What You Should Know Before Buying a Car in Oregon 

Buying a car is a big financial decision, and if you’re purchasing one in Oregon, it’s important to understand the local rules, fees, and legal requirements. This guide breaks down everything you should know before buying a new or used car in Oregon, all in simple, easy-to-follow language.

Oregon Has No Sales Tax, but There Are Other Fees

One big perk of buying a car in Oregon is that the state does not charge sales tax. This can save you hundreds or even thousands of dollars compared to buying in a state that does. 

However, that doesn’t mean the purchase is entirely free of extra costs. You’ll still need to pay title and registration fees to the Oregon DMV. If you buy from a dealership, they may also charge a documentation fee. 

Oregon law caps this at a certain amount, but it’s still an added cost to consider. While you might not pay tax, be sure to budget for these additional costs so you’re not surprised when it’s time to finalize the deal.

Know Your Rights When Buying New or Used

Oregon’s Lemon Law offers protection if you’re buying a new car. This law helps buyers if the vehicle has serious mechanical problems that the dealer or manufacturer cannot fix after a reasonable number of tries. The law usually covers the first 2 years or 24,000 miles. When it comes to used cars, your rights are more limited. 

If you’re buying from a dealer, you may still get a limited warranty, but many used cars are sold “as-is.” That means any repairs are your responsibility once you drive off the lot. Understanding what protection you’re entitled to helps you make wise choices and avoid unexpected costs later.

Do Your Homework Before Buying a Used Car

Buying used can save money, but it’s important to do your research. Always get a vehicle history report from a service like Carfax or AutoCheck. This report will tell you if the car has been in an accident, has a salvage title, or has other red flags. 

Check that the Vehicle Identification Number (VIN) on the car matches the one on the title and registration. Also, look for any title “brands,” such as flood or rebuilt status. Before committing, have a trusted mechanic inspect the car. A mechanic can catch problems you might miss—like engine trouble or hidden damage—which can save you thousands later.

Be Cautious When Buying from a Private Seller

If you’re buying from a private seller instead of a dealership, take extra precautions. Make sure the seller’s name matches the title and ask to see their ID. If they don’t have the title, don’t hand over any money. 

Meet in a public place during the daytime and take the car for a test drive. A bill of sale is recommended to protect both you and the seller. It’s also a good idea to snap photos of the seller’s ID and the signed documents, just in case any issues come up later. Private sales can offer great deals, but always verify the ownership and documents before you commit.

Understand Your Financing Options

Before visiting a dealership, check your credit score and get pre-approved for a loan through your bank or credit union. Many times, credit unions offer better interest rates than dealerships. 

Even if you plan to finance through the dealer, knowing your credit score helps you understand what kind of interest rate you should expect and can help you negotiate a better price. Try not to focus only on the monthly payment. A low monthly payment might seem affordable, but if the loan term is long, you could end up paying more over time. Always ask about the total loan amount and interest rate.

Watch Out for Hidden Fees and Add-Ons

Some dealers add unnecessary fees or services to the final price. These may include charges for things like VIN etching, service packages, or vehicle preparation. These add-ons can increase your total cost by hundreds of dollars. 

To avoid surprises, ask for the “out-the-door” price before agreeing to anything. This is the total price, including all fees and charges. Also, read your purchase agreement carefully. If you see fees you didn’t agree to, ask to remove them. You always have the right to walk away if the dealer won’t work with you.

Understanding Your Legal Rights When Buying a Car in Oregon

If you were injured in an accident in Portland, OR, please contact our Portland car accident lawyers at Tillmann Law Personal Injury Lawyers to schedule a free consultation today.

We proudly serve all throughout Multnomah County in Oregon. Visit our office at:

Tillmann Law Personal Injury Lawyers
101 SW Main St. #1905
Portland, OR, 97204
(503) 773-3333
Hours: Open 24/7