the event they are deemed responsible for causing injuries or property damage through a vehicular accident.
Penalties
The state imposes severe penalties on individuals who fail to maintain the mandated vehicle insurance requirements. If liability insurance coverage lapses or is canceled during the vehicle's registration period, the owner must promptly remedy the situation.
They can either reinstate insurance coverage, pay the UMV fee, permanently surrender the license plates to the VA DMV, or temporarily deactivate the license plates.
Failure to take any of these actions will result in the VA DMV suspending the driving privileges and registration of vehicle owners operating without insurance or those who have neglected to pay the UMV fee.
To reinstate these privileges, the individual faces stringent measures. They must pay a statutory fee of $600, file a Financial Responsibility Insurance Certificate (SR-22) with the VA DMV for three consecutive years, and remit any applicable reinstatement fees.
However, eligible vehicle owners may opt for the Payment Plan Program, which allows them to pay the statutory $600 fee over an extended period.
Can a Non-Resident Buy a Car in Virginia?
Non-residents are allowed to purchase and register vehicles in Virginia, although some additional requirements and steps are involved. Non-residents typically need to provide the following documentation to prove their out-of-state residency:
- An out-of-state driver's license
- Utility bills
- Lease/mortgage documents
After purchasing from a private seller or dealer, non-residents can obtain a temporary three-day trip permit from the VA DMV to legally transport the vehicle back to their home state.
Once back in their state of residency, the non-resident owner must title and register the vehicle through their home state's DMV, following all applicable requirements and fees for that state within the permitted timeframe.
Insurance Requirements
Virginia law mandates that non-residents maintain minimum liability insurance coverage while operating a vehicle in the state during transit or temporary situations. Proof of insurance is required when obtaining a trip permit.
Additional Fees
Virginia may require non-resident purchasers to pay certain taxes or fees at the time of purchase, such as sales/use tax, depending on the circumstances of the vehicle sale.
When purchasing from a Virginia dealer, the dealer typically handles most of the paperwork. This includes the temporary registration and documentation needed for non-resident buyers to transport the vehicle interstate.
For private sales, the non-resident is responsible for completing the proper forms and submitting documentation when obtaining a trip permit from the VA DMV.
Non-residents should review all regulations and contact the VA DMV and their home state's DMV to ensure full compliance with vehicle ownership laws across state lines.