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Responsibilities of Buyers and Sellers in Second-Hand Vehicle Transactions in Utah!

Used car buyers and sellers in Utah should be aware of the recent introduction of vehicle title loans, as they may impact the transaction process in The Beehive State.

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Responsibilities for Car Buyers and Sellers in Utah: A Comprehensive Guide!
Responsibilities for Car Buyers and Sellers in Utah: A Comprehensive Guide!

Responsibilities of Buyers and Sellers in Second-Hand Vehicle Transactions in Utah!

Selling a car in Utah involves several steps to ensure a smooth and legal transaction. Here's a breakdown of the process:

  1. Preparing the Documentation: Both the buyer and the seller are responsible for creating a sales contract and transferring the vehicle title correctly. The seller typically drafts the contract, which is then signed by both parties. The contract should include the buyer's name, seller's name, vehicle description, purchase price, and VIN.
  2. Providing Necessary Information: The written notification to the DMV must include the vehicle's model year, make, VIN or plate number, and the owner's signature.
  3. Submitting the Paperwork: The completed sales contract, along with the title documents, should be submitted to the DMV. This can be done through the Motor Vehicle Portal online, by fax (801-297-3570), by mail (P.O. Box 30412, Salt Lake City, Utah, 84130), or by phone (800-DMV-UTAH).
  4. Timely Title Transfer: The seller must provide the buyer with a title within 48 hours of the transaction. Failure to do so may result in penalties.
  5. Sales Tax Calculation: If no bill of sale is provided, the DMV will calculate the sales tax based on the vehicle's fair market price in Utah. The sales tax amount is based on the net purchase price indicated on the bill of sale.
  6. Bill of Sale Requirement: In Utah, buyers are required to obtain a bill of sale. If a bill of sale is not provided, the DMV will issue a temporary permit until the title is received.
  7. Temporary Permit: The new owner can use the title, along with proof of insurance and photo ID, to obtain a temporary permit from the DMV. This permit allows the new owner to drive the vehicle while waiting for the official registration.
  8. Form TC-123 and TC-891: If the vehicle's title is lost, Form TC-123 can be used to replace it. For vehicles that are not 20 years old or older, Form TC-891 must be completed and signed by the buyer and seller.
  9. Reporting the Sale: The seller is required to report the vehicle sale to the DMV within a certain timeframe. This can be done through the same channels as the title transfer.
  10. License Plate Removal: The seller is responsible for removing the license plate and may be held accountable for any traffic or parking violations that occur while the plate is still on the vehicle.
  11. Sales Tax Payment: In a private-party car sale in Utah, the purchaser will pay the sales tax when the Utah Division of Motor Vehicles (DMV) titles and registers the vehicle.

By following these steps, you can ensure a successful and legal vehicle sale in Utah. Always remember to consult the DMV for the most up-to-date information and requirements.

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