Like in any other state, buying a car in Delaware is considered a significant investment. As such, it is natural for the process to be accompanied by a certain level of stress. However, by familiarizing with state-specific regulations, potential car buyers can eliminate unnecessary complications and make the vehicle purchasing process go smoothly.
The Delaware Division of Motor Vehicles (DMV) requires specific documentation and steps to be satisfied when purchasing a vehicle. These include acquiring the essential paperwork, properly transferring the title, and ensuring the car is registered correctly.
The state also enforces several laws that protect buyers from defective vehicles. These laws are critical for assuring that buyers avoid ending up with a car with undisclosed issues or that does not meet safety standards.
By comprehensively understanding requirements and relevant protective laws, car buyers in Delaware can evade potential legal issues and shield themselves from fraudulent practices.
What Is the Process for Buying a Car in Delaware?
The process of purchasing a car in Delaware encompasses several vital steps that differ slightly depending on whether the transaction occurs with a private seller or a licensed dealer. Potential buyers must learn both options' specific state requirements and procedures to guarantee a successful purchase.
Buying a Vehicle from a Private Seller in Delaware
When considering purchasing a vehicle from a private seller in Delaware, one can stumble upon truly advantageous deals. Unlike the constraints of dealership negotiations, private owners often offer more flexibility.
However, this route can quickly turn into a headache if approached without caution. Therefore, buyers must be well-versed in the following steps to secure a successful private vehicle purchase in Delaware:
Title Verification
Title verification is of utmost importance when purchasing a vehicle from private individuals in Delaware. Not only is the title necessary for the transaction, but it also plays an integral role in providing buyers with critical information about the vehicle.
One of the primary purposes of a title check is to confirm the ownership of the vehicle. By verifying that the seller is the legitimate owner, buyers can avoid potential scams or fraudulent transactions.
To perform a title verification, request to see the vehicle's title from the seller. Buyers should then carefully examine the front of the title and confirm that it accurately describes the car they intend to purchase.
If any red flags about the title arise or its authenticity is questionable, buyers should avoid the deal or contact the DMV for assistance.
Vehicle History Report
An important step that buyers must take when purchasing a vehicle privately in Delaware is to perform a vehicle identification number (VIN) check and obtain a vehicle history report (VHR).
A VHR is a comprehensive document that provides detailed information about a vehicle's history. It offers buyers transparency and peace of mind by revealing potential issues or red flags that may not be visible during a visual inspection.
The report also provides accurate information about the vehicle's mileage, previous accidents, and any significant repairs or damages. It will indicate if the car has been involved in incidents such as flooding, has a salvage title, or has been rebuilt. Such information should be considered before purchasing, as it may impact the vehicle's future performance.
To acquire a VHR, buyers can turn to reputable third-party services like Carfax or AutoCheck. These platforms typically require VIN and a fee to provide a detailed report.
Alternatively, interested parties can request vehicle records from the DMV. To do so, they must complete the Personal Information Release Form, have it notarized, and submit it to any local DMV office.
If visiting a DMV office is not feasible, one can submit the form and payment to the address below:
Division of Motor Vehicles
ATTN: Correspondence Section
P.O. Box 698, Dover, DE 19903
For more information or guidance about acquiring vehicle records in Delaware, contact 302-744-2538.
Odometer Disclosure Requirement
Understanding the Odometer Disclosure Requirement is also crucial for individuals purchasing a vehicle privately in Delaware. This requirement entails documenting the vehicle's mileage at the time of sale or transfer of ownership, which is necessary during vehicle registration.
Buyers, in particular, benefit significantly from the odometer disclosure. It accurately provides mileage information about the vehicle being purchased, which is essential for evaluating its condition and value. It also safeguards against potential odometer tampering, protecting buyers from fraudulent practices.
While disclosing the odometer mileage when transferring vehicle ownership in Delaware is mandatory, there are certain exceptions to this rule. Specifically, vehicles aged ten years or older, commercial vehicles weighing over 16,000 pounds, and non-motorized vehicles are exempt from this requirement.
Vehicle Inspection Certificate
Acquiring a vehicle inspection certificate should be a top priority for buyers when engaging in private-party transactions in Delaware. This certificate serves as tangible proof that the vehicle has undergone a thorough assessment, which discloses its overall condition.
