Purchasing a vehicle in Illinois involves navigating the state's legal framework and procedures overseen by the Illinois Secretary of State (IL SOS). This knowledge empowers buyers to proceed confidently with their purchase, promoting a smooth and secure transaction.
The Illinois Vehicle Code 625 ILCS 5/3-112 mandates that buyers must be provided with a properly assigned and warranted title, which acts as the official proof of ownership and is essential for registration to legally operate the vehicle within the state.
Understanding these requirements is critical whether buying from a private seller or dealership. This will help buyers safeguard their investment and enjoy a seamless vehicle purchase experience in Illinois.
What Is the Process for Buying a Car in Illinois
Illinois mandates compliance with specific regulations when purchasing a vehicle. To ensure a smooth transaction and legal ownership, buyers must obtain necessary documentation such as the title, register the car, and acquire license plates. This applies whether the purchase is made from a private seller or dealership.
Buying a Vehicle from a Private Seller in Illinois
Purchasing a vehicle from a private seller in Illinois has its pros and cons. On the positive side, private sellers often have lower prices than dealerships and provide more room for negotiation, which can lead to a better deal.
However, there are some downsides. Private sellers usually don't offer warranties, and there may be hidden issues with the vehicle's condition.
To avoid potential issues when buying a car from a private seller, buyers should thoroughly inspect the vehicle and keep the following points in mind:
Title Verification
Title verification is vital when purchasing a vehicle from a private seller in Illinois. The title certificate is the legal proof of ownership, and a careful review is essential.
Buyers should verify that the seller's name on the certificate matches the seller's identification and that the vehicle information aligns with the vehicle being purchased.
It's crucial to confirm the title is free of any liens or encumbrances, meaning there are no outstanding loans or claims against the vehicle. Furthermore, the vehicle identification number (VIN) on the title must match the one on the car.
Title Notations
Vehicle title and history reports can contain essential notations that buyers should be aware of. These may include:
- Flood: The vehicle has sustained water damage.
- Rebuilt: The car has been repaired after significant damage.
- Specially Constructed: The vehicle is custom-built.
- Not Actual Mileage: The odometer reading is not accurate.
- Mileage Exceeds Mechanical Limits: The odometer has reached its highest possible reading and started over.
- Inoperable Odometer: The odometer is not working.
If a vehicle has a "salvage" title, an insurance company has declared it a total loss due to damage or theft. Sellers of salvaged vehicles must provide buyers with a Disclosure of Rebuilt Vehicle form, and these vehicles cannot be registered in Illinois.
Vehicle History Report
Illinois buyers can gain valuable insights into a vehicle's past by obtaining a comprehensive vehicle history report. This empowers them to make informed decisions and mitigate the potential risks of purchasing a used car.
The National Motor Vehicle Title Information System (NMVTIS) offers a wealth of information, including title details, odometer readings, and records of accidents, thefts, or other incidents. By accessing NMVTIS reports through approved data providers, buyers can verify the accuracy of the seller's claims and uncover any hidden issues that may affect the vehicle's value or safety.
Additionally, state vehicle records provide further details about the car's title, registration history, and any liens or encumbrances. It provides a more complete understanding of the vehicle's ownership history and participation in a secure transaction.
Buyers can obtain these records at the SOS Motor Vehicle Records Division Record Inquiry Section.
Pre-Purchase Inspection
A safety inspection at an Illinois Official Testing Station is highly recommended prior to finalizing a purchase of a used vehicle from a private seller in Illinois. This inspection offers valuable insight into the mechanical condition of a used car, helping buyers make informed decisions and avoid unexpected expenses.
If a buyer requests it, the seller is obligated to cooperate in facilitating a vehicle safety inspection. As outlined in the Illinois Vehicle Code (625 ILCS 5/13-101), a vehicle inspection verifies that the car meets the minimum safety standards set by the state.
Salvage Vehicle Inspection
When purchasing a vehicle with a salvage title, a salvage vehicle inspection is mandatory before a rebuilt vehicle title can be issued. The SOS Police conducts these comprehensive inspections to ensure the vehicle's roadworthiness and safety. The inspection includes verification of essential parts and all required documentation.
The inspection must be completed at an Illinois Official Testing Station, and upon successful completion, an SOS auto body specialist will sign a salvage vehicle inspection report, which is then approved by the SOS investigator in charge.
Note that specific documents and fees are required for both standard and salvage vehicle sales. For salvage vehicles, sellers must provide buyers with a Disclosure of Rebuilt Vehicle form detailing the vehicle's history.
Odometer Disclosure Statement
Starting January 1, 2021, a federal rule requires odometer disclosure for vehicles manufactured in 2011 or later for 20 years. When purchasing such a vehicle from a private seller, the buyer should ensure the seller completes the Odometer Disclosure Statement for Title Transfer, accurately recording the current mileage.
