In Oklahoma, buying a vehicle is governed by specific laws to protect both buyers and sellers. According to Oklahoma Statutes Title 47, Section 1105, the buyer must obtain a title from the seller, which should be properly signed and include a completed odometer disclosure statement. This step verifies the vehicle's ownership and mileage.
Oklahoma law also requires buyers to pay a title transfer fee and applicable sales tax to the Oklahoma Tax Commission (OTC). Additionally, buyers must register the vehicle within 30 days of purchase to avoid penalties. If buying from a dealership, the dealer typically handles the title transfer and registration. However, for private sales, the buyer is responsible for these tasks.
Oklahoma law requires purchase price documentation, such as a bill of sale, which includes transaction details and protects both parties in case of future disputes. These regulations help maintain order and fairness in vehicle transactions throughout the state.
What Is the Process for Buying a Car in Oklahoma?
In Oklahoma, car buying varies based on whether the purchase is from a private seller or a licensed dealer.
The Service Oklahoma office and the Oklahoma Used Motor Vehicle, Dismantler, and Manufactured Housing Commission (OUMVDMHC) offer guidelines to assist buyers in safeguarding themselves when purchasing a new or used car.
These guidelines help customers understand their rights and protections throughout the car-buying process, whether dealing with a private seller or a dealer.
Buying a Vehicle from a Private Seller in Oklahoma
Buying a vehicle from a private seller in Oklahoma has advantages and disadvantages. One advantage is that private sellers often offer lower prices compared to dealerships. Additionally, negotiations can be more flexible, potentially allowing buyers to secure a better deal.
However, disadvantages include the lack of warranties and the risk of undisclosed issues with the vehicle's condition. Private sellers may also not provide the detailed vehicle history reports that dealerships typically offer.
Buyers should carefully inspect the vehicle and consider the following points to avoid potential issues when buying a car from a private seller:
Title Check
When purchasing a vehicle from a private seller in Oklahoma, it is essential to verify the validity of the vehicle's title. Oklahoma law requires the seller to have the vehicle's certificate of title to transfer ownership legally. If the car had a lien, the seller must provide proof that the lien has been released, either on the title itself or through a letter from the bank.
Note that there are several types of vehicle certificates of title. They include a green title, which is the type commonly seen, a red title for a salvage vehicle, an orange title for a "rebuilt" car, and a blue title for a "junk" vehicle.
The red or blue titles are for non-roadworthy vehicles. The seller must disclose the type of title the buyer will receive unless it is a green title with no special notations.
In some cases, the seller may have lost or damaged the original title. If this occurs, the seller must obtain a duplicate or replacement title.
To do so, the owner must submit a completed Application for Replacement/Duplicate Certificate of Title (Form 701-7) to the Service Oklahoma office in Oklahoma City or at a Licensed Operator location (formerly known as a Tag Agency).
Vehicle Inspection
Buyers need to conduct a comprehensive vehicle inspection before purchasing a vehicle. For optimal visibility, it is best to do this inspection on a clear, dry day, avoiding potential issues hidden by poor lighting or water. This ensures better detection of flaws like hail damage, signs of repainting, or door dings.
During the inspection, buyers should thoroughly assess the vehicle's condition on the lot and during a test drive. It is crucial to test drive the car extensively to evaluate its performance, including acceleration, handling, braking, and any unusual noises or vibrations.
Buyers should inspect every aspect of the vehicle without hesitation. This thorough examination helps them make an informed decision about its suitability before completing the purchase.
Vehicle History Report and Other Essential Records
Aside from vehicle inspection, it is advisable to gather as much information as possible about the car's past when buying a vehicle from a private seller in Oklahoma.
One of the most important documents is the vehicle history report. This report acts like a diary for the car, informing the buyer about its previous owners, where they lived, any accidents or damage it has experienced, repairs it has undergone, and any manufacturer recalls.
Buyers can obtain this report by visiting the National Motor Vehicle Title Information System (NMVTIS) website. A VIN is typically needed, and the report is fee-based.
Beyond the history report, buyers should ask the seller for service and maintenance records. These receipts and service summaries indicate that the car has been well-maintained.
Additionally, buyers can ask the seller about other essential records, such as official driving or motor vehicle records (MVR) from Service Oklahoma. These records can be requested online through the Service Oklahoma Motor Vehicle Records (MVR) Application tool, where the required information needs to be provided.
Odometer Disclosure Requirement
During a vehicle sale in Oklahoma, the buyer must be aware of the odometer disclosure requirement mandated by federal law. This requirement involves the seller providing an accurate statement of the vehicle's mileage on the certificate of title during the transfer of ownership.
The odometer disclosure statement must include the printed name of the seller (transferor), the current odometer reading, and a certification that the mileage is accurate to the best of the seller's knowledge. Alternatively, the seller can indicate if the odometer reading exceeds the mechanical limits or if the reading is not the actual mileage.
The seller and the buyer (transferee) must complete the odometer disclosure statement by including their printed names, signatures, dates, and addresses. It is crucial that individuals, not companies or organizations, sign the statement, as the same individual cannot sign as both the transferor and transferee.
