Buying a Vehicle in Oregon

Purchasing a vehicle in Oregon requires buyers to understand state-specific regulations and requirements. Knowing the differences between private sellers and licensed car dealers is vital.

Furthermore, buyers must be aware of Oregon's insurance requirements and the fees associated with buying vehicles. By gaining comprehensive insights into these aspects, buyers can guarantee legal compliance, gain protection in case of accidents, and manage costs effectively.

What Is the Process for Buying a Car in Oregon?

In Oregon, purchasing a vehicle from a private seller involves direct negotiation on title validation and disclosures, with buyers handling paperwork like title transfers independently.

In contrast, buying from licensed car dealers offers additional benefits, such as compliance with stringent state and federal consumer protection laws.

Buying a Vehicle from a Private Seller

Buying vehicles from private sellers in Oregon requires understanding specific state-specific regulations and requirements concerning vehicle ownership, registration, and transfer processes.

Title Validation

According to Oregon Revised Statutes (ORS) 803.010, a vehicle certificate of title is proof of ownership. Therefore, buyers must confirm that a vehicle has a valid title before purchase.

Buyers must coordinate with private sellers to verify the vehicle's title. Due to Oregon's Records Privacy Law, buyers cannot directly access vehicle records containing another individual's personal information.

Buyers should request that sellers obtain their title history records by completing an "Order Your Own Record" (Form 735-7266) and mailing it to the Record Services Office of the Oregon Driver and Motor Vehicles Services Division (DMV) in Salem.

Once the seller provides the vehicle title history, the buyer can access crucial details such as owner information, vehicle description, odometer readings, title status, title number, issuance date, and brand information.

NMVTIS Vehicle History Reports

Prospective buyers can gain valuable insights into a vehicle's brand history by obtaining a vehicle history report (VHR) through the National Motor Vehicle Title Information System (NMVTIS) before making a purchasing decision.

Access to NMVTIS guides buyers to confidently determine whether to proceed with a purchase, accept a trade-in offer, or negotiate the vehicle's price further. These reports encompass crucial details such as:

  • Brand History: Including flood damage, salvage, and rebuilt status.
  • Vital Records: Detailing incidents of junk, salvage, and insurance total loss.
  • Title History: Showing ownership transfers and title brands.
  • Odometer Readings: Providing mileage accuracy.
  • Theft Reports: Noting any stolen vehicle status.
  • Lienholder Data: Identifying any existing financial obligations on the vehicle.

These records are the same as those accessible to the Oregon DMV. For example, according to Oregon Administrative Rules (OAR) 735-020-0070, the Oregon DMV electronically queries the NMVTIS database before issuing titles or salvage titles.

Through nationally recognized data, this regulation prevents the issuance of titles for vehicles with histories indicating junk status or similar designations such as "destroyed," "dismantled," "scrap," or "crushed."

Odometer Disclosure

When purchasing a vehicle, obtaining an accurate odometer disclosure from the seller is critical for buyers.

Both state and federal laws mandate odometer disclosure during the transfer of ownership for vehicles with a Gross Vehicle Weight Rating (GVWR) of 16,000 pounds or less, manufactured from the model year 2011 onwards and continuing until the car reaches 20 years of age or older.

Buyers must verify and acknowledge this disclosure by signing the relevant documentation. This protects them from odometer fraud and guarantees they receive reliable information about the vehicle's mileage history, which significantly impacts its value, reliability, and future maintenance needs.

The disclosure process includes providing vehicle details such as the year, make, model, and vehicle identification number (VIN), along with the transfer date and the printed names, addresses, and signatures of both parties. Certification of the odometer reading's accuracy is also mandatory.

This information can be recorded on the title itself or on secure forms meeting federal standards. Different procedures apply for vehicles exempt from these disclosures, such as those over 16,000 pounds or certain recreational vehicles.

Failure to properly complete an odometer disclosure or provide inaccurate information can result in fines and/or imprisonment. In Oregon, submitting a false odometer disclosure is considered a Class C felony, as outlined in ORS 815.430.

Ownership Transfer

Transferring vehicle ownership for private transactions in Oregon varies based on whether the vehicle is used or new.

For a used vehicle, buyers need the seller to sign over the title certificate and release their interest in the vehicle by either signing the back of the title or completing a Vehicle Bill of Sale (Form 735-501).

If the vehicle had a lien, buyers must obtain a Statement of Lien Satisfaction (Form 735-524) from the lienholder. Additionally, for vehicles less than 20 years old, the seller must disclose the odometer. This can be documented on the title certificate or a secure odometer disclosure/reassignment form.

Buyers must also submit a completed Application for Title and Registration (Form 735-226). The documents can be submitted to any local DMV office or mailed to the Oregon DMV's headquarters in Salem.

Additional documents are needed for new vehicles in addition to those previously mentioned. Buyers should collect the Manufacturer's Certificate of Origin (MCO) and proof that the car meets Oregon's emissions standards.

Buying a Vehicle from a Licensed Car Dealer

In Oregon, purchasing vehicles from licensed car dealers helps buyers gain the advantages of a Buyer's Guide, warranty protections, and the state's lemon law.

