Essential Guide to Buying a Car in Virginia: Steps, Taxes, and Tips
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If you're thinking about buying a car, you might be surprised to learn that the process isn't the same in every state. Buying a car in Virginia is a little different than buying a car in Arizona, for instance. While the basic principles of a sales transaction apply, buying a car in Virginia from a private seller, dealership, or from out of state each carries special considerations. We break down the process here.
Introduction to Buying a Car in Virginia
The vehicle purchasing process is fairly straightforward if you know what you have to consider. From gathering the vehicle history report to taxes on buying a car in Virginia, there are several considerations you should keep in mind when determining a purchase price. (Not to mention the need for Virginia auto insurance, which is legally required.)
Researching and Budgeting for Your Vehicle
There are many online marketplaces that make it easy to browse for local vehicles. If you're interested in buying a used car in Virginia, you should make sure you thoroughly research the make and model that you'd like and understand the Kelly Blue Book value to ensure you're getting a good price. While financing is typically available for a vehicle purchase, you'll need to know how much you can afford as a monthly payment.
Also remember, if you're buying a car in Virginia from out of state, you might be subject to fees and taxes that you aren't used to spending. Motor vehicle sales are different in every state, so make sure you understand the buying process and what you might have to pay.
Understanding Vehicle History and Condition
If you're buying a used car in Virginia, it's imperative to learn the vehicle's history. You can ask the seller or dealer about the vehicle's history and condition, but it's also smart to use public resources like CARFAX to find any reported accidents or repairs. A car that has been in accidents before should have that reflected in the sale price.
Navigating Title Transfers and Sales Tax in Virginia
The title transfer process in Virginia is a bit different depending on whether you're a resident or an out-of-state buyer. The documentation required for residents includes:
- Virginia title with "Assignment of Title by Owner" and "Application for New Owner Certificate of Title and Registration"
- Proof of address (acceptable documents listed here)
- Proof of purchase price, like a buyer's order, bill of sale, or the seller's declared sale price on the title
Non-residents will need:
- Completed Application for Title and Registration
- Proof of address
- Title or registration card from state of residence or a branch of the U.S. Armed Forces with your name appearing as owner, OR previous owner's out-of-state title signed over to you
- Proof of purchase price if you purchased the vehicle within the last 12 months
In both instances, you'll need to pay a $15 title fee and motor vehicle Sales and Use Tax (SUT) of 4.15% of the vehicle's gross price, or $75 (whichever is greater).
Registering Your Vehicle with the Virginia DMV
To get license plates and remain legally compliant in Virginia, you'll need to register your new vehicle. To do so, you'll need to have your vehicle titled in Virginia, so make sure to go through the title transfer process first. Then:
- Complete an Application for Registration
- Pass an emissions and safety inspection if your vehicle is garaged in the counties of Arlington, Fairfax, Loudoun, Prince William or Stafford, or in the cities of Alexandria, Fairfax, Falls Church, Manassas or Manassas Park
- Meet minimum Virginia car insurance coverage requirements and show proof of insurance
- Pay registration fees ($30.75 for passenger vehicles weighing less than 4,000 pounds)
Meeting Insurance, Emissions, and Safety Requirements
To register your car in Virginia, you'll have to meet several requirements. Emissions and safety inspections are offered at garages all over the state and ensure that your vehicle is safe to drive. (Many dealers and private sellers include your first annual inspection as part of the deal.) Note that your car only has to pass emissions inspections if it's garaged in the counties of Arlington, Fairfax, Loudoun, Prince William or Stafford, or in the cities of Alexandria, Fairfax, Falls Church, Manassas or Manassas Park.
Virginia also requires all drivers to have liability insurance in the amount of:
- $50,000 bodily injury liability for injury or death of one person
- $100,000 bodily injury liability for injury or death of two people
- $25,000 property damage liability
Tips for Negotiating and Financing
Regardless of the type of vehicle you're purchasing, some good tips to help you get the best deal include:
- Do your research: Know what you want in a car, research the Kelly Blue Book value, and get a vehicle history report to learn about past accidents, title issues, and odometer discrepancies.
- Get pre-approved: Pre-approval for financing can give you additional negotiating power and lock in better loan terms.
- Don't be afraid to walk away: If you're not getting a deal you like, that's okay. Walking away can bring the seller back to the table or help you avoid overpaying.
Compare Car Insurance and Drive with Confidence
Buying a car in Virginia is a fairly straightforward process. Getting cheap car insurance in Virginia is even easier. Whether you just want minimum coverages or something more substantial, use EverQuote's comparison tools to lock in the best coverage for your budget.