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Buying or selling a used vehicle? If you plan to buy or sell a used car or truck, the Texas Department of Transportation (TxDOT) has some helpful tips. Where to start — Buyer Beware Buying a used vehicle can be risky. Once you pay for a car, you have limited recourse if you are dissatisfied. Choose carefully. The better you know the person selling the vehicle, the greater your chances of a successful transaction. Before making an offer, research the vehicle’s fair market value. Public libraries have reliable publications. Additionally, many car-related Web sites list fair market values for automobiles. The market value can be used as a bargaining tool during negotiation. Test drive the vehicle so both parties will be aware of its driving condition. Have it inspected by a mechanic. Some companies will come to a vehicle’s location and inspect it for a fee. Keep in mind the old adage, “if it sounds too good to be true, it probably is,” applies to buying a used vehicle. Buying from an individual Texas law requires the seller to disclose to the buyer how many miles the vehicle has traveled. Typical mileage is 15,000 for each year of age for the vehicle. Ask the owner to show you the title. A soiled or smudged area on the title over the odometer reading may indicate the title has been altered. Compare the mileage on the title with the vehicle’s current odometer reading. Buying from a dealer Ask for a vehicle history report. This report provides reliable and accurate information on a vehicle such as salvage or junk title, rebuilt or reconstructed title, flood damage title, damage disclosure, manufacturer buyback (lemon law), salvage auction record, odometer rollback or rollover, unreliable odometer, lien holder data, recall information, rental history, maintenance and accident data. A vehicle report may help you avoid dangerous and costly problems. Check out the Buyers Guide The Federal Trade Commission’s Used Car Rule requires dealers to post a Buyers Guide on every used car they sell. It must tell you if the vehicle is under warranty or being sold “as-is” and what percentage of repair costs the dealer will pay under warranty. “As-is” means there is no warranty on the car or truck. When you buy a vehicle “as-is” and it breaks down, the repairs are your responsibility, not the dealer’s. If it is being sold “as-is” and the dealer promises to repair the vehicle or cancel the sale if you are not satisfied, the promise should be written in the Buyers Guide. The Buyers Guide must advise you that verbal promises are difficult to enforce, encourage you to get dealer promises in writing, and remind you to keep the guide after the sale for future reference. The Buyers Guide should also list the car’s major mechanical and electrical systems and include some major problems to beware of, and it will tell you to request that a mechanic inspect the vehicle before you buy it. If the dealer conducts used car sales in Spanish, a Spanish version of the Buyers Guide may be used. The back of the Buyers Guide lists the name and address of the dealership. It also gives the name and telephone number of the person you should contact at the dealership if you have problems or complaints after the sale. Selling your car or truck If you decide to sell your vehicle rather than trade it in to a dealer, you can take steps to ensure a profitable sale. First, review the advice for used car buyers. Smart buyers will ask a lot of questions, so make sure you are ready to give them as much information about your car as possible. Vehicle history reports are available for a fee on the Internet. You may gain more bargaining power by presenting a clean vehicle history to prospective buyers. In addition to a vehicle history, you should provide your maintenance records showing you have taken care of your car. Consider the vehicle’s fair market value so you can sell it for an appropriate price. Advertise your car wherever you think it will draw the most attention. With the Internet being used by more people than ever before, an online advertisement may be a consideration. Before you let anyone take your vehicle for a test drive, make sure they are licensed drivers. If they refuse to show you their driver’s license, do not let them drive your car. You may want to hold something the potential buyer values until your vehicle is returned, and use good judgment in deciding whom you allow to drive your car. Title transfer and registration Texas law requires that a vehicle be titled and registered in the buyer’s name within 20 working days of the date of sale. If purchasing from a dealer, by law, the dealer is required to file the title papers on behalf of the buyer. For a person-to-person sale, obtain an Application for Texas Certificate of Title (Form 130-U). You can pick one up at one of TxDOT’s Vehicle Titles and Registration Division (VTR) regional offices, or your county tax assessor-collector’s office. The form is also available online at www .dot.state.tx.us , or by calling (888) 232-7033 to have the form faxed to you. Both the buyer and the seller must sign the application form and the title. To ensure proper transfer of title to the buyer, take the form, title and the registration receipt to the county tax assessor-collector’s office and file the title application. At this time the buyer must pay the motor vehicle tax, which is 6.25 percent of the purchase price. Once the title transaction is filed in the buyer’s name and the title and registration fees are paid, the new owner will receive the Texas Registration and Title System Title Application Receipt from the tax assessor-collector’s office. The new title certificate will be mailed to the buyer if the car is paid in full. Otherwise, the title will be mailed to the lien holder. You are also required to provide proof of liability insurance when you title and/or register your vehicle. What if the new owner does not transfer the title? Contact the county tax assessor-collector’s office or VTR regional office and fill out a Motor Vehicle Transfer Notification form (Form VTR-346). Or, write a letter to: Texas Department of Transportation, Vehicle Titles and Registration Division, P.O. Box 13175, Austin, Texas 78711-3175. The letter must provide the vehicle description (year, make, vehicle identification number), date of sale, and the buyer’s name and address. The fee for this service is $5.00. Checks or money orders should be made payable to TxDOT.

