In Louisiana, vehicle purchases are primarily governed by the Louisiana Vehicle Certificate of Title Act. Specifically, the Louisiana Revised Statute (LA RS) Section 32:707 mandates that after purchasing a vehicle from a private party, the buyer has five days from the date of purchase to apply for a new certificate of title in their name.
The law also requires specific documents for this process, including the notarized and assigned title from the last registered owner, a bill of sale, an odometer statement, and proof of liability insurance. If the original tile is lost or damaged, the seller must request a duplicate title to transfer ownership legally.
What Is the Process for Buying a Car in Louisiana?
Car buying in Louisiana varies depending on whether the purchase is from a private seller or a licensed or bonded dealer.
The Office of Motor Vehicles (OMV) of the Louisiana Department of Public Safety (LA DPS) and other relevant government institutions provide guidelines to help buyers protect themselves when buying a new or used car.
These guidelines aim to make sure that customers understand their rights and protections throughout the car-buying journey, regardless of whether they are dealing with a private seller or a dealer.
Buying a Vehicle from a Private Seller in Louisiana
Buying a vehicle from a private seller in Louisiana has advantages and disadvantages.
One advantage is the potential for lower prices than buying from a dealership. Private sellers may also be more flexible with negotiations.
However, there are downsides, too. Private sales often come with limited or no warranties, increasing the risk of buying a problematic vehicle. Additionally, private sellers may not provide as much information about the vehicle's history or condition as dealerships.
Buyers should carefully inspect the vehicle and consider the following to avoid potential issues when buying a car from a private seller.
Title Check
When buying a vehicle from a private seller in Louisiana, verifying the title's validity is crucial. Louisiana 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 show that it's been released, either on the title itself or through a letter from the bank.
Sometimes, a seller might have lost or damaged the original title. In such cases, they must get a duplicate title from the Louisiana OMV. To do this, they fill out a Vehicle Application form (DPSMV 1799) and submit it to their local OMV.
If a buyer isn't sure about the title's validity, they can use the OMV's Title Verification system. This online service helps confirm if a Louisiana title is genuine. To use it, the buyer needs three pieces of information: the title number, the title date, and the last six digits of the vehicle identification number (VIN).
Note that this service only checks if a current Louisiana title is valid. It doesn't show the title's history or change ownership.
VIN Inspection
Sometimes, a physical inspection is required when buying a vehicle in Louisiana. This process, known as a VIN inspection, verifies the vehicle's identity by checking its VIN. It's not always needed, but it can be required by law in certain situations.
To get a physical inspection, the buyer should contact their local law enforcement agency. They can either schedule an inspection there or be referred to another agency that can help. The inspection must be done by a trained law enforcement officer who has completed a special certification course.
After the inspection, the officer provides a form showing the vehicle's details. This original form must be given to the OMV along with other title or registration documents. To be accepted, the form must be complete with the officer's certification number, signature, date, and any applicable item numbers.
Vehicle History Report and Other Essential Records
Aside from VIN inspection, it's smart to gather as much information as possible about the car's past when buying a vehicle from a private seller in Louisiana.
One of the most important documents is the vehicle history report. This report is like a diary for the car, telling the buyer about its previous owners, where they lived, any accidents or damage it's been through, repairs it's had, and even if the manufacturer has recalled it for any issues.
To get this report, they can visit the National Motor Vehicle Title Information System (NMVTIS) website. They'll need to enter the car's VIN, and the system will provide its history. The buyer should remember that most providers charge a fee for this service.
Beyond the history report, it's also good for the buyer to ask the seller for service and maintenance records. These are usually receipts and service summaries that show the car has been well cared for.
Additionally, they can get more official driving records from the Louisiana OMV through their online services. These records can provide extra helpful information about the vehicle.
Safety and Emissions Inspection
When someone buys a vehicle out of state and wants to register it in Louisiana, they must first have it pass a safety inspection. This check guarantees that the car is safe to drive on Louisiana roads.
In some parts of Louisiana, there's an extra step. If the buyer lives in Ascension, Iberville, East Baton Rouge, Livingston, or West Baton Rouge Parish, their car must also pass a smog check. This test makes sure the vehicle isn't polluting too much.
The yearly safety and emissions inspection is pretty thorough. It checks all the car's safety equipment, tests the gas cap to make sure it seals properly and visually inspects the emissions system for any signs of tampering. This way, the buyer knows their new-to-them car is safe and environmentally friendly.
Odometer Disclosure Statement
Buyers need to be aware of the odometer disclosure statement when buying a vehicle in Louisiana. This is a legal requirement under the Federal Truth in Mileage Act, which says that the seller must provide this statement to the buyer when they sell or transfer ownership of a vehicle. This rule protects buyers from odometer fraud.
