Buying a Vehicle in Nebraska

Title Check

Verifying the title's validity is crucial when purchasing a vehicle from a private seller in Nebraska. Nebraska law mandates that the seller possess the vehicle's certificate of title to legally transfer ownership. If the vehicle had a lien, the seller must provide evidence of its release, either noted on the title or through a bank letter.

The seller must obtain a duplicate if the original title is lost or damaged. This process involves submitting a completed Application for Duplicate Certificate of Title and paying a fee of $14 to any County Treasurer's office.

Suppose the prospective buyers can't check the paper title. In that case, they can ask the seller about the VIN and utilize Nebraska's free Vehicle Title & Lien Inquiry online service to access title and lien information for vehicles registered in the state. Note that this online service does not provide owner or registration details.

By conducting a thorough title check, buyers can have a smooth and legal transfer of ownership, protecting themselves from potential complications or fraudulent sales.

Vehicle Inspection

A buyer purchasing a vehicle from a private seller in Nebraska, particularly from out of state, should be aware of the vehicle inspection process. This inspection is crucial for the buyer's protection and for a smooth registration process.

The vehicle inspection verifies the vehicle's identity, safety, and legal status. The County Sheriff usually conducts the inspection at designated Inspection Stations. To verify these stations' operation hours and locations, buyers can contact their local Country Treasurer's office.

During the inspection, the County Sheriff examines each component and safety measures of the car. They will also compare the car's vehicle identification number (VIN) in the Certificate of Title against the one on the vehicle itself to see if they match. This step helps protect the buyer from unknowingly purchasing a stolen or illegally modified vehicle.

Out-of-State Vehicle Inspection

If the vehicle is in another state, the State Police can do the inspection. However, they must use the Nebraska Vehicle Inspection Form (NSP455) during the inspection. The results can then be mailed to the address below for approval:

Both the out-of-state vehicle inspection and the local vehicle inspection require a $10 fee. Upon successful inspection, the buyer will receive a signed NSP455 form to submit to the County Treasurer with their Application for Certificate of Title (RV-707).

Buyers must submit their signed inspection forms within 90 days after the inspection is done. After 90 days, the form will expire, and they must request a re-inspection.

VIN Check for Theft and Fraud

Buyers can perform a separate VIN check to protect themselves from theft and fraud. They can use the National Insurance Crime Bureau's (NICB) free VINCheck service.

To use this service, the buyer needs the vehicle's VIN. The system will show if the car has any theft claims or has been reported as a salvage vehicle. The buyer should know they can only perform five searches every 24 hours. If they're looking at multiple vehicles, they should plan accordingly.

Vehicle History Report

When purchasing a car from a private seller in Nebraska, it's wise to gather extensive information about the vehicle's background, aside from just the VIN check and inspection. Buyers can consider acquiring a vehicle history report, which offers vital details such as:

• Current title status and most recent title date
• Brand History
• Odometer readings
• Records of total loss
• Salvage history

This report can uncover significant events like major accidents, multiple ownership changes, or salvage title status. To obtain this report, buyers can use the National Motor Vehicle Title Information System (NMVTIS) through an authorized provider. The buyer will need the vehicle's VIN. While this service usually involves a fee, the insights it provides are highly valuable for making an informed decision.

Note that the buyer may request a specific vehicle history record from the Nebraska DMV, provided that the record is for proceedings conducted in any of the following:

• State, federal, or local court
• Government agency
• Self-regulatory body

In this case, the buyer must complete the Application for a Copy of the Vehicle Record and pay the $1 fee at the Nebraska DMV. They can use the Application for More Than One Vehicle Recordfor multiple requests. They will also have to pay $1 for each record they need.

Odometer Disclosure Requirement

Nebraska law mandates transparency regarding a vehicle's mileage. Buyers should receive an accurate odometer reading from the seller at the time of sale. This information can be recorded in the Odometer Certification section of the Nebraska vehicle title or on a separate Odometer Disclosure Statement.

Bill of Sale

In cases where the Certificate of Title's assignment section is incomplete or full, a Bill of Sale becomes necessary. Buyers can use the official Bill of Sale DMV template or use their own. This document must include the following details:

• Comprehensive vehicle details (year, make, VIN, sale price)
• Names, addresses, and signatures of both parties

The Bill of Sale is a legal transaction record that aids the registration process.

Ownership Transfer

The transfer of ownership is a crucial step in the buying process. Both buyer and seller must correctly sign the title document, with the buyer accepting ownership and releasing it. All required information, including odometer reading, purchase price, and sale date, must be completed accurately.

The lienholder and County Official must release any existing liens on the title before it can be reassigned to the new owner. The buyer's information must be filled in at the time of purchase to avoid an "open title" situation, which is illegal.

Buyers should carefully review the title before making any marks, as incorrect signatures or alterations can render the title mutilated, requiring the seller to obtain a duplicate.

The new owner can obtain a Certificate of Title within 30 days of purchase. It involves submitting application form RV-707 to a County Treasurer and a $10.00 titling fee. The County Treasurer then issues the title to the new owner.

By understanding and following these procedures, buyers can experience a smooth and legal vehicle purchase process in Nebraska.

