Law About Private Used Car Sales in Michigan - Unlike new car sales, sales of used cars in Michigan much less protections and restrictions that apply to the transaction. While private parties can sell their cars that they choose, buyers should be aware that private sales are largely at the request of the parties concerned. Although the parties may agree on the modalities of their choice, the law imposes minimum taxes on each party in a sale of private cars.
As with all other vehicles, used car dealers should be able to transfer the vehicle title to the buyer. Privileges, such as those held by a bank or other lending institution, should be released by the holder of the privilege before the title can be transferred. Although not required, the Michigan Department of State recommends that the buyer and seller go to the Secretary of State to complete the transfer of the domain. In any case, the title should be transferred within 15 days from the date of purchase to avoid late fees. The buyer must pay sales tax when the new title is requested or provide evidence that the sales tax was paid.
When the car is sold between the parties, in Michigan, the seller is protected against damages caused to the buyer once the buyer as proof of sale. For example, if the buyer sells the vehicle to a person who then immediately take a car accident and cause damage to third parties, the buyer can protect himself against the claim by a third party is to maintain an appropriate certificate of sale . Even if the seller still has car insurance, which is selling the car, he can avoid taking the responsibility to prove the sale was completed.
Unlike the cars sold at dealerships, private car sales, Michigan, is considered "as is" sales, or the seller gives no guarantee to the buyer. For example, the so-called "lemon law", Michigan protects new car buyers of cars with persistent or recurrent defects. Even though this law protects buyers of problematic vehicles, does not apply to sales of used cars from individuals. § 257.1401 Michigan Compiled laws, only new cars to defects or conditions that compromise the guidance applies to the protection of the State Lemon Law.