Buying a vehicle in South Carolina involves navigating numerous regulations. Whether purchasing from a private seller or dealership, comprehending these regulations is crucial to completing the transaction process and maintaining legal compliance.
The South Carolina Department of Motor Vehicles (SCDMV) provides guidelines for individuals involved in vehicle-buying dealings. These guidelines outline the documents buyers need and the registration process for purchased vehicles, simplifying the administrative aspect of the purchase.
In addition to following documentary requirements and registration guidelines, buyers must be aware of the protective laws in South Carolina that govern vehicle sales. These laws, including the buyer's guide and the lemon law, give consumers the right to protect themselves from purchasing defective vehicles.
By understanding the requirements and protective laws in South Carolina, car buyers can confidently navigate the vehicle purchasing process, ensure a smooth transaction, and safeguard themselves from any potential pitfalls.
What Is the Process for Buying a Car in South Carolina?
The process of purchasing a vehicle in South Carolina entails following specific steps, regardless of whether one chooses to buy from a private seller or a dealership. It is necessary for prospective buyers to familiarize themselves with the unique state requirements and procedures associated with both options for a smooth and legally compliant transaction.
Buying a Vehicle from a Private Seller in South Carolina
When buying a vehicle from a private seller, buyers must demonstrate caution. They must verify if the seller is the car's legal owner and check the vehicle's past before purchasing it. After purchasing a vehicle, buyers must obtain vehicle ownership, register it, and get license plates to drive it on South Carolina roads legally.
To guarantee a successful private-party transaction, the following must be considered:
Title Check
When purchasing a vehicle from a private seller in South Carolina, conducting a thorough title check is paramount for buyers. Besides the fact that the title is needed for ownership transfer, checking it proves beneficial for several reasons.
First and foremost, a title check confirms the legitimacy of the seller's ownership. Buyers can avoid potential disputes or legal issues by confirming that the person selling the vehicle is the rightful owner with the authority to transfer ownership.
Furthermore, checking the title helps buyers identify any outstanding liens on the vehicle. By uncovering liens beforehand, buyers can avoid any financial burdens associated with the car. Verifying the title also prevents buyers from becoming entangled in legal complications if the vehicle is involved in ongoing lawsuits or subject to repossession.
To conduct a title check, buyers should request the seller provide the vehicle's title and meticulously review its details. If the seller does not possess the title, avoiding the transaction or seeking guidance and support from any SCDMV location is advisable.
Obtain Vehicle History Report
Another step buyers must consider when buying a vehicle privately in South Carolina is obtaining a vehicle history report (VHR). These reports provide detailed information about a vehicle's past and can uncover any hidden issues that may impact its performance or safety.
By obtaining a VHR, buyers can gain valuable insights into the vehicle's condition, such as previous accidents, flood damage, salvage titles, or odometer discrepancies. This information offers buyers peace of mind and assures transparency in the transaction.
Furthermore, having access to the vehicle's history allows buyers to accurately assess its value and negotiate a fair price based on any past damages or repairs.
Buyers can visit any SCDMV branch for assistance in acquiring a vehicle history report.
Alternatively, those interested can perform a vehicle identification number (VIN) check through the approved third-party data providers of the National Motor Vehicle Title Information System (NMVTIS) to obtain a vehicle history report. These providers typically require the VIN or license plate number and charge a service fee.
Odometer Disclosure Requirement
In South Carolina, the odometer disclosure requirement is important when purchasing a vehicle from a private seller. This requirement guarantees that buyers receive accurate information regarding the mileage of the car they intend to purchase.
By adhering to the odometer disclosure requirement, buyers can make informed decisions about the condition and value of the vehicle. It also safeguards against potential odometer fraud or the act of manipulating the mileage to enhance the perceived value or reliability of the car.
Moreover, compliance with this requirement is essential for completing the vehicle's ownership transfer into the buyer's name.
As of January 1, 2021, vehicles under 20 years old in South Carolina must adhere to the odometer disclosure requirement.
However, vehicles with Gross Vehicle Weight Ratings exceeding 16,000 pounds, non-self-propelled vehicles, low-speed vehicles without odometers, and cars with odometers measuring hours instead of miles or kilometers are exempt from this mandate.
Ownership Transfer
When purchasing a vehicle from a private seller in South Carolina, securing the vehicle's certificate of title is crucial to facilitate a seamless ownership transfer.
