Quick Tips About Buying a Car From Out of State
- Get a vehicle history report before committing to a used car.
- Ask the dealer for a full out-the-door price breakdown before agreeing to buy.
- In most cases, you pay taxes where you live and register the vehicle.
- Check your state’s inspection, emissions, title, and insurance requirements before bringing the car home.
- Factor transportation costs into the total price.
Buying a car from a long distance or another state can be time-consuming, and you may wonder if it makes sense. With the right information, you can save money and find the car you want. Let this be your concise guide in your journey to buying the perfect vehicle out of state.
8 Things to Know When Buying a Car Out of State
If you find the vehicle of your dreams in another state, just know that car buying works differently than where you live. There are different factors to consider. Here’s how to navigate the process when buying a new, used, or classic car from a dealer or private seller.
1. Incentives and Rebates
Dealer incentives and rebates can vary by state and even by regions within states. If you’re buying from a dealership, confirm which offers apply to you and get the details in writing. Private-party sales typically do not include incentives.
2. Vehicle History Report
Before buying a used car, review its vehicle history report. Dealers often provide one, but you can also ask a private seller for the vehicle identification number (VIN) or license plate number and order a report yourself through services such as AutoCheck or Carfax.
A vehicle history report can show accident history, mileage, maintenance records, ownership history, and other useful details.
3. Costs and Fees
Before agreeing to buy, ask for a full out-the-door price. The breakdown should include:
- Vehicle price
- Dealer fees
- Destination fee
- Title and registration costs
- Taxes
- Add-ons or extras
- Any shipping or delivery charges
For new cars, ask for the window sticker, also called the Monroney label. For used cars, compare the asking price with Kelley Blue Book values before you commit.
Also review add-ons such as window tint, fabric protection, or extended warranties. Ask to have anything you do not want removed.
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4. Taxes
You typically pay taxes in the state where you register the vehicle, not necessarily where you buy it. However, rules vary by state, and some states may also charge a vehicle use tax or similar fee.
If you buy from a private seller, your home state usually collects any required tax when you title and register the vehicle.
Before buying, check the tax rules in both:
- The state where you are buying the car
- The state where you will register it
For example, North Carolina charges a highway use tax instead of state sales tax when you register a vehicle. If you already paid qualifying tax in another state, you may be able to apply that amount toward the North Carolina tax if you meet the state’s requirements.
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5. Inspection
A manufacturer-certified pre-owned vehicle can offer extra peace of mind because it has passed a dealer inspection and may include additional warranty coverage.
For any non-certified used car, arrange an inspection by a certified mechanic before you buy. This can be harder with an out-of-state vehicle, but it is still worth doing, especially if you cannot see the car in person.
6. Emissions and Safety Requirements
Make sure the vehicle meets the emissions and safety requirements in the state where you will register it.
This is especially important if you live in a state with strict emissions rules, such as California. California requires certain vehicles to meet its smog standards, and compliant vehicles should have a Vehicle Emissions Information label.
For used vehicles, ask the seller for proof that the car passed any required inspection. Then confirm what your state requires before you bring the vehicle home.
7. Car Insurance
Do not drive the car home without insurance. Contact your insurer before the purchase, get quotes, and make sure coverage is active before you take possession of the vehicle.
Also, confirm whether your existing policy covers the car during transport if you are shipping it instead of driving it.
8. Transport Costs
Getting the car home can be costly. Compare your options before you buy:
- Driving it home yourself
- Hiring a transport company
- Asking whether the seller or dealer offers delivery
Include fuel, lodging, temporary tags, shipping fees, and your time when calculating the total cost. A good purchase price may not be a good deal after transportation expenses.
PRO TIP: If you finance the vehicle, use our car loan calculator to determine your estimated monthly payment.
Disadvantages of Buying a Car Out of State
Buying a car out of state can make sense if the vehicle is rare, priced well, or exactly what you want. Still, there are potential downsides.
- Added transportation costs. Shipping or driving the car home takes time and money. In some cases, those costs can erase your savings.
- More paperwork. Unless you are using a secure marketplace like our Private Seller Exchange (PSX), you will need to negotiate the ins and outs of the buying process from two states. You may need to deal with title, tax, registration, temporary tag, inspection, and emissions rules in two states.
- Harder to inspect. If the car is far away, you may not be able to test-drive it or inspect it yourself before buying. Photos and videos help, but they are not a substitute for seeing the vehicle in person. For a used car, always get a vehicle history report and consider hiring a professional inspection service before you buy.
- MORE: Scammers are Spoofing Dealership Websites: Here’s How to Stay Safe While Car Shopping
Bottom Line
Buying a car out of state can expand your options and help you find the right vehicle. Before you commit, confirm the full price, review the vehicle history, check your state’s tax and registration rules, arrange insurance, and calculate transportation costs. The more you verify upfront, the fewer surprises you’ll face after the sale.
Check out our Buying hub page for curated articles, resources, and tools to help you go into your next car deal with confidence.
Editor’s Note: We have updated this article since its initial publication. Renee Valdes contributed to the report.
Buying a car from a state that does indeed salt their roads likely means the undercarriage has been coated to help resist rust. States that don’t salt their roads typically do not coat the undercarriage. I brought my Florida car (undercarriage not coated) to upstate NY for 4 winter months (work), exposing the undercarriage to constantly salted roads. And then when I went home to Florida the undercarriage proceeded to rust dramatically over the years. My car’s undercarriage has rusted more than any other car in Florida. I wish I never took it to NY for the winter. There’s likely more than one hypothetical theory in this situation, but my mechanic continues to have great difficulty with certain metal parts, like unscrewing the brake lines. (He has to soak the threading in rust release products for several days.)
If you live in a rust belt state, it makes sense to buy a used car from a part of the country that doesn’t salt the roads. Driving the car home can be a nice road trip experience. I’ve done it many times.