Purchasing a vehicle in Georgia is not just about getting a new set of wheels. It is also about being informed regarding the state-specific regulations that govern the process.
Georgia has laws and procedures that must be followed to guarantee a smooth and legal transaction. These include unique processes for buying from a private party and a dealership, vehicle registration and titling, and specific requirements for sales tax and inspections.
It's also crucial to be aware of several laws that protect consumers who purchase defective vehicles.
By taking the time to educate themselves about Georgia's vehicle buying regulations, buyers can make wise decisions and be more confident about purchasing a car in the state.
What Is the Process for Buying a Car in Georgia?
Individuals must navigate a complex process when buying a car in Georgia, regardless of whether they purchase from a private seller or a dealer. In both scenarios, specific steps must be followed to ensure a legal and seamless transaction.
Buying a Vehicle from a Private Seller in Georgia
In Georgia, buying a vehicle from a private seller can be cost-effective. However, it involves carefully considering numerous requirements to avoid unexpected complications. Among the things that need to be considered include:
Title Check
It is paramount to perform a title check prior to buying a vehicle from a private seller in Georgia. This critical process entails conducting a comprehensive review of the vehicle's title document to ascertain its ownership status.
To effectively carry out a title check, buyers should proactively request the title document from the seller. This will allow them to scrutinize the information provided closely and verify its accuracy. By carefully analyzing the title, buyers can confirm the seller's legal ownership of the vehicle and uncover any issues or encumbrances.
Obtain Vehicle History Report or Motor Vehicle Report
Sellers may not disclose all relevant details about a vehicle being sold. Hence, it is smart to conduct a VIN (vehicle identification number) check and obtain a Vehicle History Report (VHR) or Motor Vehicle Report (MVR) when buying from a private individual in Georgia.
A VHR provides valuable information about the vehicle's past, including its ownership, accident history, maintenance records, and if the car isn't stolen or salvaged. Similarly, an MVR provides information regarding the vehicle's accident records, violations, convictions, etc.
By reviewing these documents, buyers can identify any red flags, which will allow them to mitigate the risk of purchasing a vehicle with hidden issues.
The Georgia Department of Driver Services (DDS) offers services to obtain an MVR. Those wanting a VHR can utilize third-party services that provide comprehensive vehicle history reports. Note that these services typically charge a fee.
To perform a VIN check and obtain the necessary report, one typically needs the VIN, sometimes the license plate number.
Odometer Disclosure Information
The odometer disclosure information is integral to a successful vehicle purchase in Georgia. It records the vehicle's mileage during the sale, affirming the transparency between buyer and seller.
The odometer disclosure is a legal requirement, although exemptions apply to certain vehicles under the Federal Truth in Mileage Act. Among the exempted vehicles from the odometer disclosure requirement are:
- Vehicles with gross vehicle weight rating (GVWR) greater than 16,000 pounds
- Non-self-propelled vehicles like trailers
- 20 model years or older vehicles
- Vehicles sold to U.S. government agencies
- New vehicles transferred from dealer to dealer before the first retail sale
Failure to provide an accurate odometer disclosure information can lead to complications. Since it is required during the titling process, discrepancies may raise red flags, potentially delaying or even derailing the transfer of ownership.
Emissions Testing
In Georgia, emission testing is obligatory in thirteen counties within the Atlanta metropolitan area, encompassing Cherokee, Clayton, Cobb, Coweta, DeKalb, Douglas, Fayette, Forsyth, Fulton, Gwinnett, Henry, Paulding, and Rockdale.
This mandate applies to gasoline-powered vehicles aged between 3 and 25 years and weighing under 8,500 pounds.
However, certain exemptions exist, including:
- Vehicles with a GVWR exceeding 8,500 pounds
- Vehicles utilizing alternative fuels like diesel, electric, or propane
- Antique or collector cars, hybrids, and vehicles over 25 years old
- Specific vehicles owned by seniors aged 65 or older
Prospective vehicle buyers must familiarize themselves with the state's emissions testing requirements. Vehicles must pass emission tests before being sold. By doing so, buyers will avoid registration hurdles or unexpected expenses after purchase.
