Car dealers present the entire car-buying process as a quick and painless effort – but it isn’t that easy. You can’t just ride away in your brand new car without completing a few formalities that can’t be delayed.
From getting car insurance to scheduling maintenance, there’s a lot that needs to be considered.
Read on to know things that you need to do after buying a new or a second-hand car.
#1 Get Insurance
No matter where you live, the law demands every car owner to have an insurance policy. Especially in Canadian provinces, the laws are pretty strict. Getting a car in Ontario? Get insured today!
Generally, it is required to insure your car before you drive it off the dealership’s lot. However, many insurance companies provide a grace period to add a new vehicle to your existing auto insurance policy.
The absence of car insurance can put you in trouble, including the suspension of your driving license.
#2 Register the Car
For you to legally drive your car, it’s essential that you have a registration certificate. Register with your state’s Department of Motor Vehicles as soon as you buy your car.
You would need to submit documents like bill of sale, proof of insurance, odometer reading, payment method, identification, and title of your vehicle.
You must have your registration certificate every time you’re behind the wheel. Otherwise, it could cost you a heavy fine, or your vehicle can be impounded.
#3 Ask the Dealer for Title
A car title is a legal document establishing proof that you’re the owner of the vehicle. Issued by the state where you have purchased the car, it gets reissued at the time of each new owner and each new state of residence.
If you have made the payment in cash, the dealer will get done with the paperwork, and you will get the original title within 30 days of your purchase.
However, if you’ve taken out financing for buying your car, you’ll get a copy of the title and will receive the original title once you’ve paid the entire loan.
#4 Get the Bill of Sale
When you buy a new car, you must ask your dealer for a bill of sale. Similar to a receipt, it’s a legal document used to record the transfer of ownership at the time of selling or buying an automobile.
It entails information, such as personal information of the buyer and seller, date of sale, cost of purchase, warranty information, and description of the car.
While it’s useful for both parties, it also helps the DMV ( Department of Motor Vehicles) to keep a record of all car sales.
Moreover, in many states and countries, this document is also used to determine sales tax.
Other than these points, make sure you keep all the car-related paperwork safe in a file.
You can get anything changed from the DMV as long as you have all the necessary documents, such as a bill of sale and insurance certificate.
Moreover, ensure you always carry your registration certificate and proof of insurance in your car. This would help you avoid trouble with law enforcement.