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When buying a car from a private seller in Rhode Island, you must obtain the original Certificate of Title. The seller needs to sign the "Assignment of Ownership" section on the back, including the date of sale, the purchase price, and the current odometer reading. As the buyer, you must also sign this section. Ensure the seller's signature matches the name on the front of the title.
Yes. Rhode Island requires vehicles to pass a safety and emissions inspection every two years. When you purchase a used vehicle, you are required to have it inspected within 5 days of registering it, regardless of when the previous owner's inspection sticker expires. You are responsible for ensuring the vehicle can pass this inspection after the sale.
Yes, a Bill of Sale (Form TR-2) is required by the Rhode Island DMV. This document is used to verify the purchase price for tax calculation purposes. The bill of sale must include the vehicle's year, make, model, and Vehicle Identification Number (VIN), the purchase price, the date of sale, and the names, addresses, and signatures of both the buyer and seller.
You will be required to pay a 7% state sales tax on the purchase price of the vehicle or the NADA clean trade-in value, whichever is higher. This tax is paid directly to the DMV when you register the vehicle, not to the seller. You will also pay separate fees for the title transfer, registration, and new license plates.
Examine the "Lienholder" section on the front of the title. If a bank or credit union is listed, the seller must provide you with a lien release letter from that financial institution, or the title must have the lien officially released on the document itself. Without proof that the loan has been paid off, you will not be able to obtain a clean title in your name.
Master the Art of Private Car Sales in Rhode Island: Essential Tips and Resources.
View Rhode Island Guide
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