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Page 1: TxDOT can help Buying and - ftp.dot.state.tx.us · PDF fileBuying and Selling a Used Vehicle Texas Department of Transportation Customer Answer Series 125 East 11th Street Austin,

Buying or selling a used vehicle?If you plan to buy or sell a used car or truck, the

Texas Department of Transportation (TxDOT) hassome helpful tips.

Where to start — Buyer BewareBuying a used vehicle can be risky. Once you

pay for a car, you have limited recourse if youare dissatisfied. Choose carefully. The better youknow the person selling the vehicle, the greateryour chances of a successful transaction.

Before making an offer, research the vehicle’sfair market value. Public libraries have reliablepublications. Additionally, many car-relatedWeb sites list fair market values for automobiles.The market value can be used as a bargainingtool during negotiation.

Test drive the vehicle so both parties will beaware of its driving condition. Have it inspectedby a mechanic. Some companies will come to avehicle’s location and inspect it for a fee.

Keep in mind the old adage, “if it sounds toogood to be true, it probably is,” applies to buyinga used vehicle.

Buying from an individualTexas law requires the seller to disclose to the

buyer how many miles the vehicle has traveled.

Typical mileage is 15,000 for each year of age forthe vehicle. Ask the owner to show you the title. Asoiled or smudged area on the title over theodometer reading may indicate the title has beenaltered. Compare the mileage on the title with thevehicle’s current odometer reading.

Buying from a dealerAsk for a vehicle history report. This report

provides reliable and accurate information on avehicle such as salvage or junk title, rebuilt orreconstructed title, flood damage title, damage disclosure, manufacturer buyback (lemon law),salvage auction record, odometer rollback orrollover, unreliable odometer, lien holder data,recall information, rental history, maintenance andaccident data. A vehicle report may help you avoiddangerous and costly problems.

Check out the Buyers GuideThe Federal Trade Commission’s Used Car

Rule requires dealers to post a Buyers Guide onevery used car they sell. It must tell you if thevehicle is under warranty or being sold “as-is” andwhat percentage of repair costs the dealer will payunder warranty. “As-is” means there is no warrantyon the car or truck. When you buy a vehicle “as-is”and it breaks down, the repairs are your responsibility,not the dealer’s. If it is being sold “as-is” and the

dealer promises to repair the vehicle orcancel the sale if you are not satisfied, thepromise should be written in the BuyersGuide.

The Buyers Guide must advise youthat verbal promises are difficult toenforce, encourage you to get dealerpromises in writing, and remind you tokeep the guide after the sale for futurereference. The Buyers Guide should alsolist the car’s major mechanical and electrical systems and include some majorproblems to beware of, and it will tell youto request that a mechanic inspect thevehicle before you buy it. If the dealerconducts used car sales in Spanish, aSpanish version of the Buyers Guide maybe used.

The back of the Buyers Guide lists the name andaddress of the dealership. It also gives the name andtelephone number of the person you should contactat the dealership if you have problems or complaintsafter the sale.

Selling your car or truckIf you decide to sell your vehicle rather than

trade it in to a dealer, you can take steps to ensure aprofitable sale. First, review the advice for used carbuyers. Smart buyers will ask a lot of questions, somake sure you are ready to give them as much information about your car as possible. Vehicle history reports are available for a fee on the Internet.You may gain more bargaining power by presentinga clean vehicle history to prospective buyers. Inaddition to a vehicle history, you should provideyour maintenance records showing you have takencare of your car.

Consider the vehicle’s fair market value so youcan sell it for an appropriate price. Advertise your carwherever you think it will draw the most attention.With the Internet being used by more people thanever before, an online advertisement may be a consideration. Before you let anyone take your vehiclefor a test drive, make sure they are licensed drivers.If they refuse to show you their driver’s license, donot let them drive your car. You may want to holdsomething the potential buyer values until yourvehicle is returned, and use good judgment in deciding whom you allow to drive your car.

Title transfer and registrationTexas law requires that a vehicle be titled and

registered in the buyer’s name within 20 workingdays of the date of sale. If purchasing from a dealer,by law, the dealer is required to file the title paperson behalf of the buyer.

