When buying a vehicle in Massachusetts, individuals must familiarize themselves with the state-specific regulations to guarantee a smooth and legal transaction.
The key regulations are outlined in the Massachusetts General Law (MGL) Code 90 Section 2, which focuses on title transfer, registration, and the buyer's responsibilities. The Massachusetts Registry of Motor Vehicles (RMV) has specific vehicle titles and registration requirements, which may differ from those in other states.
Failing to follow these procedures can result in legal complications and difficulties in proving vehicle ownership. Buyers can check if they meet all legal requirements to avoid penalties and secure their investment in the vehicle.
What Is the Process for Buying a Car in Massachusetts?
Purchasing a car in Massachusetts entails crucial steps, whether from a private seller or a licensed dealer. Private-party sales and dealer purchases have distinct advantages and disadvantages, and buyers should carefully consider their options based on price, vehicle condition, and legal protections.
Buying a Vehicle from a Private Seller in Massachusetts
In Massachusetts, buying a vehicle from a private seller offers advantages, including the potential for lower prices and direct negotiation. However, it also comes with disadvantages, such as no warranty, the need for thorough inspections, and the buyer's responsibility for registration and title transfers.
Thus, buying a vehicle in Massachusetts involves several legal requirements that the buyer and seller must follow to guarantee a smooth, transparent, and compliant transaction. Buyers should be aware of the necessary legal actions or steps involved, which include:
VIN Check
Buyers should verify the vehicle information number (VIN) to make sure that the car has no hidden issues. A VIN check can confirm whether the vehicle has a salvage title, indicating severe damage, or that an insurance company declared it a total loss.
Additionally, buyers should verify that the vehicle has not been involved in any major accidents and is not subject to any outstanding recalls.
To perform a VIN Check in Massachusetts, one needs to check the vehicle's title status. This involves obtaining information like the title issuance date, recipient's name, lienholder details if applicable, and whether it's an electronic title. The process requires providing the VIN or certificate of title number, which can be found on the vehicle registration.
If the VIN is lost or unavailable, the RMV may assign a new VIN under certain circumstances. To obtain a replacement VIN, the private seller must complete the Application for Replacement of Vehicle Identification Number form.
Once the application is completed, the owner should gather the necessary supporting documents and bring them, along with the completed application, to the Massachusetts RMV Center. At the center, the owner must pay the applicable fee of $50 for each replacement VIN.
Vehicle History Reports
A vehicle history report is a detailed document that provides important information about a vehicle's past, including ownership history, accident records, and title information. This report is valuable for Massachusetts buyers to identify hidden issues, verify mileage accuracy, and check for liens or salvage titles, significantly impacting the vehicle's value, safety, and condition.
To obtain a history search or photocopies of title transaction documents, submit a completed History Search Request or HSR Form, a photocopy of their license or state-issued ID, and the applicable fees to the RMV Center.
Aside from the MA RMV Center, the two most prominent providers of vehicle history reports are CARFAX and AutoCheck. In addition to the applicable fees, a VIN is needed to obtain a report.
Purchase Agreement
Creating a purchase agreement or bill of sale is highly recommended when buying a vehicle from a private seller. This written contract protects both the buyer and seller by clearly outlining the terms and conditions of the sale. The purchase agreement should include:
- Explicit details on the duties and obligations of the buyer and seller and what each party is not responsible for.
- Full legal names and current addresses of both the purchaser and seller.
- A complete description of the vehicle sold, including year, make, model, VIN, current mileage, and condition.
- An "as-is" acknowledgment by the buyer stating they are purchasing the vehicle in its current state without warranties.
- Dated signatures of both the buyer and seller as parties agreeing.
- The agreed-upon purchase price for the vehicle.
If the transaction involves a vehicle exempt from titling requirements, such as older vehicles or certain trailers, the bill of sale becomes mandatory. In these cases, the buyer must present the bill of sale and the previous registration to register the vehicle.
Odometer Disclosure Requirements
Like any other state, Massachusetts mandates the Odometer Disclosure Requirements as a part of the transaction when buying a vehicle from a private seller. This disclosure provides an accurate record of the vehicle's mileage at the time of sale, which protects the buyer and the seller from potential disputes or fraud.
When completing the Odometer Disclosure Requirements, the seller must provide the current odometer reading on the vehicle's title or a separate form.
