Essential Guide to Buying a Car in Florida: Taxes, Title, and Registration
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If you are thinking about buying a car in Florida, especially if you are buying a car in Florida from out of state, you will need to understand the ins and outs of title transfer, sales tax, registration requirements, and more. Whether you are buying a new car in Florida or buying a used car in Florida, this guide will help you with everything from purchase price and vehicle identification to financing options.
Researching Your Vehicle and Setting a Budget
Do you want to buy a new or a used vehicle? This may depend on sales price, extended service contracts, and other fees. The average car costs more than $48,000 and used cars come in closer to $25,000. As a general rule, experts recommend spending no more than 10% of your monthly income on a car payment, and that budget should also include registration fees, insurance, repairs, and other potential costs.
Take some time to look at the cars in your budget, determine what features matter most to you, and then consider whether a new car or a used one makes more sense before you sign a sales contract.
It is worth noting that Florida has a Lemon Law that protects you if you buy a new car that is defective, but this does not apply to used cars.
Understanding Florida's Sales Tax and Local Surtaxes
Florida's state sales tax is 6%, but you may encounter local surtaxes as well when car shopping.
Many counties in Florida have something called a discretionary sales surtax or local option county sales tax. This tax is in addition to sales tax, and it is paid to the Florida Department of Revenue and then distributed to the counties where it is levied. In other words, the real cost of your new car may be higher than the initial price you see!
Navigating the Title Transfer Process in Florida
A title transfer in Florida must be completed within 30 days. If you are navigating the title transfer process in Florida, here are the steps to take:
- The seller completes the Transfer of Title by Seller section on the title certificate to indicate that the title is being transferred out of their name and ownership. This includes your name and address, odometer information, selling price, and sale date.
- You will complete an Application for Certificate of Title with/without Registration form and attach it to the title.
- This application must be submitted to a motor vehicle services center to complete the transfer process.
- Both you and the vehicle's seller then sign the new title application.
While you might consider dragging your feet or putting this process on the back burner, it is designed to support both parties: The seller has proof that the title has been transferred to the buyer, and the buyer knows they have appropriate documents for ownership.
How to Register Your Car and Get Temporary Tags
You're almost there. Registration and getting temporary tags are the last steps in this process of buying a car in Florida!
Your initial registration must take place at a local service center, and you will need proof of identity, proof of insurance, and your Application for Certificate of Title With/Without Registration. After this initial registration, you can renew your car registration online.
At this time, you will need to pay a $225 fee if you don't already have a Florida license plate or if you are transferring plates to a new car.
Florida's Car Insurance Requirements: What You Need to Know
Florida takes car insurance seriously and has a number of minimum requirements:
- You must show proof of both Personal Injury Protection and Property Damage Liability insurance when registering your vehicle. In addition, you must maintain continuous coverage even if your vehicle is inoperable or not being driven.
- You must have a minimum of $10,000 Personal Injury Protection insurance and a minimum of $10,000 Property Damage Liability insurance.
- You must also purchase car insurance from an insurance company licensed to do business in Florida and keep proof of insurance with you at all times.
If you are looking for cheap car insurance in Florida, it helps to review and compare options and offers online to ensure you're getting the best deal.
Avoiding Scams When Buying a Car in Florida
Every state has scammers, and Florida is no exception. Here are some tips for avoiding scams when purchasing a car in Florida:
- Verify, verify, verify. Make sure you verify the seller's identity and ensure that their given name and address match that on the vehicle registration form. You can also verify the odometer reading.
- Do your business in person. If you're buying a car from a private seller in Florida, make a point to meet the seller in person since online scams are much easier to perpetrate.
- Get a vehicle history report. This report will let you know if the vehicle has been in accidents and provide basic information on the vehicle itself. You can also check for potential recalls.
- Research. What is the average market price for the car you want to buy? The Kelley Blue Book is a great resource for doing your research to ensure that the listing is legit.
Trust your gut. If something seems fishy, don't rush into a sale. It's always ok to ask for additional information and verification.
Get the Best Deal on Car Insurance: Compare Quotes Today!
You can find the best deal on auto insurance in Florida by comparing multiple options. Visit EverQuote to look for car insurance that meets your budget and your needs, both today and in the future.