Acquiring a vehicle in Idaho requires understanding the state's legal requirements. According to Idaho Code Sec. 49-501 to 49-512, buyers must obtain a Certificate of Title and a Bill of Sale to establish legal ownership. These documents protect the buyer from future ownership disputes, making the transaction secure and legally sound.
Compliance with these regulations is overseen by the Division of Motor Vehicles (DMV) of the Idaho Transportation Department (ITD).
Non-compliance with Idaho's vehicle purchase laws can lead to serious repercussions. This includes delays in obtaining crucial documentation like titles and registrations, which could potentially prevent the buyer from legally operating the vehicle.
Whether buying from a private party or a dealer, understanding the legal requirements is essential for navigating the process smoothly and avoiding unnecessary setbacks. Thoroughly reviewing the necessary documentation and guidelines is crucial to safeguarding the interests of both parties while upholding the integrity of vehicle ownership records.
What Is the Process for Buying a Car in Idaho?
The process for buying a vehicle in Idaho differs based on whether the purchase is from a private individual or a licensed dealer.
Buying a vehicle from a private seller often means lower prices and room for negotiation. However, it can come with risks like limited legal protections and no warranties. The buyer must rely on their own inspection and may encounter undisclosed issues.
On the other hand, purchasing from a dealer provides more security. Dealers usually offer warranties, certified pre-owned options, and financing assistance. They are also legally required to disclose vehicle history and condition. The downside is higher prices and additional fees.
The choice depends on the buyer's preference for cost savings versus added security and convenience.
Buying a Vehicle from a Private Seller in Idaho
Buyers must understand the legal requirements to facilitate a smooth and secure transaction when purchasing a vehicle from a private seller. Preparation of the following documents will help prevent potential disputes:
Title Verification
When buying a vehicle from a private seller in Idaho, verifying the title is crucial. The buyer should check that the seller has a clear title in their name and is free of any liens.
This can be done by inspecting the physical title document. The title should list the seller as the owner and show no outstanding liens. If there is a lien, the seller must provide a lien release from the lender.
The buyer should also match the vehicle identification number (VIN) on the title with the VIN on the vehicle to ensure they are the same. Any discrepancies could indicate potential issues with the vehicle's history.
Buyers are also encouraged to carefully review the title certificate for any brandings, such as "salvage" or "rebuilt," which indicate the vehicle's history and may impact its value or performance.
Vehicle History Report
A thorough understanding of Idaho's vehicle history report requirements is critical to making informed decisions when purchasing a used vehicle.
The ITD automatically performs a National Motor Vehicle Title Information System (NMVTIS) check during each title transfer. This report is crucial in determining the vehicle's eligibility for a new title.
Buyers are encouraged to proactively obtain their own NMVTIS report through approved providers or utilize the VINCheck Lookup tool for comprehensive insights into the vehicle's history. Note that most vehicle history providers charge a fee for their services.
The report encompasses vital details regarding the vehicle's title history, odometer readings, and reported incidents such as accidents, theft, or salvage branding.
Other Vehicle Records
Buying a vehicle in Idaho requires careful consideration and access to essential records that offer valuable insights into the vehicle's condition. These records allow an assessment of the vehicle's value and potential risks before purchasing.
However, accessing certain information can be challenging due to the Driver's Privacy Protection Act (DPPA), which prohibits the unauthorized release or use of personal information from motor vehicle records and imposes penalties for violations. This act empowers individuals to take legal action against those who misuse their data.
A key amendment to the DPPA, as reflected in 18 United States Code Sec. 2721, requires states to obtain explicit permission from individuals before their personal motor vehicle records can be sold or released to third-party marketers.
However, buyers can still request this information from sellers, who can then obtain it on their behalf. The ITD simplifies this process by providing access to comprehensive vehicle information through the Idaho Motor Vehicle Record Request (ITD 3374).
Online Services
Several online services are accessible to help buyers make a sound judgment when buying a vehicle. The Motor Vehicle Title and Registration Records Search verifies title information and the absence of liens.
To gain insight into a seller's driving history, buyers can use the Driver License Record Search. A printable copy of this record costs $10.50. Online purchases provide three years of history. For records predating three years or to access the original issue date, completing the Idaho Driver's License Record Request ITD 3120 and submitting it to ITD is necessary.
Additionally, detailed crash reports can be accessed through the ITD Forms—Crash Reports portal. These resources help buyers establish a vehicle's overall health, legal status, and the seller's driving record, ultimately facilitating informed decisions and protecting against potential problems.
Pre-Purchase Inspection
A pre-purchase inspection is a wise choice for anyone considering a used car in Idaho. This thorough examination by a qualified mechanic provides valuable insights into the car's condition, covering essential components like the engine and brakes.
