Buying a Vehicle in Utah

Vehicle Title

Under Utah Code 41-1a-702, the seller must provide a title to the buyer within 48 hours of the vehicle transaction. Still, it is best to obtain the title at the time of sale.

The title must accurately list the vehicle's make, model, and 17-digit Vehicle Identification Number (VIN), and the specified seller must endorse it. If the title is held jointly (such as by spouses or co-signers), both parties may be required to sign. Furthermore, if the title lists a lienholder, ensure the lien has been released.

If the title is lost, the buyer and seller may fill out form TC-123, Application for a Duplicate Title. Upon release of the document, this can be used to register the vehicle in the buyer's name.

Vehicle and VIN History Report

It is advisable to obtain a vehicle history report when purchasing a car. This report details ownership history, accident history, service and maintenance records, title history, and odometer readings that offer insights into the seller's maintenance practices and how well they maintained the vehicle.

The National Motor Vehicle Title Information System (NMVTIS) gathers and maintains vehicle data using VINs from approved data providers. This report provides details, including:

• Title History
• Title issue date
• Theft records
• Damage from floods, fire, or saltwater
• Type of title (clean or salvage)

When inspecting the car in person, make sure to verify that the mileage and VIN on the vehicle match its documentation; the VIN can typically be found on the driver's side dashboard or driver's door.

Odometer Mileage Disclosure Statement

Utah Code Section 41-1a-902 mandates that a written odometer disclosure statement using the form TC-891, Odometer Disclosure Statement, be furnished to the buyer when a vehicle is sold or transferred. However, if the car being sold is at least 20 years old, an odometer disclosure statement is no longer needed.

This document contains the following information:

• The vehicle's odometer reading at the time of transfer
• The date when the transfer occurs
• The seller's name and address, or their agent's details if it is a company
• The buyer's name and address, or their agent's details if it is a company
• The vehicle's specifics: make, model, year, body type, and VIN
• A declaration that confirms whether the odometer reading is accurate, beyond the odometer's mechanical limits, or inaccurate mileage

Bill of Sale

When purchasing a vehicle in Utah, buyers need to document the transaction for tax purposes. The state's motor vehicle department offers form TC-843, Bill of Sale for this.

This record should include:

• The purchaser's full name and address
• The seller's details, including name, address, and signature
• A thorough description of the vehicle, including its unique identification number
• Information about any vehicle traded in as part of the deal
• The agreed-upon price for the vehicle
• The value assigned to any trade-in vehicle
• The final price after accounting for any trade-in

Ownership Transfer

Transferring vehicle ownership in Utah involves several key steps and can take a few days to complete, depending on the efficiency of the documentation submission. The buyer must obtain a signed title from the seller, complete a bill of sale, and provide an odometer disclosure statement, if applicable.

These documents, along with a completed form TC-656, Vehicle Application for Utah Title, proof of insurance, and valid identification, must be submitted to the Utah DMV. A VIN inspection may also be required.

The buyer should know the associated fees, including the title fee, sales tax based on the purchase price, and any registration and inspection fees. Timely submission of all documents within 30 days of purchase is crucial to avoid late penalties.

License Plate and Registration

To register a vehicle in Utah, a signed title certificate, bill of sale, odometer disclosure (for newer vehicles), valid identification, and proof of insurance that meets state requirements must be submitted.

Depending on the vehicle and county, emissions and safety inspections may be necessary, along with a VIN inspection for out-of-state cars. With documents in hand, owners can choose to visit a Utah DMV office in person or use the Utah person-to-person online service portal if eligible.

Upon submission of all required paperwork and payment of the associated fees, the owner will receive their registration and license plates. This process should be completed within 60 days of vehicle purchase to avoid penalties.

License plates are allocated during the vehicle registration process. Upon successful registration, individuals receive temporary printed plates to be placed on their vehicle windows. These temporary plates are used until the official pair of plates, designated for the front and rear of the vehicle, are delivered via mail.

Licensed Dealer Check

In Utah, conducting a licensed dealer check when buying a car from a dealership is an essential step in the purchasing process. The Utah DMV and the Motor Vehicle Enforcement Division (MVED) oversee dealership licensing and state regulation.

