Buying a car out of state has become increasingly common, thanks to online listings, nationwide car dealerships, and virtual car auctions. Whether you're hunting for a rare model, chasing better deals, or shopping online, it's essential to understand the ups and downs before signing the dotted line.
In this guide, we break down the pros and cons of buying a car out of state, address common concerns, and offer tips to make the process as smooth as possible.
Pros of Buying a Car Out of State
1. More Inventory, Better Selection
When you shop beyond your local area, you open the door to a wider selection of vehicles. This is particularly helpful if you’re looking for a specific make, model, or trim that might not be available nearby.
Online car auction sites and top car buying sites make it easy to search vehicles across the country, often with detailed listings and vehicle history reports.
2. Lower Prices in Certain States
Car prices vary significantly from one state to another due to local demand, taxes, and regulations. For example, vehicles may be cheaper in states with lower registration fees or where a particular model isn’t in high demand.
3. Tax Savings (Sometimes)
Depending on state laws, you may avoid double taxation if the seller’s state doesn’t charge sales tax or if your home state allows you to apply credit for taxes paid elsewhere. However, this varies widely and should be confirmed with your DMV.
4. Access to Unique or Collector Cars
Rare cars, vintage models, or limited editions may only be available in certain regions. Buying out of state may be your only shot at getting your dream car.
Cons of Buying a Car Out of State
1. Additional Fees and Complications
Purchasing a vehicle across state lines often includes extra costs, such as temporary registration, emissions testing, or transportation fees. You'll also likely need to Ship a Car to Another State, which can cost hundreds or even thousands depending on distance.
2. Complex Registration and Title Transfers
Different states have different DMV rules. You’ll need to understand how to transfer the title, register the vehicle, and possibly deal with out-of-state inspections or emissions requirements.
3. Unseen Issues
Unless you travel to see the vehicle in person, you're relying on the honesty and accuracy of the seller. Even with virtual walkarounds or reports, there’s always a risk of hidden problems.
Hiring a local mechanic or using services that offer independent pre-purchase inspections can help minimize this risk.
4. Shipping Delays
If you choose Door-to-Door Car Shipping, be prepared for potential delays due to weather, routing issues, or logistics. While it’s convenient, it’s not always quick.
Tips for Buying a Car Out of State
Use a Car Value Calculator to compare prices across regions and avoid overpaying.
Get the Vehicle Identification Number (VIN) and check it through a trusted service for accident and ownership history.
Hire a licensed transporter if you’re planning to ship the car. Confirm their insurance and delivery terms.
Check if your lender finances out-of-state purchases (if you're not paying in full).
Consider whether it makes sense to buy a car directly from the manufacturer, especially for new vehicles with warranty and delivery options.
FAQs About Buying a Car Out of State
Is it legal to buy a car out of state?
Yes, it is completely legal. However, you must follow your home state’s registration, title transfer, and tax regulations after purchase.
Can I register a car bought out of state in my home state?
Yes. You'll need to bring the title, bill of sale, odometer reading, and possibly pass an emissions test or VIN inspection, depending on your state’s laws.
How do I ship a car I bought out of state?
You can hire a licensed auto transport company offering door-to-door car shipping or terminal-to-terminal services. Make sure to get a shipping estimate before buying the car.
Do I have to pay sales tax twice?
Typically, no. Most states allow you to apply sales tax paid in the seller’s state toward your home state’s tax. Check with your local DMV to be sure.
Should I inspect a car before buying it out of state?
Absolutely. If you can’t see the vehicle in person, hire an independent inspector. Many services specialize in remote car inspections.
Final Thoughts
Buying a car out of state can be a smart move if done correctly, but it’s not without its challenges. From transportation logistics to registration hurdles, it's important to do your homework.
Still, with the help of online car auction sites and tools like a car value calculator, you can make an informed decision and potentially land a better deal than what’s available locally.
If you decide to go this route, plan ahead, compare prices, and ensure you work with trusted sellers and shipping partners. It may take a little extra effort, but the savings and selection could be worth it.
