Buying a car across state lines can be a great way to find the perfect deal or a rare model that’s not available locally. However, it also comes with potential risks, especially scams that can cost you thousands. Whether you’re buying a used car out of state or planning to buy a car online, it’s essential to take smart precautions to protect your investment.
In this guide, we’ll cover how to safely purchase a car across state borders, verify sellers, avoid common scams, and handle car shipping securely.
1. Research the Seller and Verify Legitimacy
Before you exchange any money, research the seller thoroughly.
Private sellers: Ask for the seller’s full name, address, and driver’s license copy. Verify that they actually own the vehicle by checking the name on the title.
Dealerships: Look up their business license, check reviews on Google and the Better Business Bureau (BBB), and ensure they have a verified business address.
If a deal seems too good to be true, it probably is. Fraudsters often list cars at below-market prices to lure in quick buyers.
2. Request a Vehicle History Report
Always ask for a vehicle history report from trusted sources like Carfax or AutoCheck. These reports show important details such as:
- Previous accidents
- Title issues or salvage history
- Odometer rollbacks
- State registration records
If the seller refuses to share the VIN (Vehicle Identification Number) or delays sending the report, that’s a red flag.
3. Avoid Wire Transfers and Gift Cards
Never send payments through wire transfers, gift cards, or money orders. Scammers often insist on these methods because they’re difficult to trace.
Use secure payment options instead:
- Escrow services (like Escrow.com or CarGurus Pay)
- Certified checks through your bank
- Dealership financing options
Escrow services are particularly effective for buying a car without seeing it in person.
4. Inspect the Car or Hire a Third-Party Inspection
Even if you can’t visit the seller in person, always arrange a pre-purchase inspection. Many companies provide independent inspectors who will visit the seller, assess the car’s condition, and send you a detailed report with photos or videos.
This step protects you from buying a vehicle that doesn’t match the listing or hides major mechanical issues.
5. Understand State Laws and Taxes
Each state has its own rules for car sales, emissions standards, and taxes. Make sure you understand:
- Temporary registration and transit permits
- Emission compliance requirements
- Sales tax obligations in both states
If you’re unfamiliar, contact your state’s DMV or visit their website for accurate guidance on buying a used car out of state.
6. Use Trusted Car Shipping Services
Once you’ve purchased the car, you’ll need to get it home. Choosing the right transporter for shipping a car to another state is crucial. Look for a licensed, insured, and well-reviewed car shipping company.
Avoid anyone who asks for full payment upfront or lacks a valid MC (Motor Carrier) number. A legitimate company will provide a written contract, a Bill of Lading, and a realistic delivery timeline.
7. Watch for Common Car-Buying Scams
Here are a few common red flags to watch for:
- Fake escrow websites imitating legitimate ones
- Sellers who refuse to talk on the phone or communicate only via email
- Requests for deposits before allowing inspections
- Cars listed in one state but registered elsewhere
- If you notice any of these warning signs, walk away and report the listing.
8. Weigh the Pros and Cons Before You Commit
Before finalizing, it’s smart to understand the pros and cons of buying a car out of state. You might find better prices and unique models, but you’ll also face challenges like additional paperwork, shipping costs, and potential fraud risks. Careful research helps ensure a smooth and safe transaction.
FAQs About Buying a Car Across State Lines
Is it safe to buy a car from another state online?
Yes, but only if you follow precautions, verify the seller, get an inspection, and use secure payment methods. Avoid sellers who pressure you or skip key details.
How can I verify that a car listing isn’t fake?
Check for duplicate listings, compare the VIN on multiple platforms, and search the photos using Google Images to ensure they aren’t stolen from another ad.
What’s the best way to ship a car from another state?
Hire a licensed and insured car shipping company with positive reviews. Request tracking updates and ensure you receive a Bill of Lading upon pickup.
What if the car arrives different from what was promised?
If the vehicle condition doesn’t match the seller’s description, contact your escrow service immediately and document all discrepancies before releasing payment.
Can I return a car bought out of state?
Generally, private sales are final. Some dealerships offer limited return policies, but it’s best to review terms before purchase.
Final Thoughts
Buying a car across state lines can open up more choices and better deals, but it also requires extra caution. Do your homework, verify every detail, and rely on trusted services when buying a car online. With smart planning, you can find your dream vehicle without falling victim to scams.
