Quick Tips

• Some states may have better deals on specific car types (e.g., convertibles in colder climates).
• Sales tax is paid in the state where the car is registered, not purchased.
• Factor in transportation costs when calculating the car’s overall value.

9 Steps to Buying a Car Out of State

• Search for Vehicles Online
• Use platforms like Kelley Blue Book to search nationwide.

• Apply filters for price, features, location, and condition.

• Get a Vehicle History Report

• For used cars, use services like Carfax or AutoCheck to check for accidents, ownership history, and title issues.

• Arrange for a Thorough Inspection

• Hire a local mechanic or mobile inspection service to examine the vehicle’s condition.

• If buying from a dealership, request a certified pre-owned (CPO) inspection.

• Pay for the Vehicle

• Use secure methods like wire transfers or escrow services.

• Ensure all liens are satisfied before completing the purchase.

• Obtain Insurance Coverage

• Secure insurance coverage before driving or shipping the vehicle home.

• Pay Sales Tax in Your Home State

• Avoid double taxation by paying the tax only in the state of registration.

• Handle Emissions Testing and Inspections

• Check if the vehicle complies with your state’s emissions and safety standards.

• Register the Car in Your State

• Visit your local DMV with required documents like the title, bill of sale, and emissions test results.

• Request the Title

• Ensure the title is properly transferred to your name.
• If the title is held by a lienholder, verify when it will be released.

Why Shop Out of State?

• Wider Selection: You can find specific features or rare models unavailable locally.
• Potential Savings: Prices may be lower in regions with less demand.
• Unique Deals: Manufacturer incentives may vary by location.

Do’s and Don’ts of Buying Out of State

Do’s

• Check Registration Rules: Ensure the car meets your state’s emissions and safety regulations.
• Review Sales Tax Requirements: Pay tax only in your home state, not where the car was purchased.
• Explore Incentives: Look for regional factory incentives that could lower your costs.

Don’ts

• Don’t Forget Transportation Costs: Shipping or road-tripping the car home adds to the overall expense.
• Don’t Skip the Inspection: Always verify the car’s condition before purchase.

Getting the Car Home

Drive It Yourself

• Enjoy a road trip if the car is within driving distance.
• Ensure proper insurance and temporary tags are in place.

Ship the Car

• Use services like Ready Logistics for door-to-door delivery.
• Costs vary but can range from $1,000-$3,000 for cross-country shipping.

After Delivery

• Register the Vehicle: Visit your DMV with all required paperwork.
• Complete Emissions Tests: Ensure compliance with your state’s regulations.
• Follow Up on the Title: Check on the title transfer if it’s delayed by the seller or lienholder.

Remember:

Buying a car from out of state can expand your options and save money, but it requires careful planning and attention to details like taxes, inspections, and transportation. With the right steps, you can confidently find your perfect vehicle, no matter where it’s located.

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