Buying a vehicle in New Hampshire can be an exciting yet intricate adventure. The process involves numerous steps, each essential for ensuring a smooth and legal transaction.
The New Hampshire Division of Motor Vehicles (NH DMV) governs the state's vehicle buying process. This agency sets the regulations and requirements that buyers must follow regardless of whether they are buying from a private party or a car dealership.
When buying a vehicle privately in New Hampshire, the buyer must obtain necessary documents from the seller, such as the title or, if applicable, a bill of sale. The purchaser must also register the purchased vehicle for its legal operation on public roads.
When buying from dealerships, buyers must be aware of the protective laws implemented in the state to prevent the purchase of a defective vehicle.
By being well-versed in these regulations, prospective buyers can make the vehicle-buying process much easier and more secure. They can also protect their investments and avoid any unforeseen legal pitfalls.
What Is the Process for Buying a Car in New Hampshire?
Individuals can buy a car in New Hampshire from various sources. They can purchase from a private seller or from a dealer.
However, regardless of the chosen method, car buyers are obligated to adhere to specific legal mandates to guarantee compliance with state laws and facilitate a seamless transfer of ownership.
Buying a Vehicle from a Private Seller in New Hampshire
Purchasers can enjoy various benefits when buying a car from a private seller in New Hampshire.
Private sellers often offer lower prices than dealerships, as they do not incur the overhead costs associated with operating a business. Additionally, there is typically more flexibility when negotiating the vehicle's price.
Also, unlike dealerships, private sellers are not trained salespeople and are less likely to use high-pressure tactics to make a sale. This can be advantageous for buyers as it creates a more relaxed and comfortable buying experience.
However, buyers should exercise caution when dealing privately. Private sellers can sometimes sell a vehicle with hidden issues, giving a significant burden to buyers. To avoid such complications, buyers must consider the following:
Title Verification
Title verification holds significant importance for individuals seeking to purchase a car from a private seller in New Hampshire.
By verifying the title, buyers can confirm that the seller is the legitimate owner of the vehicle, preventing fraudulent sales and confirming the transaction is with the rightful owner. This process also allows buyers to identify any outstanding liens on the car, which prevents the potential of facing extra costs.
Additionally, by verifying the title, buyers can be assured of the title requirement during the registration and will not face issues.
To conduct a title verification, the buyer should request the vehicle's title from the seller. It is essential to review the title for accuracy, making sure the seller's name matches their identification and that the vehicle's information is correct. Buyers should also verify that the title is genuine by comparing it to other title documents provided by the NH DMV.
Note that if buying a title-exempt vehicle, title verification is not necessary. Instead, buyers should verify the information provided in the bill of sale.
If the vehicle title or bill of sale contains discrepancies, buyers are advised to avoid the transaction or seek assistance from the NH DMV.
Vehicle History Report
A Vehicle History Report (VHR) provides comprehensive details about a vehicle's past, including its ownership history, accident records, title information, and mileage logs. Potential buyers are strongly encouraged to obtain such a report when engaging in a private vehicle transaction in New Hampshire for a multitude of reasons.
One of the primary advantages of obtaining a VHR is that it offers valuable insights into any reported accidents or damage that the vehicle may have experienced previously. By understanding the extent of the damage, buyers can make informed decisions about the vehicle's overall condition.
Furthermore, the report will indicate whether the vehicle possesses a clean title or has undergone salvage, rebuilding, or other title-related issues. This information is critical for buyers to assess the vehicle's value and determine its insurability.
Individuals have a few options available to obtain a VHR. They can request the report from the seller if it is readily available. Alternatively, they can utilize third-party services such as Carfax and AutoCheck. These services typically require the vehicle identification number (VIN) and a nominal fee to access the comprehensive report.
Interested buyers can also acquire Motor Vehicle Records directly from the NH DMV. This can be done through the Online Motor Vehicle Record system or by completing a Release of Motor Vehicle Records (DSMV 505) form and submitting it to any NH DMV location or via mail to the designated address outlined in the form.
Odometer Disclosure Requirement
When purchasing a vehicle from a private seller in New Hampshire, it is essential to be aware of the odometer disclosure requirement. Established under the Federal Truth in Mileage Act of 1986, this requirement is significant in transaction transparency, smooth ownership transfer, and preventing fraudulent activities.
The odometer disclosure statement is a critical document that certifies the vehicle's mileage at the time of sale. This information is crucial for buyers, as it directly impacts the vehicle's value and can influence purchasing decisions.
The vehicle's title typically includes a section where the odometer reading must be recorded. In cases where the space provided on the certificate of title is insufficient for disclosure, the Odometer Disclosure Statement Form (TDMV 12) can be utilized for compliance.
