Delaware Used Car Buyer's Guide
How to Buy a Used Car Privately in Delaware
What to inspect, what paperwork to require, how to protect yourself from fraud, and how to transfer the title in Delaware.
Delaware Sales Tax for Buyers
No sales tax; 4.25% Document Fee on vehicle price
Walk away if you see these
- Seller won't show title or ID
- Title is in a different name than the seller
- VIN on dashboard doesn't match title
- Price is significantly below market value
- Seller refuses a pre-purchase inspection
- Seller wants cash only and won't sign bill of sale
- Title has already been signed over to "buyer"
- Seller wants to meet in a parking lot, not their home
Research the vehicle before you see it
Before driving to look at any private listing: (1) Run a free VIN check at nhtsa.gov/recalls for open safety recalls. (2) Order a Carfax or NMVTIS report to check for accident history, salvage titles, odometer rollbacks, and prior owners. (3) Verify the VIN on the listing against the vehicle's actual VIN — odometer fraud and title washing often involve VIN discrepancies. (4) Check market pricing on KBB.com and Autotrader to know if the asking price is fair.
Inspect the vehicle in person
Inspect during daylight hours. Check: (1) body panels for mismatched paint, uneven gaps (indicates repair), or rust. (2) Under the hood: leaks, corrosion, coolant color, oil level and condition. (3) Tires: tread depth and even wear — uneven wear indicates alignment or suspension issues. (4) Interior: water marks on floor, headliner, or doors indicate flooding. (5) All lights, windows, and electronics. (6) Under the vehicle: rust, oil seepage, or structural damage. A professional pre-purchase inspection (PPI) by an independent mechanic costs $100-$150 and is worth every dollar on any vehicle over $5,000.
Review all paperwork before paying
Demand to see these documents before any money changes hands: (1) The original title — confirm the seller's name matches a valid government ID. (2) Current registration — confirms the vehicle is properly registered and the VIN matches. (3) Service records — maintenance history adds value and confirms mileage. (4) Any recall completion certificates. The seller's name on the title must match their ID exactly. If it doesn't, there may be a title-washing, stolen vehicle, or unreported lien problem.
Negotiate and agree on price
Private party prices are negotiable. Use the PPI findings, Carfax report, and any deferred maintenance as negotiating points. Agree on a final price before any paperwork is signed. In Delaware, be aware that no sales tax; 4.25% document fee on vehicle price.
Complete the bill of sale and title transfer
Both buyer and seller must sign a bill of sale that records the VIN, sale price, odometer, date, and both parties' information. Delaware requires an odometer disclosure on the title and bill of sale for vehicles under 10 years old. The seller signs the back of the title — every field must be complete. Never accept a title that has already been signed over to someone else (a "title jump") — this creates legal problems when you register.
Register the vehicle in your name
Take the signed title, bill of sale, your ID, and proof of insurance to the Delaware DMV (https://dmv.de.gov). Pay the title transfer fee ($55) and any applicable sales tax — no sales tax; 4.25% document fee on vehicle price. Most states require registration within 30 days of purchase — late registration incurs penalty fees. Remove the seller's plates if they are still on the vehicle (plates usually follow the owner, not the car).
Frequently asked questions
What paperwork do I need to buy a used car from a private seller in Delaware?
You need: (1) the signed title (seller signs the back in ink, with your name, date, price, and odometer filled in); (2) a signed bill of sale from the seller; (3) an odometer disclosure statement; (4) your valid government-issued ID; (5) proof of insurance (required to drive off the lot and to register); and (6) payment.
How do I transfer a used car title into my name in Delaware?
Take the signed title, bill of sale, your ID, and proof of insurance to the Delaware DMV at https://dmv.de.gov. Complete the title transfer application. Pay the title fee ($55) and applicable sales tax (No sales tax; 4.25% Document Fee on vehicle price). A new title in your name will be issued. Register within your state's deadline to avoid late fees.
How do I protect myself from buying a stolen vehicle in Delaware?
Check the VIN against the NMVTIS database (vehiclehistory.gov) and the NICB VINCheck tool (free at nicb.org). Compare the VIN on the dashboard, door jamb, and title — all three must match exactly. A mismatched VIN is a serious red flag. Verify the seller's government ID against the name on the title. If the seller refuses a VIN check or can't show you matching ID, walk away.
Who pays sales tax when buying a used car in Delaware?
No sales tax; 4.25% Document Fee on vehicle price The buyer pays this when registering the vehicle at the Delaware DMV — it is not paid to the seller.
Can I drive a used car home after buying it without a title in Delaware?
Most states allow a buyer to drive home with a signed bill of sale and a temporary permit. Delaware generally permits this for a short window — typically 3-10 days — but you should get a temporary operating permit from the seller or from the DMV. Never drive an unregistered vehicle without a bill of sale at minimum. The seller's plates should not be on the vehicle after the sale.
Get your Delaware bill of sale
Ask the seller to generate the state-specific form — or generate it yourself and bring it to the sale.
Generate Delaware Car Bill of Sale