6 Steps to Consider While Buying a Car in Another State

According to Cars.com, 65% of consumers in the market for a car are open to purchasing from a different state. While buying a car from another state can expand your options and potentially offer better deals, it also comes with its own set of challenges and considerations. To help navigate the process smoothly, here's a guide to the key steps in buying a car from out of state.

Reasons to Consider Buying Out-of-State

While buying a car from another state may seem like a hassle, there are several reasons why many buyers choose this option. Maybe they’re looking for the most competitive price, searching for a specific model that isn’t available in their state, or participating in an auction. Here are some common reasons why buying a car out of state can be a smart decision:

Access to rare or specific models. Buying a car out of state can give you access to rare or specific models that may not be available in your local area. It is especially beneficial for vintage car lovers or those searching for unique, hard-to-find models.

Potential cost savings. Exploring regional price variations and incentives can lead to potential cost savings when buying a car out of state. In some states, lower local demand and taxes can result in more affordable prices, making shopping around for the best deal beneficial.

Market demand differences. Car prices fluctuate due to supply and demand, with certain makes and models being more popular in some states than others. If a vehicle is in high demand locally, you may find a better deal by looking for the same car in a state where it's less sought after.

6 Steps to Buying a Car Out of State

Before purchasing a car out of state, it's important to understand the process and the requirements needed to provide smooth transportation. Here are the key steps to consider for a successful out-of-state car purchase:

1. Research and Preparation

Do deep research before buying a car out of the state to find the best deal. Check the following key factors before proceeding:

Vehicle history report. Obtain a comprehensive vehicle history report to uncover any past accidents, title issues, or other red flags. This will verify that the car is in good condition and free of hidden problems that could lead to costly repairs later on.

Emissions and safety standards. Confirm that the vehicle meets your state's regulations, particularly regarding emissions. Some states may require the car to pass a safety inspection or emissions test before it can be registered.

State-specific requirements. Different states have unique DMV regulations for vehicle purchases, so learn the rules in both the seller’s and your home states. Being aware of these regulations helps you avoid unexpected fees or delays during the registration process.

2. Financial Considerations

The difference in costs between local and out-of-state purchases is often significant. While buying a car out of state can save you money due to lower prices, additional costs like sales taxes and registration may reduce those savings. Let’s look at some key financial factors to consider:

Sales tax. Sales tax rates on car purchases vary across the U.S. Each state sets its rate, and in some cases, local governments can add additional taxes, affecting the total cost of your vehicle.

Registration and title fees. After purchasing an out-of-state car, you'll need to register it in your home state. Be sure to have all the required documents ready to complete the registration and title transfer process legally.

Financing options. You can either secure financing through your local bank or credit union or explore financing options offered by the seller. Be sure to inform lenders that the vehicle is out of state, as some may have restrictions or additional requirements for financing cars purchased across state lines.

3. Inspection and Verification

Depending on the state, it may be necessary to get an inspection and verification before purchasing a car out of state. Be sure to take the following steps:

Professional inspection. Arrange for a trusted, licensed mechanic or auto technician to perform a thorough inspection. This inspection will assess the vehicle's cosmetic, mechanical, and safety condition to uncover any hidden issues.

VIN verification. Confirm the Vehicle Identification Number (VIN) matches all documentation and verify it using a VIN verification form if required. These documents are essential for registering the vehicle in your name and at your home address.

4. Logistics of Acquiring the Vehicle

After you've found the perfect vehicle in another state, you'll need to think about safe transportation. Logistics can be one of the most challenging aspects of buying a car from out of state. Here are some options you can consider:

Transportation options. You can drive the car home yourself if the distance is not too far. However, if the distance is greater, it may be preferable to hire a professional shipping service to ensure safe and efficient transport. You buy a car online and have it delivered to your doorstep.

Temporary tags and permits. Make sure to obtain the necessary permits to legally transport the vehicle to your home state. Temporary car tags can typically be used as long as the tag is valid, and you're within the permitted time frame for its use.

5. Finalizing the Purchase

Once you've decided to finalize the purchase, consider these final tips to ensure everything is in order:

Documentation: Make sure you have a proper bill of sale that includes the purchase price, vehicle identification number (VIN), and both the buyer's and seller's information.

Insurance. Arrange for insurance coverage to be effective before taking possession of the vehicle. In most states, you must have car insurance or be self-insured before you can legally drive the vehicle.

6. Post-Purchase Steps

After purchasing a car from another state, there are a few important considerations to be aware of:

State inspection: Contact your state’s DMV or visit their website to find out what inspections your car may need. Schedule any required state inspections promptly to avoid delays in registration.

Permanent registration: Ensure you know the time limit for registering the car in your new state. Complete the registration process within the mandated timeframe to avoid penalties or issues with driving the vehicle legally. 

Sum Up

Buying a car out of state in the USA can be a rewarding experience with the right planning and preparation. In this guide, we have outlined all the important tips, including conducting thorough research, considering financial implications, arranging inspections, securing insurance, and ensuring proper documentation. Be sure to follow these steps for a smooth and successful out-of-state vehicle buying experience.

With BAH Logistics, purchasing a vehicle from another province doesn’t have to be a logistical challenge. Our team is dedicated to delivering your new vehicle safely and efficiently, so you can enjoy it without the hassle of handling its logistics. Get a quote for shipping your car and make your automotive dreams a reality!