Note that vehicles that are self-propelled, manufactured in or after 2011, and with registered weights of 16,000 pounds or less are required to have the odometer disclosure under federal law.
Ownership Transfer
Completing the transfer of ownership is critical when purchasing a vehicle privately in New Hampshire, as it helps buyers legally assume ownership of the vehicle.
To guarantee a successful transfer, the seller and buyer must complete the appropriate section on the back of the vehicle title. This includes providing their names, addresses, signatures, the date of the sale, and the odometer reading. Additionally, if a lien is recorded on the vehicle, the seller must provide a Release of Lien or Other Encumbrances (TDMV 20A).
In cases involving title-exempt vehicles, the ownership transfer process differs slightly. Instead of the title, a properly executed Bill of Sale or the Report of Sale or Transfer of a Non-Titled Motor Vehicle (TDMV 22A) is required.
This document must include the vehicle's model, make, type, odometer disclosure, and the seller's legal name and signature. The buyer is also required to complete certain sections of this form, providing their name and signature.
Once all the necessary information has been provided, the buyer can obtain the title (with the lien release document if applicable) or bill of sale from the seller.
License Plate and Registration
After the vehicle's ownership is transferred, the license plates remain in the seller's possession. Buyers, in turn, are legally mandated to register the purchased vehicle so they can legally drive it on the roads.
Buyers must visit their local town or city clerk's office to initiate the registration process. At the office, they must present several vital documents, including the properly assigned vehicle title or a duly executed Bill of Sale.
Additional documents may also be presented depending on specific circumstances, such as lien releases for financed vehicles and a Verification of Vehicle Identification Number (TDMV 19A) for transactions involving cars that are abandoned, used by the U.S. government, antique, from a foreign country, etc.
In addition to submitting the required paperwork, buyers must also settle registration fees for the town or city and the state.
Upon completion, buyers will receive a registration certificate and license plates indicating they can legally drive the purchased vehicle.
Buying a Vehicle from a Licensed Dealer in New Hampshire
Opting to buy a vehicle from a dealer in New Hampshire offers several advantages compared to buying from a private seller.
Licensed dealerships provide a sense of security and peace of mind. The state regulates these entities and must adhere to specific rules and regulations so buyers can conduct a legal and fair transaction.
Additionally, dealerships often offer warranties and guarantees on the vehicles they sell, providing buyers with added protection in case of any unexpected issues or defects.
However, certain factors must be considered for a successful dealership vehicle purchase. These include:
Licensed Dealer Check
In accordance with the regulations outlined in the New Hampshire Revised Statutes sections 261:103-a and 261:103-b, individuals engaging in motor vehicle business activities must possess a valid dealer license. These laws underscore the importance of verifying a dealer's license before entering into any transactions with them.
By confirming the dealer's license status, buyers can confirm that they engage in legitimate and law-abiding transactions. This step provides consumer protection, as licensed dealers are expected to adhere to fair business practices and refrain from engaging in fraudulent activities.
Furthermore, if issues arise after the vehicle purchase, individuals can seek recourse since licensed dealers are obligated to address and resolve such matters under state laws.
To verify a dealership's license in New Hampshire, interested parties can contact the NH DMV at (603) 227-4000, email NH.DMVHelp@dos.nh.gov, or visit any NH DMV office to request information regarding the dealership's license status.
Buyer's Guide
When purchasing a vehicle from a licensed dealer in New Hampshire, buyers must familiarize themselves with the Buyer's Guide issued by the Federal Trade Commission (FTC).
The Buyer's Guide is a mandatory document that dealerships must prominently display on every used car they offer for sale. It contains vital information about the vehicle and other essential details that buyers should know before purchasing. Some of the key information typically included in the guide are the following:
- Major mechanical and electrical systems of the car, along with any significant problems that buyers should be cautious about
- Warranty information, including details about what is covered and for how long
- Written promises made by the dealer, such as guarantees or commitments regarding the condition or performance of the vehicle
- Recommendations for obtaining an independent inspection of the car
- The dealer's contact information
By carefully examining the Buyer's Guide, purchasers can make well-informed decisions and minimize the risk of purchasing a car with undisclosed issues. Additionally, the information in the guide can serve as a valuable negotiation tool during the buying process.
Furthermore, even after the sale, the guide can serve as a reference document for buyers, reminding them of the information provided during the purchase and potentially proving useful in case of any future issues or disputes.
Warranties
Another critical consideration that buyers must keep in mind when purchasing a vehicle in a New Hampshire dealership is warranties.
A warranty is a commitment the manufacturer, distributor, or seller makes to ensure that the product meets specific standards or serves particular purposes. In vehicle purchases, warranties protect consumers in case of defects or malfunctions.
