Jasmine Birtles
Your money-making expert. Financial journalist, TV and radio personality.
If you’ve found a car outside of your state, and you would like to buy it, it is important to learn about the buying and shipping process. You may have found a rare model, or you’ve simply found a great deal, there are many reasons for buying a car out of state.
However, the decision is not as simple as finding the car of your dreams and ordering it. Transporting a car from another state, and registering it to adhere to your own state laws can be confusing.
This article guides you on everything you need to know about buying a car out of state.
If you’ve decided to buy a car out of state, it goes without saying that you should thoroughly research your options before finalizing your purchase. You can visit popular online car platforms and forums in the United States. These websites have a large variety, and allow you to filter through the options to get to exactly what you need.
You can set filters for car model, year, price range, and the mileage. If you want to buy cars from a specific state, you can also filter by location.
Another option is to look at dealership websites. Many dealerships now list their inventory, so if there’s a particular model not available in your state, you may find it at a dealership in another state.
Make sure to research and verify the authenticity of the dealer or car seller. Ask for important documents before locking down on a car.
The most important aspect of buying a car out of state is understanding the state laws around owning and registering vehicles.
Each state has its own rules regarding how you pay sales tax on a car purchase. If you’re buying a car from a state without sales tax, you might assume you won’t need to pay it. However, this depends on where you end up registering your purchased car. If the state you get your car registered in post-purchase levies a sales tax, then you will have to pay it accordingly.
Another aspect to consider is if the car you’re purchasing out of state meets the car emission laws in your state. If your home state has stricter laws around emissions in comparison to the state you are buying from, the car may fail emissions testing in your state. To avoid this, check with the seller to confirm if your car meets the emissions regulations in your home state.
When you buy a car out of state, having to do most of the inspection online complicates the process. You can hire a local mechanic in the state you are purchasing the car, and take their opinion. You may also ask the seller for a 360 video of the car, or ask them for a video call for live viewing.
Once you’re satisfied with the car, you will have to handle financing and paperwork. Ensuring that you have all the required paperwork is essential for registration. Be mindful that if you miss any document during the purchase stage, it may cause a delay in car registration.
You will also have to plan how you will transport your purchased car to your state. The shipping method you choose depends on factors such as your budget and your distance from the purchase state.
If the state you are purchasing from is next to your state, or close to your location, you can drive the car back yourself. Before going with this option, make sure that the car is serviced well and is suitable to be driven long-haul.
You may also have to get a car transit permit issued. This is obtained for vehicles that are not yet registered, and will allow you to legally drive the purchased car to your state.
Another transport option is to hire a car shipping company. You can get your car transported from another state through this method. Most companies offer the options of open or enclosed shipping. With open shipping, your car will be in an open carrier and will be relatively exposed to weather elements. This is suitable for classic cars.
If you’re transporting a luxury car, it is a better idea to choose an enclosed carrier to avoid weather damage. The shipping method you go with will change your costs of moving..
If you’re passionate about cars and are willing to go the extra mile to do your research, then buying a car out of state has many advantages. Just be careful to choose the right seller and hire the right moving company.
Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.