Buying a Vehicle in Rhode Island

Title Check

Buyers must conduct a title check prior to purchasing a vehicle from a private seller.

This step is essential to determine whether the seller is the vehicle's rightful owner. It helps eliminate the risk of fraudulent sales and secure a legitimate transaction. Moreover, a title check allows buyers to uncover any existing liens on the car, preventing unexpected financial burdens.

To conduct a title check, buyers should request the vehicle's title from the seller and carefully review it for accuracy. It is vital to confirm that the seller's name matches their identification and that the vehicle's information is correct.

If buying a vehicle with a model year 2000 or older from the original owner, the owner may not have the title since the DMV only began titling these vehicles on January 1, 2024. In such cases, buyers can verify the information in a bill of sale.

Should any discrepancies be found in the vehicle title or bill of sale, buyers are advised to seek guidance from the DMV or consider avoiding the transaction altogether to avoid future complications.

Vehicle Inspection

Rhode Island has implemented a comprehensive vehicle inspection program to affirm vehicles' safety and environmental cleanliness on its roadways. Qualified personnel from various inspection stations and locations conduct this inspection to assess whether vehicles are adequately equipped and maintained to operate safely and cleanly.

According to this regulation, all recently registered cars, except new models, must possess a valid inspection certificate or pass an emissions and safety inspection five days after registration. Non-adherence to this requirement can lead to the suspension of vehicle registration until compliance is achieved.

In line with this, prospective buyers are advised to verify whether the vehicle they intend to purchase has passed the inspection. Doing so not only confirms the safety and reliability of the car of interest but also guarantees that there are no complications or issues with registration once the vehicle is in the buyer's possession.

To confirm if the vehicle has passed the required inspection, potential buyers should request the seller provide the inspection certificate or check if the vehicle displays a valid inspection sticker on the windshield. Additionally, individuals can contact any DMV location or visit in person to inquire about the inspection status of the vehicle in question.

Vehicle History Report

Potential buyers in Rhode Island are highly recommended to obtain a vehicle history report (VHR) when purchasing a vehicle from a private seller.

This report provides a wealth of information about the vehicle's past, including ownership history, accident records, title information, and mileage logs.

One key benefit of acquiring a VHR is gaining insights into any reported accidents or damage the vehicle may have experienced. This knowledge allows buyers to assess the extent of the damage and make an informed judgment about the vehicle's overall condition.

In addition, the VHR will indicate whether the vehicle has a clean title or has undergone salvage, rebuilding, or other title-related problems. This information is essential for buyers to assess the vehicle's value and determine its insurability accurately.

Buyers have several options for obtaining a VHR. If the report is available, they can request it from the seller. Alternatively, they can use reputable online services that generate comprehensive reports based on the vehicle identification number (VIN) for a fee.

Odometer Disclosure Requirement

Complying with the odometer disclosure requirement is paramount when purchasing a vehicle from a private seller in Rhode Island.

This legal obligation serves crucial purposes for buyers. It helps facilitate a seamless transfer of ownership, protects against potential odometer fraud, and prevents misinformation about the car's value and reliability.

To meet this requirement, sellers must accurately complete the odometer disclosure section in the title and bill of sale. On the other hand, buyers must acknowledge this disclosure by signing and printing their names in the designated sections of these documents.

Note that the odometer disclosure is only compulsory for self-propelled vehicles, automobiles weighing 16,000 pounds or less, and cars with model year 2011 or newer.

Ownership Transfer

Buyers must understand the prerequisites involved in transferring ownership to establish themselves as the new legal owner of the car.

For a proper ownership transfer, the buyer must obtain a correctly assigned title from the seller. This title should include the buyer's and seller's legal names, addresses, and signatures. Additionally, it should indicate the date of the sale and the vehicle's odometer reading.

In cases where multiple owners are listed on the title, the number of required signatures will depend on the relationship between the names.

If the connection is listed as "and," all individuals must sign. However, if it is listed as "or," only one signature is required. In the absence of any specified connection, it defaults to "and," necessitating the signatures of all owners.

Once all the necessary information has been provided, the buyer can pay the seller and obtain the title and other documents to assume vehicle ownership.

Bill of Sale

Besides obtaining the vehicle title, buyers must secure a bill of sale from the seller when purchasing a car privately in Rhode Island.

A bill of sale is an essential document for buyers. The DMV requires it when the buyer registers the purchased car under their name.