Ownership Transfer
Transferring ownership is a critical step in purchasing a vehicle in Georgia.
To initiate this process, the seller needs to complete the title assignment section on the back side of the vehicle's title. This entails providing key information, such as the purchaser's legal name, along with their current address.
Additionally, the ownership transfer or sale date, as well as the odometer reading during the transfer, must be accurately recorded.
If jointly owned, each of the sellers must sign and print their names accordingly. For sellers representing a company, include the company's name, the signature and name of the company's agent, and the agent's position within the company.
After that, the buyer must put their signature and print their name on the title. Again, if jointly owned, each of the buyers should print their name and sign.
Once the necessary information is completed, the title must be handed over to the new owner of the vehicle.
License Plate and Registration
Once the buyer obtains the vehicle title, the seller must remove the license plates and cancel the registration and insurance of the vehicle. From that moment on, the buyer must register the car and obtain license plates.
To accomplish this, they must adhere to specific requirements outlined by the Georgia Motor Vehicle Division (MVD) under the Department of Revenue.
Firstly, they must present a valid driver's license issued in Georgia or an identification card as proof of identity. Additionally, they must provide evidence of ownership, typically in the form of the vehicle's original title.
If the car is manufactured on or before 1985 and does not possess a title, a Bill of Sale suffices. In cases where the title isn't unavailable, a Certificate of Origin from the manufacturer or a registration certification from a non-title county or state is necessary.
Furthermore, if it is transferred or moved from a non-title state or country, a furnished Certification of Inspection is mandatory. Completing an MV-1 Title or Tag Application and furnishing proof of insurance are also necessary steps.
Registration can be conducted in person at a County Tag Office or through mail. Regardless of the method chosen, buyers have 30 days from the purchase or transfer date to register and obtain a license plate.
Bill of Sale
Although the GA MVD does not mandate it, completing a Bill of Sale is strongly advised when purchasing a vehicle from a private seller.
This document records the transaction and encompasses vital information such as the vehicle's make, model, VIN, purchase price, odometer reading, and the identities of both buyer and seller.
A Bill of Sale protects both parties involved by establishing a clear record of the sale, thereby mitigating potential legal issues or liability concerns.
Buying a Vehicle from a Licensed Dealer in Georgia
When purchasing a vehicle in Georgia, opting for a licensed dealer offers many advantages over buying from private sellers.
Licensed dealers are governed by strict regulations that foster transparency and accountability throughout the transaction process. These regulations, mandated by state laws, provide consumers various benefits, such as legal protection and warranty options.
While verifying the dealer's credentials is crucial, buyers should consider other factors to help them in their car-buying journey.
Buyer's Guide
The Buyer's Guide issued by the Federal Trade Commission (FTC) is essential for understanding how to purchase a vehicle from a licensed dealer in Georgia.
This guide's primary purpose is to educate consumers about their rights and protections when buying a used vehicle. It clearly states whether a car is sold "as is" or has a warranty.
Additionally, the guide includes information about the vehicle's major mechanical and electrical systems, known defects, and dealer contact details.
By law, dealerships in Georgia must prominently display a completed Buyer's Guide on each vehicle for sale, typically on the side window or windshield. This visibility ensures that buyers know the vehicle's terms of sale and condition before purchasing.
Warranties
When purchasing a vehicle from a licensed dealer in Georgia, buyers must understand the warranties that may apply to their purchase. Purchasers can protect their car investments by learning what is covered, what is not covered, and any limitations about their warranty coverage.
As mentioned, the FTC requires dealers to provide a Buyer's Guide on all used vehicles for sale. This guide includes detailed information about warranty coverage and indicates whether the car is being sold "as is" or with a warranty. If a warranty is offered, the guide will specify its duration and the systems it covers.
Additionally, the Magnuson Moss Warranty Act mandates that warranties on consumer products, including vehicles, be clearly and comprehensively described. Under this act, a car with a written warranty must be labeled as "full" or "limited" and adhere to specific requirements.
