Buying a used car is often thought of as a stressful experience, but it doesn’t have to be. In fact, buying a used car in Utah is sometimes described as one of the more laid-back states for this life event, with lots of trusted dealerships and a large market of private sellers looking to sell their vehicles. Here’s our guide to the most important basics you should know when buying a used car in Utah.
Dealership or Private Seller?
When buying a used car in Utah, one of the first decisions you’ll have to make is whether to buy from a dealership or a private seller. There’s really no clear-cut answer that applies to everyone, as each option comes with its own pros and cons.
If you decide to go with a private seller, you’re likely to pay a little bit less on the sale price. Private sellers don’t have the overheads to cover that dealerships do, and they’re often more motivated to sell quickly, so they’ll price their used vehicles lower. But buying from a private seller comes with its risks, as they’re not required to provide all of the inspections and licensing that law requires from dealerships.
Dealerships, on the other hand, are more likely to have a wide selection of vehicles for you to choose from, test drive, and explore. Sure, you’ll be paying a bit more for the sales price, but you’re taking a bit less risk. A used car dealership is more likely to share details about the car’s history, including whether it’s been salvaged, inspected, and properly repaired. That said, not all dealerships are the same. Some use less honest practices than others, so always check reviews. Generally, we recommend going to name-brand dealerships and asking about their stock of used vehicles. Some of the smaller local dealerships may be just as good and have great prices, but it can be more difficult to tell the good from the bad when buying a used car in Utah.
In the end, whether to buy from a dealership or private seller is a personal decision that depends on a range of factors that are unique to you. Use your best judgement when making your decision.
Inspecting the Vehicle Before Buying
Here’s a rule that applies when buying a used car in Utah or anywhere else in the world— always, always personally inspect and try out the vehicle before you buy. While there are more options than ever for buying cars online, this also means that it’s easier for people to hide issues with the vehicle that aren’t apparent until you inspect it in person. You have a right to know about a car’s condition, its history, repairs, inspections, and service history. You also have a right to know whether it’s been in any accidents, whether it’s been totalled and salvaged, and more. Buying a vehicle without knowing any of this information— or even knowing whether it runs properly— is a huge risk and not worth the advantage of a smooth, fast sale.
If you’re buying your vehicle at a distance and seeing it in person first is not an option, then at the very least you should hire a third-party independent party to have it inspected.
That said, it’s really best to take the vehicle for a test-drive first yourself before agreeing to buy— and having the vehicle inspected by someone you trust to make sure it’s in good condition and in the condition that the seller is presenting to you.
Special Weather Considerations for Buying a Used Car in Utah
Utah experiences prolonged periods of cold weather during the winter months. Cold weather and snow can have a significant effect on a range of the car’s components, from its battery to the engine, lubricants, and more.
When shopping for a used car, ask about how much it has been used in cold weather, and whether it was stored indoors. Things like this can help mitigate the long-term effects of using and driving a vehicle in cold weather, and may mean that the vehicle you’re buying will give you a longer lifespan than one that hasn’t been properly cared for given the cold weather conditions in Utah. While you can’t account for every effect of cold weather when buying a used car in Utah, it’s best to be as cautious and thorough as possible when assessing the vehicle’s history.
Utah Sales Tax and Fees for Used Cars
As you probably already know, the agreed-for sale price and the full cost of buying a used car in Utah won’t be exactly the same. After the sale price, you’re also looking at taxes and some fees to get the vehicle registered, inspected, and more.
When it comes to tax, you’ll have to contend with the state sales tax of 6.85% for purchasing a vehicle. Fortunately, this tax has a maximum amount of $900 for a vehicle. This tax is applicable whether you buy from a dealership or a private seller.
If you buy from a dealership, they may have some fees of their own. This includes a documentation fee, which averages $305 in Utah. That said, this fee is determined by the dealership and will range from one dealership to the next depending on what they set it as.
Finally, there are other fees associated with purchasing a used car in Utah. These may be small on their own, but they can add up. They might include:
- Title fee
- Registration fee
- Plate transfer fee
- Uniform fee
- Automobile education fee
Be aware of these fees when setting your budget for buying a used car in Utah so you’re not caught by surprise by unexpected costs beyond the agreed-upon sale price.
Utah Lemon Laws
Lemon Laws are designed to protect people from buying vehicles that have hidden issues that make them unusable within a short period after buying them. Lemon laws vary from state to state, and you shouldn’t count on them to protect you in every circumstance.
In Utah, lemon laws only apply to cars that are purchased new and are under warranty. Used vehicles aren’t protected by lemon laws of any kind, so if you’re buying a used car from either a dealership or a private seller, you’re essentially on your own once the transaction is completed— aside from any warranty agreement you enter into as part of the purchase.
Trading in Your Car in Utah
If you shop for a used vehicle at a dealership, you may be able to trade in your current vehicle as part of the transaction. The dealership will credit you towards the selling price of the vehicle you’re purchasing, but that’s only assuming that the value of the vehicle is more than what you owe on any loan you may have on the vehicle. Let’s say you’re purchasing a vehicle for $10,000, and your current vehicle is worth $4,000 with $2,000 remaining on the loan. You’ll be able to credit $2,000 towards the sales price of the car you’re purchasing.
That’s one advantage of buying from a dealership versus a private seller— private sellers can’t offer trade-in deals like these.
What to Do After Buying a Car in Utah
After you buy a vehicle in Utah, the next thing you’ll need to do is have it registered and potentially get new plates for it. Consult the Utah DMV website for more information about exactly the current requirements for registering newly purchased used vehicles in Utah, which can change depending on the year and whether the vehicle is going to be registered in Utah for the first time (for example, if it was purchased out of state or from an out of state seller).
Do I Need a Bill of Sale in Utah?
A bill of sale is extremely important during any vehicle transaction in Utah. A bill of sale is proof of the agreed upon purchase price and that the title to the vehicle has been legally transferred. A bill of sale can be handwritten or printed, and should generally contain the following information:
- Name and address of buyer
- Name, address, and signature of seller
- Vehicle description, including VIN
- Description of trade-in, if applicable
- Purchase price of vehicle
- Trade-in allowance, if applicable
- Net purchase price
The Utah DMV and Utah State Tax Commission provide a bill of sale template that can make the process of creating a bill of sale fast, easy, and standardized.
Insuring Your Car in Utah
Once you’ve purchased your car in Utah, it’s time to get it insured. You have options when it comes to insurance, but for cheap car insurance online, there’s no better choice than Freedom National. Our website lets you get a quote on Utah car insurance, set up your policy and get insured in no time. We even offer insurance coverage at an affordable price for people that might otherwise have a hard time affording coverage, from those who require SR-22s to people with negative events on their driving records that can make getting insurance coverage difficult. At Freedom National, we have you covered for driving in Utah.