Licensed Dealer Check

One crucial precaution is confirming the dealer's license status. The Nebraska Motor Vehicle Industry Licensing Board maintains a publicly accessible list of active dealers. By consulting this resource, buyers can verify they're dealing with a state-approved, legitimate business. This simple check can prevent potential issues from engaging with unauthorized sellers.

Beyond licensing, it's wise to investigate the dealer's reputation. It can be done by examining customer reviews and ratings from various sources. Reputable dealerships typically provide transparent information about vehicle history, pricing structures, and warranty options.

Carefully scrutinizing these details lets buyers make well-informed decisions and minimize potential complications post-purchase.

Buyer's Guide

In Nebraska, as mandated by the Federal Trade Commission (FTC), dealerships must provide a Buyer's Guide for each vehicle. This document is usually displayed prominently on the vehicle's window and is a valuable tool for buyers to understand costs and vehicle conditions.

Dealerships must provide a for each vehicle, as mandated by the Federal Trade Commission (FTC) and adopted by Montana. This guide, usually displayed on the vehicle's window for easy access, aids buyers in understanding costs and vehicle conditions.

Key elements to look for in the Buyer's Guide include:

• Specific vehicle details (make, model, year)
• The vehicle's usage history
• How the dealer acquired the vehicle
• Disclosure of major mechanical issues and any significant repairs
• Information about any previous fire, flood, or collision damage
• Details of warranties provided by the dealer

This standardized information promotes transparency in the sales process, allowing buyers to make informed comparisons between vehicles and understand what they're purchasing.

By utilizing these resources and being thorough in their research, Nebraska buyers can confidently approach dealer purchases, armed with the knowledge needed to make sound decisions and avoid potential pitfalls.

Purchase Agreement or Bill of Sale

The purchase agreement, also known as a bill of sale, is a vital document required for all title transactions, including those involving out-of-state dealers. This document should be either the original or a certified copy, as it forms the basis for calculating excise tax based on the vehicle's net sale price.

Sometimes, a non-certified copy may suffice if the sale price aligns with the National Automobile Dealer Association (NADA) pricing.

Buyers should ensure this document includes the standard bill of sale information along with the following:

• A description of any trade-in vehicle, including its VIN
• The gross sales price before any trade-in deduction
• Clear indication if taxes were paid to an out-of-state dealer

This comprehensive information helps ensure accuracy in tax calculations and provides a clear record of the transaction terms.

Temporary Registration Permits

Nebraska dealers often provide temporary permits or tags to buyers, allowing legal operation of the newly purchased vehicle while awaiting permanent registration. These permits are critical for compliance with state registration laws during this interim period.

Key aspects of these temporary permits include:

• They contain essential information such as the dealer's and buyer's names
• Must be signed and dated by the issuing dealer
• Are valid for a limited time, with extensions rarely granted except in cases of good cause

Buyers should always confirm their eligibility for a temporary permit with their dealership. Contact the local Nebraska DMV office or County Treasurer's office for clarifications.

MVT

The Motor Vehicle Tax is levied on a vehicle when it is initially registered and continues to be assessed annually until the vehicle reaches the age of 14 or older. The amount of tax is determined based on the manufacturer's suggested retail price (MSRP) for the vehicle. It is worth noting that the manufacturer fixes the MSRP, which cannot be altered.

Once the MSRP is established, a specific Base Tax is assigned to the corresponding MSRP range, and the motor vehicle tax is calculated accordingly. As the vehicle ages, the percentage of the Base Tax applied is gradually reduced.

For example, the vehicle's MSRP is $6,500. The base tax for the MSRP is $45. For the first year of registration, the MVT is $45. In the second year, it will be $40.50 (90% of the base tax) and will continue to decrease.

For more information, buyers can check the Motor Vehicle Tax Calculation Table.

Motor Vehicle Fee

In Nebraska, in addition to the registration fee and MVT, vehicle owners must also pay the motor vehicle fee. This fee is based on the vehicle's type, weight, and value. Like the MVT, it decreases as the vehicle ages.

For example, the vehicle is less than seven tons. The MSRP is usually valued at less than $20,000. The motor vehicle fee will be as follows:

• Year 1-5: $5
• Year 6-10: $5
• Year 11 and older: $5

Check the "Motor Vehicle Fee Calculation" section of the MVT Calculation Table above for more details.

Registration Fees

In Nebraska, the registration fee is typically $15 for passenger and leased vehicles. On top of the basic registration fee, vehicle owners may also have to pay the following additional costs:

• Emergency Medical System Operation Fund: $0.50
• DMV Cash Fund: $2.00
• State Recreation Road Fund: $1.50
• County General Fund: $1.50
• License Plate Fee: $4.10

Vehicle owners can use the DMV's Vehicle Tax Estimator online service to accurately estimate the actual fees to pay during registration.

Alternative Fuel Fee

If the vehicle is powered by another type of fuel or source not covered by the motor fuel laws, the vehicle owner may have to pay an additional $75. This fee is paid during registration and every renewal.

Other Fees

Note that some counties collect local fees and taxes, too. Buyers must clarify with their local County Treasurer's office if these fees apply.