The seller must accurately record the odometer reading, the date of the statement, and the name and address of both the seller and the buyer. Both parties must then sign and date the statement to acknowledge the accuracy of the information provided.
If buyers suspect odometer tampering or fraud, they should report it to the Massachusetts Office of Consumer Affairs and Business Regulation or the National Highway Traffic Safety Administration's Vehicle Safety Hotline.
Ownership Transfer
For transferring vehicle ownership in Massachusetts, prepare the required documents, such as the original signed title, a bill of sale, a Registration and Title Application form, an odometer disclosure statement (if applicable), an insurance certificate, and valid identification.
Once the buyer has all the necessary documents, they should visit their local RMV service center. Payment for fees and taxes, typically in the form of a check, must be brought along. The title transfer fee is $75. If the car is recently purchased, the buyer must also pay sales tax based on the purchase price and registration fees.
The state allows a seven-calendar-day grace period to transfer. During this grace period, the buyer can legally drive the purchased vehicle while completing the ownership transfer process.
Several conditions must be met to qualify for this grace period.
- The vehicle must be the same type and have the same number of wheels as the previously owned vehicle.
- The buyer must carry the transfer documents inside the vehicle, which should display the registration number to be transferred.
- The buyer must have lost possession of or disposed of their previous vehicle.
- The registration plates from the previous vehicle must be appropriately attached to the newly purchased vehicle.
Buying a Vehicle from a Licensed Dealer in Massachusetts
Purchasing a vehicle from a licensed dealer in Massachusetts has an advantage. Dealers are required by law to disclose known defects and provide warranties for cars. However, there are also disadvantages to buying from a dealer. Prices may be higher than those offered by private sellers, as dealers need to cover their overhead costs and make a profit.
For a smooth transaction and to fully benefit from buying from a reputable dealer, buyers should keep the following key points in mind:
Licensed Dealer Check
Licensed dealers adhere to state regulations in MGL Chapter 140, Section 58, which ensures consumer protection and fair transactions. Engage with a licensed dealer to help avoid potential fraud, provide recourse in disputes, and guarantee compliance with state laws.
Buyers can check the Massachusetts RMV to verify a dealer's license. They should look for a valid license number, guarantee the dealership is in good standing, and review any complaints or disciplinary actions.
Buyer's Guide
When purchasing a vehicle from a licensed dealer in Massachusetts, pay close attention to the Buyer's Guide. This guide provides crucial information about the vehicle's warranty coverage and must be displayed on all used cars sold by licensed dealers.
The Buyer's Guide will clearly state whether the vehicle is being sold "as is" or with a warranty. If the car is sold with a warranty, the guide will specify whether it is a full or limited warranty, the duration of coverage, and the specific parts and systems included.
In Massachusetts, used vehicles sold by licensed dealers must come with an implied warranty of merchantability, which means that the car must be fit for its intended purpose. However, dealers can sell vehicles "as is," which means that the buyer accepts the car in its current condition, and the dealer is not responsible for any repairs or defects.
If a dealer offers an express warranty on a used vehicle, it must be clearly stated in the Buyer's Guide. The guide will also outline the dealer's responsibilities for repairs and maintenance under the warranty and any deductibles or fees for which the buyer may be responsible.
Authorization for Loan Payoff
When purchasing a vehicle from a licensed dealer in Massachusetts, buyers may encounter situations where the car has an outstanding loan or lien. It means another party, like a bank, has a financial claim on the vehicle. To ensure a smooth transaction and clear ownership for the buyer, dealers use a process called Authorization for Loan Payoff.
The dealer initiates this process by completing the back of the Application for Dealer Reassignment form. This authorizes the dealer to pay off the remaining loan balance directly to the lienholder, such as a bank or credit union. Once the loan is paid off, the lienholder releases their claim on the vehicle, providing a clear title.
With the clear title in hand, the dealer can then sell the vehicle to the buyer using the front side of the same form. This process streamlines the transaction for the buyer and guarantees they receive a car without any outstanding debts.
It's part of the due diligence that licensed dealers in Massachusetts perform, giving buyers peace of mind that they're making a secure purchase from a trustworthy seller.
Lemon Law in Massachusetts
The Massachusetts Lemon Law protects buyers from purchasing new, leased, or used vehicles with substantial defects that make them unsafe or impaired to drive. It is administered by the state's Office of Consumer Affairs and Business Regulation.