Not all vehicles need this statement. Cars that weigh more than 16,000 pounds, non-self-propelled vehicles like trailers, and older models (2010 or before that are transferred at least ten years after their model year) are exempt. However, starting from January 1, 2021, vehicles from 2011 and newer need to have this disclosure for 20 years.
Sometimes, the title might be with a bank because of a loan, or it might be lost. In such cases, the seller can use a special power of attorney form to let the buyer fill out the odometer disclosure on their behalf. This form doesn't need to be notarized. Once the title is available, the buyer must write down the exact mileage the seller put on the special form.
Ownership Transfer
Properly transferring the title is crucial during a Louisiana vehicle sale. By doing this correctly, the seller is no longer responsible for any issues with the car, and the buyer becomes the legal owner. This means the buyer must now register the vehicle and get insurance.
To transfer the title, the buyer and seller need several documents. These include:
- Current vehicle title
- Driver's licenses or IDs
- Proof that the buyer has Louisiana liability insurance
During the sale, they must carefully fill out the back of the title with accurate information, such as their legal names, signatures, addresses, the car's mileage, sale date, and price.
Sometimes, more than one person owns the car. In this case, the way the names are connected on the title matters. If it says "and," all owners must sign. With "or," either can sign. For "and/or," both sign. If nothing is specified, it's treated as "and," so all owners must sign.
During a private sale in Louisiana, the seller must also sign the title before a notary or in the presence of two witnesses. After this process, the buyer can take all the paperwork, their ID, and money for fees and taxes to their local OMV office to complete the ownership transfer.
Bill of Sale Requirements for Private Vehicle Transactions in Louisiana
When an individual purchases a vehicle from a private seller in Louisiana, a bill of sale is still required. However, suppose the sales price is already indicated on the title when assigned to the buyer. In that case, a separate bill of sale document is unnecessary, as the title itself serves as the bill of sale.
In cases where the sales price is not specified on the title, the buyer must obtain a separate bill of sale from the seller, clearly detailing the vehicle's purchase price.
Buying a Vehicle from a Licensed or Bonded Dealer in Louisiana
Although some forms and processes are alike when buying from a private seller, purchasing a used car from a licensed or bonded dealer in Louisiana assures buyers of legal compliance and appropriate documentation.
Moreover, licensed or bonded dealers often extend financing options, warranties, and assistance through title processing. However, buying from a dealership might incur higher costs due to additional fees and markups.
To fully benefit from purchasing from a reputable dealer, buyers should keep these essential points in mind:
Licensed or Bonded Dealer Check
When buying a vehicle from a dealer in Louisiana, it is essential to check if the dealer is licensed or bonded. This simple step can save them a lot of trouble later on.
A licensed dealer has met the state's requirements to legally sell vehicles, assuring buyers that the dealership operates within legal and ethical standards.
On the other hand, a bonded dealer has secured a surety bond, which acts as a financial guarantee that the dealer will comply with all relevant laws and regulations. This bond protects consumers from any fraudulent or unethical practices by the dealer. Under state law, these dealers must furnish the car's title within 20 days of purchase.
To verify if a dealer is licensed or bonded in Louisiana, contact the OMV or the Louisiana Used Motor Vehicle Commission (LUMVC) directly via phone or email. Additionally, ask the dealer to provide proof of their license and bond.
Buyer's Guide
When someone buys a used car from a dealer in Louisiana, they should always look for the Buyer's Guide. The Federal Trade Commission requires dealers to include this document in every used car they sell. It's not just a suggestion; it's the law.
The Buyer's Guide is like a report card for the car. It tells the buyer essential things, like whether the vehicle is sold "as is" or has a warranty. If there's a warranty, it shows how much of the repair costs the dealer will pay. It also reminds the buyer that spoken promises can be hard to enforce, so they should get everything in writing.
The guide also points out the car's major systems, like the engine or brakes, and warns about potential problems. Importantly, it encourages the buyer to have the vehicle checked by an independent mechanic before buying.
Warranties
Buying a used car from a dealership in Louisiana comes with special rights, particularly with warranties. The dealer might offer a full or limited warranty. Full warranties are rare and cover more, while limited warranties are more common and cover less.
If a dealer offers a warranty, they must complete the warranty section in the Buyer's Guide. This section shows what parts are covered, how long the warranty lasts, and how much the buyer will pay for repairs. It's brilliant for the buyer to compare warranties from different dealers.
Even without a written warranty, the buyer might have protection through implied warranties. These are like unspoken promises that the car will work properly. However, dealers in most states can use terms like "as is" to avoid these warranties. Interestingly, in Louisiana, dealers have to provide different disclosures for "as-is" sales.
