How to buy a car in Oregon
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Oregon is a gem of the Pacific Northwest, famous for its unique landscapes, music, “weird” culture, and even cars that can handle the sporadic changes in weather. If you are reading this article, you’re probably wondering how to buy a car in Oregon, and the good news is that the state is very similar to other states in the country. There are a few state specifics to consider, mainly based on DMV forms and certain laws for vehicles.
We’ll assume you’ve done your research and found a car you love and this will focus on some of the finer details the state requires for vehicle purchases. Of course, you’ll want to test drive, negotiate, and make sure your budget is set up, so this article will focus more on the specifics you’ll need to prepare. In general, buying from a dealer is the same for both new and used cars, but this will highlight the differences in choosing a private seller.
How to Buy a Car in Oregon (Dealership)
A new law requires certain Oregon companies to pay a new Corporate Activity Tax (also known as CAT) that began on January 1, 2020. Car dealerships in Oregon are entitled to essentially pass this expense of the CAT to customers buying vehicles from them, so it would be wise to check with the dealer if they add that on.
If you’re planning on buying a vehicle from another state, make sure the dealer filled out the appropriate paperwork for Oregon residents to eliminate the sales tax.
A nice benefit that Oregon offers consumers to take their car home even if financing is not yet finalized is called the Spot Delivery rule. The ultimate goal is to make it easier to complete a deal and get you and the dealer somewhat locked into an agreement.
However, if you are unable to obtain financing on the same terms on which you signed an agreement, or if financing is not completed within 14 days, you must return the vehicle to the dealer who will then return your down payment or trade-in.
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Fees
Fortunately, Oregon has a 0% automobile sales tax, which means there is no tax on a new or used car purchase in the state by permanent residents. Unfortunately if you live out of state, you’ll have to pay the tax in your home state where the vehicle will be registered.
You should be prepared at the dealership with your down payment or deposit, as well as an extra $150 documentation charge and a destination fee. The $150 is the maximum amount a dealership can charge if using an integrator, or at most $115 if the dealership does NOT use an integrator. This can be found in the Oregon code ORS 822.043.
Oregon does require emissions testing so while on your test drive, it’s a good opportunity to go to a DEQ Clean Air Station where they can provide a free emissions inspection. You can get your vehicle to the Oregon Department of Environmental Quality (DEQ) for emission tests by searching nearby locations.
Paperwork
Thankfully the state of Oregon keeps it fairly simple with paperwork based on dealership transactions and require the following:
- A vehicle title copy
- Application for Title and Registration (form 735-226)
- Bill of Sale (see form 735-501)
- A release of lien if the vehicle was financed
- Odometer disclosure for vehicles under 10 years old (form 735-403)
- Title fee: $98 to $187
- Registration fee: $112 every two years
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How to Buy a Car in Oregon from (Private Seller)
Assuming that you’ve done your negotiating, test drives, and inspections, this is the paperwork required from the state based on a private seller purchase. The state of Oregon does not recommend proceeding with a private seller if they cannot provide the original title or obtain a duplicate copy based on DMV registration requirements, but there are options to replace the missing title.
If the vehicle’s title is lost or damaged, you or the current owner may apply for a new one by submitting a completed Application for Replacement Title. You’ll need to file a signed Bill of Sale to the DMV to confirm transition of possession.
Other documents:
- Make sure the current owner(s) fill out form 515 (Application for Replacement Title)
- Confirm the general information of the owner and have them complete form 226 (Application for Title and Registration) and make sure your information is correct (name, address, date of birth, etc.)
- Release of interest from previous owner
- Bill of Sale or Statement of Lien Satisfaction (form 524)
- Obtain previous owner’s DEQ Emissions test report, or take it yourself
- Have the owner fill out odometer disclosure document
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How to Buy a Car in Oregon and Meet Insurance Requirements
You can’t register your car in Oregon unless you have the minimal proper auto insurance for the state and the DMV will confirm your policy information before they finalize the registration. These are the required coverages and fees in order to buy a car in the state:
Bodily injury and property damage liability
- $25,000 per person
- $50,000 per crash for bodily injury to others
- $20,000 per crash for damage to others’ property
Personal injury protection
- $15,000 per person
Uninsured motorist
- $25,000 per person
- $50,000 per crash for bodily injury.
How to Buy a Car in Oregon (out of State Vehicle)
In addition to all of the requirements listed above, the Oregon DMV requires a few additional steps when registering a purchased car from out-of-state:
Certificate of Origin from the manufacturer
- Needed for new vehicles without a title
A vehicle identification number (VIN) inspection certificate from any of the three:
- The DMV
- A licensed vehicle dealer
- An emissions testing center
The current out-of-state registration.
A completed Vehicle Title which includes:
- An odometer disclosure (only for vehicles under 10 years old)
- The purchase price and date of sale
- Full name signatures from both buyer and seller
- Oregon emissions certificate
- A Bill of Sale (form 735-501)—is required when no title is present, but is also recommended for any vehicle transactions as a record of your purchase.
And that’s it! Pretty simple options on how to buy a car in Oregon when you compare the state to some of its neighbors. Ultimately the choice is yours, but there are benefits to buying from a dealership if you want to expedite and simplify your process.
After you finish researching, finding, and buying your car, the majority of your effort will come from gathering the proper paperwork to submit to the state. Just make sure you follow the guidelines outlined above and you will be off in no time.