Delaware's vehicle inspection process primarily entails safety and emissions inspections.
The safety inspection confirms that the vehicle complies with all safety standards and is fit for road use. It identifies potential safety concerns or mechanical issues that may not be immediately apparent during a visual examination.
Conversely, the emissions inspection delves into hidden problems, revealing underlying issues such as engine malfunctions, brake deficiencies, or structural damage.
Successfully passing both examinations provides buyers with confidence in their prospective purchase.
To conduct a vehicle inspection, simply bring the car to any DMV facility. This service is free, making it accessible for all buyers looking to confirm the quality and safety of their investment.
Ownership Transfer
In Delaware, transferring ownership of a vehicle from a private seller involves a series of crucial steps to guarantee a smooth transition. The DMV recommends the physical presence of both parties during the transfer process to accurately complete the relevant sections on the title document.
For Delaware residents engaging in such a transfer, the seller is responsible for filling out the Assignment of Certificate of Title section on the back of the title. This entails providing essential details such as the buyer's name, address, date of sale, purchase price, and Odometer Disclosure.
If the ownership is indicated as "AND," all sellers must sign and print their names; if it's "AND/OR," only one seller's completion suffices.
Subsequently, the buyers must complete the Purchaser's Application on the reverse side of the title with precise information as desired on the title. This includes driver's license number and date of birth, and all buyers must sign the application. Buyers must also fill out the Lien Section if the vehicle is under financing.
Upon furnishing all the required details, the buyer can obtain the title certificate from the seller, thus finalizing the ownership transfer process.
License Plate and Registration
License plates and registration should be obtained after a vehicle's ownership is transferred to the buyer in Delaware.
Per regulations, the seller is responsible for removing the license plates, while the buyer is responsible for registering the vehicle and obtaining new license plates.
To initiate the registration process, the buyer must gather the required documents, including the signed over title, proof of insurance, and payment for the registration fee. These items should be brought to the DMV office. Once the registration is successfully processed, the buyer will be issued new license plates for the purchased vehicle.
It is important to note that the vehicle should only be operated once a new title is issued in the buyer's name. Also, failure to title within 30 days of purchase will result in a $35 late fee.
Bill of Sale
When purchasing a vehicle from a private seller in Delaware, it is advisable to utilize a bill of sale. Although the Delaware DMV does not explicitly require it, this document is vital for safeguarding both the buyer and the seller from future ownership disputes.
Typically, a comprehensive bill of sale includes details such as both parties' names, signatures, and addresses. Additionally, it should outline specific information about the vehicle, including the VIN, make, model, year, odometer reading, and final purchase price.
Numerous bill of sale forms are available online for those needing a sample template. These are customizable to suit the specific requirements of the transaction at hand.
Buying a Vehicle from a Licensed Dealer in Delaware
When considering purchasing a vehicle in Delaware, buying from a licensed dealer offers distinct advantages over purchasing from a private seller. These advantages include the assurance of legal compliance, access to a broader range of vehicle options, and consumer rights protection.
However, given these advantages, buyers must still consider various things when purchasing from a licensed dealer. These include:
Licensed Dealer Check
As mandated by Delaware Code Section 6302, any entity is prohibited from conducting the business of buying, selling, or dealing with vehicles in the state without a DMV's valid dealer's license.
Hence, if choosing to purchase a car from a dealership in Delaware, it is critical to check if the dealership is licensed. This step guarantees legality and can give buyers confidence during the transaction.
Prospective buyers can quickly check the licensing status of a Delaware dealership through the official Dealership Look-Up page. Alternatively, individuals can seek assistance verifying if a dealer is licensed by visiting or contacting a local DMV office.
Buyer's Guide
Individuals should be mindful of the Buyer's Guide when purchasing a vehicle from a Delaware dealership. The Federal Trade Commission (FTC) mandates that this guide be prominently and conspicuously displayed on or within the car.
As per regulations, the Buyer's Guide must contain relevant information, including the vehicle's make, model, year, and VIN, along with the dealership's name, address, and contact details for addressing complaints. It should also disclose the vehicle's significant issues and the warranties covered.
With these guidelines, consumers in Delaware can be equipped with crucial information to navigate their vehicle purchase confidently.