If the buyer gets a service contract within 90 days of buying an "as-is" car, they automatically get implied warranties on the parts covered. For example, if they buy a contract for the engine, they get implied warranties on the engine, too.
Bill of Sale Requirements for Dealer Vehicle Transactions in Louisiana
An itemized invoice, like a detailed bill of sale, is needed during a vehicle sales transaction from a dealer in Louisiana. This invoice must include a complete description of the car - the year, make, model, and VIN. It also needs to show the sales price and any trade-in details.
Notably, the invoice must display the dealer's current permit number. If it shows an old number, the salesperson should fix it by crossing out the incorrect number, writing the current one, and putting their initials next to the change.
The necessity for an original or copy depends on the time and location of the transaction. An original notarized invoice is requisite for sales occurring in Louisiana before January 1, 2023, or in states mandating notarization. However, a copy is deemed acceptable for transactions in Louisiana on or after January 1, 2023, or in states without notarization requirements.
Lemon Law in Louisiana
The Louisiana Lemon Law protects consumers who purchase defective motor vehicles. It covers passenger cars, vans, trucks, personal watercraft, all-terrain vehicles, and motor home chassis and drivetrains.
If a vehicle has a nonconformity that the manufacturer cannot repair after a reasonable number of attempts, the consumer has the right to request a replacement or a refund.
The law defines a reasonable number of attempts as four or more repair attempts for the same issue within the warranty period or one year. Additionally, it applies if the vehicle is out of service for repairs for a cumulative total of 90 days or more.
The manufacturer must then provide a comparable new replacement vehicle or refund the purchase price, fees, and taxes. This refund is minus a reasonable allowance for the consumer's car use before the first repair attempt.
What Are the Fees for Buying a Car in Louisiana?
The fees for buying a car in Louisiana may vary by parish and municipality. However, most jurisdictions will generally incur the following costs:
Motor Vehicle Sales Tax
Buyers in Louisiana must pay state and local sales tax on motor vehicle purchases. The state sales tax rate is 4.45%, and local sales tax rates range from 1.85% to 7%, depending on the parish and municipality. The total sales tax rate is based on the buyer's domicile, not the seller's location.
Title and Registration Fees
When purchasing a car in Louisiana, several fees are associated with titling and registering the vehicle. These include:
- Title Certification and Title Correction: $68.50 each
- Mortgage Recordation (Retail Installment Agreement): $10
- Mortgage Recordation (UCC1): $15
- Handling Fee: $8
- License Plate Transfer: $3
License Plate Fees
The cost of license plates in Louisiana varies based on the vehicle type:
- Passenger Cars: Minimum $20 for two years (based on 0.1% of selling price)
- Trucks 6,001 - 10,000 lbs: $112 for four years
- Trucks up to 6,000 lbs: $40 for four years
- Commercial Vehicles: $10 for one year
- Motorcycles: $12 for four years
- Motor Homes: $50 for two years
Other Fees
Additional fees may apply, such as fees for permanent trailer registrations or penalties for false statements on documentation. Dealerships may also charge a documentation fee for processing the paperwork related to the sale, which can vary between dealerships.
Note that these fees are subject to change, so checking with the Louisiana OMV for the most up-to-date information when purchasing a vehicle is recommended.
What Are the Insurance Requirements for Vehicles in Louisiana?
Louisiana requires all drivers to maintain minimum liability insurance coverage, which includes:
- $15,000 for bodily injury or death of one person
- $30,000 for total bodily injury or death liability
- $25,000 for property damage per accident
This basic liability coverage pays for the medical bills, property damage, and other costs of drivers, passengers, and pedestrians injured or having their vehicle damaged in an accident caused by the insured driver, up to the coverage limits.
Driving without insurance in Louisiana can result in fines of $500 to $1,000, suspension of driving privileges, vehicle impoundment, registration revocation, or license plate cancellation. The state's "No Pay, No Play" law also limits uninsured drivers' compensation for their losses after an accident, even if the other driver was at fault.
Can a Non-Resident Buy a Car in Louisiana?
A non-resident can buy a car in Louisiana with a straightforward process.
First, they need to obtain a valid bill of sale for the vehicle. Next, they must take this bill of sale to their home state's Department of Motor Vehicles (DMV), along with a photo ID, proof of residency, proof of insurance, the odometer reading, and the necessary fees to register the car.
Non-residents will also need to pay local sales tax in their home state. The dealership typically collects and forwards the sales tax to the appropriate government agency if the vehicle was purchased from a dealership. However, it's wise to verify this. If the car was bought from a private seller, the buyer is responsible for paying the state and local sales tax.