Buyer's Guide

Oregon has adopted the Federal Trade Commission (FTC) Used Car Rule, detailed under OAR 137-020-0040, to enhance transparency and consumer protection in the sale of used vehicles by licensed dealerships.

Central to this rule is the requirement for dealers to prominently display a Buyer's Guide, also known as an "As-Is" disclosure, on every used vehicle offered for sale or lease.

The obligation to post the Buyers Guide also arises when a customer inspects the vehicle with the intent to purchase, even if it is not yet fully prepared for delivery. This guide provides buyers with a clear understanding of warranty terms, potential vehicle defects, and their rights as consumers.

Dealers must adhere to specific criteria when determining if a vehicle requires a Buyer's Guide. Any vehicle, regardless of previous title status, must display a Buyer's Guide if it meets the following specifications:

  • GVWR of less than 8,500 pounds
  • Curb weight of less than 6,000 pounds
  • Frontal area of less than 46 square feet

This requirement extends to vehicles sold through consignment, power of attorney, or similar agreements at public auctions accessible to consumers. However, motorcycles, vehicles sold for scrap or parts with appropriate salvage certifications, and agricultural equipment are exempt from this rule.

Warranty Protections

Purchasing vehicles from licensed car dealers in Oregon enables buyers to benefit from state-implemented warranty protections.

An essential aspect of these protections involves dealer promises made during the sale. These written or verbal assurances might include claims like "This car has a new engine" or "This car has never been in an accident."

Buyers must document all such promises, as they remain enforceable even if the car is sold "as-is." Keeping a written record of these assurances provides legal recourse if the vehicle fails to meet the promised conditions, thus protecting the buyer's investment.

Another critical element is the service contract, an optional warranty that offers extra coverage for used cars. Dealers in Oregon are required to disclose the terms of these contracts before the sale clearly.

This allows buyers to understand what repairs and services are included. They can avoid unforeseen expenses and make well-informed decisions about their needed coverage.

Lemon Law in Oregon

The Oregon Lemon Law (ORS 646A.400 to 646A.418) protects consumers who buy or lease self-propelled vehicles in Oregon, covering new and used ones. It applies to vehicles purchased or leased within Oregon or registered there after being bought elsewhere.

Eligible consumers primarily use their vehicles for personal, family, or household purposes, including subsequent owners within the warranty period and those entitled to enforce warranty obligations. Claims must be filed within one year after the vehicle's mileage reaches 2,400 miles or two years from its original delivery.

The manufacturer, its agent, or authorized dealer must repair the vehicle within the warranty period. If the issue persists after a reasonable number of attempts, the manufacturer must replace or repurchase the vehicle.

A reasonable number of repair attempts is presumed if, within two years of the vehicle's original delivery or before reaching 2,400 miles, any of the following occurs:

  • The manufacturer, its agent, or authorized dealer has attempted to repair the defect three or more times.
  • The vehicle has been out of service for 30 or more days due to repairs.
  • An initial repair attempt fails to address a serious safety issue, followed by a final attempt.

Consumers must first provide written notice to the manufacturer and allow them an opportunity to repair the defect. Additionally, if the manufacturer has an informal dispute resolution procedure complying with Title 16 of the Code of Federal Regulations (CFR), Part 703, consumers must use it before seeking a refund or replacement.

What Are the Fees for Buying a Car in Oregon?

When purchasing vehicles in Oregon, buyers should be aware of various registration fees, title fees, vehicle privilege and use taxes, and license plate fees.

Registration Fees

In Oregon, standard registration fees vary based on several factors. Moreover, specific counties impose additional registration fees.

State Standard Registration Fees

Oregon's registration fees for passenger vehicles manufactured from the 2000 model year onwards vary based on their combined miles per gallon rating (MPG) and whether the initial registration spans two or four years. The fees range from $126 to $312.

Owners of motor homes, motorcycles, mopeds, trucks, light and heavy trailers, antique vehicles, snowmobiles, buses, farm vehicles, or other types of vehicles should refer to the fee schedules for other vehicle types for specific details.

Additional County Registration Fees

Specific county fees may apply based on the vehicle's location or the owner's address. In Multnomah County, there is a supplemental fee of $56 per year of registration, alongside a one-time $10 fee for permanently registered heavy trailers.

Washington County charges $30 per year of registration, plus $17 per year for motorcycles and mopeds and a one-time $10 fee for heavy trailers.

Clackamas County imposes a $30 registration fee per year of registration, adds $5 per year of registration for light trailers, and includes a one-time $10 fee for permanently registered heavy trailers.

Title Fees

The title fee is $101 for light passenger vehicles and trucks with a GVWR of 2,600 pounds and model years 1999 or older. Titling fees for those manufactured from the 2000 model year onwards vary depending on whether their combined MPG rating is 0 -19, 20 - 39, or over 40. These fees fall between $101 and $116.

Additionally, heavy motor vehicles with a GVWR exceeding 26,000 pounds and trailers weighing more than 8,000 pounds incur a $90 title fee, excluding travel trailers, special-use trailers, or motor homes.

