What Happens After You Shake Hands - The Paperwork Side of Buying a Used Car

Once you've agreed on a price, there's a stack of documents between you and the keys. Most people sign everything quickly without reading much. A few of those documents actually matter - and one in particular is worth slowing down for.

Here's what each document is and why it exists.

The Buyer's Order

This is the first document and the most important one to verify before anything else gets signed. The buyer's order - sometimes called a purchase agreement or bill of sale - lists the vehicle, the agreed price, any fees, the trade-in value if you're trading, and the amount being financed or the amount due at signing.

Read every line. Make sure the year, make, model, VIN, and mileage match the vehicle you agreed to. Make sure the trade-in value matches what was discussed. Make sure there are no add-ons that appeared after the price was settled.

This document is the foundation of every other document in the stack. If something is wrong here, fix it before you move on.

The Retail Installment Contract

If you're financing, this is your loan agreement. It lists the loan amount, APR, total number of payments, monthly payment amount, and the total amount you'll pay over the life of the loan. It also identifies the lender.

Check these specific numbers: Does the APR match what was quoted to you? Does the monthly payment match the term you agreed to? Does the loan amount match the buyer's order? If any of these numbers differ from what you were told, ask why before you sign.

The retail installment contract is a binding legal agreement. It takes five minutes to read the numbers and confirm they're right.

The Odometer Disclosure Statement

Federal law requires the seller to disclose the mileage at the time of sale in writing. You'll sign this confirming the odometer reading. One page, straightforward. Just make sure the mileage matches what the vehicle actually showed.

The As-Is Notice - Read This One

This is the document most buyers gloss over, and it's the one that matters most if something goes wrong after the sale.

An as-is notice states that the vehicle is being sold without any warranty. The seller makes no promises about the condition of the vehicle, and repairs after the sale are the buyer's responsibility. When you sign it, you're acknowledging that you understand this.

A few things to understand: if the vehicle came with any dealer warranty, that should be documented on a separate warranty form. If a warranty applies, the as-is designation is limited for those covered items. Ask before you sign whether any warranty applies.

If it's truly as-is, go in understanding that. This is why the inspection before you buy matters - if you identify a problem during the test drive, negotiate it into the price before you sign. Once you've signed the as-is notice, the vehicle's condition is your responsibility.

The Title Application

After the sale, the dealer files the title application with the state. You'll typically sign a power of attorney form authorizing them to handle this on your behalf. The title comes by mail, usually within 30-60 days. Your temp tag covers you in the meantime.

Just verify your name is spelled correctly and your address is right. A name or address error on a title application creates delays and paperwork to fix later.

The Practical Approach

Ask to see the buyer's order before any other document is put in front of you. Verify every number on it against what you agreed to. Once the buyer's order is right, the rest of the paperwork follows from it - meaning if the foundation is correct, the rest usually is too.

Take your time. At a straight-dealing dealer, any discrepancy in the paperwork is a mistake that gets corrected. Don't let anyone rush you through a document stack.

At Dykes Motors in Collins, MS, we walk through every document with you and answer every question before anything gets signed. Come by 3069 Hwy 49 or call (601) 641-5475.