The accurate disclosure of mileage protects the buyer by providing transparency about the vehicle's history and usage. It can also help in assessing the vehicle's condition and potential resale value. If the odometer disclosure is missing or inaccurate, the buyer may have legal recourse against the seller.
Bill of Sale
A Bill of Sale serves as a legal record of the transaction when purchasing a vehicle from a private seller. It includes essential details to safeguard the buyer's interests.
This document should meticulously outline:
- The VIN
- The complete names and contact details of both the buyer and seller
- The agreed-upon sale price
- The date of the sale
- The vehicle's condition at the time of purchase, including any existing damage or repairs
Through a comprehensive Bill of Sale, buyers establish a documented history of the transaction, which ensures a seamless transfer of ownership and provides a reference point for future reference. While a Bill of Sale is not always mandatory, its presence offers numerous advantages.
Buyers can present this document as proof of purchase when titling and registering the vehicle with the appropriate Department of Motor Vehicles (DMV) office. It also serves as valuable evidence in case of any legal matters concerning the vehicle.
Moreover, a Bill of Sale can be utilized to prove the buyer's ownership of the vehicle for insurance purposes. It ensures accurate coverage and facilitates any necessary claims or modifications to the insurance policy.
Ownership Transfer
When buying a vehicle from a private seller in Illinois, the buyer is responsible for transferring the ownership title. This involves gathering the necessary documentation:
- A completed Application for Vehicle Transaction(s) (VSD 190) form
- The vehicle's Title signed over by the seller
- A Bill of Sale
- Proof of Illinois Insurance
- Private Party Vehicle Use Tax Transaction Return (RUT-50) form
The buyer then submits all required documentation and payments to their local SOS office. After the review and approval, the state issues a new title in the buyer's name.
Double-checking all information before submission is crucial. Make sure that the vehicle information on the title and application match, the title is correctly assigned, and the odometer reading is certified on the back of the title with the date of sale noted.
Ownership Transfer from Deseaced Owner
In cases where the vehicle owner is deceased, the transfer process depends on ownership and estate details. If the deceased was the sole owner and the estate is under probate, the transfer happens after probate, handled by a court-appointed executor.
If jointly owned or not under probate, the surviving owner or heir can initiate the transfer with documents like the death certificate and proof of relationship.
For more information, the IL SOS facility provides resources like the Title and Registration Checklists.
Registrations and License Plates
Registering a vehicle purchased from a private seller in Illinois begins with completing Form VSD 190. This form is accessible online through the Electronic Registration and Title (ERT) System, at a local SOS facility, or by calling 800-252-8980.
The buyer must double-check all information on the application to ensure it aligns with the details on the title. Upon completion, the application should be submitted to the SOS Office.
New license plates are needed after registering the vehicle. The Pick-a-Plate Tool offers the option to personalize license plates if the vehicle is correctly titled and registered and the address on the registration card matches official records. However, this service is unavailable for leased vehicles, those held in trust, or vehicles registered under a business.
If permanent license plates have not been received yet, a temporary registration permit is issued upon submission of a valid registration application.
This temporary plate, valid for 90 days, allows for legal operation of the vehicle while the permanent plates are being processed. The TRP should be attached to the rear plate bracket of the vehicle and removed once the permanent plates arrive.
Buying a Vehicle from a Licensed Dealer in Illinois
There are a few points to remember when buying a vehicle from a licensed dealer in Illinois.
Dealers are required to be licensed with the Illinois SOS office. This license should be prominently displayed at the dealership. Before making a purchase, it is recommended to verify the dealer's license by calling 217-782-5354.
For used vehicles, it is highly advised to research the vehicle's history. Many dealers will provide this report upon request.
After the purchase, the dealer is responsible for submitting the title, transfer documents, and sales tax to the SOS office within 20 days. This ensures the vehicle's title is transferred to the buyer and all necessary taxes are paid.
Lemon Law in Illinois
The Illinois Lemon Law, or New Vehicle Buyer Protection Act, safeguards consumers who purchase new vehicles that turn out to be defective. This law holds car manufacturers responsible for resolving issues with faulty vehicles and provides legal recourse for buyers of "lemons".
Coverage and Eligibility
The Illinois Lemon Law applies to new cars, light trucks, vans under 8,000 pounds, and recreational vehicles (excluding trailers) purchased or leased in Illinois. The coverage lasts for the first 12 months or 12,000 miles, whichever occurs first.
The law does not cover used cars, motorcycles, boats, or vehicles that have been modified or altered. Additionally, defects caused by the buyer's negligence or unauthorized modifications are not covered.
Process
If a defect is discovered within the warranty period, the vehicle owner should promptly take it to the manufacturer or an authorized repair facility. The manufacturer has the right to attempt repairs for the same issue a reasonable number of times.
