What to Do After Buying a Used Car

Over the past few years, vehicle prices have jumped significantly. In 2025, the average cost of a used car was $25,393.^[1] If you’re planning to buy a used car, it’s important to know what to do next.

The specific steps may vary depending on whether you buy a used car from a dealer or a private seller. But they generally include getting the car inspected, buying a car insurance policy, and transferring the tag and title.

Get the car inspected

If possible, it’s a good idea to have a trusted independent mechanic inspect the car before you buy it. Since the vehicle you purchased isn’t a new car off the lot, it’s important to have your car fully inspected to see if it needs repairs. Even if the previous owner had a clean driving record, you should get an unbiased third-party inspection.^[2]

Compare car insurance quotes and secure a policy

If you buy your used vehicle from a dealership, you have to provide proof of insurance before you can drive off the lot. You also need to have a policy in place before you drive a car you buy from a private seller. Call your car insurance company before buying your used car and ask about your options.

If you want to keep your existing car insurance policy, let your insurance agent know, and they can update the vehicle information on your current policy.

In order to secure the best deal for car insurance, you should compare quotes from at least three insurance companies. Decide how much coverage you want and compare quotes for policies with the same coverage limits and deductible with an online comparison tool.

Transfer the title and register your car

One of the most important steps after buying a used car is transferring the title to your name and registering the car. If you purchased your car using a loan, your lender typically keeps the title until you pay your car loan in full. 

Dealerships typically handle title transfers and vehicle registration, so you should confirm this with them and ask any questions you may have if you purchased your car from one.

If you purchase your car from a private party, the seller should give you their signed title. Review the car title carefully to ensure the vehicle identification number (VIN) on the title matches the car. 

You’ll take the signed title, bill of sale, proof of insurance, your driver’s license, and any other required paperwork to your local department of motor vehicles office to complete an official title transfer and register your car.

How long do you have to put on license plates after buying a used car?

The amount of time you have to put a license plate on your car depends on the state you live in.

You might get a temporary license plate at first while you wait for your permanent license plate to arrive. Read the fine print on your local DMV website to find specific information relating to your vehicle.

Hold onto your paperwork

Keep your temporary vehicle registration and proof of insurance in the glove compartment of your car. Organize other documents related to the purchase, such as your title, bill of sale, and financing paperwork, and store them safely somewhere in your home. This way, you’ll have them in one place if you ever need to reference them.

When you receive your permanent vehicle registration in the mail, keep it in your car’s glove compartment.

Check for recalls

Sometimes, auto manufacturers recall certain vehicle makes and models that could pose a safety hazard. When a manufacturer recalls a car, it should pay to replace any malfunctioning parts.

If the type of used car you purchased is recalled, you might receive notice in the mail. But you can also periodically check for recalls online using the National Highway Traffic Safety Administration (NHTSA) website.

Perform regular maintenance

Not keeping up with car maintenance could lead to safety issues. Read your owner’s manual to see how often the car needs service and make note of how frequently you should take the car in for an oil change, tire rotation, and more.

For example, most cars need an oil change sometime between 5,000 and 10,000 miles driven. You can also speak to a trusted mechanic to ask what maintenance schedule they recommend to keep your car running smoothly.

Cost to insure a used car

The average cost to insure a used car is $198 per month, according to Insurify data. Used cars generally cost less to insure than new cars because they’re worth less, have lower repair costs, and often aren’t equipped with the most advanced technology.

But the age of your used car is only one factor that affects your car insurance costs. Insurance companies consider other factors when setting rates, such as your age, driving record, ZIP code, and claims history.

Buying a used car FAQs