Warranties
Warranties serve as a protective shield against unforeseen repairs or issues with the purchased vehicle. Buyers must be accustomed to these when buying a car from a Delaware dealership.
As mentioned, the Buyer's Guide will disclose relevant information about warranties.
It will outline if the vehicle is being sold as is or with a warranty. It will also specify the coverage and the percentage of repair costs the dealer is liable to pay under warranty. Additionally, the guide may mention if the manufacturer's warranty still covers any components.
Carefully reviewing and understanding the warranty details is highly suggested to buyers. Doing so can avoid disputes about coverage and unexpected repair costs not covered by the warranty.
Delaware Lemon Law
The Delaware Lemon Law, administered by the Attorney General's Consumer Protection, is a vital consumer protection law referred to as the Automobile Warranty Law. This law, confined in Delaware Code Title 6, Chapter 50, outlines remedies for individuals who encounter defects in newly purchased or leased vehicles.
The scope of the Delaware Lemon Law encompasses all new cars and trucks acquired or leased within the state. It also covers nonconformities with the expressed warranty of the vehicle that hinder its use, safety, or value.
A vehicle must meet the following conditions to qualify as a "lemon" under the Delaware Lemon Law:
- The vehicle possesses a defect or condition that significantly impairs its use, value, or safety.
- The manufacturer has attempted to fix the issue at least four times, or the vehicle has been out of service for at least 30 days.
- The defect must arise within the first year of purchase or during the warranty period.
If the vehicle meets the Lemon Law criteria, the available remedies are as follows:
- The manufacturer must provide a comparable replacement vehicle.
- The manufacturer must repurchase the lemon vehicle and cover associated costs, such as sales tax, registration fees, and finance charges.
If the issue remains unresolved, individuals can pursue a lemon law claim in Delaware. When doing so, keeping records of the defective vehicle's service history and any correspondence with the manufacturer or authorized dealer is important.
For further assistance regarding Delaware Lemon Law, contact a representative from the Consumer Protection Unit at 302-577-8600 or 800-220-5424.
What Are the Fees for Buying a Car in Delaware?
In Delaware, there are several fees associated with buying a car. These fees are typically paid upon ownership transfer and registration. Here are the standard fees that buyers should be mindful of:
Documentation Fee
The current documentation fee in Delaware is 4.25% of the vehicle purchase price or the National Automobile Dealers Association (NADA) book value, whichever is greater.
Registration Fee
The registration fee in Delaware differs based on the type and weight of the vehicle. However, passenger vehicles generally cost $40 per year.
Title Transfer Fee
The title transfer fee in Delaware is $35 if the car does not have a lien. But, this fee rises to $55 if the vehicle has a lien.
What Are the Insurance Requirements for Vehicles in Delaware?
Delaware's insurance requirements for vehicles are governed by the Delaware Code Title 21 Section 2118. These requirements ensure that all vehicles registered in the state have the necessary insurance coverage to protect against potential accidents and damages.
According to the code, every vehicle in Delaware must have the minimum liability insurance coverage, which includes:
- $25,000 for bodily injury or death of one person
- $50,000 for bodily injury or death of two or more persons
- $10,000 for injury to or destruction of property of others
Additionally, Delaware requires Personal Injury Protection (PIP) coverage, with a minimum of $15,000 for one person and $30,000 for all persons injured in a single accident.
Failure to have the proper insurance coverage can result in severe consequences. If convicted, the first offense carries a fine of not less than $1500, while subsequent offenses within three years of the first offense can lead to a fine of $3000. Furthermore, driving licenses and privileges can be suspended for at least six months.
Can a Non-Resident Buy a Car in Delaware?
Non-residents can purchase a car in Delaware, but specific conditions and requirements must be met.
Non-residents must obtain a temporary tag to legally drive the newly purchased vehicle to their home state. This temporary tag is only valid for five days and is available for $20 at any Delaware DMV office,
To acquire this tag, the buyer must provide a driver's license or ID, valid proof of insurance for the vehicle being purchased or another vehicle titled in their home state, a bill of sale or a certificate of title signed over to the purchaser, and details of the VIN, make, and year.
If a non-resident wishes to register the vehicle in Delaware, they must first establish residency in the state. After establishing residency, they can register the car within 60 days.