Buying a new or used car should be a great experience. You do some research, find the car of your dreams, and find the nearest dealership to take it for a spin before you buy it. Now imagine the same scenario, but the car you want to buy is in another state — or what if you’re out of town and find a car you love while in another state? Luckily, there are no regulations or laws that can keep you from buying a car in another state, but you may want to consider a few things, such as whether that car you buy in another state can be legally operated in your home state.
For example, you can’t find some vehicles in all 50 states because they don’t meet certain state emission regulations. Let’s say you live in California, which is known for having some of the most strict emission standards in the country. As a result, if you happen to find a car you like in another state, you may not be able to break in that new car, let alone legally register it, in your home state of California if the car doesn’t meet those emission standards. However, that’s just one factor to consider — let’s take a look at some of the other things you should keep in mind.
What else you should know about buying a car in another state?
If you think you’re beating the system by buying a car in another state with no sales tax, think again. You’re not required to pay the sales tax in the state you purchase the vehicle, but you will have to pay the sales tax in the state you register the vehicle if that state has sales tax on vehicles. When you buy a car in another state, be aware that you will need a temporary registration to drive the car home. How long this temporary registration lasts varies by state.
If buying a used car out of state, follow the same steps you would in your home state by requesting a pre-purchase inspection for any used car you might be considering. This can be as easy as getting a CarFax or a vehicle history report, but nothing beats a thorough inspection by a mechanic – especially if you are buying the car through a private seller. A dealership should provide you with a vehicle history report of a used car, but a private seller is not required to do so.
Before you buy a car in another state, ask yourself how you’re getting it home. If the car is on the other side of the country, you may need to arrange for the car to be shipped or transported by a reputable company. Keep in mind that shipping the car could cut into the savings you get by purchasing the car out of state, so think carefully about that before you complete that purchase.
If all is fine and dandy, however, just transfer the title over, register the car in your home state, get it insured, and you should be good to go!