Stop and go: Buying a used car in 7 steps

THE DEALER ROUTE

STOP 7: If you buy from a dealer, this couldn’t be easier. They’ll take care of all the paperwork, including taxes, licensing and registration. All you have to do is sign here, here and here. Throw in a few initials, and you’ve got a street legal new vehicle, with license plates on the way.

Of course, that doesn’t mean you shouldn’t take time to read the contract, particularly if the dealer pressures you to get it over with. In California, there is no automatic “cooling off” period on cars, so once you’ve signed, the vehicle -- and any extras you didn’t realized you’ve just signed for -- are yours. Under state law, however, if the car you are buying costs less than $40,000, you have the right to purchase an insurance policy of sorts that allows you to return it within two days.

THE PRIVATE SELLER WAYSTOP 7: If you buy from a private seller, transferring the title and getting the license plates and registration requires some legwork, but it hardly requires an advanced degree. California’s Department of Motor Vehicles has a devoted to the paperwork involved in a title change, as do most states.

Ideally, the seller of the vehicle will have paid off any loans and will hold title free and clear. If the bank holds the title, you might have to go to the bank and have it signed over there. If you are financing your own purchase, ask your lender for help: Many lenders are, like dealers, equipped to handle the paperwork.