In the event of warranty issues, the act provides consumers the right to seek legal remedies, including damages, attorney's fees, and other associated costs.
Temporary Operating Permit
According to the DOR Rule 560-10-32.05, dealers must provide a temporary permit for newly purchased cars. These permits allow buyers to legally drive the vehicle for a limited period while they complete the registration process.
Regarding the title application, the dealer is accountable for the title application on behalf of the customer if the car requires one. However, the dealer is not obligated to request for new or transferred plates.
If the dealer was not able to secure a title for the purchaser five days prior to the license plate expiration, the buyer can request a 30-day temporary permit at their local tag office.
To do so, the customer must provide the dealer-issued temporary permit, dealer's invoice as ownership proof, a Georgia license or ID, and a completed Application to Extend the Registration Period of a Motor Vehicle.
Georgia's Lemon Law
Georgia's Lemon Law offers recourse to individuals with defective vehicles purchased from a licensed dealer in the state. Enacted to safeguard consumers, this law facilitates the resolution of issues with vehicles that cannot be rectified through repair attempts by the manufacturer.
If, after a reasonable number of repair attempts, the vehicle is deemed a "lemon," the manufacturer is obliged by law to either replace the car or repurchase it. To qualify for the Lemon Law Process, these specific criteria must be met:
- The vehicle must have been purchased, leased, or registered in Georgia.
- Any repair attempts must have been conducted at a manufacturer's authorized dealer or repair facility.
- Repair visits must occur 24 months from the vehicle's delivery date or the first 24,000 miles of use, whichever comes first.
- The individual initiating the Lemon Law process must be the original purchaser or lessee, with the vehicle's title still in their name.
- The vehicle must be for personal, family, or household use or as one of 10 or fewer vehicles annually for non-limousine rental business purposes.
- The issue faced must either be covered under the manufacturer's warranty or significantly impair the vehicle's use, value, or safety.
If the purchased vehicle qualifies as a lemon, call the Consumer Protection Division at 404-458-3827 for guidance on the Lemon Law Process.
What Are the Fees for Buying a Car in Georgia?
There are several fees that buyers must be aware of when purchasing a vehicle in Georgia. Here is a breakdown of standard fees:
Title Transfer Fee
The current title transfer fee in Georgia is $18.
Registration Fee
When registering a newly purchased vehicle to the GA MVD, a $20 registration fee applies.
Title Ad Valorem Tax Fee
Georgia has a 7% Title Ad Valorem Tax (TAVT) on most vehicles purchased on or after March 1, 2013. This tax is based on the vehicle's market value and is paid during titling.
Annual Ad Valorem Tax Fee
An annual ad valorem tax is charged to non-titled vehicles purchased before March 1, 2013. This tax is assessed annually and is paid during registration. The amount of the tax varies based on the vehicle's market value and the tax district where the owner resides.
What Are the Insurance Requirements for Vehicles in Georgia?
Motor vehicle owners and lessees in Georgia must adhere to the state's insurance requirements to secure the safety and protection of all road users. According to Georgia law, continuous automobile liability insurance is mandatory on vehicles with active registration.
The minimum insurance in Georgia is as follows:
- $25,000 for bodily injury liability per individual and $50,000 per accident
- $25,000 for property damage liability per incident
Failure to comply with this insurance requirement can lead to severe penalties. Individuals may face fines and, in some cases, the suspension of their vehicle registration.
Can a Non-Resident Buy a Car in Georgia?
Non-residents can purchase vehicles in Georgia, but the process may differ slightly from state residents.
Non-residents must provide valid out-of-state identification and insurance documents and complete the necessary paperwork to register the vehicle in their home state. Their home state sales taxes may also apply.
If a non-resident plans to register a vehicle purchased in Georgia within the state, there are a few additional requirements. Among the most important ones is to obtain a Georgia license or Georgia identification card. They will also need to pay the applicable TAVT and any title and registration fees.