Auto >> AutoSPT >  >> Car Care

How to Buy a Car From Out of State

How to Buy a Car From Out of State

Due to the current chip shortage, buying a car in your state can be difficult. Dealer car lots across America look emptier by the day. This has led many prospective car buyers to look out of state when finding their next vehicle.

With the help of the internet, finding a new or used car for sale in a different state is easy. But is it wise to buy a vehicle from another state? And if so, how do you do it?

Our guide tells you how to purchase an out-of-state vehicle and if they’re even worth the hassle.

8 Steps to Buying a Car Out of State

If you’re wondering how to buy a car from out of state and drive it or ship it home, here’s how it works and the steps you take.

  1. Search for new or used cars online
  2. Get a vehicle history report
  3. Consider an inspection
  4. Find out the emissions and other safety requirements
  5. Insure the car
  6. Pay the sales tax
  7. Request the title
  8. Register the car in your home state

Why Shop Out of State?

Why would you purchase a car from out of state? It depends on whether you’re buying new or used. For the latter, if there’s a specific vehicle you want to buy or a classic, your chances of finding what you really want will probably lead you across state lines. But how about a new car? It’s more complicated.

Reasons for shopping out-of-state include looking for vehicles that have specific features or equipment you want but may not be available in your area. If you live in the Northeast, you may find a lot of cars with all-wheel drive. But if you want a front- or rear-drive vehicle that may get better fuel economy or handle differently, you may have to shop in the Sun Belt. If you live in sunny California, you might find a better deal on the convertible somewhere in the Midwest. Sometimes dealers will trade for a specific vehicle, sometimes not. And they may not offer as good a deal as going directly to the store that has the car.

These are all reasons why you might shop out of state. But you should take care to determine if the extra costs involved in making that purchase will still put you ahead of buying locally.

The Car Might Be Cheaper

Due to the ongoing microchip shortage, used car prices have skyrocketed, and there’s less inventory of new cars. However, some states have more cars on their lots than others. If you live in a state like California, finding a car for a reasonable price can be difficult. However, if you are willing to look out of state for your next ride, you may be able to save a good bit of money.

While you may incur delivery fees and other charges, depending on the price of the car, it may be worth it. 

Shopping Out of State Has Never Been Easier

There are more choices than ever to find that perfect vehicle. Use actual new car dealerships as well as Kelley Blue Book and Autotrader.com as sources for vehicles located around the country. On both KBB and Autotrader, prospective buyers can use filters to search for a specific model, price, color, and year.

You can also examine the vehicles by photographs online. More savvy sellers use video walkarounds so you can get a feeling of what the car looks like inside and out without needing to buy a plane ticket.

New vs. Used Car Buying from Out of State

Once you have found the car of your dreams, assuming it is a new vehicle, it’s always a good idea to ask for a copy of the window sticker. The sticker lists official information, including the vehicle identification number (VIN). It lists all standard and optional equipment on a new vehicle. It can also prevent any surprises such as the wrong color or equipment package from being a part of the final sale.

RELATED: See if the vehicle you’re buying has been subject to any recalls

Used purchases through an authorized dealer are nearly as easy. While you are usually unable to see the original sticker, forward-thinking dealerships have full-featured used-car pages on their websites with photos, videos, and information about the vehicle that has caught your eye. If a dealer has the car you are looking for, have them go over the emissions ratings to guarantee it’s compliant with your state. Do your due diligence first.

Do’s and Don’ts of the Deal

  • Registration and emissions. Before you make the leap to buy, find out if you’re allowed to register the vehicle in your state. As a result of a patchwork of emission regulations, some vehicles are not sold in all 50 states. While California has the strictest emission regulations, you may live in a state that follows those guidelines, and the vehicle you want may not be able to be legally registered.
  • Sales tax. Don’t expect to escape sales tax. Buying a car in a non-sales tax state really doesn’t matter if the state you register the car in has a sales tax. You’ll have to pay that levy if you want to license the vehicle. Don’t worry, though. You won’t need to pay sales tax twice.
  • Incentives. Do check the manufacturer’s website using your ZIP code and the ZIP code of the dealer where you’re shopping. Oftentimes there are local factory-to-dealer incentives that don’t appear in national ads. You may discover some savings at that distant dealer or an incentive in your own neighborhood that would make the local deal more attractive.
  • Shipping or travel costs. Don’t forget to include the cost of shipping or road-tripping your vehicle back home as a cost of the deal. Transportation of a vehicle in a safe, enclosed truck can run thousands of dollars.

Getting Your New Car Home

Finding a great deal and buying a vehicle out-of-state is one thing; getting that new car in your garage is another.

TIP: Before you ship the car or pick it up, shop insurance rates to find a policy that works for you so your vehicle is covered.

Arranging Delivery

Getting delivery of your vehicle doesn’t need to be a big obstacle, thanks to services like Ready Logistics. This service, offered by Kelley Blue Book’s sister company Manheim Auctions, simplifies the process of arranging transportation for your new vehicle.

Ready Logistics offers full-service and will do all the work for you with customer service to help you through all facets of the move. Based in Phoenix, Ready Logistics has access to over 6,500 fully vetted carrier partners. It delivers more than 2 million vehicles per year nationally. Delivery time takes less than a week in most instances.

After Delivery

When you receive your vehicle, register it as soon as possible.

If you purchased a used car, determine if an emission test is required, have it performed, and bring the paperwork with you when you register the vehicle.

When you buy the car, if the title isn’t immediately in your possession, be sure to check on its status. If it’s coming from a bank, be patient. It can take several weeks. If you financed the vehicle, don’t worry, your lienholder will keep track of it.

Related Stories to Buying a Car:

  • What are the Best Car Colors to Buy?
  • How to Buy a Car Online
  • How to Buy Car Insurance: Everything You Need to Know

Editor’s Note: This article has been updated for accuracy since it was originally published.