Purchasing a vehicle in North Dakota is a process governed by specific regulations. These regulations include the North Dakota Century Code, specifically Title 39, Chapter 04 and Chapter 22, and Lemon Law.
These regulations lay the foundation for the legal requirements and guidelines affecting vehicle transactions in the state. These regulations guarantee that all vehicle sales are conducted fairly and transparently.
The North Dakota Department of Transportation (NDDOT), through its Motor Vehicle Division (MVD), plays a pivotal role in regulating vehicle transactions. The MVD aims to make sure that all vehicles meet all necessary safety and environmental standards before they can be legally driven on public roads.
Following these guidelines helps buyers obtain a clear title and register the vehicle correctly in their name. For sellers, it helps them fulfill all legal obligations and avoid future liabilities related to the sold vehicle. By adhering to these established procedures, both parties can enjoy a smooth and secure vehicle transaction.
What Is the Process for Buying a Car in North Dakota?
When prospective vehicle owners purchase a car in North Dakota, the process they follow can vary depending on whether they buy from a dealer, out-of-state, or private seller. The MVD has established separate guidelines for each scenario to ensure the accuracy and consistency of processes.
Buying from a Dealer in North Dakota
When buying a car from a licensed dealer in North Dakota, the dealership typically handles most of the paperwork involved. It can significantly alleviate the burden on the buyer. However, there are still crucial steps that buyers must take for a smooth and secure transaction:
Title Verification
Buyers should approach dealerships with care and thorough preparation when purchasing a car. Choose a reputable, licensed dealer and verify their active status with the North Dakota MVD.
Buyers can use NDDOT's Online Dealer Search tool to make the verification easier. The buyer will need the following information to use the tool:
- Dealer number, e.g., N123, U1234, RD123, etc.
- Dealer type, e.g., new vehicle, used vehicle, motor home, etc.
- The city where the dealer is located
Buyers should also research the dealer's reputation by reviewing customer feedback. A trustworthy dealership will offer clear information on vehicle history, pricing, and warranties. Buyers should carefully examine these details to make informed decisions and minimize potential complications during purchase.
Buyer's Guide
The Federal Trade Commission (FTC) requires dealerships to provide a Buyer's Guidefor each vehicle, typically displayed on the window for easier viewing. This guide helps buyers understand costs and vehicle conditions. When reviewing, check for:
- Vehicle make, model, and year
- Previous usage history
- How the dealer acquired the vehicle
- Disclosure of significant mechanical issues, including repairs
- Information on prior damage from fire, flood, or collision
- Warranty details offered by the dealer
Transfer of License Plates
In North Dakota, buyers can transfer their license plates from their old vehicle to their new purchase. Buyers must inform the dealer that they intend to transfer their existing license plate to the new vehicle. The dealer will need this information to complete the necessary paperwork.
The buyer must give the dealer their vehicle registration and license plate number. The dealer will complete the necessary transfer forms on the buyer's behalf, including the Application for Certificate of Title & Registration of a Vehicle (SFN 2872). The dealer will submit the completed forms and any fees to the MVD. The transfer fee is typically $5.
For clarification, buyers can discuss the details with their dealer.
The buyer must pay additional fees if they wish to get a personalized or special license plate. The fee will depend on the type of license plate. Dealers and buyers can check the exact amount using the NDDOT's Special Request Plate Search.
Proof of Purchase
Sellers must document the sale transaction. While the purchase certificate section of Form SFN 2872 can be used, it's recommended to use a Seller's Certificate and Vehicle Bill of Sale (SFN 2888) for comprehensive proof. This document helps resolve potential ownership disputes and includes details such as:
- Sale date
- The purchase price of the vehicle
- Buyer and seller signatures
- Detailed information about the vehicle sold
Odometer and Damage Disclosure Statement
Sellers must document vehicle mileage accurately to prevent fraud and promote transparency.
While the Vehicle Information section of Form SFN 2872 can be used, it's strongly recommended that a separate Reassignment/Odometer Disclosure (SFN 18773) be obtained from the MVD local branch. This separate form provides a more detailed and official vehicle mileage record.
If there is an error in the odometer reading, sellers and buyers must correct it. To correct odometer errors:
- Use the Odometer Correction (SFN 60806) form to allow for a legal rectification of mistakes.
- The seller and the person who made the error must sign for accountability.
- Buyer must attach the original document with the erroneous reading to the correction form when registering, creating a clear paper trail.
If the vehicle is less than nine model years old, the seller and buyer need to take additional measures:
- Seller provides Damage/Salvage Disclosure Statement (SFN 18609) to inform buyers of any significant damage history of the vehicle.
- Buyers include this form with their registration documents, which ensures that the NDDOT has a complete record of the vehicle's condition.
Following these steps helps maintain accurate vehicle records, protect buyers and sellers, and comply with state regulations. While it may seem cumbersome, the additional documentation prevents disputes. These documents also make sure that all parties have clear, agreed-upon information about the vehicle's condition and history.
30-Day Temporary Registration
The dealer may issue the buyer a temporary registration permit valid for 30 days while their registration is in progress. The temporary permit allows buyers to drive legally until their new registration and transferred plates are finalized.
