Buying a Vehicle in Wisconsin

Title Verification

A vehicle title is an official document that proves ownership of a vehicle. For buyers in Wisconsin, especially when purchasing from private sellers, verifying the validity and authenticity of a vehicle title is critical to avoid potential legal issues and fraud and guarantee a clear ownership history.

The Wisconsin Department of Transportation (WisDOT) provides an online title search service to facilitate this verification process. The title search service displays the date when WisDOT last processed a title for a vehicle, provided that the entered VIN and owner identifier match their records.

Through a title search, buyers can verify the title's legitimacy, confirm the vehicle isn't stolen, and check for undisclosed liens. However, only the vehicle owner can access this history, so buyers must coordinate with sellers to obtain these records. Sellers should conduct the title search and share the results with potential buyers.

VIN Check

When buying a used car from a private seller, buyers must check if the advertised VIN matches the vehicle's make and model. Any discrepancy may indicate potential fraud or illegal modification.

A VIN check provides vital information such as past or open recalls, vehicle registration history, altered odometer readings, warranty claims, insurance coverage, and theft records.

The state of Wisconsin collaborates with the National Motor Vehicle Title Information System (NMVTIS) to facilitate VIN checks for tracking title transfers across state lines.

This collaboration helps reduce vehicle theft and fraud, improves the recovery rate of stolen vehicles, and facilitates tracking vehicle titles with theft, salvage, or flood histories.

Odometer Disclosure

Buyers in Wisconsin must make sure the seller records the odometer reading before signing the title. It is essential that the current mileage on the vehicle's odometer is higher than the mileage indicated on the title, as any alterations or erasures will render the title invalid.

When buyers sign the title, they confirm the recorded mileage. The Wisconsin Division of Motor Vehicles (DMV) checks this information against existing records when issuing a new title to verify its accuracy.

For out-of-state titles, the VIN is used to cross-check information in a national database to ensure the integrity of vehicle records and minimize odometer fraud.

The Wisconsin DMV adheres to updated federal regulations for odometer disclosures. As of January 1, 2021, vehicles from model year 2011 or newer require an odometer disclosure upon transfer of ownership.

The National Highway Traffic Safety Administration (NHTSA) has extended the mileage reporting exemption from 10 to 20 years. This enhances consumer protection by tracking mileage over a longer period.

Therefore, newer vehicles will now be exempt from odometer disclosure after 20 years, while vehicles from model year 2010 and older remain under the previous 10-year requirement.

Title Transfer and Registration

When purchasing a car from a private seller in Wisconsin, buyers must promptly apply for a vehicle title transfer and registration. They can complete this process through the Wisconsin DMV's eMV Public online system, by mail, or in person.

The eMV Public system is available if the vehicle is eligible and the buyer is titling/registering it and applying for a new plate or transferring an old one simultaneously.

The seller and buyer must fully complete the assignment section of the title. For vehicles in the model year 2011 and newer, the seller must also include the odometer reading. Additionally, if the title lists a lien and the loan is paid off, the seller must provide a lien release.

To apply online, buyers should provide their date of birth, driver's license information, the last four digits of their Social Security number, and payment details.

They can pay fees via PayPal, Automated Clearing House (ACH) transfer, or credit/debit card. After completing the online process, buyers receive a Title and Plate eApplication/Receipt, which they must print and mail with the required documents to WisDOT.

For mail applications, buyers must submit a completed Title/License Plate Application (Form MV1) with the necessary documents and payments. In-person applications require a visit to a local Wisconsin DMV office with proof of identity, such as a U.S. passport, driver's license, or military ID.

Licensed Dealer Check

Conducting a licensed dealer check is critical for Wisconsin vehicle buyers planning to purchase from dealerships. This process guarantees engagement with legitimate, state-approved businesses and protects buyers from potential fraudulent transactions.

Buyers can use Wisconsin DMV's web reports to verify the legitimacy of dealers. They can access up-to-date lists of all licensed wholesale and retail vehicle dealers, recreational vehicle (RV) and motorcycle dealers, as well as authorized salespersons at dealerships in Wisconsin.

These reports include crucial information such as dealership names and addresses, dealer plate numbers, license expiration dates, and salespeople's affiliated dealerships.

Buyer's Guide

In Wisconsin, federal and state laws require car dealerships to provide a Buyer's Guide with every used vehicle sold.

This requirement helps buyers gain comprehensive knowledge about the vehicle and their legal rights, which promotes informed purchasing decisions and enhances consumer protection.

