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Take These Steps After Buying Your Vehicle

Finances | By Lauren Kim | 0 Likes
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Now that you’ve purchased your new ride, you’re likely itching to get it on the road. But first, take care of the following details so you can do so legally.

Cars

Insure your car

You will likely have taken care of this step before buying your new car, SUV, or pickup truck—since nearly every state requires at least some coverage, including liability coverage, to legally drive a vehicle. You also typically need proof of insurance to secure a car loan. In fact, most dealerships won’t let you drive your newly purchased vehicle off the lot without it.

However, a private seller is much less likely to ask for proof of insurance, so you may find yourself shopping for policies after buying your car. And if you already have a policy on an old car, you should get a grace period that allows you to update it with your new ride up to thirty days after your purchase.

In addition to the minimum coverage your state requires, you might want to add other types, including comprehensive coverage—which can help pay for repairs needed after vandalism, hail, fire, or other unexpected events—and coverage for uninsured and underinsured motorists, personal injury, and collision. To find a plan that’s best for you, compare providers, policies, and rates online or ask for assistance from an insurance professional.

Get your title

In addition, you’ll need to transfer your new vehicle’s title to you. This state-issued legal document will serve as proof that you own the vehicle and should include information like the state that issued it and its issue date, plus your vehicle’s VIN and mileage.

If you purchased your vehicle outright from a dealership, they likely will secure your title for you. (When financing, though, the lender typically holds the title until the loan is paid in full.) If you bought your vehicle from a private seller, they’ll need to sign the title over to you. You can then take it to the DMV to have a new one issued. To complete the transfer, your state might also require you to present documents like the bill of sale.

Man driving car

Register your vehicle

Once you have your title, you can register your vehicle at your local government agency; dealerships will often register your vehicle for you. In many states, you must register your new vehicle within a month of purchase. In addition to the title, you’ll need to show additional documents, including your driver’s license, bill of sale, proof of insurance and residency, and loan documents. After your vehicle is registered, your state will issue your permanent license plate and any tags you may need.

Plan for maintenance

If your vehicle is brand-new, simply check with the dealership or manual for when it should get its first tune-up and make note of that date or mileage. If it’s pre-owned, though, you’ll want to arrange for a thorough inspection of its major systems, including its engine and transmission. (Unless you already had the car inspected when you were considering it for purchase.)

Become acquainted

Get to know your vehicle by reviewing the controls, fiddling with the dash, and studying its owner’s manual—some of your vehicle’s features might be new to you, so you’ll want to understand how they work before driving. Now that you’ve got all the technical stuff out of the way, you can move to the fun part—playing around with your vehicle to learn it inside and out. And then, once you’re ready, you can take it for a spin and truly enjoy it.

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