Moreover, this document serves as proof of ownership, which is particularly valuable in cases where the vehicle being purchased is a model year 2000 or older and is being sold by the original owner.

Note that the DMV does not have an official form for this document. However, it is recommended that both parties utilize the Sample Bill of Sale or find a suitable template online. Regardless of the format chosen, the bill of sale should include the following:

• Vehicle's year, make, and model
• VIN
• Vehicle color
• Sale date
• Purchase price
• Seller's address, printed legal name, and signature
• Buyer's address, printed legal name, and signature
• Odometer reading at the time of sale, if applicable

License Plate and Registration

According to Rhode Island laws, sellers are obligated to remove the license plates from the vehicle before transferring it to the buyer. Hence, buyers are responsible for obtaining a license for the purchased vehicle through registration to drive it on the roads legally.

Buyers must visit a DMV location to register a purchased vehicle and provide certain documents. These documents include the signed over title, a bill of sale, proof of insurance, and either a Rhode Island driver's license or identification card.

In addition, buyers must complete an Application for Registration Form TR-1 and pay the required registration fees.

The DMV will issue a registration certificate and new license plates once the registration process is complete and the fees have been paid. With these documents and plates, buyers can legally operate the vehicle on state roads.

Licensed Dealer Check

According to Rhode Island General Law Section 31-5-5, motor vehicle dealers are prohibited from conducting business in the state without the necessary license. Therefore, when purchasing a vehicle from a dealership in Rhode Island, the first important factor to consider is to check whether the dealership is appropriately licensed.

By confirming that the dealership is licensed, buyers can have confidence in the legitimacy of their transaction. Moreover, this step provides consumer protection, as authorized dealers must adhere to laws and regulations protecting consumers' rights.

Individuals can refer to the Online Dealer Listing provided by the DMV to check if a specific dealer is listed as a licensed entity. Alternatively, they can visit the DMV in person and directly inquire about the particular dealer's licensing status.

Buyer's Guide

It is crucial for buyers to familiarize themselves with the Buyer's Guide issued by the Federal Trade Commission (FTC) when purchasing a used vehicle from a licensed dealership in Rhode Island.

The Buyer's Guide is a mandatory document that must be prominently displayed on every used car for sale. It contains essential information that buyers must know, including the following:

• Major mechanical and electrical systems of the vehicle, along with any significant problems to be aware of
• Warranty information
• Written promises by the dealer, such as guarantees about the vehicle's condition
• Recommendations for making an independent inspection of the car
• Dealer's contact information

By carefully examining the Buyer's Guide, individuals can make informed purchasing decisions and minimize the risk of buying a vehicle with undisclosed issues.

Warranties

Warranties protect consumers if the car encounters significant issues.

Typically, new vehicles are accompanied by manufacturer warranties, including bumper-to-bumper coverage and powertrain protection.

Conversely, the warranties available for used vehicles are contingent upon the dealership's policies. The Buyer's Guide outlines the type of warranty offered, any limitations or exemptions, and the dealership's coverage of repair expenses.

By meticulously reviewing and comprehending the warranty terms and conditions, buyers can proactively address any potential disputes concerning coverage. This enables them to avoid unexpected out-of-pocket expenses for repairs that fall outside the warranty's purview.

Sales Tax

The sales tax rate in Rhode Island on vehicle purchases varies depending on whether the car is purchased from a dealership or a private seller.

Cars purchased from dealers incur a 7% tax on the selling price, adjusted by trade-ins. Meanwhile, private party purchases are taxed at 7% of the higher value between the National Automobile Dealers Association (NADA) book value, Black Book CPI, or the purchasing price.

Note that sales tax rules vary depending on the vehicle's age and whether it is on the Cars of Particular Interest (CPI) list. For further information, refer to the Sales Tax page on the official RI DMV website.

Vehicle Inspection Fee

Vehicle inspection is required for all registered vehicles in the state. The current 2-year safety and emission inspection cost for cars weighing 8,500 pounds or less is $55.

Registration Fee

The registration fee for most passenger vehicles in Rhode Island depends on weight and is prorated by date. It also includes a $2.50 tech surcharge and a $15 DOT surcharge yearly. To learn more about the registration fees in the state, visit the official RI DMV website's Registration and Title Fees page.

Title Fee

Rhode Island's current title fee is $52.50.

Documentation Fee

Dealers in Rhode Island can charge documentation fees of up to $400 for their services when registering the vehicle for buyers. Note that this fee is the maximum allowed, and depending on the dealer, purchasers may be charged a lower or no fee at all.