Buying a Car -- From the Grounds up

Irwin Poon

updated: +x

Step 1: SSN Card

Get a letter from the International Office first. Bring your passport with US visa, I-20 or IAP-66, and I-94 Departure Record to 11th St. and San Jacinto to apply for SSN Card. You will need to pass through security check just as in an airport, so remove unnecessary metallic ornaments before you go. The SSN Card will be mailed to you in a few weeks.

NOTE: For Students with No Social Security Number. Go in person to Texas Department of Public Safety Office (DPS), 6121 North Lamar. Office hours: Monday - Friday, 8 a.m. - 5 p.m. Phone (512)424-2076. Take your passport, I-20/DS-2019 and I-94 card. Sign an affidavit saying that you do not have a social security number and are not eligible for one. Your application for a Texas ID or Driver's License should be accepted. (IO has a UT family Program for detail info.)

Step 2: Instruction Permit

If you did not have driving license in your home country before, you are advised to get an Instruction Permit first.

 * If you have a valid out-of-state driver's license, simply pay $24 to $26 in cash or check to exchange for a Texas driver's license. You don't have to pass any test, but they will get your finger print and take photo of you.

* If you have an expired driver's license or a driver's license from outside United States, you will have to go through all the tests again. You may choose to check "Drivers License" instead of "Instruction Permit" on the application form, pay $24 to $26 in cash or check to get a receipt. However, you only have 90 days to pass both the computer based test and the driving test. Otherwise your application fee will be forfeited and you will have to start all over again. Moreover, since you only get a receipt, not a driver's license nor instruction permit, you are not supposed to drive nor practise driving before you pass the driving test. If you got a fresh driver's license outside US not long ago or haven't been driving since then, you are recommended to pay $5 more to get an Instruction Permit first.

* If you have an expired paper Instruction Permit, you need to re-take the computer based test. They will ask you to pay $24 to $26 in cash or check and you will get a plastic Instruction Permit just like a driver's license, and it will be valid for at least 6 years)

Get a drivers handbook from the Department of Public Safety or Department of Transportation and study it for a multiple-choice test. On line version can be found here. (Details can be found at TX DPS web)

When you study for the test, pay special attention to those relating to drunk driving, as this happens a lot with Americans. Memorize also the fines and years of imprisonment related to each offense, the stopping distance (in terms of feet) when you are diving at a certain speed (in terms of miles per hour), etc. Traffic signs maybe an easy part, but pay attention to the shape and color of traffic signs.

When you are ready for the test, bring your passport with US visa, I-20 or IAP-66, I-94 Departure Record, SSN Card and $5 to $7 cash or check (no credit card, no debit card, no ATM card) to the Department of Public Safety for a computer based test. Bring your Texas ID, expired Instruction Permit, previous Driver's License, etc if you have it too. The computer based test is available Monday to Thursday from 9:00am to 4:30pm, and Friday morning only. They will examine your eyesight, get finger prints from you, and may take photo of you (so comb your hairs and smile). Make sure you check "Instruction Permit" on the application form, NOT "drivers license".

Relax when taking the test. You have no time limit (except if you arrive too late, all computers shut down automatically at 5pm) You need at least 70% correct to pass. You may skip questions if you are not sure of the answer. Just like in GRE Computer Based Test, the computer tells you the correct answer immediately each time you submit an answer. If you answer is wrong, do NOT panic, try to memorize the correct answer. Five dollars entitles you to take the test three times. Just in case you don't pass in the first test, questions in the second test are more or less the same. It pays to memorize those answers. You will get an instruction permit that is valid for at least one year if you pass.

There are three places in Austin where you can take such test.

6121 North Lamar 424-2076
13730 Research Road 335-8131
4719 South Congress 444-5241


If you pass the test, congratulations! Keep your driver's handbook as handy reference. You will need it from time to time even after you have got your driver's license. Otherwise don't get frustrated. The earliest time you may come again for the test is the next business day. You have three chances, after that you need to pay another $5.

