How to Buy a Car Out of State

Buying a vehicle outside your home state can give you more options and help you find better prices. Looking broadly during your car search is especially helpful if you’re in the market for a good deal on a specific make, model, and year.

While the process takes a little more planning than buying locally, it’s manageable when you have an idea of how each step works. Take a closer look at how to buy a car out of state and what to look for to make the process as smooth as possible.

How to buy a car out of state explained

Buying a vehicle from another state can seem daunting compared to shopping at a dealership near your home, but your focus remains the same: finding a reliable vehicle that’s fairly priced. Here’s how to buy a car out of state in a few key steps.

Research the car and seller

Start by finding a vehicle that fits your budget and needs. Compare prices using multiple apps or marketplaces so you can determine what a fair range is for the type of vehicle you’re looking for. That range will vary based on the year, trim, and mileage.

If you’re buying from a dealership, read recent reviews and verify that the business is legitimate. If you buy privately, ask detailed questions about the ownership history of the vehicle, including whether it’s been involved in any accidents. Request photos of the exterior, interior, tires, and VIN plate.

Arrange financing before you shop

Getting pre-approved before you shop often makes the process much smoother. You’ll know exactly how much you can afford, what your payment will be, and how much money you’ll have to put down, if any. You can typically finance through a bank, credit union, online lender, or dealer.

Get a vehicle history report and pre-purchase inspection

It’s important not to skip this step. Use a reporting tool to get a complete report on the vehicle. Many dealers provide a report for you, but you may have to purchase one on your own if you are buying from a private seller.

Negotiate on the price and finalize the sale

Once you’ve found a seller that you want to work with, reach out and start talking about the price. While it’s normal to haggle a bit over the price of a vehicle, you don’t want to lowball them or get into a prolonged back-and-forth exchange.

If you are offering less than the asking price, list reasons to support your case. Perhaps the vehicle needs new tires or has cosmetic damage, for example.

Handle payment securely

In most cases, securely making the payment is relatively simple when working with a dealer. However, if you are buying a vehicle privately, you’ll need to be cautious. You want to get the money to the right place and make sure you get what you paid for.

Work with your bank or credit union to handle this process. Avoid apps that are often abused or misused, as they can be risky.

Arrange shipping or pick up the car

Finally, you’ll need to pick up your new vehicle or have it shipped. Compare both options to determine which route makes the most sense based on the distance and the time it will take.

How to register an out-of-state car

Once you’ve purchased your new vehicle, make sure to get a plate and register it. You’ll also need auto insurance. Here’s what to do next:

Get the title transferred

Before leaving with the vehicle, confirm that all names, signatures, and VIN information match the paperwork. You can submit the title transfer request to the DMV or tax collector’s office in your home state.

Complete a VIN inspection (if required)

Some states require a VIN verification or inspection. If your state offers this, contact your local law enforcement agency or reach out to the DMV.

Pay sales tax and registration fees

Most states require buyers to pay sales tax, title fees, and registration fees. The amount varies depending on the purchase price of the vehicle and the rules in your state. Be prepared to pay up to a few thousand dollars to get the vehicle registered and cover taxes.

Get new plates and registration in your home state

Once these steps are complete, the DMV will issue a registration and license plate for your vehicle. Keep the registration in your vehicle and affix the plate(s) as dictated by state law.

Common costs when buying a car out of state

The purchase price isn’t the only expense you need to consider when purchasing a vehicle from another state. Before committing to an out-of-state purchase, account for these expenses:

• Shipping
• Insurance
• Registration and licensing fees
• Vehicle inspection
• Sales tax

Many of these expenses come into play when you buy a vehicle locally as well. However, shipping represents a major expense that is unique to purchasing a vehicle from another state.

Alternatively, you will have to fly or drive to where the vehicle is located and then drive it home yourself. Either way, getting the vehicle to your home state could cost $1,000 or more.

Tips to avoid scams when buying a car out of state

Unfortunately, shopping from a distance can make it easier for scammers to take advantage of unsuspecting buyers. It’s essential to take a few extra precautions to protect yourself and your money. Here are some best practices to use:

• Verify the seller’s identity before sending money
• Never wire funds to someone if you can’t confirm who they are
• Request a vehicle history report
• Schedule an independent pre-purchase inspection
• Avoid listings that seem too good to be true
• Use a secure payment method
• Confirm that the title is clear, free of liens, and not listed as “salvage”

If a private seller pressures you to rush, consider it a red flag and walk away.

Buying a car out of state while protecting your credit

When buying a car out of state, it’s important to protect your credit score before, during, and after the transaction. One of the biggest factors that impacts your credit score is your payment history. With that in mind, make sure that the payment for your new vehicle is manageable.

If you want to get the best deal possible when financing a vehicle, come into the process with a good credit score and strong financial profile. Kikoff offers credit-building tools to help you add positive payment history. Sign up for a free account with us today to jumpstart your vehicle-purchasing journey.