Buying a car is a significant investment that carries a complex process. In Washington, vehicle buyers face not only an abundance of models to choose from but also stringent state regulations.
The Washington Department of Licensing (DOL) oversees the transfer of ownership during the vehicle buying process. This regulatory body mandates that buyers provide specific documentation when obtaining vehicle ownership. Additionally, buyers are required to register the purchased vehicle and get license plates to drive it legally on the state's roadways.
Besides the mentioned requirements, vehicle buyers in Washington must familiarize themselves with the state laws safeguarding them as consumers. These regulations are designed so that purchasers have accurate vehicle information and provide recourse in case the purchased vehicle is found to be defective.
By educating themselves about Washington's vehicle buying regulations, potential buyers can easily navigate the complexities of buying a car in the state and make a purchase that aligns with their needs and preferences.
What Is the Process for Buying a Car in Washington?
Purchasing a car in Washington involves more than finding a vehicle, negotiating terms, and completing the payment. It necessitates a significant investment of time, careful budgeting, and a thorough understanding of the legal prerequisites involved.
Whether the transaction occurs at a dealership or with a private seller, one must possess a comprehensive knowledge of Washington's regulations and adhere to them diligently to mitigate any potential legal or financial complications that may arise during the car-buying process.
Buying a Vehicle from a Private Seller in Washington
Buyers should exercise caution when purchasing a vehicle from a private seller in Washington.
Firstly, buyers should verify that the seller is the car's rightful owner and conduct a thorough background check on the vehicle's history. Once the purchase is made, buyers must obtain the necessary documents from the seller crucial for establishing ownership, registering the car, and acquiring license plates for legal road use in Washington.
To facilitate a successful private transaction, buyers should carefully consider the following aspects of the purchase process:
Title Check
Conducting a title check is essential when purchasing a vehicle from a private seller in Washington.
By verifying the title, buyers can confirm if the seller has the legal right to sell the car. Moreover, a thorough title check reveals any outstanding liens or loans, which helps buyers protect themselves from future monetary pitfalls or disputes with the seller.
To perform a title verification, buyers should request to see the vehicle's title from the seller. This allows them to verify that the information accurately corresponds to the car they intend to purchase.
If the title contains tampering or issues or is unavailable, buyers are advised to avoid the transaction or seek assistance from the DOL.
Vehicle Inspection
Buyers are encouraged to conduct a vehicle inspection before proceeding with a private party purchase in Washington.
To carry out this process, buyers should ask their trusted mechanic to meticulously examine the car's key components, such as the radio, heating and cooling systems, windshield wipers, lights, brakes, tires, and engine.
The vehicle inspection allows buyers to assess the car's overall condition and identify hidden issues. Moreover, if any problem arises during inspection, buyers can utilize it as a negotiating tool or request necessary repairs before proceeding with the transaction.
Vehicle History Report
When purchasing a vehicle privately in Washington, buyers are recommended to obtain a vehicle history report (VHR). This comprehensive document provides detailed information about the vehicle's past, offering much-needed transparency to potential buyers.
The VHR includes the vehicle's mileage, previous accidents, and any significant repairs or damages. For instance, it will indicate if the car has been involved in flooding, has a salvage title, or has been rebuilt.
By accessing the vehicle's history, buyers can accurately assess the car's reliability and make informed purchasing decisions. They can also consider past damages or repairs to negotiate a fair price.
To obtain a VHR in Washington, buyers can rely on the services of third-party data providers, such as those approved by the National Motor Vehicle Title Information System (NMVTIS). These providers typically require the vehicle identification number (VIN) or license plate number and charge a service fee to generate the report.
Odometer Disclosure Requirement
Compliance with the odometer disclosure requirement is vital when buying a vehicle in Washington.
This legal requirement is necessary for the smooth transfer of ownership into the buyer's name. It also protects buyers from potential odometer fraud, safeguarding them from misleading representations of the car's value and reliability.
To meet this requirement, sellers must accurately complete the odometer disclosure section in the title document. Buyers must acknowledge the disclosure by signing and printing their names in the designated buyer's blocks.
When the title document lacks a specific section for odometer disclosure, individuals can obtain an odometer disclosure form. This form cannot be faxed, downloaded, or emailed as it is printed on special paper. Thus, individuals should visit a DOL office to acquire the form.
According to regulations, the odometer disclosure requirement must be followed if the vehicle involved in the transaction is a model year 2011 or newer. If the car is a model year 2010 or older, individuals are exempt from reporting the odometer mileage.
Ownership Transfer
The transfer of vehicle ownership in Washington state is critical in establishing the buyer as the new owner. To facilitate a smooth transfer, both parties must meet at a licensing office to sign over the title.
