How to Finalize a Used Car Sale in Massachusetts
- 1). Review the title of the vehicle you are purchasing to ensure there is no lien holder listed--you cannot transfer ownership without proof of a lien release, if there is one. Make sure the seller signs in the appropriate seller information areas, documenting her name, signature, date, odometer reading and cost. The state of Massachusetts does not requires a title on vehicles that are from 1980 or before.
- 2). Ask the seller to provide you with a bill of sale or create one yourself. This is not necessary if you have a title that allows for cost and odometer notes in Massachusetts, but having one is good for record-keeping. You are required to provide a bill of sale and seller's registration for ownership transfer if the vehicle is exempt from titling (aged 1980 or older).
- 3). Make sure that the bill-of-sale states both the owner's and seller's name, vehicle year, make, model, vehicle identification number, odometer reading and selling price. Both parties date, sign and print their name on the bill of sale. Each party keeps a copy for himself.
- 4). Take your proof of sale and ownership transfer to your insurance agent. Insure the vehicle with at least a liability policy (your insurance provider knows the state minimums). Your licensed insurance agent will fill out and provide an Application for Registration and Title, also known as the RV-1, which must be signed by the insured--the agent will also sign and stamp the application for completion.
- 5). Bring the RV-1 and necessary documents (your insurance provider will explain what you need to bring) including your driver's license for proof of identity to your local RMV office to complete your paperwork and pay required fees.
- 6). Pay your sales tax, which is 6.25 percent of the vehicle cost, determined either by the purchase price or the NADA wholesale value of the vehicle, whichever is higher (accurate as of August 2010). Additional title and registration fees can be found on the Massachusetts DOT website (see Resources). Complete any additional paperwork and payment at the RMV to finalize your purchase.