The mechanic's report helps buyers determine potential repair expenses, negotiate a fairer price, or decline a purchase if substantial issues are identified. This proactive approach helps buyers circumvent unforeseen costs and fosters a more satisfying ownership experience with a vehicle that aligns with their requirements and preferences.
Bill of Sale
The ITD Bill of Sale (ITD 3738) form protects a buyer's interests. The form documents the specifics of the vehicle transaction, creating a legal record of the sale. This protects the buyer by ensuring that the details of the purchased vehicle, including its VIN, model, make, year, and odometer reading, are accurately recorded.
The bill of sale also serves as an official disclosure of the vehicle's odometer reading at the time of sale. This protects the buyer from potential odometer fraud and guarantees accurate reporting to the ITD.
Furthermore, the sale price recorded on the bill of sale is used to determine sales tax so buyers pay the correct amount, avoiding any overpayment or potential issues with the ITD.
Once the seller completes the ITD 3738 form, the buyer should thoroughly examine all information for accuracy before signing. The buyer must then present the bill of sale when applying for a new title and registration at their local DMV office.
Ownership Transfer
When someone buys a vehicle from a private seller in Idaho, they must follow specific steps to transfer ownership. The buyer has 30 days from the purchase date to apply for a new title at their local DMV office. If they miss this deadline, they might face penalties.
Generally, the significant requirements for ownership transfer include:
- Bill of sale
- Vehicle title
- Odometer disclosure (an odometer disclosure statement is necessary to certify the mileage at the time of purchase for vehicles less than ten years old)
- Payment of fees
For vehicles being titled in Idaho for the first time, a VIN inspection is required at the county DMV office. If the buyer or seller can't be present for the transfer, they can use a Limited Power of Attorney (ITD 3368) to allow someone else to sign for them.
Title Ownership Transfer from a Deceased Owner
In cases where the previous owner is deceased, the surviving spouse or heir(s) typically handle the title transfer. If listed on the title, the surviving spouse can sell the vehicle by completing the seller's section and providing the buyer's information, potentially needing a bill of sale or a Sales Tax Exemption Certificate (STT-133).
Without a surviving spouse, the transfer responsibility falls to the personal representative or priority heir, depending on probate.
Registrations and License Plates
After the ownership transfer, the buyer must register with the DMV as a new owner. This process makes the vehicle legally recognized and ready for use on Idaho roads.
To assist buyers, the ID DMV provides a structured registration process that involves submitting the vehicle title, proof of insurance, and a completed registration application. Regarding the applicable fees and taxes, contacting the state DMV or a local office is advisable. They can provide fee calculations based on the vehicle's specifics and the buyer's situation.
Note that the Idaho Full Fee (Intrastate) Application for Registration is required for commercial vehicles operating exclusively within Idaho. This form collects information about the carrier's operations, vehicles, and insurance coverage for safety regulations.
The application for registration can be done at a local DMV office. Some requirements can be submitted online, mailed, faxed, or emailed to the ITD's Motor Carrier Services.
License Plates
Once the registration process is complete and all applicable fees have been paid, the buyer will receive license plates for their vehicle.
ITD provides a Sample Plate Application (ITD 3684) for individuals interested in obtaining sample or souvenir license plates and a convenient online service for ordering personalized license plates. This service allows vehicle owners to customize their license plates with unique combinations of letters and numbers.
Self-Issue Temporary Registration Permits
Idaho's Commercial Registration System allows buyers to self-issue temporary registration permits (trip permits) online. This convenient feature allows commercial vehicle operators to obtain temporary registration without visiting a port of entry or waiting for manual processing.
After following the on-screen instructions and completing the self-issuance process, print and display the permit clearly on the vehicle's front windshield.
Buying a Vehicle from a Licensed Dealer in Idaho
Idaho Code Sec. 49-1601 mandates that all vehicle dealers within the state hold a valid license from the ITD. This licensing requirement protects consumers by maintaining industry standards and ensuring dealer compliance with state regulations. Violations of these licensing requirements may result in fines or license suspension for dealers.
Buyers receive support throughout the entire process, and dealers typically handle tasks such as vehicle registration and title transfer.
Furthermore, active Idaho dealers provide buyers with a Buyer's Guide, which contains important information about the vehicle's history, warranty coverage (if applicable), and any known issues.
This transparency, mandated by the 16 Code of Federal Regulation Sec. 455.1, allows buyers to make informed decisions based on a complete understanding of the vehicle's condition.
Online Service
In case the buyer needs self-registration, the DMV ITD offers a streamlined online service for those who have purchased a vehicle from a licensed Idaho dealership. This service allows buyers to register their new or used car from the comfort of their own home, eliminating the need to visit a county DMV office.
Note that this service is not available for private party sales or for transferring current registrations to new vehicles.
