Buying a Vehicle in New Mexico

Title Check for Liens

When buying a vehicle from a private seller in New Mexico, it is vital to check for liens on the title. A lien means that someone else, like a bank, has a legal claim to the vehicle because of an unpaid loan.

If the current title shows a lien, it needs to be removed before the new owner can get the title. There are three ways to do this:

• The lien holder can sign off on the title in the right spot.
• The seller can give the buyer a special form called MVD Form 10041, which is a "Release of Lien" form.
• The lien holder can write a letter saying they're releasing the lien. This letter must be notarized.

If a bank or other financial company is releasing the lien, the person signing must say what their job is at the company.

In New Mexico, lien records for a specific vehicle can be searched and requested online through theNM MVD's Record Request Services system.

Vehicle Identification Number (VIN) Inspection

A buyer purchasing a vehicle from a private seller in New Mexico, particularly from out of state, should be aware of the VIN inspection process. This inspection is crucial for the buyer's protection and to ensure a smooth registration process.

The VIN inspection verifies the vehicle's identity and legal status. A certified inspector visually examines the car to confirm that the VIN on the Certificate of Title matches the one on the vehicle itself. This step helps protect the buyer from unknowingly purchasing a stolen or illegally modified vehicle.

Buyers should ask sellers if a recent VIN inspection has been completed. If not, they may want to request one using the MVD Form 10861 before finalizing the purchase to avoid potential issues later.

VIN Check for Theft and Fraud

Buyers should always perform a VIN check to protect themselves from theft and fraud. They can use the National Insurance Crime Bureau's (NICB) free VINCheck service for this purpose.

To use this service, the buyer needs the vehicle's VIN. The system will show if the car has any theft claims or has been reported as a salvage vehicle.

The buyer should know that they can only perform five searches in a 24-hour. If they're looking at multiple vehicles, they should plan accordingly.

Vehicle History Report

Aside from VIN check and inspection, gathering as much information as possible about the car's past when buying a vehicle from a private seller in New Mexico is smart.

Buyers should also consider obtaining a vehicle history report. This important document provides crucial information, including the current state of title and last title date, brand history, odometer reading, total loss history, and salvage history. This information can reveal if the car has been in major accidents, had multiple owners, or has a salvage title.

The buyer can get this report through the National Motor Vehicle Title Information System (NMVTIS). They must use an approved data provider and have the VIN ready. While there's typically a fee for this service, the information it provides is invaluable.

Vehicle Safety Inspection

For buyers in New Mexico, a vehicle safety inspection is crucial when purchasing from a private seller. The primary purpose of this inspection is to ensure that vehicles are in good condition and safe to drive. It helps prevent accidents by identifying potential issues before they become dangerous. This inspection also simplifies the registration process for the new owner.

The inspection must be done at an official New Mexico Department of Transportation service station. These stations are easy to spot as they display a special sign.

During the inspection, many parts of the vehicle are checked, including:

• Brakes
• Body and chassis
• Defrosting system
• Electrical components
• Exhaust and fuel systems
• Glass and mirrors
• Horn
• Lights
• Odometer
• Steering and suspension
• Tires
• Windshield wipers and washers

The inspector also looks for any signs that the emissions system has been tampered with.

Emissions Requirements

If planning to buy a car, the buyer needs to be aware of emissions requirements, especially in Bernalillo County. Most vehicles in this area must pass an emissions test before ownership can be transferred.

The rules apply to vehicles made in 1989 or later that weigh up to 10,000 pounds. These cars need to pass an emissions test every two years and when being sold. This includes gas-electric hybrid vehicles.

There are some exceptions to these rules. Brand-new vehicles don't need an emissions test for the first four years after their initial registration. Also, fully electric vehicles and diesel vehicles are exempt from these tests.

The buyer should ask the seller for a current emissions test certificate. If the vehicle doesn't have one, the buyer should factor in the cost and time needed to get the test done.

Odometer Disclosure Requirement

During a vehicle sale in New Mexico, the buyer should be aware of odometer disclosure requirements. These rules promote transparency and deter fraud.

The buyer should expect to receive an accurate odometer reading from the seller at the time of sale. This information can be provided in several ways:

• On the back of the New Mexico Title
• On MVD Form 10009 (Bill of Sale)
• On MVD Form 10187 (Odometer Disclosure Statement)
• On MVD Form 10002 (Application for Vehicle Title and Registration)

The odometer statement must include specific language indicating whether the mileage:

• Is Actual (AM)
• Exceeds mechanical limits (EL)
• Has an odometer discrepancy (NM)
• Is exempt (EX)

This requirement applies to all motor vehicle title transactions except off-highway vehicles.

The buyer should carefully review this information and compare it with the vehicle's actual odometer. Any discrepancies should be questioned and resolved before completing the purchase to avoid potential issues with registration or future resale.

Bill of Sale

Navigating a vehicle purchase from a private seller in New Mexico requires understanding the importance of a Bill of Sale. This crucial document comes into play when the Certificate of Title's assignment section is incomplete or lacks space for additional entries.

