When purchasing a vehicle in North Carolina, it is crucial to approach it as a significant investment. While the process can be enjoyable and fulfilling, it requires careful planning to secure the best possible deal.
Buyers, whether purchasing from a private seller or a dealer, must consider several factors when buying a vehicle in North Carolina. The North Carolina Division of Motor Vehicles (NCDMV) mandates the submission of various documents, including the title and disclosure statements, to legally register and drive the purchased vehicle.
Furthermore, purchasers must learn the state laws safeguarding them during vehicle purchasing. These regulations focus on ensuring the accuracy of the vehicle information being sold and providing recourse if the vehicle is found defective after purchase.
By familiarizing themselves with the specific regulations in North Carolina, prospective buyers can confidently navigate the vehicle purchasing process. This knowledge will enable them to engage in fraud-free transactions and experience peace of mind throughout the vehicle-buying journey.
What Is the Process for Buying a Car in North Carolina?
Purchasing a vehicle in North Carolina involves several essential steps, which differ depending on whether the car is purchased from a private seller or a licensed dealer. Prospective buyers must understand each option's specific state requirements and procedures to guarantee a successful transaction.
Buying a Vehicle from a Private Seller in North Carolina
Those interested in purchasing a vehicle from a private seller in North Carolina can find exceptionally favorable deals. Unlike the limitations of negotiations at a dealership, private owners often provide greater flexibility.
However, private transactions can swiftly become problematic if not approached with caution. Hence, buyers must thoroughly understand the subsequent steps to buy a privately owned vehicle in North Carolina successfully.
Title Check
Conducting a title check is of utmost importance when purchasing a vehicle from a private seller in North Carolina. This crucial step not only helps avoid legal complications but also safeguards the buyer's investment.
By verifying ownership through a title check, buyers can confirm that the seller has the legal right to sell the vehicle and that there are no ongoing disputes or outstanding claims on the title.
Moreover, buyers can satisfy a significant requirement by confirming the legitimacy and availability of the vehicle's title. This is because the title becomes a vital document that must be presented to the NCDMV for registration when the transaction is completed.
To conduct a title check, prospective buyers should directly request to see the vehicle's title from the seller. They must carefully scan the document, confirm its accuracy, and ensure it matches the vehicle's description and the seller's identity.
If any doubts or discrepancies arise regarding the title's authenticity, buyers should take them seriously. They must seek guidance from the NCDMV or consider avoiding the transaction to prevent potential issues.
Vehicle History Report
Prospective buyers should prioritize obtaining a vehicle history report (VHR) when buying a vehicle privately in North Carolina to be well-informed about the vehicle they are purchasing and have peace of mind regarding their investment.
A VHR provides comprehensive information about a vehicle's past. It highlights potential issues or red flags about the vehicle that might not be visible during visual inspection.
Moreover, a VHR includes accurate details about the vehicle's mileage and indicates if the car has been involved in incidents such as flooding, has a salvage title, or has been rebuilt. This information is paramount for buyers as it can significantly impact the vehicle's price and future performance.
To obtain a VHR, buyers have several options. They can request the report from the seller if available, or they can use reputable online services that generate comprehensive reports based on the vehicle identification number (VIN) for a fee.
Additionally, buyers can request a Motor Vehicle Record (MVR) from the NCDMV.
To do this, they must submit the Request for Motor Vehicle Information (MVR-605A) form along with a $14 payment to the Raleigh Central Services/License Plate Agency located at 4121 New Bern Ave., Raleigh, NC 27616, or the Huntersville License Plate Agency at 12101 Mt. Holly-Huntersville Road, Huntersville, NC 28078.
Requests can also be mailed to the address listed on the form, although mail requests may take up to ten business days to process.
Odometer Disclosure Requirement
In North Carolina, the odometer disclosure requirement mandates that vehicle sellers provide accurate readings during a transaction. This legal obligation helps protect buyers from odometer fraud or the act of altering the mileage to misrepresent the car's value or reliability.
Moreover, accurate odometer disclosure is crucial for buyers as this document is needed when transferring ownership and registering the vehicle in the buyer's name.
Both the buyer and seller must complete their respective sections on the Odometer Disclosure Statement (MVR-180) to comply with this mandate. The seller is responsible for disclosing the odometer reading at the time of sale, which the buyer must acknowledge.
Not all private vehicle sales are required for odometer disclosure. If vehicles meet the following criteria, they are exempt from this requirement:
- Vehicles with a gross vehicle weight rating of over 16,000 pounds
- Non-self-propelled vehicles
- Vehicles 20 years or older (starting with model year 2011)
- New vehicles before their first transfer for purposes other than resale
- New vehicles sold directly by the manufacturer to U.S. government agencies according to contractual specifications.
Damage Disclosure Statement
When purchasing a vehicle privately, buyers must consider the information in the damage disclosure statement.