Prospective buyers can verify a dealer's license status through the Utah DMV's website or by contacting the MVED directly. Licensed dealers in Utah must display their licenses prominently at their place of business. These licenses are renewed annually to ensure ongoing compliance with state regulations.

Utah law mandates that licensed dealers adhere to strict guidelines, including proper documentation of all sales, accurate disclosure of vehicle history, and compliance with consumer protection laws.

If issues arise during or after the purchase, consumers can file a complaint with the MVED, which has the authority to investigate and take action against non-compliant dealers.

Buyer's Guide

A Buyer's Guide is required when a Utah dealer sells a used vehicle. This requirement is part of the Federal Trade Commission's (FTC) Used Car Rule, which mandates that dealers display a Buyer's Guide on all used vehicles for sale.

It provides consumers with essential information, including warranty details and advice on having the vehicle inspected by an independent mechanic before purchase. This rule ensures transparency and protects buyers in the used car market.

Warranties and Service Contracts

If a dealership sells a third-party warranty or service contract to a vehicle buyer and collects a fee, the dealership is required under Section 41-3-405 to pay the warranty or service contract company promptly. This ensures the warranty becomes effective within 15 days of the sale date.

If the dealership fails to remit the fee within this timeframe, the license could be suspended. Moreover, such failure may entitle the customer to pursue legal action against the dealership for damages that would have been covered by the warranty or service contract.

Dealer Permits

In Utah, when a resident purchases a vehicle from a dealership, they receive a short-term permit valid for 45 days. This temporary authorization gives the dealer a six-week window to secure the official registration and license plates from the state's Motor Vehicle Division on behalf of the buyer.

Sales Tax

In Utah, sales tax rates for motor vehicles vary by city but generally range from 6.35% to 9.35%. These taxes are calculated based on the net purchase price specified in the bill of sale, with the buyer responsible for payment when titling and registering the vehicle at the Utah DMV.

The purchase price encompasses the total value of all consideration given, including cash payments, loan payoffs, and trades. Do note that Utah does not offer a sales tax exemption for vehicle purchases between family members, so sales tax is also applicable to these transactions.

Registration Fee

Under Utah Code Section 41-1a-1206, every vehicle owner must pay a registration fee upon initial registration and annually thereafter. Motorcycles and passenger vehicles also have the option for a six-month registration. These fees are determined based on vehicle type, registered weight, county of registration, and other relevant considerations.

For specific information regarding the registration fee applicable to their vehicle, individuals are encouraged to contact the DMV at 801-297-7780 or 1-800-DMV-UTAH (1-800-368-8824).

Uniform Fee

According to Utah Code Section 59-2-405, one of two uniform fees must be paid upon registration, including the initial purchase and each annual renewal thereafter. This may be the uniform age-based fee or the uniform-in-lieu of property tax.

Renewal Fee

If a vehicle is nearing expiration within 60 days, individuals can access their registration renewal requirements and calculate renewal fees through the Utah Motor Vehicle Portal (MVP).

Corridor Fee

Under Utah Code Section 41-1a-1222, individuals are obligated to pay a $10 local option highway construction and transportation corridor preservation fee per motor vehicle registration within certain counties.

Air Pollution Control (APC)

In accordance with Utah Code Section 41-1a-1223, an APC fee must be paid on all passenger motor vehicles and motorcycles (excluding electric vehicles) in specified counties that operate a motor vehicle emissions inspection and maintenance program. The fee amounts are $3 for Salt Lake, Davis, and Cache and $2 for Utah and Weber.

Automobile Driver Education Fee

According to Utah Code Section 41-1a-1204, there is a $3 registration fee for each motor vehicle, except for motorcycles and vehicles with a Purple Heart plate. This fee is applicable to the vehicle's owner or operator.

Uninsured Motorist Identification Fee

Under Utah Code Section 41-1a-1218, a $1 annual fee is charged for most vehicle registrations but does not apply to commercial fleet vehicles, government-owned or leased vehicles, or those with Purple Heart plates.