For new, used, and leased vehicles, the Lemon law protection lasts one year or 15,000 miles from the delivery date, whichever comes first. To qualify as a "lemon" during this period, either:
- The same defect has been subject to repair attempts three or more times, but the issue persists or
- The total time spent attempting to repair the defect equals 15 or more business days.
The Lemon Law in the state also covers brand-new cars and used cars with fewer than 125,000 miles on the odometer at the time of sale. Even used vehicles with more than 125,000 miles may still qualify if they fail inspection within seven days after purchase.
The buyer must allow the seller or a dealer a 7-business-day repair attempt. If the issue is still unresolved, the buyer can be entitled to a refund or a replacement vehicle.
Lemon Aid
The Lemon Aid Law is a program designed to assist consumers with defective vehicles that do not qualify under the Lemon Law. It provides arbitration services and helps resolve disputes between consumers and manufacturers regarding vehicle defects.
Suppose a newly purchased vehicle fails inspection within the first seven days after purchase, and the estimated repair costs exceed 10% of the purchase price. In that case, the buyer can cancel the purchase/lease agreement and request a full refund under Lemon Aid.
To be eligible for the refund, the buyer must:
- Obtain a written statement from the inspection station explaining why the vehicle failed the safety or emissions test.
- Get a written repair estimate showing the required repair costs are over 10% of the purchase price.
- Notify the seller in writing of their intent to void the contract under Lemon Aid, enclosing copies of the failed inspection.
- Deliver the vehicle back to the seller, even if it needs to be towed.
If the seller refuses to accept the return of the vehicle, prepare a signed and notarized statement and a witness when trying to return it.
What Are the Fees for Buying a Car in Massachusetts?
Various fees are usually due when purchasing a car in Massachusetts or registering the vehicle. The state car sales tax, which applies to dealer or lessor sales, is 6.25%. Meanwhile, the state excise tax is $25 for each $1,000 of the car's value.
In addition to taxes, buyers should be aware of several RMV or state fees:
- Certificate of Title Transfer Fee: $75
- Adding or Deleting a Lienholder on Title: $25
- Vehicle Registration Fee: $60
- License Renewal Sticker: Regular plate renewal for two years is $60
- Reserve Plates: $100 for two years
- Vanity plates: $80 for one year
- Motor Vehicle Annual Inspection Fee: $35
- Registration Gift Tax Transfer: $25
- Motorcycle Inspection Fee: $15
Dealerships may also charge documentation fees to cover administrative costs related to paperwork. These fees must be included in the advertised price and itemized in the final pricing as mandated by the Office of the Attorney General. Attempting to charge more than the advertised price is considered unfair and deceptive.
What Are the Insurance Requirements for Vehicles in Massachusetts?
An auto insurance policy is a contract between the policyholder and the insurance company in Massachusetts. The policyholder agrees to pay the premium and follow the insurance company's rules, while the insurance company agrees to cover certain expenses related to accidents or other covered losses.
An auto insurance policy consists of various types of insurance coverage. Vehicle owners are legally obligated to carry four essential types of insurance coverage in Massachusetts when owning a vehicle, and these include:
- Bodily Injury to Others: $20,000 per person, $40,000 per accident
- Personal Injury Protection (PIP): $8,000 per person, per accident
- Bodily Injury Caused by an Uninsured Auto: $20,000 per person, $40,000 per accident
- Damage to Someone Else's Property: $5,000 per accident
Driving a vehicle without insurance in Massachusetts is a serious offense that can result in severe penalties. As mandated in MGL Chapter 90 Section 34J, violators may be sentenced to up to one year, with potentially longer sentences for repeat offenders. The state may also suspend the offender's driver's license and registration for at least 60 days.
Can a Non-Resident Buy a Car in Massachusetts?
Non-residents can buy vehicles in Massachusetts but must register and title them in their home state. The process varies by state but typically requires proof of purchase, an out-of-state driver's license, and proof of insurance. Some Massachusetts dealerships may provide a temporary registration permit for driving the vehicle home.
Additional documents needed for home-state registration may include a bill of sale, a copy of the Massachusetts title, and proof of paid taxes and fees. Massachusetts imposes a use tax on vehicles brought into the state within six months of purchase, regardless of the buyer's residency or where the car is primarily used or stored.