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While buying a car over state lines can be complicated, it’s not impossible. There are several extra steps you need to take, especially after you purchase your vehicle. And it might cost you more than buying closer to home.
Yes, you can buy a car in another state. However, it’s not as simple as buying a car closer to home and might cost more. You need to make sure you pay your state’s sales tax, register it yourself and possibly get it inspected for environmental and safety standards.
The exact car buying process might vary depending on your lender, dealer or private seller. However, most buyers need to follow these five steps when they purchase a car across state lines.
Although each lender will have different rules about how the loan is applied, in most cases, you’ll likely be able to use a car or personal loan to purchase a car in a different state.
However, extra expenses like the cost of brining it home and extra taxes likely won’t be covered by the loan so make sure you can pay out of pocket before signing up.
Buying a car out of state? You might have to pay extra to:
Yes. You need to pay the sales tax for your home state since this is where you’ll be registering the car. If you’re going through a dealership, they may handle the process for you.
Keep records of the tax information to show to your DMV. If you’re buying from a private seller, you’ll need to calculate your own sales tax and pay the appropriate state agency before you can register your car.
Buying a car out of state from a dealership and private owner both are more complicated than buying in-state.
However, buying from a private seller might involve even more work on your part. For example, you need to calculate and figure out where to pay your state’s sales tax when buying from a private lender. Private party auto loans also typically have less financing options.
Unless you have a specific car in mind, buying from a dealership might be less time consuming and open you up to more options.
When you find the perfect car, you don’t have to let the fact that it’s in a different state stop you from sealing the deal. There are plenty of ways for you to bring your car home, and you can easily compare your options to find one that suits your needs so you can drive off with the car you really want.
Visit our guide to car loans to learn more about your auto financing options.
Learn more about interstate car purchases by reading these answers to common questions.
Image source: Shutterstock
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