Step 3: Car Hunting


Now you can hunt for your dream car. Make sure you transfer title within 20 working days from the day you buy your car, otherwise there will be a penalty. You will need your drivers license number (the 8-digit number on your Instruction Permit) and insurance (you need both drivers license number and the car VIN number to buy insurance) in order to transfer title. So I strongly recommend you to get your Instruction Permit first, or at least get your Instruction Permit at the same time you hunt for your dream car.

Used car could be bought via dealers or private party. Dealers may have made necessary repairs and/or maintenance on your car before you buy it, but usually at a higher price too. It is cheaper to buy from private party but you also run a higher risk of buying a lemon car (a lemon car means a car that is bad). To find used car, go online to the Classified Section of the Austin American Statesmen. There you may search for the year and model of the car you want. Advertisement that is over one week old need not be considered, because there must be some major problems with the car so that people don't want to buy it. Do research on the advertisement, because no single advertisement contain all the necessary information. Phone them to get the missing information before you make further action.

Buy a Carfax (about $20 is valid for one month). Ask for VIN (Vehicle Identification Number) when you phone the owner. Check the VIN number in Carfax. If the Carfax shows that the car history was unclean, then that's it. But if the Carfax doesn't show any problem with the car, it does not mean the car did not have bad history. You may want to share the cost of Carfax among several friends who buy cars at more or less the same time.

5 speed means manual transmission. While manual transmission cars are cheaper, consumes less fuel, and accelerates faster, it is harder to drive a manual transmission car, and fewer people know how to drive it, so you may have hard time finding people to teach you how to drive. If you decide to go for a manual transmission car, fewer people are able to test drive the car for you too. Hence it is a tradeoff -- whether you want to drive easily or you want to save cost. For other jargons on automobiles, check out the homepage of ACCCF. +x has put wonderful links there.

One factor that many people overlook when choosing cars is the operating cost. Sedan cars have lower insurance premium than sports utility cars. Red cars also means higher insurance cost. A car with larger mpg (miles per gallon) is more fuel-efficient, and you will save a lot in fuel cost. High-end cars also mean more expensive maintenance and repair costs. If you buy new car, consider the hybrid-engine models, which helps to conserve our non-renewable resources and protect the environment.

Setup a budget for yourself. Bear in mind that you still need to spend on auto insurance, sales tax, title application, vehicle registration, repairs and maintenance, etc in addition to the sales price. Check out the retail value of used car at the online Bluebooks www.edmunds.com and www.kbb.com to see if the seller is asking for a reasonable price. Conditions of the car affects the price a lot. Used cars are generally appraised as good or fair. They are seldom in the excellent condition. You can customize the actual accessories and conditions of the car you intend to buy on these Bluebooks to get a better reflection of the fair market value of the car. You should be able to buy the car for a price between the private-party price and the trade-in price in the Bluebook.

If you find some potential target with a suitable price range, call them and arrange a time so that you and your friends could go there for a test drive. Find some experienced drivers to test drive the car for you. If your friends (the experienced drivers) think the car is bad, then that's it. Otherwise bring the car to auto mechanics for a buyers check. Vietnamese mechanics usually charge for $10 to $25 for each buyers check. American mechanics charge for $70 to $120 for each buyers check. If the buyers check comes up with major mechanical defects, then that's it. Otherwise, bargain for the price based on the check report. If you decide to buy the car, you may need to pay a deposit, get back a receipt, and arrange a time to pick up the car.

Download the Title Application Form from the homepage of Nelda Wells Spears Travis County Tax Assessor Collector Office, print the form and bring it with you. The best way to pay for the car is by Cashier's Check. You will need the name and address of the previous owner to purchase a Cashiers Check at a bank. Find two drivers to accompany you when you pick up the car, or ask them to deliver the car to your apartment. Make sure they give you the title of the car. Check the title to see there is no lien holders. If there is lien holder, make sure the release of lien is signed. Otherwise do NOT buy the car. Fill out the form at the back, and make sure the previous owner has signed both in the front and at the back of this original title. If the title indicates a joint ownership of more than one person, then all of them need to sign both at the front and at the back. They also need to fill in and sign the corresponding entries in the Title Application Form. They should also give!
  you their car keyS. Make sure you get all their contact information so that you could still find them in case problems arise when you try to transfer the title later. If possible, ask for the maintenance records of the car.