Vehicle Privilege and Use Taxes

In Oregon, vehicles purchased from outside the state and that will be registered in Oregon are subject to a 0.005% vehicle use tax.

Oregon auto dealers must also pay a 0.005% vehicle privilege tax for vehicles they sell within the state. The criteria for vehicles subject to these taxes include:

  • Acquired on or after January 1, 2018.
  • Purchased from a dealer or an individual must be registered as a dealer in Oregon.
  • Have a GVWR of 26,000 pounds or less.
  • Driven 7,500 miles or less with an odometer, or sold with an MCO if without an odometer.
  • Never previously registered or titled in Oregon, except as a dealer demonstrator.

Buyers must pay the vehicle use tax within 30 days when purchasing a vehicle from outside Oregon. Some out-of-state dealers collect and remit this tax, noted as "Oregon Vehicle Use Tax" on the bill of sale. If not collected by the dealer, the buyer must pay it before registering with the Oregon DMV.

Oregon vehicle dealers are responsible for paying the vehicle privilege tax based on each taxable vehicle's sale price, which could be passed on to buyers as documentation fees.

License Plate Fees

License plate fees in Oregon vary based on the vehicle's needs. For vehicles that require only one plate, the initial issuance fee is $13. If the vehicle requires two plates, the fee for the initial issuance is $26. Additionally, transferring Oregon plates to another vehicle costs $30.

What Are the Insurance Requirements for Vehicles in Oregon?

According to ORS 806.010, driving without insurance in Oregon is prohibited and subject to penalties such as fines, vehicle impoundment, and license suspension.

Minimum Insurance Coverage Requirements in Oregon

In Oregon, motorists must carry specific minimum levels of insurance. These include liability coverage with split limits of 25/50/20, personal injury protection (PIP) of at least $15,000 per person, and underinsured or uninsured motorist bodily injury coverage with a split of 25/50.

Liability Insurance Coverage

Liability insurance protects the other vehicle and its occupants if the policyholder is responsible for an accident. Oregon's minimum liability insurance requirements are:

  • Liability coverage for bodily injury per individual: $25,000
  • Liability coverage for bodily injury to two or more people: $50,000
  • Liability coverage for property damage for each accident: $20,000

Personal Injury Protection

PIP covers medical costs for the policyholder and passengers in the policyholder's vehicle unless those passengers have their own coverage.

It covers necessary medical, hospital, dental, surgical, ambulance, and prosthetic services within two years of the injury, up to $15,000. Additionally, PIP may cover funeral costs, essential services, childcare, and lost wages.

Underinsured/Uninsured Motorist Coverage

Underinsured motorist coverage (UDM) and uninsured motorist coverage (UIM) cover medical expenses if the other driver is at fault and either lacks sufficient insurance or has none.

These types of coverage do not apply to vehicle damage. The minimum requirements for underinsured or uninsured motorist coverage are the same as for liability insurance:

  • Liability coverage for bodily injury per individual: $25,000
  • Liability coverage per accident to the policyholder and passengers: $50,000

Penalties for Driving Without Insurance in Oregon

In Oregon, driving without insurance incurs a minimum penalty of $135, which can rise to $1,000 based on the circumstances. Fines increase if the uninsured driver is involved in reckless driving or an accident without proof of insurance. Courts may also impose higher penalties if a court appearance is mandated.

A no-contest plea allows for a presumptive fine of $265, settled by sending a written explanation and payment to the court. However, if the court finds this insufficient for the violation's severity, an appearance might still be required, and fines could reach $1,000.

Uninsured drivers face automatic suspension of their licenses and revocation of their vehicle registrations. Additionally, the vehicle may be impounded.

To reinstate driving privileges, the driver's insurance company must file a State Responsibility-Driving certificate (SR-22 Form) to demonstrate future financial responsibility, which must be maintained for three years. If an uninsured driver is involved in an accident, the suspension extends to one year, regardless of fault.

Reinstating a suspended or revoked license costs $75, and recovering an impounded vehicle incurs administrative fees along with towing and storage charges. The police authority must notify the driver in writing of these fees within 48 hours of the impoundment order.

Can a Non-Resident Buy a Car in Oregon?

Non-residents can purchase vehicles in Oregon, but to legally operate an unregistered vehicle within the state, they must obtain a trip permit. This permit allows temporary use of the vehicle on Oregon roads and is also required if a registered vehicle is used in a manner not covered by its current registration.

Various types of trip permits are available based on vehicle type. For example, a light vehicle trip permit is applicable for vehicles with a combined weight of less than 8,001 pounds. This permit is valid for 21 consecutive days, with a limit of two permits per vehicle within 12 months. The fee for a light vehicle trip permit is $35.

On the other hand, a heavy motor vehicle trip permit is designed for vehicles exceeding 8,000 pounds in combined weight. This permit is valid for ten consecutive days and costs $43.

Applicants can use the DMV2U Online Service Center to order trip permits for passenger vehicles, light trailers, travel trailers, campers, motor homes, snowmobiles, motorcycles, and mopeds. For heavy motor vehicles, over-dimension vehicles, heavy trailers, or registration weight permits, they should contact the Commerce and Compliance Division.