Top Tips for Buying a Used Car in Texas: Use a License Plate Lookup

Exploring the used car market in Texas opens the door to substantial savings and a vast selection of vehicles. Yet, the journey isn’t without its challenges. A cautious approach is key to avoiding hidden fees, steering clear of fraudulent sellers, and ensuring you don’t end up with a car full of unresolved issue

Here are the top tips for buying a used car in Texas, including the importance of using a Texas license plate lookup service to verify vehicle details.

1. Understand Texas-Specific Taxes, Registration, and Fees

• Sales Tax: Texas imposes a 6.25% sales tax on the purchase price or the standard presumptive value (SPV) of the car, whichever is higher.
• Title and Registration Fees: Title transfer fees typically cost around $33. Registration fees vary based on the vehicle’s weight, typically ranging between $50.75 and $62.75.
• Local County Fees: Additional county-specific fees may apply, including road and bridge fees, usually between $10 and $20.
• Vehicle Inspection Fees: Before registering a vehicle in Texas, it must pass a state inspection. Inspection fees vary, averaging around $7 to $40, depending on the type of vehicle and required emissions testing.
• Emissions Testing Fees: For vehicles registered in counties with strict air quality regulations, emissions testing may be required as part of the inspection process, typically costing an additional $11 to $25.
• Dealer Inventory Tax: If purchasing from a dealership, a buyer may encounter a prorated property tax called the “dealer inventory tax,” which is based on the car’s value.
• Late Fees: Failure to transfer the title within 30 days of purchase can result in late transfer penalties, starting at $25 and increasing monthly.
• Custom License Plate Fees: If opting for a specialty or personalized license plate, additional fees ranging from $30 to $200 may apply annually, depending on the design.
• Insurance Verification: Proof of insurance meeting Texas minimum requirements must be provided before registering the vehicle.

Be sure to verify these costs before finalizing your purchase to avoid unexpected expenses.

2. The Importance of a License Plate Lookup

Using a license plate lookup free service is a vital step in the used car buying process. Here’s how it helps:

• Avoid Stolen Vehicles: A license plate lookup can immediately flag whether the vehicle has been reported as stolen, preventing potential legal complications or the purchase of a vehicle with a questionable background.
• Check for Damages or Accidents: A comprehensive history check can reveal past accidents, flood damage, or other issues that could impact the car’s safety and performance. It can also highlight whether the vehicle holds a salvage, rebuilt, or branded title.
• Verify Odometer Accuracy: Fraudulent sellers may tamper with the odometer to inflate the car’s value. A license plate lookup reveals the vehicle’s mileage history, helping you spot any discrepancies or signs of odometer rollback.
  
• Assess Vehicle Recalls: Ensure the vehicle hasn’t been subject to unresolved recalls, which could affect its safety and reliability. A lookup can provide a detailed report on any open recall issues.
• Review Previous Sales Data: A vehicle history report can reveal the number of previous owners and whether the car has been consistently maintained, giving insight into its overall condition and potential future repairs.
• Identify Title Issues: The lookup can uncover any title issues such as liens, which might prevent you from registering the car in your name until the issue is resolved.
• Avoid Flood-Damaged Cars: A license plate check can help determine if the vehicle has been exposed to floods, which can cause extensive long-term damage that might not be immediately visible.
• Check for Lien or Loan Status: Ensure the vehicle is free from any outstanding liens, indicating that there are no financial obligations tied to it that could affect your purchase.

Tip: Verify vehicle info using our free Texas license plate lookup to ensure a smooth and secure transaction.

3. Stay Informed About Texas Used Car Market Trends

Texas is home to one of the largest used car markets in the U.S. Here are some notable trends:

Stabilization of Used Car Prices: As of early December 2024, the average price for 1- to 5-year-old used cars in Texas was $29,934, reflecting a 1.4% decrease ($399) from the previous year. This stabilization indicates a balance between supply and demand in the market.

Decline in Used Electric Vehicle (EV) Prices: Used electric vehicles have seen a significant price drop, decreasing by 18.4% ($6,232) compared to the previous year. The average price of a used EV was $27,615, about 8% lower than the average used car price.
Source: San Antonio News

Shift Toward Older Vehicles: Due to restricted new car production during the pandemic, consumers are purchasing older used cars. From 2019 to 2023, the share of 1-year-old used cars in the market dropped by 45.8%, while the share of 10-year-old vehicles rose by 123.7%.
Source: KXAN

4. Perform a Thorough Vehicle Inspection

Before purchasing any used car, conduct a comprehensive inspection. Check for:

• Signs of rust or body damage
• Uneven tire wear
• Fluid leaks under the vehicle
• Proper functionality of lights, air conditioning, and other systems

Consider hiring a professional mechanic to perform a detailed inspection for added peace of mind.

5. Test Drive the Vehicle

A test drive is non-negotiable when buying a used car. Pay attention to:

• How the car handles on different road surfaces
• Any unusual noises from the engine, brakes, or suspension
• The performance of essential systems like brakes and steering

Expand Your Search

Buying a used car in Texas can be exciting. That said, it’s important to proceed carefully to ensure a safe and informed purchase. Leverage resources like Texas vehicle tag lookup to confirm vehicle history.  By staying vigilant and following these tips, you’ll cruise off with confidence in your “new-to-you” ride.

Start today—do a vehicle tag lookup to make sure your next car fits your needs and gives you peace of mind!