Illinois Laws on Buying a Used Car From a Private Owner

Cars have become an integral part of daily life. They offer a convenient mode of transport and have contributed greatly to the growth of the American economy. You can purchase a new car from a car dealer. However, you instead may opt to buy a used car from a private owner. Illinois has laws governing this kind of transaction.

Register the Car

Register the car in your name at the secretary of state's office. This involves filling a Completed Application for Vehicle Title and Registration (Form VSD-190). You also need to change the car's title to your name. If the car owner does not have a title, he must apply for a duplicate title before you can start the purchase. Registering the car and changing the title to your name must be done within 20 days of the purchase except in the case of new residents to the state, who have 30 days. First-time registration costs $99, but there are additional charges for personalized plates. Ordinary plates are issued on the spot, but personalized ones will be sent by mail.

Warranties

Used cars are not covered under the "implied warranties" law in Illinois. This means that you buy the car in its current condition without a guarantee for quality. It is the buyer's responsibility to find out if the warranty from the manufacturer is still in force.

Evidence of Purchase

Illinois law does not make it mandatory to have a bill of sale signed when you are buying a used car. However, lawyers advise buyers that the sale should be documented with paperwork that will act as evidence of purchase. Have a bill of sale signed and pay by bank draft as further proof of the transaction. If there is a legal issue involving the car, such as a claim of theft, you can prove your innocence with this paperwork.

Used Car Tax

You must pay tax to the state when you buy a car from a private owner. The amount you pay will depend on various factors, including the car's age and price. The secretary of state's office will calculate the amount of tax you will pay.

Insurance

Illinois law makes it mandatory for all cars to be insured with coverage that will pay for injury to other people and damage to their cars in case of an accident. Make arrangements to purchase insurance coverage once you have decided which car to buy. Coverage for damage to your car and theft is optional. You can provide details of the insurance during registration, but it is not mandatory.