New vehicles typically come with manufacturer warranties, including bumper-to-bumper and powertrain coverage.
For used cars, warranty information is detailed in the Buyer's Guide. It indicates whether the vehicle is sold "as is" or with a warranty. If a warranty is applicable, the guide specifies the coverage and duration.
Buyers must thoroughly understand the warranties associated with their vehicle purchase. These warranties provide legal rights and remedies for defects or malfunctions. By having a comprehensive understanding of the warranties, buyers can avoid unexpected repair costs and potential disputes with the dealer.
New Hampshire Lemon Law
The New Hampshire New Motor Vehicle Arbitration Law, commonly known as the New Hampshire Lemon Law, is delineated in New Hampshire Revised Statutes Chapter 357-D.
This law applies to new motor vehicles under the manufacturer's original warranty. In certain circumstances, used cars with low mileage may also qualify for arbitration and relief if a warranty covers the defects.
A vehicle is deemed a "lemon" if it is substantially impaired in use, value, or safety due to a defect covered by the manufacturer's warranty that has not been successfully repaired by the manufacturer or its authorized representative.
To qualify for arbitration, a consumer must demonstrate that the manufacturer or its representative has made at least three unsuccessful attempts to fix the vehicle or that the car has been out of service for 30 or more business days due to covered defects or non-conformities.
Consumers with a defective new vehicle that the dealer cannot repair can seek recourse through the Motor Vehicle Arbitration Board (MVAB). This five-person panel, consisting of consumers, auto dealers, and certified mechanics, reviews complaints, conducts evidentiary hearings, and may inspect or test drive the vehicle.
If the board finds that the vehicle is indeed a lemon, it can order the manufacturer to either repurchase the vehicle or replace it with another of equal value.
Additionally, the MVAB can award damages, which may include reimbursement for license and registration fees as well as finance charges associated with the loan used to purchase the defective vehicle.
What Are the Fees for Buying a Car in New Hampshire?
Apart from the vehicle's price tag, buyers should consider several additional fees when buying a car in New Hampshire.
Here are the most common extra fees that buyers must be aware of:
Registration Fee
Buyers must register the purchased vehicle with the NH DMV to operate it legally. This process entails fees that buyers must settle.
In New Hampshire, the registration fee is two-fold, requiring payment to the city or town and the state.
The state registration fee is determined by the vehicle's weight. Buyers should consult New Hampshire Revised Statutes Section 261:141 for detailed information on these fees.
Conversely, the city fees are specified in New Hampshire Revised Statutes Section 261:153. According to this section, the registration fee for most passenger vehicles and trucks is $3. The fee for heavy vehicles and buses is $5, while motorcycles incur a registration cost of $2.
Title Fee
When obtaining a new title for the purchased vehicle, a $25 title fee applies.
License Plate Fee
The NH DMV charges $8 for standard license plates. However, this fee can differ if obtaining specialized or vanity plates.
VIN Verification Fee
Vehicles that are abandoned, used by the U.S. government, antique, from a foreign country, etc., require a VIN Verification when registering. Hence, buyers should be mindful of the associated fee, which can vary depending on the verification agent.
What Are the Insurance Requirements for Vehicles in New Hampshire?
While the state does not require car insurance by law, drivers are still responsible for the costs associated with any accidents they cause, including medical bills and property damage. If they cannot afford these damages, purchasing car insurance is wise.
Here are the minimum insurance coverage amounts for those opting to avail of auto insurance in New Hampshire:
- $25,000 per person for bodily injury
- $50,000 per accident for bodily injury
- $25,000 per accident for property damage
- $1,000 medical payments
- Uninsured motorist bodily injury of $25,000 per person and $50,000 per accident
Individuals cannot be penalized for not having insurance during a traffic stop. However, if they are convicted of DUI or other driving offenses or were at fault in a previous accident, they must always have proof of insurance. If such individuals are caught driving without insurance, they may face fines and license suspension.
Can a Non-Resident Buy a Car in New Hampshire?
When purchasing a car in New Hampshire as a non-resident, there are no restrictions based on the individual's state of origin. However, the process of registering the vehicle can be intricate.
Non-resident buyers who wish to register the car in their home state must first obtain a temporary license plate. This plate can be obtained for a fee from a dealership where they are buying or from any NH DMV office if buying privately. It allows non-residents to legally drive the vehicle back to their state of residence.
Once the car is in the buyer's state, they must adhere to their state's registration guidelines.
If non-resident buyers plan to register the car in New Hampshire, they must do so within 60 days of establishing residency.
To complete the registration, they must visit their town or city clerk's office, present the necessary documents, including the title or bill of sale, proof of New Hampshire residency, and lease agreement (if applicable), and pay the required registration fees.