If the dealer doesn't offer a temporary permit, vehicle owners can use NDDOT's online 30-Day Registration tool to apply themselves.
If the vehicle is branded "SALVAGE," the dealer can't issue a temporary registration permit. The 30-day temporary registration is also exclusive to North Dakota residents only.
Buying a Vehicle From an Out-of-State Dealer
For out-of-state purchases, the buyer must complete the transaction with the dealer. Then, they can perform the following key steps:
Vehicle Inspection
If the vehicle is purchased from an out-of-state dealer, the owner may need to inspect it once it arrives in North Dakota. The inspection will help check any damage or malfunctions in the vehicle before it can legally be registered in North Dakota.
Once the vehicle is inspected and deemed safe to drive, the owner will receive a Certificate of Vehicle Inspection (SFN 2486).
Temporary Registration
While the inspection or registration process is ongoing, vehicle owners can first secure a 30-day temporary registration at the MVD. They can also use MVD's online facility. For more information, revisit this guide's "30-Day Temporary Registration" subsection under the "Buying from a Dealer in North Dakota" section.
Title and Registration
As per North Dakota law, if the vehicle was purchased from out-of-state, the vehicle owner must surrender the out-of-state title.
If ownership has been transferred, all reassignments should be completed. Then, the owner must complete Form SFN 2872 and submitted along with the out-of-state title to the MVD. They register in person at any MVD local branch or any Kiosk location.
Vehicle owners must apply for the title using their legal name. They should provide a valid state-issued driver's license, non-driver identification card, or another document that confirms their true identity as evidence.
The title fee is $5 for all applications. There may also be an additional $1.5 fee for abandoned motor vehicle disposal if the vehicle has never been titled in North Dakota. The license fees will vary based on the vehicle's type, year, and weight. The vehicle owner may also have to pay a 5% excise (sales tax).
For more information on the fees that vehicle owners (buyers) must pay, check this guide's "What Are the Fees for Buying a Car in North Dakota?" section.
When registering in person, vehicle owners can obtain their registration documents, license plates, titles, and other paperwork immediately. Those opting for mail registration will receive these items at their NDDOT-registered address. However, owners should confirm their mail registration eligibility with the NDDOT.
Buying a Vehicle From a Private Seller
Purchasing a vehicle from a private seller in North Dakota can be cost-effective due to direct price negotiation. However, it often lacks warranty coverage. For a secure transaction, the North Dakota MVD recommends buyers take these precautions:
Title Verification
Buyers must verify the private seller's legal ownership of the vehicle. Key details to check on the vehicle's title include:
Title in Possession
The current title should be assigned to the seller. For out-of-state vehicles without a title, the seller must provide registration documents as proof of ownership.
Lien Check
If a lien exists on the vehicle, the seller must clear it before the sale. They should then provide the buyer a Release of Lien by Legal Owner (SFN 2876) form or an official letter from the lienholder confirming the lien's release.
The registration application form includes a section for dealer and lienholder information. This section's content must match the information on Form SFN 2876.
VIN Verification
Buyers can perform a VIN check on the vehicle they want to purchase. While North Dakota lacks a dedicated service, buyers can use free online tools from:
- National Highway Traffic Safety Administration (NHTSA)
- National Insurance Crime Bureau (NICB)
These tools, such as NHTSA's VIN Decoder and NICB's VINCheck Lookup Tool, provide information on:
- Theft records
- Title status (clean, salvage, or rebuilt)
- Accident and damage history
- Other relevant vehicle details
Using these resources helps buyers make informed decisions by providing crucial insights into the vehicle's background.
Vehicle History Reports
Obtaining a comprehensive vehicle history report is essential when buying a vehicle in North Dakota. These reports, available from the National Motor Vehicle Title Information System (NMVTIS), offer crucial insights including:
- Current title status and ownership history
- Latest title issuance date
- Official title designations (e.g., salvage, rebuilt)
- Odometer reading
- Total loss or salvage declaration records
Buyers must only purchase reports from NMVTIS-approved data providers. Doing so guarantees buyers accurate and factual reports about the vehicles they plan to purchase, which can make it easier for them to decide about the vehicle.
Vehicle Inspections
If the vehicle needs inspection, the buyer must have the seller perform it promptly. If the seller can't do so, the buyer may initiate the inspection themselves.
Proof of Purchase
The seller must provide the buyer with proof of the sale. This proof can be in the purchase certificate section of Form SFN 2872, but sellers can also provide buyers with Form SFN 2888 for comprehensive proof.
Odometer and Damage Disclosure
Like any other state, North Dakota requires the seller to provide an odometer disclosure when selling a vehicle.
If the vehicle is under nine model years old, they must also provide the buyer with a damage disclosure document. For odometer reading, the seller can use Form SFN 18773, while Form SFN 18609 can be used for damage disclosure.
Ownership Transfer
Upon completing the purchase, the buyer is required to register the vehicle in their name within 30 days. To initiate this process, the buyer must gather all necessary documents, including the released title, proof of purchase, completed registration form, and other necessary paperwork.