To initiate this process, sellers must fill out the title assignment section located at the back of the title. They must also provide details such as the odometer reading at the time of sale, purchase date, and selling price. Additionally, the seller must affix their signature on the title.
In instances where multiple sellers are listed on the title, separated by "or," only one signature is required to authorize the transfer to the buyer. Conversely, if the sellers' names are joined by "and," both parties must sign the title for the transfer to be valid.
Upon completing the necessary information and signatures, the buyer can take possession of the title, officially assuming vehicle ownership.
License Plate and Registration
According to South Carolina law, sellers are responsible for removing the license plates from the vehicle after it is sold. Meanwhile, the buyer is obligated to register the purchased car and obtain license plates.
There are a few important steps to follow when registering a vehicle purchased in South Carolina. First, buyers must pay their property taxes to the county where they reside. Obtaining a paid property tax receipt from the county auditor is vital as proof of payment.
In addition to the property tax receipt, buyers must have the vehicle title provided by the seller. They must also provide proof of insurance from an auto insurance company, as the SCDMV will electronically verify the coverage.
To complete the registration process, buyers must fill out a Title or Registration Application Form and pay the necessary registration fees.
The mentioned documents, along with the payment, can either be personally delivered to any SCDMV location or mailed to the following address:
South Carolina Department of Motor Vehicles
Titles and Registration
P.O. Box 1498, Blythewood, SC 29016-0024
Once the registration process is complete and the fees are paid, the SCDMV will issue a registration certificate and license plate, allowing the buyer to operate the vehicle legally on South Carolina roads.
Buying a Vehicle from a Licensed Dealer in South Carolina
Buyers enjoy several advantages when purchasing a vehicle from a dealer in South Carolina.
Since state regulations bind dealerships, they offer purchasers added protection and peace of mind. Moreover, dealers offer a wide selection of vehicles and warranty packages and are generally responsible for handling the titling and registration of the car.
Despite these benefits, prospective buyers must consider the following factors to have a secure transaction:
Licensed Dealer Check
According to the South Carolina Code of Laws Section 56-15-310, it is illegal for anyone to sell or deal in motor vehicles without a license. Hence, buyers are highly suggested to verify the credentials of any dealership they intend to transact with within the state.
There are several compelling reasons why individuals should only conduct business with licensed dealers.
Firstly, purchasing from a licensed dealer affirms that consumers are protected by the laws and regulations established by the SCDMV. Licensed dealers must adhere to specific standards that safeguard buyers against fraud and unethical practices.
In addition, licensed dealers are bound by consumer protection laws, which grant buyers certain rights and remedies. Should any issues arise during or after the purchase, dealing with a licensed dealer increases the likelihood of resolving the matter through legal channels.
To verify a dealer's license status in South Carolina, interested parties can visit the View Dealer License Information page on the official SCDMV website. This online feature allows users to search for a dealership's credentials by entering the dealer number, dealership name, or address.
Buyer's Guide
Prospective buyers can rely on the Buyer's Guide mandated by the Federal Trade Commission (FTC) when purchasing a vehicle from a dealership in South Carolina.
The Buyer's Guide is a comprehensive document outlining information about the vehicle being sold. It details the car's major mechanical and electrical systems, alerting buyers to any significant issues they should be aware of before purchasing.
Additionally, it states whether the vehicle is sold "as is" or with a warranty, which provides transparency regarding warranty coverage.
If purchasers encounter any issues or concerns about their purchase, the guide also contains the dealer's information to guarantee that buyers have a direct point of contact to resolve the issue.
For accessibility, dealers in South Carolina must prominently and conspicuously display the Buyer's Guide. This means the guide must be in plain view and visible on both sides.
With the information provided by the guide, buyers can confidently navigate the car-buying process and make well-informed decisions, leading to a more satisfactory and successful purchasing experience.
Warranties
Buyers must pay close attention to the warranties offered when purchasing a vehicle from a dealership in South Carolina.
As mentioned, the Buyer's Guide mandated by the FTC provides information about the vehicle's warranty status. It indicates whether the car is being sold "as is" or with a warranty. If a warranty is provided, the guide will detail its type, any limitations or exclusions, and the percentage of repair costs the dealer will cover under the warranty.