This guide provides vital details about the vehicle's condition, including engine size, airbag status, and inspection details. It also discloses any known recalls and the vehicle's title brand.

For unrepaired salvage vehicles, a clear status statement must be displayed. The Buyer's Guide also provides transparency on any remaining factory warranties.

Extended Warranties

Dealership purchases allow buyers to obtain extended warranties or service contracts. These contracts cover unexpected repair costs and maintenance not typically covered by the manufacturer's warranty.

Wisconsin offers buyers further protection through state laws and regulations governing such warranties. Dealers must submit contracts for the Commissioner of Insurance's approval detailing deductibles, non-original parts, coverage exclusions, and maintenance requirements.

Contracts must also include any consequential damages or preexisting conditions that are covered.

Buyers can cancel the service contract within 10-20 days for a full refund. After this period, they can still cancel for a prorated refund minus a maximum of 10% administrative fee.

Violations of Wisconsin's service contract laws can result in business bans and fines of up to $1,000 per violation.

Registration Fees

In Wisconsin, vehicle owners are subject to standard state and local vehicle registration fees.

Standard State Registration Fees

In Wisconsin, vehicle registration fees depend on the vehicle type. Autocycles incur an annual fee of $45, while cars and passenger vehicles have a yearly fee of $85. Motorcycles, trikes, and mopeds are subject to a biennial fee of $23.

Recreational vehicle trailers require an annual fee of $15, and special design vehicles are charged $5 annually.

The registration fee for motor trucks and trailers is determined by the vehicle's gross weight, including its load. Truck tractor fees depend on the combined gross weight of the tractor, semi-trailer, and load.

Similarly, motor home and bus fees are based on the vehicle's gross weight, encompassing property and passengers.

Wheel Taxes

In addition to the standard state registration fee paid for a vehicle, Wisconsin law allows a county, city, town, or village to collect a local vehicle registration fee called wheel tax.

The fee applies to automobiles, autocycles, and trucks weighing 8,000 pounds or less that are customarily kept in the municipality or county. Vehicle owners must pay the wheel tax at the time of first registration and each registration renewal.

The WisDOT administers wheel tax fees, deducts a 17-cent administrative fee per vehicle application, and forwards the remainder to the respective municipality or county. The municipality or county must use all revenue from the wheel tax for transportation-related purposes.

Most special plates with autocycle, automobile, or truck registration are subject to the wheel tax.

Collectors, Antiques, Ex-Prisoners of War, Military, Medal of Honor, Historic, and Hobbyist plates are exempt from the wheel tax.

Note that different municipalities and counties in Wisconsin have varying wheel tax fees.

For example, the town of Arena charges $20, and the city of Eau Claire has a fee of $24. Similarly, the village of Bellevue imposes a wheel tax fee of $20.

Among the counties, Dane County charges $28, while Langlade County has a lower fee of $15. In contrast, Portage County imposes a higher wheel tax fee of $30.

Title Fees

In Wisconsin, various fees are associated with vehicle titling. The fee for an original title or title transfer is $164.50, while for low-speed vehicles, this fee is reduced to $157.

If a replacement title is required, the fee is $20. Regarding security interests, a new lien listing incurs a fee of $10, and obtaining a duplicate lienholder confirmation form costs $5.

Vehicle Sales and Use Taxes

Wisconsin imposes sales and use taxes on both new and used vehicle purchases. Sales tax applies to sellers within the state, while use tax applies to buyers who purchased vehicles from out-of-state but use, store, or consume them in Wisconsin without paying sales tax at the time of purchase.

The tax is calculated based on the sales price, including the vehicle's cost, dealer preparation charges, and trade-in allowance minus rebates. The statewide sales and use tax rate is 5%, with counties and municipalities charging an additional tax rate, which is typically 0.5%.

All sellers, including those without a dealer license, must collect and remit Wisconsin sales and use taxes and provide buyers with a receipt showing the taxes collected. When registering or titling a vehicle with the WisDOT or Department of Natural Resources (DNR), buyers must present this receipt as proof of tax payment; otherwise, they must pay the tax at that time.

Taxes depend on where the buyer takes possession of the vehicle. For example, if the vehicle is bought in a county without imposing extra taxes but used in a county with a 0.5% tax, the seller collects only the state's 5% tax initially. The buyer is responsible for paying any additional local taxes.

Out-of-state sellers without a physical presence in Wisconsin may be exempt from collecting use tax if their annual sales are under $100,000 and they have fewer than 200 transactions annually. Otherwise, they must collect and remit Wisconsin use tax.