The Importance of Car Titles
The “certificate of title” is the document that states who owns the vehicle. Before you agree to purchase or lease a used car, ask to see the title and examine it closely. Do not buy or lease a car if the seller cannot produce the title. This is a red flag indicating the possibility that the car may not be paid for yet, or that it is being sold or leased without the owner’s permission.

If you are buying from a private seller, the name on the title should be the same as the name of the seller. If it is not, ask why not, and find out whether the seller is authorized by the actual owner to sell the vehicle.

In a dealer sale or lease, the name on the title may be the former owner’s or the dealer’s. If title is in the dealer’s name, ask why. The car may have been brokered to that dealer by another dealer, who decided not to sell it for some reason, or the car may have been bought at an auction. If the previous owner’s name does not appear on the title, it is much more difficult to trace the history of the car.

When you examine the title:

Check to see that the numbers are clear, not written over or altered;
Compare the mileage listed on the title to the miles that appear on the odometer — if the number of miles on the car is less than the mileage on the title, the odometer may have been spun back;
Make sure there is no “lienholder” listed on the title. The lienholder (a bank, credit union or finance company) holds title until all payments are made;
Look at the Vehicle Identification Number (VIN) — the 17 digit/letter listing on the small metal plate you can see through the driver’s side of the windshield or look on the driver’s side door post — and compare it to the listing on the title. If they do not match, the title does not belong to that car. Note that if a state issued a replacement VIN to a salvage or previously stolen vehicle, the front driver’s door hinge post will have the two letters of the state name and 6 digits.

Under the Attorney General’s Motor Vehicle Regulations, you must receive the title (or it must be sent to the lienholder) on the date of delivery. Dealers may sometimes have trouble getting title to a car on which they are paying off a previous owner’s loan. Do not take delivery of a car without title — this may mean the car has an unpaid loan in another state, or other problems, which may take time to resolve. A missing title is a red light. Do not take the car home.

Do not allow a dealer to let you drive on dealers’ plates until the title comes in. Do not agree to keep re-dating the paperwork until the title is available.

If the dealer is selling you a vehicle for which he does not have a title, it may be weeks or even months before you can register the vehicle. You should take back your old car until the title arrives (or cancel the deal).

You must apply for a new title within 10 days of purchase.

Salvage Title
If you see the word “SALVAGE” on a title, be very wary. Salvage titles must be issued when an insurance company has declared a vehicle to be a total loss due to fire, vandalism, collision, theft, flood, or any other cause.

A “salvage” classification is permanent and always remains a part of the vehicle history. “Salvage” may be modified by the word “reconstructed” if it has been repaired or rebuilt and undergone an inspection by the Registry of Motor Vehicles. However this inspection is only to ensure that no stolen parts were used in the reconstruction, not that the vehicle is safe and roadworthy. To determine road–worthiness, you must take the vehicle to an authorized inspection station and undergo the combined safety and emissions inspection required each year. It is also advisable to take the vehicle to a mechanic you trust before you commit to buying it.

You cannot register a vehicle with a salvage title, without applying for a “reconstructed” or “recovered-theft” title, after undergoing the salvage title inspection process.

Total losses from out-of-state may not have salvage titles — another good reason to trace a car’s history and have the car checked by a mechanic.

Anyone who “reassembles” a vehicle by welding the frames or unit bodies of two or more vehicles together must also apply to the Registry for an inspection, in order to get a “reconstructed” title for the vehicle. The component vehicles need not have been total loss salvage vehicles. You may thus see a “reconstructed-salvage” title or merely a “reconstructed” title. Both indicate that the vehicle has been inspected for use of stolen parts, but do not indicate an inspection for safety or roadworthiness.

The best advice is to steer clear of salvaged or reconstructed vehicles. However, if costs dictate that you purchase one of these vehicles, be certain to have a qualified mechanic and inspection station thoroughly inspect and test the vehicle before you commit to buying it.

Auctions, Salvage Vehicles, “Consignment” Sales, Used Vehicle “Leases”
Although the used vehicle warranty law states that anyone who sells more than 3 vehicles in a calendar year is a “dealer” for purposes of providing warranties to consumer buyers, unscrupulous dealers persist in trying to get around providing the appropriate warranties. They will hold “auctions,” sell reconstructed salvage vehicles “as is,” offer vehicles “on consignment” on behalf of a friend/relative or as a so–called “lease.” In these cases the consumer pays weekly or biweekly as much or more money than he or she would pay if the vehicle was sold with or without an option to purchase at the end of the “lease,” all without used vehicle warranties. The selling dealer is responsible for honoring any warranty. A dealer that displays a car on “consignment” from another dealer, or a private party, should purchase the vehicle from the owner before selling it to you. The title will be assigned from the consignor, but you will be able to obtain warranty coverage from the dealer whose lot it was diplayed on. If you see such a “deal,” steer clear of it. It is difficult to fight battles against such dealers, who are obviously trying to avoid their obligations under the law. Vote with your feet and your dollars, and go elsewhere.

Registry Requirements
Once you have made your deal and taken care of any financing arrangements, the car is yours. However, you still need to do a few things, by yourself or with the dealer’s help, before you hit the road. To find out what the Registry of Motor Vehicles requires visit the RMV’s web site at: www.massrmv.com. The web site also contains the address of the nearest Registry branch office. You can also refer to a copy of the Registry of Motor Vehicle’s Driver’s Manual – also available at any Registry branch.

