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Buying a Car Out of State? Here’s What You Should Know

HomeEducationalBuying a Car Out of State? Here's What You Should Know

You should know a few things before buying a vehicle if you’re planning to do so from another state. Even though purchasing a car is a significant decision, doing it outside your state might be challenging. This comprehensive guide will help you every step of the way and advise you on what to look for when purchasing a car out of state.

Why Consider Buying a Car Out of State?

  • Pricing: Out-of-state dealerships may have a different pricing structure than what you’re used to. This can be beneficial because you may be able to negotiate a lower price for the car.
  • Vehicle Popularity: If you’re looking for a less popular vehicle, it may be easier to find at an out-of-state dealership.
  • Sales Tax: If you buy a car outside of your home state, you can be required to pay the state’s sales tax. You may, however, be eligible to receive a reimbursement for the state sales tax you paid.
  • Registration Fees: You might have to pay extra fees when registering your car in your home state. These fees can vary depending on the state, so checking with the DMV in both states before making a purchase is essential.
  • Insurance: Your car insurance rates may go up or down depending on which state you register your vehicle. Ask your insurance company how it may affect your premiums before purchasing a car outside your state.
  • Warranties: You might have a higher chance of receiving a warranty if you buy a car outside your state. If the original contract still covers the vehicle, you might be able to take it back to your home state.

How to Buy a Car Out of State?

I. Obtain a Vehicle History Report:

You may find out essential details about the car, such as accidents or damage, by ordering a vehicle history report (VHR).

II. Get a Vehicle Inspection:

This is crucial so you can see issues with the vehicle before buying. You can either have the car inspected by a certified mechanic or do it yourself. If you choose to do it yourself, thoroughly inspect the vehicle from top to bottom, inside and out.

If you find any problems with the car, be sure to consider them when negotiating the price.

III. Pay the Correct Sales Tax:

Sales tax can vary from state to state, so research before purchasing. The sales tax will typically need to be paid when registering the vehicle in your home state. But in some areas, you can pay taxes when you purchase a car.

IV. How to Bring the Car Home:

If you’re acquiring the vehicle from another state, you’ll need to find out how to bring it home. You can take the car yourself and drive it home most of the time. However, if the vehicle is located too far away, you may need to have it shipped. For example, if you are thinking about buying a car in California but you live in New York, contact a reputable company that specializes in car shipping in California to transport your new vehicle to your desired destination. 

V. Get a State Inspection:

Once you have the car in your home state, you will need to get a state inspection. This is important because it will ensure that the vehicle meets all of your state’s safety and emissions standards.

State inspections can vary from state to state, so be sure to research before you purchase.

vi. Register the Car and Get Car Insurance:

You must register the vehicle in your name after it has passed the state inspection. Additionally, you will require car insurance.

Tips for Buying a Car Out of State

I. Learn about the laws and regulations that apply to car purchases in the state where you intend to buy the vehicle. Before buying a car, it is essential to be informed of these laws and regulations because they vary by state.

II. Look for a respected dealer in the state where you plan to purchase the vehicle. This is crucial if you’re buying a used car because a private seller may be more likely to commit fraud.

III. Before purchasing, get a vehicle history report and have an experienced mechanic look over the car. This is essential for buying a car, but it becomes even more critical when doing so out of state and without first viewing the vehicle.

IV. Make sure you comprehend every paperwork related to the transaction because there can be variations from your home state.

V. Be prepared to pay all applicable taxes, fees, and, if necessary, the cost of transporting the vehicle to your home state.

Conclusion

Buying a car out of state can be a bit daunting, but if you follow these steps, you’ll surely get a great deal on a vehicle you love. Just be sure to research and take time to ensure you’re getting the best possible deal.

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Maggie Bloom
Maggie Bloom
Maggie graduated from Utah Valley University with a degree in communication and writing. In her spare time, she loves to dance, read, and bake. She also enjoys traveling and scouting out new brunch locations.

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