By law, vehicle sellers in North Carolina must complete a Damage Disclosure Statement (MVR-181) accurately. This mandatory form mandates sellers to disclose any significant damage exceeding 25% of the vehicle's value resulting from collisions and information about its salvage status, history of flooding, recovery from theft, or reconstruction.
For buyers, this damage disclosure statement holds significant value. It is a necessary requirement for vehicle registration and enables them to assess the vehicle's worth, safety, and reliability.
Safety Inspection
Safety inspections are mandatory yearly for all registered vehicles in North Carolina. These inspections are conducted by licensed mechanics who thoroughly examine various vehicle components.
Some of the components inspected include the following:
- Headlights
- Accessory lights
- Directional signals
- Brakes (both foot and parking)
- Steering
- Tires
- Horns
- Rearview mirror
- Windshield wipers
- Exhaust system
- Emission control components
- Tinted windows (if applicable)
Before finalizing a purchase, buyers must confirm that the vehicle they are interested in has successfully passed the safety inspection. They can do this by requesting the seller's latest safety inspection report.
With this confirmation, buyers can rest assured that they will not encounter any issues when they conduct their safety inspection upon registering the vehicle in their name.
Emissions Inspection
If applicable, buyers should also prioritize checking if the vehicle they are purchasing passes emissions inspection. This can be done by reviewing the seller's past emissions inspection report. By doing so, buyers can guarantee that they will not face any issues regarding the emissions inspection requirement when they register the purchased vehicle in their name.
North Carolina's emissions inspections are conducted following the air quality standards set by the U.S. Environmental Protection Agency.
However, not all vehicles in the state require emissions inspections. Exemptions apply to light-duty vehicles that are less than three years old or have fewer than 70,000 miles, vehicles 20 years old or older, diesel-operated cars, farm vehicles, and antique vehicles.
Additionally, the emissions inspection mandate is enforced only in 19 counties, which include the following:
- Alamance County
- Buncombe County
- Cabarrus County
- Cumberland County
- Davidson County
- Durham County
- Forsyth County
- Franklin County
- Gaston County
- Guilford County
- Iredell County
- Johnston County
- Lincoln County
- Mecklenburg County
- New Hanover County
- Randolph County
- Rowan County
- Wake County
- Union County
Ownership Transfer
Transferring ownership is critical when purchasing a vehicle from a private seller in North Carolina. Buyers must understand the prerequisites of this step to establish themselves as the new legal owner of the car.
For a legal ownership transfer, the seller and buyer must complete the assignment section on the vehicle's title. This section must include the seller's signature and printed name, the date of sale, and the buyer's name and address.
Note that North Carolina law requires that vehicle titles be notarized for the transfer to be valid. Additionally, all parties listed on the title must sign if the vehicle has multiple owners.
Once all the necessary information and signatures are provided and notarized, the buyer can receive the title and other relevant documents from the seller, officially transferring ownership of the vehicle.
License Plates and Registration
After the ownership documents have been transferred, sellers are required to remove their existing license plates on the vehicle. In turn, buyers are responsible for registering the vehicle in their name and acquiring new license plates.
To successfully register a purchased vehicle, buyers must visit any NCDMV location and provide specific documents. These documents include an ID card or a valid NC driver's license, proof of auto insurance, and the adequately assigned vehicle title.
Additionally, buyers must complete a Title Application Form (MVR-1), provide odometer and damage disclosure statements, and pay the relevant registration fees.
Once the registration process is finalized and the fees have been paid, the NCDMV will issue registration documents and new license plates. With these in their possession, buyers can legally operate the vehicle on North Carolina state roads.
Buying a Vehicle from a Licensed Dealer in North Carolina
If purchasing a vehicle in North Carolina, a licensed dealer offers distinct advantages compared to private sellers. These include the assurance of legal compliance, access to a broader range of vehicle options, and enhanced consumer rights protection.
However, buyers must still be cautious when buying from a dealership. They must consider the following factors for a successful dealership purchase:
Licensed Dealer Check
Under North Carolina General Statutes Section 20-287, it is illegal for any new or used motor vehicle dealer to conduct business in the state without obtaining the necessary license.
Therefore, when considering purchasing a vehicle from a dealership in North Carolina, it is crucial to verify the dealer's license. This precaution ensures the transaction's legality and instills confidence in the buyer.
To confirm a dealer's licensing status, individuals can visit their nearest NCDMV location and inquire about the dealership. The licensing office can provide information on the dealer's licensing status and offer assurance that the dealer operates within the bounds of the law.
Buyer's Guide
Buyers should pay close attention to the Buyer's Guide issued by the Federal Trade Commission (FTC) if purchasing a used car from a dealership in North Carolina.