Applying For Registration And Title
To register the car in your name, you need: the bill of sale or motor vehicle purchase agreement; the previous title to the car signed over to you (for a used car) or the certificate of origin (for a new car); and a stamp on your registration application certifying that you have insurance. Do not make any changes to the title.

There are fees for registering the car (or transferring the registration from one car to another) and applying for a title in your name. Visit the Registry of Motor Vehicles web site at: www.massrmv.com for the current fee amounts. After you apply for registration and title, you (or your lienholder if you have financing) will receive the new title in the mail.

When the car is registered, you will get license plates, or if you are transferring your registration from one car to another, you will attach your old plates to the new car and get a new registration card. See the requirements for transferring a registration on the Registry’s web site at: www.massrmv.com. The registration card will come with stickers that must be attached to the license plates indicating when your registration expires

Taxes And Other Expenses
Remember that you must also pay sales tax when you register the car. It is 5% of the purchase price or, if you bought the car from a friend or relative for a price lower than its book value, you will be charged 5% of the “trade-in” book value. If you want, you can give the dealer the money for your registration, title and sales tax, and the dealer will pay the Registry for you. Keep in mind that you will probably have to pay the dealer an extra fee for that service.

You will also get a bill later from the city or town you live in for excise tax, which is a yearly assessment based on the value of the car. All of these costs should be figured into your budget when you are buying a car.

Insurance

Motor vehicle insurance is mandatory in Massachusetts — you cannot legally register or drive a car without it.

Talk to an insurance agent about your options for coverage. Some basic levels of insurance are required, but you may want to get more than the minimum.

For instance, for a new or late-model car, you may want to have coverage for repairs or replacement if you are in an accident that was your fault. You also have the choice of limited collision or comprehensive coverage, which includes fire damage, theft, and vandalism. Buying expensive coverage for an inexpensive car may not make sense. If you financed or leased the car, the lender or lessor may require you to carry expanded (and more expensive) insurance coverage.

You also have your choice of deductible - the amount you pay out of your pocket before the insurance company pays. The higher your deductible, the lower your insurance cost, but you need to consider how much you can afford to pay toward repairs or another car if you are in an accident.

Ask your insurance agent about discounts for anti-theft devices, taking a driver’s training course, having more than one car insured by the same company, or having a car with airbags or automatic seat belts. Keep in mind that some cars cost more to insure than others because they are considered “high theft vehicles” — attractive to thieves. Get a list of high theft cars from your insurance agent before you buy a car.

You must get a “physical damage” inspection when you insure a used car. Your insurance agent can give you a list of inspection locations. This inspection, which is separate from the safety and emission test, is done to document any preexisting damage to the car.

If you are in an accident later, the insurance company will not pay to repair damage that existed when you bought the car. And it will not honor any claim for accident damage to the car if you didn’t have the insurance inspection done. There is no charge for this inspection.

For a free copy of the state sponsored insurance brochure, “Smart Choices,” contact your insurance agent.

The Safety and Emissions Test
Whether you buy a car in a private sale or from a dealer, you need to get it inspected by a state-licensed inspection station within 7 days of registering it. This is true even if there is an unexpired inspection sticker on the car.

Both car dealers and private sellers are supposed to remove old inspection stickers from cars after they have been purchased to force buyers to have cars inspected.

Often dealers will offer to inspect the cars themselves or to arrange for inspection elsewhere. It is a good idea to take the car to an independent inspection station yourself so that you can be sure you are getting a thorough, objective inspection. Do not let someone inspect the car who may allow marginal items such as worn tires, bad ball joints, or soft brakes to slide by. The inspection station must also check the lights, horn, emergency brake, directional signals, and the body for severe rust, as well as testing the emissions.

To find an inspection station in your area, call the toll free hotline
at 1-877-387-8234 or visit the Enhanced Emissions and Safety Test web site at: www.vehicletest.state.ma.us

In October 1999, the Enhanced Emissions and Safety Test was adopted to comply with federal requirements to help clean the air. Under this program, registered motor vehicles are required to be inspected each year for safety and every other year for emissions. These inspections are conducted at licensed stations across the state. Stations are easily located because they display the official sign. You can find them by calling the toll free number or using the web site listed. As a general rule, vehicles with even-numbered model years receive emissions tests during even numbered calendar years and odd-numbered model years receive emissions tests during odd-numbered calendar years. The annual fee is $29.00. While the safety test is required every year, vehicles which are model year 1983 or older will not be required to have an emissions test. New cars will also be exempt from the emissions test for their first 2 years.

Safety and emissions tests must be conducted within 7 days of registration of a vehicle, regardless of the calendar/model year. Driving any motor vehicle without a valid inspection sticker is a traffic violation and can result in a fine and affect your insurance rate.

If your motor vehicle passes the inspection, a sticker will be affixed to the lower right inside windshield of your vehicle. This sticker is valid for 1 year. If your vehicle fails the inspection, you will receive a “reject” sticker.

If the problem is safety related, you must have the problem fixed immediately. You are not allowed to drive the vehicle until the safety issue is resolved.

If the problem involves vehicle emissions, you have 60 days to correct the problem and resubmit your vehicle for inspection. For more details call toll free 1-877-387-8234 or visit the web site at www.massrmv.com

Under certain circumstances, you have the right to return a car to the seller if the car fails inspection (see page 43). If you purchased the car from a dealer and it fails inspection you also have the option of having the dealer repair it under warranty so that the car is safe and passes inspection.