What to do after buying a car: 10 steps

The work isn’t quite over once you have successfully negotiated and purchased your new vehicle.

You must take some steps after buying a car, like registering your new vehicle, getting insurance and planning for future inspections. These steps will ensure that you hold legal ownership of your new set of wheels and can enjoy the open road without worry.

10 steps to take after buying a car

Take these steps after buying a car to finalize important ownership details before you put your new ride in drive.

1. Register your new car

Registering your new vehicle is essential after a purchase — it is illegal to operate your vehicle without valid state registration. If you purchased a new car, the dealership likely handled the registration on your behalf, but you should confirm your vehicle is properly registered before setting out on the road. 

If the dealership didn’t handle registration or you bought from a private seller, you must make an appointment and head to the Department of Motor Vehicles (DMV) to register your new car. The process varies slightly by state, but most commonly, you will need the following documents to register your vehicle:

• Valid driver’s license.
• Vehicle bill of sale.
• Proof of state residency.
• Proof of vehicle insurance.
• Vehicle title.
• Loan documents.
• Proof of passing of state emissions test.

Check your state’s DMV website to confirm the necessary documentation before the appointment.

2. Swap over your insurance

Car insurance protects your finances by covering any unexpected accidents or costs that come with vehicle ownership. Once you know what vehicle you want to buy, you will need to compare car insurance or change your existing policy. Because car insurance rates have seen steady increases over the last few years, compare quotes from multiple companies to ensure you get the most cost-effective option.

The type of coverage that you need varies by vehicle type, use and the state you live in. Each state has its own minimum coverage requirements to drive legally, so confirm the regulations for your home before signing off.

3. Read through the owner’s manual

While reading the manual cover to cover might be time-consuming, it is helpful to familiarize yourself with your new car’s features. This way, you can get the most out of your new vehicle and confirm you are properly using all available technology and safety features.

4. Arrange for future maintenance

Your vehicle’s maintenance is one of the larger consistent costs you will be met with, so it is best to prepare for upcoming mechanic trips.

Most vehicles require basic maintenance every 5,000 or 10,000 miles, along with more in-depth service at important checkpoints: 

• 36,000 miles.
• 50,000 miles.
• 60,000 miles.
• 100,000 miles.
• 125,000 miles.
• 180,000 miles. 
• 250,000 miles. 

Although your new car will not require any maintenance immediately, it’s best to check the manual and online vehicle forums to make a list of necessary maintenance. This way, you can make appointments proactively and budget for any upcoming costs.

5. Set up automatic payments

When using an auto loan to purchase a new vehicle, it’s important to manage loan repayment responsibly. Making monthly payments on time payments every time helps you avoid damage to your credit score, which is one potential con of auto loans.

To help with that effort, consider setting up automatic loan payments. Setting up autopay protects you from accidentally forgetting a payment because they are automatically debited from your bank account. In some cases, taking this step can also save you money, as some lenders offer an annual percentage rate discount of 0.25 percent to 0.5 percent for customers who use autopay.

6. Add temporary vehicle tags (if you bought from a dealership)

In some states, you will receive temporary tags directly from the dealership. This is simply a temporary license plate to use before you get your official plates. Timing varies by state, but temporary tags are essential and prove that the vehicle is registered. Check out the specific regulations for your state if your dealer does not handle the temporary plates.

7. Transfer the vehicle title (if you bought from a private seller)

Transferring a vehicle title takes two primary steps: the seller releasing ownership and then you, the new owner, taking over ownership at the DMV. When you buy from a private seller, you are responsible for making sure this step is completed. Check specific regulations with your local DMV as each state varies slightly.

You will need the following documents:

• Vehicle bill of sale.
• Date of sale.
• Vehicle insurance.
• Buyer and recipient’s name and address.
• License information.

8. Take the car for a vehicle inspection (if you bought from a private seller)

Although you should take your vehicle to get checked by a trusted mechanic before purchase, it’s still wise to go once the vehicle is under your care. Doing this early on can be useful to find any mechanical issues that must be fixed. It can also help you form a valuable relationship with a trusted mechanic. Some specific items to look out for include checking the tires, brakes and filters.

9. Search for recalls

If there are safety issues or if other updates are needed, manufacturers may recall select models. Before hitting the road, check for recalls on your vehicle. The National Highway Traffic Safety Administration’s database allows you to search by entering your vehicle identification number (VIN), but there should be information about current recalls listed on the manufacturer’s website as well. 

No matter which route you take, know that a safety recall must be done free-of-charge by the manufacturer. You shouldn’t have to pay anything out-of-pocket for a safety recall when you buy a new — or used — vehicle.

10. Keep your paperwork

Don’t toss the bill of sale and other documents related to your recent purchase in the trash just yet. Instead, store them in a safe place in case you need to access them in the near or distant future. It’s also a good idea to keep a backup copy of your registration with your other files as well.

If there is an issue with your loan or vehicle, having the paperwork in a safe and accessible location will be one less headache. It pays to keep things organized — even if you just need to reference documents when you are nearing your loan payoff date.

Bottom line

Once you have completed these steps, be sure to place your registration and proof of insurance in your glove box for safekeeping. If you took out a loan, work with your lender to ensure your payments are made on-time each month. Buying a vehicle means paying more attention to your budget and maintenance schedule, but it can be worth it if you would rather not face the restrictions of a lease.