However, if the defect remains unresolved after several repair attempts (typically four or more, or if the vehicle is out of service for 30 days), the vehicle may be classified as a lemon.
To pursue a Lemon Law claim, the buyer must submit a Request for Arbitration form to the Illinois Attorney General's office.
The Attorney General's office will then assign the case to an informal dispute settlement program, where an impartial third party will review the case and issue a decision. If the buyer is dissatisfied with the decision, they may file a lawsuit in court.
Remedies
If a vehicle is determined to be a lemon, the manufacturer must either replace the vehicle with a comparable model or refund the full purchase price to the buyer, minus a deduction for the miles driven. If the vehicle was leased, the manufacturer must refund the full lease cost.
Buying a Vehicle from a Retailer in Illinois
In Illinois, purchasing a vehicle from a registered retailer (e.g., leasing company, lending agency, vehicle dealer) usually involves the retailer managing the tax reporting process on behalf of the buyer. Form ST-556 is typically used for this purpose, alongside the necessary title forms, and is submitted by the registered retailer to the Illinois Department of Revenue.
Conversely, the buyer is responsible for reporting the transaction if the vehicle is purchased from an unregistered retailer. This involves completing and filing Form RUT-25 within 30 days of bringing the vehicle into Illinois. A copy of the bill of sale is proof of the purchase price and must be attached to Form RUT-25.
What Are the Fees for Buying a Car in Illinois?
Purchasing a vehicle in Illinois comes with specific fees in addition to the purchase price. Understanding these fees can help buyers prepare for the costs associated with vehicle ownership.
Sales Tax
In Illinois, a 7.25% sales tax applies to all vehicle purchases. Buying from a licensed dealer typically includes this tax in the final price.
However, if buying from a private party, buyers are responsible for paying the Private Party Vehicle Use Tax. Buyers can consult the Use Tax Rate table to determine the amount due.
Title and Registration Fees
In addition to sales tax, buyers must pay for the vehicle title and registration. The fees for these services are as follows:
- Original Title: $165
- Passenger Vehicle Registration: $151
Title and registration are typically included in the purchase price when buying from a dealer. However, when buying from a private party, buyers must visit a local SOS facility to title and register the vehicle themselves.
Additional fees may apply depending on the specific circumstances of the purchase, such as the vehicle type and license plate choice. For a comprehensive list of fees, refer to the IL SOS official website.
What Are the Insurance Requirements for Vehicles in Illinois?
In Illinois, liability insurance is a legal requirement for all registered motor vehicles. This insurance safeguards others from financial loss due to property damage or injuries caused by an accident.
The state mandates the following minimum liability coverage amounts:
- $25,000 for injury or death of one person in an accident
- $50,000 for injury or death of multiple people in an accident
- $20,000 for damage to another person's property
Maintaining a valid insurance card within the vehicle is essential, as law enforcement may request to see it. Failure to provide proof of insurance could lead to traffic citations, fines, and potential registration suspension.
Other Coverages
While the state minimums meet legal requirements, they may not adequately cover the costs associated with a serious accident. It is highly recommended to consider purchasing higher liability limits to ensure comprehensive financial protection.
Uninsured Motorist Bodily Injury Coverage (UM)
UM coverage protects the policyholder from bodily injury caused by an uninsured driver or a hit-and-run driver. The minimum limits for UM coverage in Illinois are $25,000 per person and $50,000 per accident. Higher limits can be purchased for an additional premium.
Underinsured Motorist Bodily Injury Insurance (UIM)
UIM coverage comes into play when the at-fault driver has insurance, but their liability limits are lower than the policyholder's UIM limits. In such cases, UIM coverage pays the difference. This coverage is mandatory in Illinois if higher limits of UM coverage are purchased.
Physical Damage Coverage
This coverage pays for damage to the policyholder's vehicle due to accidents or other events like theft, fire, or hail. It is divided into collision coverage (for accidents with another vehicle or object) and comprehensive coverage (for other causes of damage). The policyholder typically pays a deductible ranging from $0 to $1,000.
Can a Non-Resident Buy a Car in Illinois?
Non-residents can purchase a vehicle in Illinois, with the process varying slightly depending on where the vehicle will be registered. If registering the car in another state, documentation like a valid bill of sale, proof of insurance, proof of residency, and odometer disclosure, among others, are required depending on the state's requirements.
If registering the vehicle in Illinois, a Temporary Registration Permit can be obtained upon submitting a valid registration application. This permit, valid for 90 days, allows the buyer to legally operate the vehicle while awaiting the processing of permanent license plates.
To ensure compliance with all applicable regulations and to avoid any unexpected complications, buyers should contact their home state's DMV to confirm the specific requirements for purchasing a vehicle out of state.