Failure to comply with the odometer disclosure requirement or providing false information can result in fines and potential imprisonment.
Purchase Price Documentation
When buying a vehicle from a private seller in Oklahoma, both parties must have proper documentation of the purchase price. This documentation can be a bill of sale, a purchase contract, or the Declaration of Vehicle Purchase Price (Form 722-1).
This documentation serves as evidence of the agreed-upon sale price between the buyer and the seller, and it is required during the title transfer process. This documentation helps prevent potential disputes or legal issues related to the sale price, as it provides proof of the transaction.
Without adequate purchase price documentation, the buyer and seller may face delays or complications when transferring the vehicle's title. This could lead to additional time and effort required to resolve any sale price issues.
Ownership Transfer
Transferring the title to a new owner during an Oklahoma vehicle purchase involves several key steps and required documents. Properly executing this transfer protects the buyer and the seller from potential legal issues. Here are the essential requirements for the buyer:
- Properly Assigned and Notarized Oklahoma Certificate of Title: The seller must fill out and notarize the title to transfer ownership to the buyer.
- Lien Release: If the vehicle has any active liens, the seller must provide a lien release.
- Purchase Price Documentation: To verify the transaction details, documentation such as a bill of sale, purchase contract, or Form 722-1 is required.
- Odometer Disclosure Statement: An odometer disclosure statement is necessary for vehicles from the 2011 model year or newer.
- Valid Driver's License or FEI Number: The buyer must present a valid driver's license or Federal Employer Identification (FEI) number.
- Verification of Liability Insurance: The buyer must provide proof of liability insurance that meets Oklahoma's requirements.
These documents must be brought to the Service Oklahoma office or a Licensed Operator location to complete the transfer. This process makes the buyer the legal owner and relieves the seller of liability. According to Oklahoma law, the title must be transferred within 30 days from the date of assignment.
Vehicle Registration and License Plates
After transferring ownership, the buyer must visit the Service Oklahoma office or a Licensed Operator location to process their tag, title, and tax and ultimately receive their vehicle registration. The specific requirements may vary depending on the vehicle type and the owner's circumstances. Generally, the following will be needed:
- Proof of Oklahoma insurance
- The vehicle purchase agreement
- Application for Oklahoma Certificate of Title (Form 701-6)
- A valid driver's license
- Odometer disclosure statement
For a complete guide, visit the Vehicle Registration page on the Service Oklahoma official website.
Upon registering a vehicle in Oklahoma, owners are issued a standard license plate and decal. At least one license plate must be properly installed on the registered vehicle. These plates prove registration and provide parking privileges and other benefits.
In addition to the standard plate, Oklahoma offers several other license plate options. The state provides specialty plates for the following:
- Military members
- Educational institutions
- Native American tribes
- Civil service departments
- Special interest groups
- Personalized customization
- Organization support
- Physically disabled individuals
Buying a Vehicle from a Licensed Dealer in Oklahoma
Although some forms and processes are alike when buying from a private seller, purchasing a vehicle from a licensed dealer in Oklahoma provides several benefits.
These include access to a broader selection of vehicles, warranties, certified pre-owned options, and the assurance of legal compliance and ethical standards.
However, buying from a licensed dealer may come with higher prices than buying from private sellers. Additionally, dealership purchases may involve more negotiation, and buyers may face pressure to add extras like extended warranties or financing packages.
Here are the essential points to consider when purchasing from a dealer:
Licensed Dealer Check
Checking a dealer's licensing before purchasing a vehicle in Oklahoma is crucial.
The OUMVDMHC maintains an online registry of licensed dealers and salespersons. This registry allows buyers to search and verify dealers' registrations by various criteria, such as name, license number, license type, city, state, and zip code.
Verifying the dealer's license ensures that they are legally authorized to sell vehicles in the state. It provides assurance that the dealer operates within the laws and regulations set by the commission, offering buyers protection against fraudulent practices.
Spot Delivery Sales and Time Limits
If a vehicle sale from a licensed dealer is contingent upon the buyer securing financing, the dealer must finalize the sale within 15 days after delivering the vehicle. If this timeframe is not met, the buyer can cancel the purchase. Additionally, the dealer may face a fine of $100 for failing to complete the sale within the specified time limit.
Deposit Policies and Refundability
If a deposit is taken during a vehicle sale from a licensed dealer, the dealer must provide the buyer with a written receipt. This receipt should clearly state the duration for which the deposit holds the vehicle and whether the deposit is refundable. If there is no written receipt or if the refundability of the deposit is not specified, it is automatically considered refundable.
Dealer Fees: Tag, Title, and Tax
Oklahoma law prohibits dealers from directly handling the registration and licensing of used motor vehicles. However, during a vehicle sale from a licensed dealer, dealers can include the tag, title, and tax costs in the purchase price. To indicate this, dealers may use the term "tag, title, and tax included." However, it is improper to use the phrase "We pay tag, title, and tax."