The Buyer's Guide is a mandatory document that must be prominently displayed on every used vehicle for sale. It contains essential information that buyers need to consider, including the following:
- Car's major mechanical and electrical systems
- Warranty information
- Written promises from the dealer about the vehicle's condition or performance
- Recommendation to have the vehicle inspected
- Dealer's contact information
By carefully reviewing the Buyer's Guide, potential buyers gain a clearer understanding of the vehicle's condition and potential risks, providing a more informed and confident purchase experience in the state.
Warranties
Buyers are advised to consider the warranties offered when purchasing a vehicle from a dealership.
As mentioned, the Buyer's Guide provides crucial details about the vehicle's warranty status. It specifies whether the car is sold "as is" or with a warranty. It also outlines the warranty type, any restrictions or exemptions, and the percentage of repair costs covered by the dealer.
Understanding these warranty terms is essential for buyers to determine what aspects are covered and which are not. Such knowledge is vital in preventing unexpected expenses related to repairs or replacements that fall outside the warranty coverage.
North Carolina Lemon Law
The North Carolina Lemon Law, officially known as the New Motor Vehicles Warranties Act, protects consumers who have purchased or leased defective new vehicles.
This law applies to nearly all new motor vehicles and motorcycles sold or leased in North Carolina, except mopeds, electric-assisted bicycles, house trailers, and vehicles weighing over 10,000 pounds.
A vehicle is classified as a lemon under this law if it has a defect covered by the manufacturer's warranty and within the first two years or 24,000 miles, whichever comes first.
The consumer must notify the manufacturer in writing and provide up to 15 days for repair. If the defect persists after four repair attempts or the vehicle is out of service for 20 business days or more within 12 months, it qualifies as a lemon.
Once a vehicle is deemed a lemon, the consumer can choose either a comparable new car or a refund.
If a replacement vehicle is chosen, it must be similar in nature and value to the defective one. In the case of a refund, the manufacturer must reimburse the consumer for the full purchase price, including collateral and finance charges incurred after reporting the defect, as well as any incidental damages and monetary consequential damages.
What Are the Fees for Buying a Car in North Carolina?
When buying a vehicle in North Carolina, buyers should account for extra fees in addition to the vehicle's price. These fees are usually paid during the vehicle registration process.
Below are the standard fees associated with purchasing a car in North Carolina:
Highway Use Tax
Buyers must pay the highway use tax when a title is transferred in North Carolina. Currently, the rate is 3% of the vehicle's purchase price.
Registration Fee
Buyers must register the vehicle to operate it legally. The registration fees in North Carolina vary depending on the type of vehicle being registered. However, most passenger vehicles cost $38.75.
Title Fee
The current title fee in North Carolina is $56.
County Specific Fee
If the vehicle will be registered in Wake, Durham, or Orange County, an additional $15 fee applies. If it will be registered in Randolph County, a $1 fee applies.
What Are the Insurance Requirements for Vehicles in North Carolina?
Under the provisions of North Carolina General Statutes Section 20-309, motor vehicle owners in the state must demonstrate financial responsibility for the operation of their vehicles during the registration process. This requirement extends to maintaining continuous financial responsibility throughout the registration period.
Moreover, under North Carolina General Statutes Section 20-279.21, all vehicle insurance policies must include coverage for uninsured or underinsured drivers and meet the following minimum limits for property damage and bodily injury:
- Bodily injury per person: $30,000
- Bodily injury two or more people: $60,000
- Property damage per incident: $25,000
Keep in mind that the state's liability insurance law is rigorously enforced. Insurance firms are obligated to inform the NCDMV if a vehicle's liability insurance coverage is lapsed or canceled.
Upon receiving such notification, the NCDMV will issue a liability insurance notice of termination to the vehicle owner, who will have ten days from the date the notice was sent to respond. Failure to respond within this timeframe may result in license plate revocation and the imposition of civil penalties.
Besides that, if found driving without insurance, individuals can face a class 3 misdemeanor offense. Those guilty of this offense may face penalties such as 20 days of community punishment, probation, or even jail time. If an individual is involved in an accident without car insurance, their vehicle registration can be suspended for 30 days.
Can a Non-Resident Buy a Car in North Carolina?
Non-residents can purchase a car in North Carolina, but important considerations must be made for a legal transaction. Once a vehicle is purchased, the non-resident buyer must register it and obtain a vehicle title, which can be done either in their home state or in North Carolina.
To register the vehicle in their home state, the non-resident must first acquire a temporary registration from the dealer or NCDMV to legally drive it to their home state. Upon arrival, they must comply with their state's regulations regarding vehicle registration.
If the non-resident plans to register the vehicle in North Carolina, they must fulfill the requirements of the NCDMV. This includes establishing residency, obtaining an NC driver's license, and completing the vehicle registration process at an NCDMV location within 30 days of establishing residency.
During registration, the non-resident must provide relevant documents such as their NC driver's license, proof of vehicle insurance, vehicle title, odometer, and damage disclosure statements, a furnished MVR-1 form, and payment for applicable registration fees.