How to Finance a Used Car with Bad Credit

Buying a used car in Kentucky means getting the title transferred and the car registered in your name — done in person at your County Clerk's office. Here's what to have ready. (Rules and fees can change and vary slightly by county, so it's always worth a quick call to your county clerk before you go.)

What the seller must give you

• The properly assigned title. The seller completes the "Transfer of Title by Owner" section on the back, with the sale price and odometer reading, and — critically — their signature must be notarized. This is the most important document; never buy without it.
• The Application for Title/Registration (form TC 96-182) with the Total Consideration Affidavit, also signed and notarized, stating the purchase price.
• Any service records the seller has (not required, but valuable).

Why notarization saves you money

Here's a detail worth knowing: if the title and affidavit are properly signed and notarized with the actual purchase price, your usage tax is based on what you paid. If they're not properly notarized, Kentucky taxes you on the full NADA book value instead — which is usually higher. Make sure the seller notarizes everything correctly.

What you'll bring to the clerk

• Proof of Kentucky insurance in your name, with the vehicle's VIN on the card (issued within the last 45 days).
• Your valid photo ID and Social Security number.
• The notarized title and TC 96-182 from the seller.
• Money for the usage tax and fees (see below).

The taxes and fees

• Motor Vehicle Usage Tax: 6% of the purchase price (with a notarized affidavit) or the NADA retail value — whichever applies. The taxable value can't be less than 50% of the NADA trade-in value.
• Title fee (around $9, varies by county) and annual registration ($21).
• Notary fee (about $2 if the clerk notarizes).

The VIN inspection (out-of-state cars)

If the car is coming from out of state — for example, a car titled in Illinois, just across the river — Kentucky requires a sheriff's VIN inspection before you can title it. It's a quick check that the VIN matches the paperwork, costs about $15, and you must title an out-of-state vehicle within 15 days. Cars already titled in Kentucky don't need this.

Where it happens

Title transfer and registration are handled at your local County Clerk's office — McCracken County for Paducah, Marshall County for Benton, Graves County for Mayfield, Calloway County for Murray, and so on. Everything must be done in person.

Your quick checklist

• ☐ Notarized, properly assigned title from the seller
• ☐ Signed & notarized TC 96-182 with the purchase price
• ☐ Proof of Kentucky insurance (VIN on the card, issued within 45 days)
• ☐ Your photo ID and Social Security number
• ☐ Sheriff's VIN inspection (if the car is from out of state)
• ☐ Funds for 6% usage tax, title, and registration fees

Ready to find the car? Browse local listings across Western Kentucky and Southern Illinois, then use this checklist to make the paperwork painless.