For additional assistance, refer to the Title Application Form 0502 Instructions or contact the Dealers unit at (208) 334-8681.
Idaho's Lemon Law
The Lemon Law in Idaho aims to protect consumers who purchase or lease a car, truck, or van covered by a manufacturer's written warranty. It addresses vehicle "nonconformities," which are defects or conditions that negatively impact the vehicle's use or market value. However, it does not cover issues resulting from abuse, neglect, or unauthorized modifications.
To be covered by the law, the vehicle must meet these criteria:
- Purchased or licensed in Idaho
- Weighs 12,000 lbs or less
- Primarily used for personal business or individual, family, or household purposes
Prompt reporting of any defect to the manufacturer or authorized dealer is essential. The Lemon law's protection ceases upon the earliest occurrence of the following:
- Expiration of the written warranty
- The vehicle reaches 24,000 miles
- Two years pass from the delivery date
Manufacturer's Duty to Repair
Under the Lemon law, the manufacturer or authorized dealers are obligated to repair a vehicle if it does not conform to the written warranty and the defect is reported within the specified time frame. This obligation extends even beyond the warranty period or two years from delivery.
Additionally, the vehicle owner must have given the manufacturer at least one initial repair attempt for the same issue before the law presumes a reasonable number of repair attempts.
The law presumes a reasonable number of attempts have been made if the same nonconformity has been subject to repair four or more times yet persists or if the vehicle has been out of service for repairs for a cumulative period of 30 or more business days.
Refund or Replacement Requirements
In cases of substantial defects where a reasonable number of repair attempts have been unsuccessful, the manufacturer must either:
- Replace the vehicle with a comparable one
- Refund the purchase price minus a reasonable allowance for vehicle use
The determination of a "reasonable number of attempts" depends on the defect's severity and repair time.
What Are the Fees for Buying a Car in Idaho?
The purchase of a motor vehicle in Idaho incurs certain fees, including sales tax and title and registration fees.
Sales Tax
A 6% sales tax is levied on the purchase price of all motor vehicles sold in Idaho. If a vehicle is purchased outside of Idaho and brought into the state for use, a 6% use tax applies. This tax is typically paid by the buyer at the time of vehicle registration.
Title and Registration Fees
In addition to sales tax, buyers must also pay a $14 title fee and a $7 title administration fee when registering their newly purchased vehicle in Idaho.
The cost to register a vehicle in Idaho varies depending on several factors, including the vehicle's age, type, weight, intended use, and county of residence. The base registration fees for passenger vehicles are as follows:
- $69 for vehicles one or two years old
- $57 for vehicles three to six years old
- $45 for vehicles seven or more years old
For detailed information about additional fees, buyers should check the Registration Fact Sheet.
What Are the Insurance Requirements for Vehicles in Idaho?
Idaho law mandates that all vehicle owners maintain a minimum liability insurance coverage to operate their vehicles legally within the state. This coverage protects other drivers and their property in an accident where the insured driver is at fault. The minimum required limits are as follows:
- Bodily Injury Per Person: $25,000
- Bodily Injury Per Accident: $50,000
- Property Damage Per Accident: $15,000
SR22/26 Insurance Filing
When facing specific circumstances like a DUI conviction or license suspension, drivers are sometimes obligated to file an SR-22 or SR-26 form. It serves as proof of financial responsibility and is usually handled by the driver's insurance company.
To facilitate this process, insurance companies must first complete and submit an application to the ITD to submit an SR-22/26 Insurance Filing. Once approved, the company will receive security access codes to file the forms electronically.
Moreover, the ITD offers a convenient way for drivers to manage their vehicle insurance. With the online Drive Insured Self-Reporting Tool, drivers can easily update their vehicle insurance information themselves, adding another layer of convenience to the process. This empowers drivers to maintain accurate and up-to-date records with minimal effort.
Can a Non-Resident Buy a Car in Idaho?
A non-Idaho resident can purchase a vehicle from a dealership or private party within the state without encountering legal restrictions. The buyer should obtain a valid bill of sale, which the seller may need to notarize, depending on the buyer's state of residency.
The buyer cannot register the vehicle in Idaho and must do so in their home state. To complete this process, the buyer presents the bill of sale, proof of insurance that meets their home state's minimum requirements, proof of residency, odometer disclosure statement, and any other documentation required by their state's DMV (or equivalent agency).
During this process, the buyer pays all applicable taxes and fees to their home state.
Sales Tax Exemption
Suppose the vehicle will not be titled in Idaho and will be removed from the state within 90 days of purchase to register and title it in another state or country. In that case, a non-resident individual or organization may be eligible for a sales tax exemption.
To claim the exemption, Form ST-104NR (Sales Tax Exemption Certificate - Non-resident Vehicle/Vessel) must be completed and submitted to the Idaho State Tax Commission.