Buying a car out of state

How to buy a car out of state from a private seller

Buying a car out of state from a private seller requires you to personally verify and handle all the documentation requirements that a dealership would normally handle. In addition to the emissions, taxes, and temporary registration aspects, there are other tasks you need to complete, including:

• Transfer the title: This establishes the change in ownership once you've purchased the car. If the private party has an outstanding loan on the car you're buying, you may need to contact their lender. Learn more about transferring a car title.
• Get a mechanic to inspect the vehicle: With a dealership, you often get some form of guarantee that they've inspected the car and it's in good working order. When you buy from a private party, it may be up to you to do that due diligence. Learn about an inspection for a used vehicle.
• Check the vehicle's history: A dealership usually provides a vehicle history report, which shows whether the car has been totaled in an accident, was subjected to flooding, or other unusual events. If a private party doesn't provide this for you, get the report on your own and verify the vehicle identification number (VIN).

How to buy a car out of state from a dealer

Buying a car out of state from a dealer is often the same as buying from a dealer in your home state, but there are some differences:

• Emissions laws: Emissions laws can vary by state, so if you find a car you like in another state, ask the dealer to confirm that the car complies with your own state's laws. If they don't know for sure, ask them to send you a picture of the car's emissions plaque so you can check it yourself.
• Taxes: Ask whether the dealer will collect and pay your state's sales tax on your behalf. They usually do and should give you documentation of that payment. Otherwise, you must pay it when you register the car in your home state. If your state has a use tax, ask the dealer about paying that, too.
• Temporary registration: If you're buying a car out of state and driving it home, verify with the dealer that they can acquire a temporary registration for you in that other state. That way, you can drive the car home without getting pulled over by the police.

Instead of buying a used car out of state and driving it home, you may decide to have it shipped to you instead. In that case, make sure the shipping cost doesn't negate the savings from buying out of state. Find out more about the documents you need to buy a car from a dealership.

If you buy a car in another state, where do you pay sales tax?

You generally pay the sales tax of the state where you're registering the car. However, if you buy a car at a dealership out of state, the dealer might collect your sales tax and should provide you with a receipt. If you buy a car from a private seller, you need to pay the sales tax at your local DMV when you register the vehicle.

How does insurance work state to state?

Your auto insurance policy typically covers you in all 50 states and Canada. There's no such thing as a "multi-state car insurance policy" because car insurance policies generally provide out-of-state coverage.

Do you need to insure your car before shipping it?

If you aren't going to drive the car home, you may not be required to have a policy while it's in transit. However, consider protecting your car with comprehensive coverage and collision coverage in case the vehicle is damaged, stolen, or vandalized during transit. In addition, liability coverage is typically mandated for any auto transport company hauling to cover potential damages during a move. Find out more about insuring your car before shipping it.

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