When signing over the title, the seller must sign the front of the title in two designated areas, while the buyer only needs to sign once. Only one seller must sign if multiple sellers are listed on the title with the word "or" separating their names. However, if the names are separated by "and" or "and/or," all sellers must sign. If multiple buyers are involved, the same rule applies.
Note that these signatures must be notarized. Therefore, it is advised to sign the title in the presence of a notary public or a licensing agent at a vehicle licensing office.
In addition to the title, the buyer must obtain an odometer disclosure form from the seller, if applicable. If the vehicle has a lien, a Release of Interest must also be obtained.
Once all the necessary documents are completed, the buyer can pay the seller and take possession of the title and other documents, officially assuming vehicle ownership.
Bill of Sale
Obtaining a Bill of Sale (Form TD-420-065) is another legal mandate that buyers must be aware of when buying a vehicle privately in Washington.
This document must include the names, addresses, and signatures of both the buyer and seller, as well as the vehicle's VIN, make, model, year, and mileage at the time of sale. Additionally, the Bill of Sale must clearly state the transaction date and sale price.
Complying with this requirement is paramount as this document is indispensable for buyers registering the vehicle under their name.
License Plate and Registration
Within 15 days of the transaction, buyers must register the purchased vehicle with the DOL and obtain license plates for its legal operation on public roadways.
To facilitate this process, purchasers must visit a DOL office or a Quick Title office. At the office, they must complete a Vehicle Certificate of Ownership (Title) Application (Form TD-420-001) and submit the title received from the seller, a Bill of Sale, an odometer disclosure statement if applicable, a lien release document if there's an outstanding lien, and the registration fees.
In addition to in-person registration, individuals can register by mail. To do this, they must submit the above documents to the address below.
Refunds and Title Services
Department of Licensing
PO Box 9043
Olympia, WA 98507
Buying a Vehicle from a Licensed Dealer in Washington
Opting for a licensed dealer offers distinct advantages compared to private sellers when purchasing a vehicle in Washington.
Typically, buyers enjoy the convenience of having the dealer handle the registration process, thereby reducing the paperwork load. Additionally, licensed dealers are obligated to adhere to state laws, guaranteeing that the transaction is free from any potential complications.
Despite these advantages, buyers should remain vigilant and must consider the following to enjoy a hassle-free experience when purchasing from a licensed dealer in Washington:
Licensed Dealer Check
Before conducting a transaction with a dealership in Washington, buyers must check if such a dealership is licensed. This step is in accordance with the Revised Code of Washington Section 46.70.021, which mandates that it is unlawful for any person, association, or firm to act as a vehicle dealer without first obtaining and holding a current license.
Verifying a dealership's license status is paramount to secure a transaction that complies with the state's laws. Furthermore, knowing that a dealership is licensed provides buyers with protection and options for resolution in case of any issues or disputes arising before or after the purchase.
To confirm a dealer's license status, purchasers can request the necessary licensing proof from the dealership directly. Alternatively, individuals can contact the DOL customer service line at (360) 902-3770 to inquire about the license credentials of a specific dealership.
Buyer's Guide
When buying a used car in a Washington dealership, it is best to be familiar with the Buyer's Guide mandated by the Federal Trade Commission (FTC).
The Buyer's Guide is a document that includes information about the car's major mechanical and electrical systems, highlighting any significant issues that potential buyers should be aware of before making a purchase. Furthermore, it indicates whether the vehicle is being sold "as is" or with a warranty.
If purchasers encounter any problems or concerns with their purchase, the guide also provides the dealer's contact information, allowing buyers to communicate and resolve any issues that may arise.
For accessibility, most dealerships are required to prominently and conspicuously display the guide.
Warranties
Warranties are vital in protecting consumers if a vehicle has significant issues. Hence, buyers must pay close attention to the warranty terms when purchasing a car from a dealership in Washington.
As mentioned, the Buyer's Guide will specify if a warranty is offered for a specific vehicle. It will outline the warranty type, any restrictions or exemptions, and the extent of repair expenses the dealership covers.
By carefully comprehending the warranty provided, buyers can preemptively address potential coverage disputes. They can also avoid unforeseen out-of-pocket expenses for repairs not covered under the warranty.
Written Contract
When purchasing a vehicle from a dealership, it is crucial to understand the contract before signing.
Unlike other states, Washington has no 3-day cooling-off period to cancel a vehicle purchase. This means that buyers are legally obligated to adhere to the contract's terms once the contract is signed.
To protect themselves, buyers must follow a few fundamental guidelines.
Firstly, buyers must never sign a contract that has blank spaces. Either cross out the blank spaces or fill them appropriately to avoid any unauthorized additions or modifications to the agreement.
