Certified CenterHow to Purchase a Car in Another State: A Complete Guide
If you are looking for a vehicle with certain features, and if you don't find it in your area, then you can purchase a car out of state. The process is complex but not impossible. Before you begin buying, there are certain things you must know.
Can I purchase a car in another state?
Yes, you can. However, finding the right price for your vehicle is important, especially if the seller is private rather than a dealership. You must follow a few steps before purchasing a vehicle out of state.
Key Considerations
There are certain things you can expect when you are buying a car out of state.
• Home State Requirements
• Safety Emissions
• Vehicle History
• Taxes
• Title and Registration
• Insurance
Dealers sometimes have a large inventory or can even have a better offer on the car you seek. A dealership is easier to understand and contract with than an individual because they are experienced with the DMV or Department of Motor Vehicles and even know the kind of paperwork involved. Some questions you can ask are -
• Check if they have the car you wish. Do they have the right make, model, year, and other specifications that they seek? Can they then ship it to your location? That way, you don't waste time on round trips.
• What is the bottom-line cost of the vehicle? Is it inclusive of all fees such as sales tax, sales price, destination fees, dealer fees, and other hidden costs?
• What are the standard requirements for buying an out-of-state vehicle? Call and check with the local DMV.
• Does the car have a history? Visit the NMVTIS, or National Motor Vehicle Title Information System, for a provider who can give you a car history report.
• Do you have proof of insurance? Speak to a local agent about whether your current policy will cover the car you are about to buy, at least for a short while. Alternatively, you must set up a policy.
• How will you complete the transaction? You might have to travel to the state or have it delivered to you.
If you are buying from an out-of-state private seller, then it can be tedious and overwhelming. The legwork is intense, alongside gathering the paperwork with little guidance. However, the price you seek might be quite attractive when you buy from a private seller. Here are some things to keep in mind –
• Just like you would question if you go to a dealership, here too, you must ascertain whether you really need the car. Before beginning, it is best to determine your actual inclination.
• Use the Kelley Blue Book and the NADA (National Automobile Dealers Association) information to check if the vehicle is priced reasonably.
• Speak to the seller personally. Let them know beforehand that you need the vehicle and that you are arriving from out of state.
• Contact the local Department of Motor Vehicles (DMV) for the paperwork required to purchase out-of-state vehicles. Verify the presence of a temporary registration application, title signatures, bill of sale, and other relevant documents. Safety and emission checks might be additional requirements.
• Check for the car's history – reach out to NMVTIS for a vehicle history provider.
• Get car insurance and register it with the DMV. You might have to contact a trusted insurance agent.
• Once the transaction is complete, get your logistics right after signing the agreement and collecting all relevant paperwork.
PROS and CONS
Consider the pros and cons of buying a car out of state before making a decision.
Pros
• You have a wider selection
• Find the exact model
• Easy to get what you are looking for
• Saves you money (sometimes)
Cons
• It can be complex
• Research paperwork
• Mostly DIY, making the process full of hassles
• Time-consuming process
• It could get expensive given the transportation and logistics
Frequently Asked Questions
You can purchase a car out of state and bring it back home, but temporary registration or transit permits will be required. Also, remember to obtain insurance coverage before taking the vehicle across state lines.
When purchasing a car out of state, you usually pay sales tax in your resident state when the vehicle is registered. A few states impose local fees or tax certificates to prevent double taxation.
In order to register an out-of-state vehicle in your home state, you'll need the title, bill of sale, insurance, and maybe even a VIN inspection. Stop by your local DMV to register the vehicle and pay any taxes or fees associated with it.
Yes, the majority of states need a temporary permit or transit tag to lawfully drive a newly bought out-of-state vehicle home. These are normally provided by the state in which the vehicle is bought.
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