Drive straight back to your apartment and park there. You don't have insurance yet, so it is illegal to drive your car now. The fine for Driving without Proof of Insurance is much higher than the insurance cost itself, so you don't want to run this risk. Report to your apartment manager that you have bought a car and give them your license plate number (the 6-digit alphanumeric at the front and back of the car), so that they won't tow it. Start the process of buying insurance and transfer title immediately. Remember that you have to transfer the title within 20 working days from the day you purchase the vehicle.

Step 4: Auto Insurance

Contact a few insurance agencies. They should give you FREE price quote. When you compare the price, make sure the insurance coverage is the same. Unequal coverage cannot be compared. You need both your car VIN number and the driver's license number (the 8-digit number on your Instruction Permit is your Driver's License number) in order to buy insurance.

Texas state law requires you to buy at least the Liability. Some people may want to add Personal Injury Protection and/or Uninsured/Underinsured Motorist to their portfolio. Others opt for comprehensive coverage, which covers virtually everything but at a much higher cost. If you bought a brand new car, it is recommended that you also buy the comprehensive coverage. If you plan to drive to some state with more stringent insurance requirement than Texas (e.g. New York), you may need to buy a higher coverage. For detailed explanation of these terms, ask us or ask your insurance agent.

If you buy uninsured/underinsured motorist, you can save money by choosing the lowest coverage because your car doesn't cost that much after all. You can save money by telling the agent that you don't drive for school. You can further save money if you take a defensive driving class. If you are undergraduate student, you maybe able to save some cost if your academic results are excellent.

Boys enjoy lower insurance premium after age 25. Girls enjoy lower insurance premium after age 21. Your insurance premium is even lower if you are married, and still even lower if you have children. Usually the cost is higher if this is your first year driving (i.e. no previous driving experience). Your cost surges high as soon as you have an accident (whether or not it is your fault) and/or you eat a police ticket. Effects from auto accident last for three years (36 months) from the date of accident.

If you are boys under 25 or girls under 21, Geico may give you a better price. If you are boys over 25 or girls over 21, Farmers may give you a better price. There is a Chinese agent for Farmers at 2222 and Mopac. Many Chinese students bought insurance from him. If you had at least 18 months of driving experience, then AAA may give you a better price. Try to research into more insurance companies before making your decision. I would recommend that you buy only from insurance company that offers you nation-wide 24-hour hot-line for insurance claims. It makes your life much easier in case you have an accident. Also try to ask friends for reputation of different insurance companies.

Step 5: Title Transfer


Before you go, make sure you have enough money in your checking account. If you pay by credit card, there will be an unfavorable surcharge to you. Also, if you bought the insurance online or by phone, you must wait until the proof of insurance has been mailed to you before you can apply for title. If you bought the car from dealer instead of private party, the dealer may handle the title application for you as well, so ask the dealer for details.

Bring the original certificate of title of the previous owner, the application form for new title, proof of auto insurance, your driver's license or instruction permit, and your checkbook to the Nelda Wells Spears Travis County Tax Assessor Collector Office. The office has recently been relocated to the Airport Boulevard. a little bit south of 2222. The new office looks pretty much like a bunch of warehouses. So the location is not at all obvious if this is your first time going there. You may ask us to give you a ride there. Remember to sign in before you take a seat to wait...

Pay the title application fee and 6.25% sales tax on vehicle purchase plus some other miscellaneous fees in cash or check. Leave at least a copy of the receipt of title application in your car. You will need the receipt in case your car is towed. The actual certificate of title will be mailed to you in a few weeks, but please never leave the actual title in your car, just imagine the case if your car is stolen. Keep the original certificate of title in a safe place outside your car.