Additionally, buyers must confirm that any verbal commitments made by the dealer regarding services, improvements, or changes are documented in writing. They must also verify that all finance charges, insurance costs, taxes, and other charges under the contract align with the negotiated terms.
If there are discrepancies between what was agreed upon and what is stated in the contract, insist on corrections before finalizing the deal to avoid future complications.
Washington Lemon Law
The Washington Lemon Law is a vital piece of legislation that safeguards the rights of new vehicle owners who encounter persistent issues with warranty repairs. It assists individuals facing ongoing problems with their newly purchased or leased vehicles in Washington.
While the law generally covers most new motor vehicle classes, it has a few exceptions. Motorcycles with engine displacements of less than 750 cubic centimeters, trucks with a gross weight rating equal to or over 19,000 pounds, and vehicles acquired or leased by a business as part of a fleet of ten or more are not covered by the Washington Lemon Law.
A vehicle must meet at least one of the following criteria to qualify as a lemon under this law:
- Has a serious safety defect that has been unsuccessfully repaired two or more times, with at least one repair attempt during the warranty period
- Has a nonconformity defect that has been unsuccessfully repaired four or more times, with at least one repair attempt during the warranty period
- Has been out of service for a total of 30 calendar days, with at least 15 of those days falling within the warranty period
The owner can request an arbitration hearing if a vehicle meets the Lemon law criteria. During this hearing, an arbitrator will assess whether the claim qualifies under the Lemon Law.
If the arbitrator determines that the vehicle is indeed a lemon, the owner will have the option to choose between repurchase or replacement of the car as per the provisions of the law.
What Are the Fees for Buying a Car in Washington?
Individuals in Washington will face various fees when purchasing a vehicle, which are typically due during registration. Here are the standard fees that buyers must be aware of:
Sales Tax
Washington's current motor vehicle sales tax is 6.8% of the purchase price. However, this tax rate can vary as jurisdictions in the state impose local sales taxes.
Registration Fee
Buyers must register the purchased vehicle to make it legal to operate on public roads. The base registration fee in the state is $43.25, but the final cost differs based on the vehicle's weight, the location where it will be registered, and the applicable taxes.
Individuals can utilize the Vehicle Tab Estimator platform to estimate the registration fee applicable to a certain vehicle.
Service Fee
The service fee for registering a vehicle in Washington is $8, while the service fee for titling is $15.
License Plate Fee
When obtaining a license plate for a purchased vehicle, a $50 fee applies.
Note that certain counties and districts within the state impose additional fees during vehicle registration, such as the Regional Transit Authority Tax and Local Transportation Benefit District Fees.
To see a complete list of all applicable fees when purchasing a vehicle in the state, consult the Calculate Vehicle Tab Fees page on the official DOL website.
What Are the Insurance Requirements for Vehicles in Washington?
In Washington, vehicle operators must have adequate insurance coverage or an alternative method of assuming financial responsibility for any damages incurred when driving. To comply with this requirement, individuals must obtain either motor vehicle insurance, self-insurance, a certificate of deposit, or a liability bond for their registered vehicles in the state.
When opting for motor vehicle insurance, the policy must have the following minimum limits:
- $25,000 for bodily injury or death of one individual in any accident
- $50,000 for bodily injury or death of two or more individuals in any accident
- $10,000 for injury to or destruction of property in any accident
If individuals own 26 or more vehicles, they may qualify for self-insurance. The DOL can provide further information regarding this option.
Alternatively, interested parties can apply for a certificate of deposit or a liability bond, both of which require a minimum value of $60,000.
Regardless of the chosen insurance option, drivers must always carry proof of insurance while operating a vehicle in Washington. Failure to provide proof of insurance is considered a traffic infraction and may result in a misdemeanor charge, a fine of $550 or more, and potential license suspension if found at fault in an uninsured collision.
If individuals operate mopeds, horseless carriages over 40 years old, state or publicly-owned vehicles, or contract or common carrier with the Washington Utilities and Transportation Commission, they are exempt from this insurance requirement.
Can a Non-Resident Buy a Car in Washington?
Non-residents are allowed to purchase and register vehicles in Washington. However, they must familiarize themselves with the specific requirements and procedures involved.
If non-resident buyers plan to register the vehicle in their home state, they must adhere to the requirements set by their respective state.
On the other hand, if they choose to register the vehicle in Washington, they must do so within 30 days of establishing residency.
To register a vehicle, non-residents must visit a DOL office. During this visit, they must submit essential documents such as proof of residency, vehicle title, Bill of Sale, odometer disclosure statement (if applicable), and lien release document (if applicable). They must also pay the relevant registration fees and taxes to finalize the process.