The Regulations for Buying a Vehicle in Pennsylvania

Buying a vehicle in Pennsylvania requires several important steps. Each component of the buying process is in place to help ensure that vehicles are sold to only those legally able to operate a motor vehicle. A dealership that does not adhere to these buying requirements risks losing its license to buy and sell vehicles in the state. The Pennsylvania Department of Transportation oversees vehicle buying regulations.

Driver's License and Insurance

In order to legally purchase an automobile in Pennsylvania, you must have a valid, state-issued driver's license. Your new vehicle must also be insured. The auto insurance policy for the vehicle must be created by a licensed insurance agent certified to create auto insurance policies in Pennsylvania. You are required to submit proof of insurance coverage before an auto dealer or licensed sales agent may release the vehicle into your possession. Pennsylvania does not allow you to take delivery of a vehicle the same day you purchase it. This regulation is in place to allow a dealership at least one business day to verify your insurance information and driving record.

Ownership and Certification Documents

To legally transfer ownership of a vehicle, the dealership or vehicle owner is required to provide the purchaser with written proof of ownership. This is a document stating that the car dealership or other business is the legal owner of the vehicle and its ownership is being transferred to the purchaser. Acceptable ownership documents include the manufacturer's certificate, a Pennsylvania certificate of title or a certificate of salvage. Additionally, all new vehicles built after 2008 with gross vehicle weight of less than 8,500 lbs. and less than 7,500 miles on the odometer are required to be certified by the California Air Resources Board for vehicle emissions. The dealership should present you documentation that the vehicle meets these standards upon purchase.

Out-of-State Vehicles

If you are purchasing a vehicle with an out-of-state title, review the vehicle's ownership documents carefully. If the vehicle has a current lien, its lien holder must release the vehicle's title into the Pennsylvania Department of Transportation's possession so the title may be legally transferred. According to PennDOT, many lien holders refuse to do this unless payment arrangements are made to satisfy the lien in full. Once the lien is satisfied, the vehicle's title should have the owner's signature and current odometer reading present on it. The owner's signature may also require notarization depending on its original issuing state.

Payment Methods

A licensed sales agent is required to verify the legitimacy of any loan documents used for the purchase of a vehicle in Pennsylvania. This ensures that the loan is valid and that the lender is prepared to release appropriate funds to pay the dealership for the vehicle. If a consumer pays more than $10,000 in cash for a vehicle, she is required to fill out IRS Form 8300, Report of Cash Payments, before delivery is taken on the vehicle. This form must be submitted to the IRS no later than 15 days after the purchase of the vehicle.