In such cases, the buyer should obtain a completed Bill of Sale or MVD-10009 from the seller. This form must include comprehensive vehicle details: year, make, VIN, and sale price. Additionally, it should bear the names, addresses, and signatures of both the seller and buyer.

The Bill of Sale serves as a legal record of the transaction, proving highly useful during the vehicle registration process.

Ownership Transfer

Completing an ownership transfer marks a critical step for buyers acquiring a vehicle from a seller in New Mexico. This process legally establishes the buyer as the new owner of the vehicle.

The buyer must ensure that both parties sign the title document correctly. The buyer must sign in the designated area to accept ownership, while the seller signs to release it. Completing all required information, including the odometer reading, purchase price, and sale date, is crucial.

For vehicles already titled in New Mexico, buyers can now utilize an online title transfer service. This convenient system allows them to upload scanned copies or photos of the signed title, current insurance, and New Mexico license or ID. However, photocopies aren't accepted.

After submission and approval by MVD staff, buyers receive instructions for online payment. Once paid, the new title, registration, and plate are mailed to the buyer. For complete details about vehicle registration in New Mexico, visit the "Register Your Vehicle" page on the NM MVD official website.

Be aware that this online service cannot be used for out-of-state vehicles or transactions that require a VIN inspection. These must be conducted in person at an NM MVD office.

Licensed Dealer Check

Smart buyers in New Mexico take an extra step when purchasing a vehicle from a dealer: they verify the dealer's license. This simple precaution can save them from potential headaches down the road.

The New Mexico MVD maintains a list of licensed dealers that buyers can easily access. By checking this list, buyers can ensure they're working with a legitimate, state-approved business.

If a buyer encounters issues with a dealer, they can file an automotive industry complaint.

Warranties

Buyers of used vehicles from dealers in New Mexico enjoy important warranty protections. Every licensed dealer must provide a minimum 15-day or 500-mile warranty on used vehicles sold to consumers. This means there are no "as-is" sales at authorized dealerships in the state.

The warranty period ends after 15 days or 500 miles, whichever comes first. If the vehicle experiences issues during this time, the buyer must return it to the selling dealership before attempting any repairs. This allows the dealer to address the problem.

Buyers can waive this warranty, but only for specific issues that the dealer discloses verbally and in writing before the sale is completed.

Purchase Agreement/Dealer's Invoice

When purchasing a vehicle from a dealer in New Mexico, buyers should pay close attention to the purchase agreement or dealer's invoice. This crucial document is required for every title transaction, including those from out-of-state dealers.

The agreement must be either the original or a certified copy, as it calculates the excise tax based on the vehicle's net sale price. In some cases, a non-certified copy may be accepted if the sale price aligns with the NADA (National Automobile Dealer Association) Retail Pricing Index Guide.

Buyers should ensure the document includes the following key elements:

• Customer's name
• Date
• Vehicle description, including year, make, and VIN
• Net sales price after any discounts
• Trade-in vehicle description, including VIN (if applicable)
• Gross sales price before trade-in deduction
• Indication if taxes are paid to an out-of-state dealer

Temporary Registration Permits

Buyers purchasing a vehicle from a dealer in New Mexico should be aware of Temporary Registration Permits, often called "Temp Tags." These permits allow the buyer to legally operate their newly acquired vehicle for a limited time while waiting for permanent registration.

Temp Tags are valid for 30 days from the date of issue. They contain essential information, such as the dealer's and buyer's names, and must be signed and dated by the dealer who issued the permit.

These permits serve as temporary compliance with state laws requiring vehicle registration. Buyers should note that extensions are not typically granted, except in rare cases with good cause.

If a buyer encounters issues with their Temp Tag, they can contact the New Mexico Auto Dealers Association or the New Mexico Independent Auto Dealers Association for assistance.

Registration Fees

In New Mexico, vehicle registration fees vary based on the type of vehicle, its weight, and model year. Here's a breakdown:

For passenger vehicles:

• One-year registration: $27 to $62
• Two-year registration: $54 to $124

For trucks weighing 26,000 pounds or less:

• One-year registration: $38 to $207
• Two-year registration: $76 to $414

The exact fee within these ranges depends on the vehicle's weight and age. Generally, newer and heavier vehicles incur higher costs.

MVET

One significant fee is the Motor Vehicle Excise Tax (MVET), which applies to the sale of every motor vehicle requiring registration in the state. This tax is due whenever a vehicle is titled, as the state assumes a sale has occurred. The MVET rate is 4% of the vehicle's purchase price minus any trade-in credit.

Other Fees

Other fees buyers may encounter include a title transfer fee, a plate fee for new license plates, and a VIN inspection fee for out-of-state vehicles. In certain counties like Bernalillo, an emissions test fee may apply.

When purchasing from a dealer, buyers might face a documentation fee for paperwork processing. If financing the vehicle, a lien recording fee may be charged. These additional fees can vary, so buyers should inquire about them before finalizing their purchase.