Thoroughly understanding the warranty terms allows buyers to discern what is covered and what is not. This includes identifying the specific vehicle components in the warranty and recognizing any limitations or exclusions. This knowledge is critical for avoiding unexpected expenses related to repairs or replacements not covered by the warranty.
South Carolina Lemon Law
The South Carolina Lemon Law, formally known as the Enforcement of Motor Vehicle Express Warranty Act, is codified in Title 56, Chapter 28 of the South Carolina Code of Laws. This legislation offers protection to consumers who purchase or lease new vehicles that prove to be defective.
To be deemed a lemon under South Carolina's Lemon Law, a vehicle must exhibit defects that substantially impair its use, market value, or safety. These defects must arise within the first 12 months or the first 12,000 miles of operation, whichever comes first.
Additionally, the manufacturer or dealer must have made three unsuccessful attempts to repair the same defect, or the vehicle must have been out of service for 30 calendar days within the initial year or 12,000 miles from the date of purchase.
If a vehicle meets these criteria, the manufacturer must repair it to comply with the warranty, replace it with a comparable new car, or refund the consumer's purchase price.
Consumers must adhere to specific steps to obtain repairs, a replacement, or a refund. They must notify the manufacturer of the defects within the specified 12-month/12,000-mile period and may need to provide written notice if previous repair attempts have failed. Additionally, consumers must engage in any arbitration procedure mandated by the manufacturer.
While arbitration decisions are binding on the manufacturer, consumers dissatisfied with the outcome can still pursue legal action. Successful court cases may also entitle consumers to recover court costs, reasonable attorney's fees, and expenses incurred due to the vehicle's defects.
What Are the Fees for Buying a Car in South Carolina?
Buyers must consider various additional fees when buying a car in South Carolina. Whether purchasing from a private party or a licensed dealership, buyers will encounter extra expenses beyond the vehicle's price tag. The most common additional fees include:
Infrastructure Maintenance Fee
The infrastructure maintenance fee (IMF) is similar to the sales tax. It applies at the time of registration. The IMF is calculated at 5% of the purchase price and is capped at $500.
Title Fee
The SCDMV charges $15 to title the vehicle. It also offers an expedited titling process for in-person applicants, which costs $35.
Registration Fee
The registration fee for most passenger vehicles in South Carolina is $40 for two years. However, different rates apply to other vehicle types, such as motorcycles or electric cars.
For a comprehensive list of registration and other applicable fees in the state, refer to the Fees page on the official SCDMV website.
What Are the Insurance Requirements for Vehicles in South Carolina?
According to the South Carolina Code of Laws Title 38, Chapter 77, automobile insurance is essential for individuals who wish to drive a vehicle in the state.
Section 38-77-140 explicitly stipulates the minimum insurance requirement. For bodily injury liability, drivers in South Carolina must have coverage of at least $25,000 per person and $50,000 per accident for all injured persons. In terms of property damage liability, the minimum coverage required is $25,000 per accident.
In addition to these requirements, South Carolina mandates that drivers carry uninsured motorist coverage with the same minimum limits as bodily injury and property damage liability coverage.
Note that there are penalties for driving without insurance in the state, which increase with each offense.
A first offense entails an uninsured motorist fee of $600, a fine of up to $200 or 30 days in jail, a daily fine of $5 (up to $200), and the suspension of vehicle registration and driver's license.
For a second offense, all the penalties from the first offense apply, with the addition of a mandatory fine and the possibility of up to 30 days in jail. South Carolina classifies a second offense as a criminal misdemeanor, which remains on one's record permanently.
A third offense incurs the same fees and penalties, but jail time increases to 45 days to six months.
Can a Non-Resident Buy a Car in South Carolina?
Non-residents are permitted to purchase and register vehicles in South Carolina but must adhere to certain requirements and procedures.
If a non-resident plans to register the vehicle in their home state, they must comply with their state's requirements and ensure the applicable sales tax payment. On the other hand, if they intend to register the vehicle in South Carolina, they must follow the guidelines provided by the SCDMV.
Nonresidents must provide vital documents to purchase and register a vehicle in South Carolina, including a valid driver's license, proof of insurance, vehicle title or bill of sale, and a completed Title or Registration Application Form.
In addition, if they lack an SC license or ID and desire an SC title for the vehicle, they must also complete the Statement of Vehicle Operation in South Carolina.
To complete the registration process, non-residents must also pay IMF, registration fee, title fee, and other relevant fees.