How To Make Sure Your "New" Used Car is Really Yours (In The Eyes of the Law)

You’ve just found the perfect vehicle. You did a great job in the negotiation process. The exchange of title work and payment went smoothly, without a hitch.

Then you discover it. Actually you don't discover it, the Motor Vehicle Division does. There are problems with your new vehicle's paperwork.

The good news is this doesn't have to happen to you. With a little bit of planning and information, this situation is avoidable. Below are some tips to help protect yourself.

Proper sign off by seller:
Check the title to make sure the person you're buying from has signed off as the seller. Different states have different (and specific) requirements on which owners are required to sign as seller. Call us at FooteWork and we can tell you exactly what you need to do.

If the state is a notary-requiring state, make sure both the signature is notarized and the notary stamp is current. But not all states require a notarized signature. For example, Arizona is a notary state whereas California is not.

Lien release:
Make sure there are no existing liens on the vehicle. If the title shows a lien, then make sure a lien release accompanies the title. Check to see that the lien release has been signed and notarized. In some states, such as Arizona’s newest version of its title, the lien holder can actually sign off on the title itself. But don't forget to make sure that signature is notarized.

In most cases, a lien release is not required if the lien is 12 years or older. Check with us for the details.

Make sure you have the original lien release -- no copies are accepted.

Internet:
If you're buying a vehicle over the Internet via one of the many vehicle-buying Web sites, you need to do a little extra homework. Many times people have come into FooteWork after buying a car over the Internet without having all the necessary documents.

If you're buying from an out-of-state dealership, they may or may not charge you sales tax. (It depends on the circumstances.) You must bring in your contract or bill of sale when registering the vehicle in Arizona. If the dealership didn't charge you sales tax, Arizona law states that we must collect 5.6% sales tax.

Keep in mind if you live in one of the Arizona Department of Revenue participating cities, you will receive a letter, sometimes up to a year later, requiring you pay the difference from that city sales tax and the 5.6% you paid when you registered the vehicle. For example: Prescott's sales tax is 8.35%. We collect 5.6% for state and county. The city then sends notice you owe an additional 2.75%.

As a FooteWork customer, we'll explain this situation to you so you'll be prepared when the letter from the city arrives.

Almost every vehicle has a title. Only certain vehicles will have just a registration or bill of sale. Call our office once you’ve decided on a vehicle and we'll be glad to check that states title requirements.

Private party sale:
If the vehicle was purchased by a private party, either within Arizona or elsewhere in the country, there is no sales tax collected. Once again, call us to check on the title requirements if purchased out of state.

Vehicle inspection:
If the vehicle has an Arizona title, a Level I inspection is not required. If the vehicle has a title from any state other than Arizona, you'll need a Level I inspection.

FooteWork can do this inspection for you – either at our office or at your location. The inspection accomplishes a few things. It verifies the VIN, odometer and vehicle make, model, cylinders and color. The inspection takes less than five minutes.

Odometer:
The last thing you should check is the odometer. Make sure the miles are correct and you're buying a vehicle with known A, B or C miles. Call our office and we’ll be happy to explain this to you.

As buyer, you're not required to sign the back of the title when you purchase the vehicle. In some situations a signature is required, we'll have you sign it when you register your "new" used car at FooteWork.