If your registration sticker is about to expire or has already expired, then you will need to pay the annual registration fee too. This is a little bit more than $50 as of 2004. You will get a new sticker, and please put up the sticker to your windshield as soon as possible to avoid police citation. If the previous owner has not changed the license plate for over 5 years, you are entitled to a free replacement of the license plate. In that case, I would recommend you to take advantage of this free replacement. If you changed your license plates, remember to tell your apartment manager too so that they won't tow your car.

 From now on, you will receive a snail-mail notice to renew your annual vehicle registration once a year. Follow the instructions and pay for the registration fee to receive a new registration sticker. Put up the registration sticker to your windshield as soon as possible and leave your registration receipt in the car. Whenever you move, update your address with all of vehicle registration, driver's license and the auto insurance. Change of address is free for vehicle registration and $10 for driver's license. While change of address itself is free with auto insurance, if your zip code is changed, your premium may also be adjusted accordingly. Always keep your address current with them, otherwise you will get into aggravated troubles if your car is towed or if you eat a police ticket.

Step 6: Maintenance Repairs

There are many things to check. First of all, make sure your vehicle inspection sticker is current. Otherwise, do the inspection immediately to avoid police citation. Inspection fee is set by the state to be $12.50 and it takes only 10 minutes to do the inspection. The only uncertain factor in time is the number of cars queued in front of you. Dedicated inspection stations that specializes in vehicle inspection usually have much better turn-around time than general-purpose mechanics who also do inspection as their side business. Before going to the inspection, it is always a good idea to manually check that all the lights function properly. Replacing a bulb is relatively easy, and replacing it yourself is also much cheaper than letting the inspection station to replace it for you.

Then look at the report from your buyers check. Not all items need to be dealt with immediately. Ask some experienced friends to see which items you should repair first. Things like the timing belt or CV boot should be taken care of immediately. Take your car to a mechanics shop that offers good price and service to do the repairs.

You need to change the engine oil and oil filter every three months or 3,000 miles whichever is sooner, do tire rotation every six months or 6,000 miles whichever is sooner, change the transmission fluid once every two years, and a bunch of other things. If you do not have the maintenance record of the previous owner, I would strongly recommend you to go ahead and change the engine oil and oil filter, as well as do the engine tune-up immediately. It doesn't cost too much, and it prolongs your engine life.

Step 7: Learn Driving

It is easy to get a car moving, but it is difficult to drive safely. Bear in your mind that you want to learn how to drive safely, not just how to drive! It is better to arrive late than never arrive, so be careful when you are on the road! Be a responsible driver and don't play around with your life and the lives of other road users including innocent pedestrians.

It costs dearly to attend a driving school, and the driving school only cares for you up to the point you get your driver's license, then you are at the mercy of the road in the rest of your life. Well, you only need to know how to drive in small roads in order to get a driver's license, and there are still many skills to develop after you get your driver's license. Paying that much just to get a driver's license is not worthy. You should find a friend to teach you driving. Texas law requires your driving instructor to be over 21 years old, with at least one year driving experience, and with a valid Texas driver's license. I repeat, Texas law requires your driving instructor to be over 21 years old, with at least one year driving experience, and with a valid Texas driver's license. This is very important.

It is very important to get yourself a good driving instructor so that you can develop good driving habits from the very beginning. Once you stick to some bad practice, it is difficult to change, and it inevitably means a traffic accident. Don't try to compete to get your driver's license in the shortest possible time, but do compete to be the safest driver. I have seen many occasions where somebody with just an Instruction Permit is sitting besides another one with just an Instruction Permit, and the dangerous driving nearly caused accidents. Never give anybody rides before you get your driver's license. And never take the rides of anybody who hasn't got his/her driver's license yet! Always get yourself a qualified driving instructor. If police stops you maybe because one of your rear bulbs burn out, and then discovers that you are driving without a qualified instructor, then both your driving privileges will be suspended, and the fines is also much greater than the insurance cost.

Some of our brothers and sisters in ACCCF are known to be good driving instructors, and you are welcome to contact us. Since our service is completely free-of-charge, we reserve our time and efforts to first teaching those who regularly attends our Friday fellowship. Our fellowship starts at 7:00pm every Friday in SSB G1.310, and everybody is welcome to join us. A complete schedule is posted on our website every semester.

