How to Buy a Car in Delaware

In the excitement and rush of buying a new car, don't neglect the details. The process of buying a car in the state of Delaware consists of two steps: transferring the title and registering it in your name. Each of these tasks involves filling out forms specified by the state's Department of Motor Vehicles, which will require you (or any buyer) to show proof of insurance, identification and pay a few fees.

Things You'll Need

  • Automotive liability insurance
  • Cash or money order/s for fees
  • Driver's license or two documents proving Delaware residency

Transferring Ownership on the Title

  • Make sure that the "Seller" name on the title matches the name of the person or organization selling you the car. By law, Delaware prohibits any discrepancy, and the Delaware Department of Motor Vehicles (DMV) warns that you may become the victim of fraud.

  • Sign "Section 1" of the title after the seller has signed it and entered the "date of sale," "purchase price" and filled out the "Odometer Disclosure" on the reverse side of the title.

  • Fill in your name and address in the appropriate boxes in Section 4, the "Purchaser's Application" and then date and sign that section. Enter the name and address of any financing agency that has a lien on the vehicle in Section 3, if applicable.

  • Make sure the seller has entered your correct name and address on the "Seller's Report of Sale." Please note: you do not sign this document.

  • Take the vehicle's title from the seller. You will need to take this document to the DMV to register the car in your name.

Completing the Title Transfer and Registration at the DMV

  • Take the following to the local DMV office: a card from your auto insurance company that proves that you have liability insurance, the car's title, a driver's license or two items proving residency in the state of Delaware (such as a utility bill or mortgage) and cash or money orders for the appropriate fees (see Step 3 of this Section).

  • Pay the DMV the required fees to transfer the title and register your car. If you bought the vehicle without financing or a lien, you must pay $25, plus a "document fee" that amounts to 3.75 percent of the National Dealer's Automotive Association (NADA) trade-in value for your car. If you bought the vehicle with a lien attached, you must pay $35 plus the 3.75 percent document fee.

  • Have the DMV inspect the car or show them a completed form MV-212 from the dealer. Delaware requires that all cars being sold undergo an inspection at the DMV. If you bought a car from a dealer, the dealer will have completed this step for you.

  • Register the vehicle by filling out the appropriate form at the DMV and paying $40. If you bought a car from a dealer, the dealer will have completed this step for you.

  • Obtain a license plate ("tags") for your car from the DMV by filling out the appropriate form (varies by the status of the vehicle) and paying the fee for the "tags," which varies depending on what you select (you must pay at least $10 to receive temporary tags while you wait for the DMV to mail you a license plate). If you bought your car from a dealer, they will have completed this step for you.