For a person-to-person sale, obtain an Applicationfor Texas Certificate of Title (Form 130-U). You canpick one up at one of TxDOT’s Vehicle Titles andRegistration Division (VTR) regional offices, or yourcounty tax assessor-collector’s office. The form is alsoavailable online at www.dot.state.tx.us, or by calling(888) 232-7033 to have the form faxed to you.

Both the buyer and the seller must sign theapplication form and the title. To ensure proper

transfer of title to the buyer, take the form, title and the registration receipt to the county tax assessor-collector’s office and file the title application. At this time the buyer must pay themotor vehicle tax, which is 6.25 percent of thepurchase price.

Once the title transaction is filed in the buyer’sname and the title and registration fees are paid,the new owner will receive the Texas Registrationand Title System Title Application Receiptfrom the tax assessor-collector’s office. The newtitle certificate will be mailed to the buyer if thecar is paid in full. Otherwise, the title will bemailed to the lien holder. You are also requiredto provide proof of liability insurance when youtitle and/or register your vehicle.

What if the new owner does nottransfer the title?

Contact the county tax assessor-collector’soffice or VTR regional office and fill out aMotor Vehicle Transfer Notification form(Form VTR-346). Or, write a letter to:

Texas Department of Transportation,Vehicle Titles and Registration Division,P.O. Box 13175, Austin, Texas 78711-3175.

The letter must provide the vehicle description(year, make, vehicle identification number), dateof sale, and the buyer’s name and address. Thefee for this service is $5.00. Checks or moneyorders should be made payable to TxDOT.

Page 2: TxDOT can help Buying and - ftp.dot.state.tx.us · PDF fileBuying and Selling a Used Vehicle Texas Department of Transportation Customer Answer Series 125 East 11th Street Austin,

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ABILENE4250 N. ClackAbilene, TX 79601 (325) 734-5120

AMARILLO5715 I-27 South, Bldg. HAmarillo, TX 79110(806) 467-8902

AUSTIN1001 E. Parmer LaneAustin, TX 78753(512) 837-4416

BEAUMONT4245 Cardinal DriveBeaumont, TX 77705(409) 842-5875

CORPUS CHRISTI1701 S. Padre Island DriveCorpus Christi, TX 78416(361) 808-2600

DALLAS-CARROLLTON1925 E. Belt Line Road,Suite. 100Carrollton, TX 75006(972) 417-0884

EL PASO1227 Lee Trevino, Ste. 100El Paso, TX 79907(915) 591-8149

FORT WORTH-ARLINGTON910 N. Watson RoadArlington, TX 76011(817) 649-5938

HOUSTON10000 Northwest Frwy.,Suite 105Houston, TX 77092(713) 681-6637

LONGVIEW1301 Karnes RoadLongview, TX 75604(903) 753-6279

LUBBOCK135 Slaton RoadLubbock, TX 79404(806) 745-8888

MIDLAND-ODESSA3901 E. Highway 80Odessa, TX 79761(432) 498-4674

PHARR600 W. Expressway 83Pharr, TX 78577(956) 781-3291

SAN ANGELO4502 Knickerbocker RoadSan Angelo, TX 76904(325) 947-9330

SAN ANTONIO4611 N.W. Loop 410San Antonio, TX 78229(210) 615-1776

WACO2203 Austin AvenueWaco, TX 76701(254) 752-1152

WICHITA FALLS1601-A Southwest ParkwayWichita Falls, TX 76302(940) 720-7754

Texas Department of Transportation

Public Information Office August 2003 Texas D

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VEHICLE TITLES AND REGISTRATIONREGIONAL OFFICES

TxDOT can help

Any local county tax assessor-collector’soffice or our Vehicle Titles and RegistrationDivision (VTR) can answer more detailedquestions regarding the title and registrationprocess. You can call the VTR help line at(512) 465-7611 or visit our Web site atwww.dot.state.tx.us for additional information.

Our Motor Vehicle Division (MVD) licensesand regulates automobile dealers. If you have acomplaint against a dealer, you can call MVDat (512) 416-4800, or write to them at 125 E.11th Street, Austin, Texas 78701-2483.

The Better Business Bureau (BBB) providesbusiness reliability reports and dispute resolution services. You may consider contactingthe BBB, in addition to our MVD, to determineif a car dealer has a history of consumer complaints. The BBB has offices locatedthroughout the state. You can find the closestBBB office in your local phone book orthrough their Web site at www.bbb.org.

For questions regarding TxDOT, call thePublic Information Office at (512) 463-8588,or write to 125 E. 11th Street, Austin, Texas78701-2483.