The buyer then submits these documents to any local MVD branch office or Kiosk location. They can also check their eligibility to submit by mail by contacting the MVD at 701-328-2500.
The buyer must pay the applicable fees when registering the vehicle. To determine the exact fee amounts, refer to the "What Are the Fees for Buying a Car in North Dakota?" section of this guide.
If the seller has misplaced the vehicle's title, they must obtain a duplicate before transferring ownership to the buyer. To obtain a duplicate title, the seller can apply:
- In person at any MVD local branch
- In person at any Kiosk location
- By mail to:
Motor Vehicle Division
608 E. Boulevard Avenue
Bismarck, ND 58505-0700
Application process:
- Complete the Form SFN 2872 form
- Pay the $5 duplicate title fee
- Submit the form with a valid driver's license or state-issued ID
- Specify the reason for requesting the duplicate (lost, mutilated, or stolen)
The processing time is one week in person and two weeks for mail requests. Buyers can contact the MVD for additional information.
What Are the Fees for Buying a Car in North Dakota?
When buying a car in North Dakota, a buyer (vehicle owner) must be ready for the following fees:
Registration Fee
Vehicle owners must pay the registration fee when registering their vehicles. The registration fee will vary based on the type of vehicle, year of registration, and weight. For passenger vehicles, effective from January 1 to December 31, 2024, registration fees for vehicles first registered in 2019 or later are:
- 3199 lbs. or less – $73/year
- 3200-4499 lbs. – $93/year
- 4500-4999 lbs. – $111/year
- 5000-5999 lbs. – $142/year
- 6000-6999 lbs. – $175/year
- 7000-7999 lbs. – $208/year
- 8000-8999 lbs. – $241/year
- 9000 lbs. and above – $274/year
For complete fee information, refer to the Passenger Fee Schedule. Vehicle owners can use NDDOT's online fee calculation tool to calculate fees more accurately.
Other Fees
- Title fee: $5 for all applications
- Abandoned motor vehicle disposal: $1.50
- 30-day Temporary Registration: $20
- License plate transfer or registration: $10
- Duplicate title fee: $5
- Inspection Fee: Varies by inspection station (required for used vehicles).
- Replacement Plates or Tags: $20
- Personalized Plates: Will vary depending on the type of license plate
Excise Tax
North Dakota has an excise tax of 5% that vehicle owners must pay during vehicle registration to use their out-of-state vehicles in North Dakota. However, they may claim a tax credit if they have already paid the sales tax equivalent to 5% in the other state.
To claim the tax credit:
- Buyers must provide proof of excise tax paid in the other state (usually a receipt or tax statement).
- When registering in North Dakota, new owners submit this documentation to NDDOT.
- Additional forms may be required to claim the credit.
- Any remaining tax must be paid to complete registration.
If the excise tax paid in the other state is less than North Dakota's 5% tax, they must pay North Dakota the difference. For example, if they paid a 4% tax in the other state, they still have to pay a 1% tax in North Dakota.
Payments
Vehicle owners can make payments via the following options:
- Money order
- Check
- Credit card
Owners must complete and submit the Credit Card Payment Authorization (SFN 61787) form to the MVD for credit card payments.
What Are the Insurance Requirements for Vehicles in North Dakota?
North Dakota law requires continuous insurance coverage for all vehicles from a state-licensed insurer. Minimum coverage requirements are:
- $25,000 per person for bodily injury
- $50,000 per accident for bodily injury
- $25,000 per accident for property damage
Failing to maintain insurance after registration is a violation subject to penalties.
Penalties
North Dakota's legislation regarding dealing with uninsured motorists is unwavering, imposing rigorous penalties. Vehicle owners must pay $150 to $1000 for the first offense, depending on severity. Vehicle owners will incur $300 to $5000 for subsequent offenses within the same year.
In addition to the monetary penalties, the NDDOT can suspend the vehicle's registration and the driver's license. Once suspended, the vehicle owner must initiate the reinstatement process and pay $50.
There are also other penalties applicable. For more information, contact the MVD.
Can a Non-Resident Buy a Car in North Dakota?
Non-residents can purchase a vehicle in North Dakota. However, they cannot register it in the state unless they become new residents of North Dakota. Non-resident buyers can obtain a temporary permit from the North Dakota MVD to transport their vehicle from North Dakota to their home state.
Note that since a non-resident buyer purchased the vehicle in North Dakota, they may be required to pay North Dakota's 5% excise tax on the purchase. Additionally, when registering the vehicle in their home state, the non-resident buyer may be responsible for paying sales tax.
The non-resident buyer should consult with their dealer or seller to clearly understand these tax obligations.
Furthermore, non-residents may need proof of insurance coverage when purchasing the vehicle. The insurance policy must meet the minimum liability requirements set by North Dakota. Non-resident buyers must clarify this requirement with their dealer.
Once the non-resident buyer returns to their home state, they must appropriately title and register the vehicle they purchased in North Dakota within their home state.
If the non-resident becomes a new resident of North Dakota, they have 90 days to register their vehicle with the North Dakota MVD. They must follow the usual registration process that North Dakota residents follow.