How to Buy A Car In Michigan
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Live in Michigan and on the hunt for a new or used car? Lucky for you, finding out how to buy a car in Michigan isn’t that hard. There are not a lot of complicated laws and restrictions regarding the sale or purchase of one.
There is a process to buying a car that can be a little tedious, but that should be expected with any type of larger purchase that involves ownership change, paperwork, banks, contracts, and other necessities. Read on to learn more.
Buying a New Car in Michigan from a Dealership
If you’re not familiar with the car buying process and you really don’t want to become familiar with the process, it is best to just purchase a car from a dealership. Yes, for some people, going to a dealership and talking to a salesperson can be about as fun as going to the dentist.
But this saves you a trip to the Secretary Of State (SOS) or Department of Motor Vehicles (DMV), which, if you hate dealing with a salesperson like you hate dealing with the dentist, a trip to the SOS or the DMV would be like going to see the dentist with the aggravation x100.
At the dealership, they will provide you with all the necessary forms and ownership documents. They will charge you for all the needed fees and taxes that have to be paid. In many cases, that is worked out in the loan agreement or down payment. Next, they will purchase or transfer your license plate for you and file the title application with the SOS or DMV branch office within 15 days from the date you purchased the vehicle.
Before you sign any papers, you should make sure that all features, options, and equipment that is agreed upon are with or installed properly on the car. There should be no excuses for this matter. If you are not getting what you want, do not sign the papers. And last but not least, by law, all copies of all documents that you have signed should be handed over to you for your own records.
GET THE SAME INSIDER INFO THAT DEALERSHIPS USE
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Documents that should be included
- A copy of the financial agreement (loan or lease).
- A new license plate and registration. If you’re purchasing a new plate, a 15-day temporary registration paper plate for the rear window will be provided.
- If you’re buying the vehicle new, a copy of the odometer mileage statement.
- If you’re buying used, a copy of the buyer’s guide window sticker.
- A copy of the Application for Michigan Title - Statement of Vehicle Sale (RD-108).
- A copy of any written warranty from the factory and from the dealership on the car or any servicers purchased (extended services contracts, rustproofing, etc.).
Buying a Used Car from a Dealership
If you purchase a used vehicle from the dealer, the dealer must show you the title from the previous owner/s. Take a close look at everything and make sure everything is correct. If the title is orange, that means it is a “salvage title.” This will tell you at one point in its lifetime, the car was damaged enough to diminish the value of it (bad accident, flooding, fire, etc.).
All sellers must provide you with a salvage disclosure form if the vehicle is under 8,000 pounds and less than six years old, or over 8,000 pounds and less than 16 years old.
Between buying a new or used car from a dealership as opposed to buying one from a private owner, the dealer route is the easiest way to go. But there are some perks from buying from a private owner as well.
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Buying a Car from a Private Owner
You’ve shopped around and found that perfect car that you are looking for with the right price tag, but it’s from a private owner. Before you hand over a hefty check and jump in and start enjoying your new purchase, you have to title, register, and plate the vehicle.
It is best if both the buyer and the seller head to the SOS or DMV offices together to complete all of the title transferring business. But if that can’t be accommodated, you need to make sure you have a few done and a few things in-hand before you leave and head to the SOS or DMV.
If the car you are buying is a newer car, there might be a lien (loan) on that vehicle. That will have to get cleared up before any title transfer can take place. A statement from the financial institution or a signature on the title itself stating that the lien has been terminated will free up the title for transfer.
If and when all that is cleared up, before the seller hands you the title, make sure he/she fills out the seller’s portion of the title, including the odometer disclosure statement, and make sure they sign it. Just make sure when you get the title, both the Vehicle Identification Number and the odometer reading match the number on the car.
You do have three days from the purchase date to drive your vehicle directly home without a plate. Just make sure you have the title and proof of insurance with you. Never drive home with a plate that is not valid to the car; that will get you a huge ticket.
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Insuring a Car Before You Drive it Home
A lot of people take the risk and don’t put insurance on a car until they have purchased it and driven it home. It doesn’t seem like that big of a deal, but it could be. It only takes the blink of an eye to get into an accident, and since Michigan is a no-fault insurance state, even if you did nothing wrong, all damages that occurred to your vehicle will come out of your pocket. Also, you could get pulled over by the police. No-proof of insurance isn’t that big of a deal, but having no insurance is, and you will probably get a pricey ticket for the risk you took or even get your car towed.
A few perks to buying from a private owner is they don’t have a set bottom line price they have to follow set by a manager. You can try to work a private owner down with good negotiating tactics. You also won’t have to worry about getting follow-up phone calls from your salesperson if you decided not to buy. And you won’t have to worry about junk mail or emails on big sales the dealership is having.
Bottom Line
If you don’t want to know how to buy a car in Michigan outside of deciding what you want, then go to a dealer. If you want something specific to your taste that you won’t find at a dealer, most likely you will have to do a little bit more legwork and suffer a little bit more hassle. But having your paperwork all ready to go with all the Ts crossed and Is dotted can make for a much more pleasant trip to the SOS or DMV.
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The best part? CoPilot is built using the same technology that dealerships use to buy and sell their inventories, so we have more info on each vehicle than competitors. CoPilot doesn’t work with dealerships, so there are no sponsored posts or other shady practices - just the most info on the best cars. Check out our About Us page to see how CoPilot works.