If you learn once to twice a week, 1-1.5 hour each time, then it takes approximately 2-3 months for you to get ready for the driving test. You can speed up the process by learning from more than one driving instructor. But in any case, always get yourself a qualified driving instructor, and always safety first. Do obey all the traffic rules, for police can still issue you tickets even though you are just holding Instruction Permit. Whenever in doubt, go back to your drivers handbook you used to pass the computer test and look it up.

Step 8: Driving Test

When you are ready, ask one of your driving instructors to take you to the driving test. This is where you passed your computer based test and obtained your Instruction Permit. Make sure both your registration sticker and the vehicle inspection sticker are current, and make sure all bulbs are functioning. Walk in and set up an appointment first. If you take the test in South Congress, you may need to queue up as early as 7:30-8:30am to compete for a testing time-slot depending on how many other people are competing with you. If you take the test in North Lamar, remember that you cannot take the test during lunch time, nor one hour from the end of their office-hour, nor in Friday afternoon. Arrive a little bit earlier than the prescribed time with your unexpired Instruction Permit, unexpired Proof of Auto Insurance, and enough cash or a checkbook. Obtain a mark sheet inside, then drive your car to wait in line for the next test administrator. You may study the mark sheet before your test administrator comes to familiarize yourself with the aspects being examined.

The test administrator will inspect your Instruction Permit and Proof of Auto Insurance, then inspect your car. You will be asked to make left-turn and right-turn signals, step on the brake, and press the horn. Make sure you understand all these instructions. Your driving instructor will tell you more about the test, but he/she cannot stay in the car while you take the test. You will be tested on parallel parking, accelerating and stopping smoothly, backing up, and then drive in some neighborhood for a while.

If you do not pass the test, the earliest time you may come again for the test is the next business day. But I would rather recommend you to practice more before coming for the test again too soon.

If you pass the test, congratulations! Go inside the building. You maybe asked to take a photo again (so comb your hairs and smile). If you have a paper Instruction Permit, pay $24 to $26 in cash or check; if you have a plastic Instruction Permit, pay $10 in cash or check. You will first get a temporary driver's license. The actual plastic Driver's License will be mailed to you in a few weeks. Your driver's license entitles you to drive in all 50 states in the United States.

One word of WARNING is in place. Be extremely careful whenever you are behind the wheel. Most of my friends, including me myself, got an accident in the first 6 months since we got the Driver's License, irrespective of when we got the license, irrespective of who taught us driving, etc. By an accident, I mean the repair cost is at least $1,000 whether paid by you or the insurance company. I personally know at least five of us, including me, have even totaled the car, which means the car became a pile of waste metal that nobody wants except the junk yard. By the fourth or fifth month, you will grow so confident of your driving skills that you start to be less careful, while in fact you haven't seen many of the road conditions yet. When emergency occurs, chances are that you cannot react fast enough and wise enough to prevent an accident.

I have a habit of always asking all my passengers to securely fasten their seat-belts, no matter sitting in the front or at the back. If my passengers and I had not fastened our seat-belt when I had the accident, we would all have been thrown out of the car and died, just as all my bags on the seat were thrown out of the window! I would highly recommend you to develop the habit of asking all your passengers to securely fasten their seat-belts too.

Step 9: Epilogue

Always be careful when you drive. Please refer to the last two paragraphs of the last step. Read it over and over again to remind you of the paramount importance of safe driving. You may wish to take a defensive driving class to improve your driving safety too. Listen for unusual noise or abnormal behavior of the car when you drive, which usually means something need to be repaired.

You only need to be able to drive in small roads in order to pass the driving test. You may or may not have driven on major roads. Do ask your driving instructors to continue guiding you on major roads, and eventually on highway and driving long distance. There are still a lot to learn, and many different skills to develop. For example, most new drivers do not perform well when they change lanes, which is dangerous. Do you always know all the conditions around your car when you drive, especially on highway, like which car is about to take over you and which car is trying to catch an opportunity to take over you? Could you manage your speed not to exceed the limit, and could you still manually cruise your car at the speed limit on highway while not using the cruise control? Do you remember roads well so that you don't get lost nor tend to make some dangerous last-minute turns and/or lane-changes? Are you confident using the rear view mirror mounted to the right of the passenger seat of your car? ...... Lastly, what do I need to know about long distance driving?