Vehicle Tags
When buying a vehicle from a licensed dealer in Oklahoma, it is essential to understand the proper usage of vehicle tags. Dealers are subject to specific regulations regarding the issuance and use of temporary paper tags and dealer metal tags.
Regarding paper tags, a dealer can only issue one temporary license plate (paper tag) per vehicle sale. Issuing more than one paper tag per sale is considered misuse and is grounds for revocation of the dealer's license.
Paper tags are strictly for use on vehicles that have been sold and cannot be used for demonstrating, transporting, or any other purpose besides the sold vehicle.
Conversely, dealer metal tags serve a different purpose. Dealers can use their metal license plates for demonstrating, transporting, or any everyday business use related to their operations.
Sales Paperwork
A licensed dealer in Oklahoma must complete several essential paperwork during a vehicle sale, and these include:
Sales Agreement
The dealer must document the sale using a Sales Contract (Bill of Sale), a We Owe form for additional items, an odometer statement for recent vehicles, a Buyer's Guide, and a Condition of Sale detailing warranties or disclaimers. The same paperwork is required for internet sales.
Title Delivery
The dealer must deliver the vehicle's title to the purchaser at the time of vehicle delivery. If a financing institution holds the title, they must complete their lien process within 25 days and then transfer the title.
Indian Nation Titles
For vehicles with titles from Indian Nations, buyers must verify the title holder's tribal membership and obtain a Certified Degree of Indian Blood (CDIB) card. They should also check for outstanding liens with the OTC to avoid any legal complications.
If a buyer encounters problems with a licensed dealer, they can submit a complaint online through the official website of OUMVDMHC.
Lemon Law in Oklahoma
The Lemon Law in Oklahoma protects buyers of new vehicles with significant defects that substantially impair their use and value. It applies to all new vehicles except those over 10,000 pounds and motor homes' living facilities.
Suppose a vehicle meets these criteria, and the manufacturer or dealer fails to repair the defect after a reasonable number of attempts (generally four). In that case, the buyer may receive a replacement vehicle or a refund of the purchase price minus an allowance for using the vehicle.
To qualify for protection under the Lemon Law, the buyer must notify the manufacturer or dealer of the defect in writing during the warranty period or within one year of delivery. If the manufacturer or dealer does not comply with the Lemon Law, the buyer may be able to sue and potentially recover attorney's fees.
What Are the Fees for Buying a Car in Oklahoma?
Buyers must be prepared for several fees when buying a car in Oklahoma. Here are the standard fees:
Motor Vehicle Sales Tax
Oklahoma imposes a motor vehicle sales tax on car purchases, set at 4.5% of the total purchase price. This tax comprises a 1.25% sales tax rate and a 3.25% vehicle excise tax. The application of these taxes varies for new and used cars.
The entire 4.5% tax rate is directly applied to the final purchase price for new car purchases. In contrast, vehicle purchases that are used follow a different calculation. A fixed tax rate of $20 is applied to the initial $1,500 of the purchase price, with the remainder of the price subject to the combined 4.5% tax rate.
Title Transfer Fees
Transfer fees cover processing the title transfer and issuing a new title in the buyer's name. These fees typically include a transfer fee of $17 and a vehicle title fee of $11.
Registration Fees
Buyers must pay registration fees to obtain license plates for their vehicles. These fees vary depending on the vehicle's weight, age, and type. Additional fees may apply for specialty plates or personalized tags.
Check the Fees & Exemptions page on the Service Oklahoma official website for complete registration fees.
Documentation Fees
Dealers may charge documentation fees for processing paperwork related to the sale. These fees are not standardized by the state and can differ among dealerships.
Other Possible Fees
Buyers should also consider potential additional fees such as lien recording fees, tag agency fees, and any optional services or warranties purchased at the time of sale.
What Are the Insurance Requirements for Vehicles in Oklahoma?
In Oklahoma, the minimum auto insurance coverage required is $25,000/$50,000/$25,000, covering bodily injury per person up to $25,000, per accident up to $50,000, and $25,000 for property damage caused to others in an accident.
Liability coverage, including property damage and bodily injury coverage, is crucial. Property damage covers damage to others' property or vehicles for which the individual is legally responsible. Bodily injury covers expenses related to injuries sustained by others in an accident.
Driving without insurance in Oklahoma can lead to severe consequences. Offenders may face fines up to $250, license suspension, and even imprisonment for repeat offenses. Additionally, they may need to pay an administrative fee of $125 and a license reinstatement fee of $300.
Can a Non-Resident Buy a Car in Oklahoma?
According to Oklahoma state law, non-residents can purchase vehicles in Oklahoma under certain conditions.
If a non-resident becomes employed in the state, they must register their vehicle in Oklahoma within 30 days unless they commute daily from a neighboring state.
Full-time students from other states attending Oklahoma institutions are exempt from registering in Oklahoma as long as their home state offers the same exemption to Oklahoma students.
For visiting non-residents, any vehicle owned and properly registered out-of-state can remain in Oklahoma for up to 60 days before requiring Oklahoma registration. However, improperly registered out-of-state cars must be registered in Oklahoma immediately under the same rules as resident-owned vehicles.