Here is an incomplete check-list. If you still don't know any of the following, ask your driving instructors immediately. When to and when not to use the high headlight, and how and when to set parking light, low headlight and high headlight? When to and when not to use gear 1 and 2 in automatic transmission? What shall I do if my car skids and lose control? How to use cruise control, and when NOT to use cruise control? When and where can I park in UT Campus? What shall I do if I forgot to turn off the headlight and my battery is now discharged that I cannot start my car? What if I locked my key in the car?

If you see a police car flashing behind you, signal and come to a stop at the nearest safe location. Do NOT unfasten your seat-belt, do NOT open the door, and do NOT try to reach for anything. Change to parking gear, engage your parking brake, roll down the window and wait inside the car with your seat-belt fastened for the police to come. Otherwise the police may think that you are trying to reach for a weapon, and he may shoot you. If you get a speeding ticket, it can be discharged by taking a defensive driving class. However, you cannot discharge more than one ticket by taking defensive driving class in any given year. However, some offenses, e.g. driving under intoxication, driving without proof of insurance, etc cannot be discharged this way.

If you are in an accident, be calm. Make sure it is safe outside before you get out of the car. Give first-aid as appropriate. Call 911 immediately if there are injuries and/or deaths. Obtain the Driver's License state & number, Insurance company name & policy number & phone number, name, address and phone number of the other parties. Also take note of the year and model, color, and license plate state and number of the other cars. If it is a rental car, record the name and phone number of the rental company too. Obtain name and contact information of all passengers in the other cars as well as witnesses not involved in the accident including the police. Agree on the date, time and place of the accident. Take photos of the accident scene if possible. You will need all these information to file police report and/or insurance claim.

If you are admitted to a hospital because of the accident, present your Personal Injury Protection or Medical Expenses coverage of your auto insurance, your health insurance etc. File insurance claim as soon as possible and the insurance company will give you further instructions on what to do. You usually have at least one week time to file the police report. If your car is inoperable and towed, make sure to salvage it as soon as possible because there is $10 to $15 storage fee per day, and your car can only be sold to junk yard for a few hundred dollars already. If your car is still operable, you may need to obtain appraisal of the damage caused to your car, depending on the insurance company and depending on who is at fault in the accident. You may also need to deal with court summons, etc. irrespective of your mid-term and final exam schedule. It takes months to get back to normal, and be prepared that the process can be depressing.

If your car is towed, stay calm too. Phone the towing company displayed on the signs over where you parked to find out where the car is towed. Find a friend to take you there. Before you get there, go to a bank or ATM machine to get enough cash. Towing costs you anywhere from $100 to $200, and they accept cash only. No checks, no credit card, no debit card. Make sure you have either the original certificate of title, or the receipt of vehicle registration with you. You also need proof of insurance. You may incur extra charges for public notary if the address in file of your vehicle registration is not the same as that on your driver's license. It generally takes a few hours to deal with each towing.

Finally, wish all of you a safe and pleasant driving experience! Just as we provided you rides when you came to Austin, we would also like you to give rides to new students next year, taking them to International Office, University Health Service, supermarkets, airport, etc. When you drove for over one year, please kindly pass your experience on, and help new students with their driving. Join us in our Friday fellowship too!

NOTE: Car fix!!    The website of ASE, The National Institute for Automotive Service Excellence, was founded in 1972 as an independent non-profit organization with a single mission: To improve the quality of automotive service and repair through the voluntary testing and certification automotive technicians.

National Institute for AUTOMOTIVE SERVICE EXCELLENCE
13505 Dulles Technology Drive Suite 2
Herndon Virginia 20171-3421
Toll-Free Information Line: 1-877-ASE-TECH
For more information go to : http://www.asecert.org/
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Useful Information on the Web:

ACCCF Fall, 2006