Buying a Car out of State: A Complete Guide

1. Research the Car You Want

If you already know which model you're looking for, obtain as much information as possible about it to ensure it's worth the sales price. In particular, you'll want to do the following:

• Request a vehicle history report. A vehicle history report provides a wealth of information about a car, including mileage, past accidents, service history, previous ownership and more. If the dealer or seller doesn't provide a report for you, you can obtain one through Autocheck or Carfax.
• Get the market value. Both dealers and private sellers are often willing to negotiate, so you'll want to know what the car is worth before you even reach out to them. You can get an estimated market value based on the vehicle's mileage and condition through websites like Kelley Blue Book, J.D. Power and Edmunds.

It can also be helpful to search for the same model from multiple dealers and sellers. If you can find similar model years and mileage, you may be able to use that information in the negotiation process.

If you're not sure which car you want to buy, start your research by considering your needs, budget, car brands and key features you want.

Learn more >> What Car Should I Buy?

2. Contact the Dealership or Seller

Once you've completed your research, reach out to the dealer or seller to get more information and to set up a time for your visit. Some of the details you'll want to hash out before you start a road trip include:

• Vehicle condition: Get as much information as you can about the vehicle's history and condition, including photos and videos, as well as service documentation. You can use what you learn to supplement the vehicle history report.
• Emissions laws: Each state sets its own standards for emissions, and some are more strict than others. While a car may be eligible for registration in the state where it's being sold, that's not a guarantee that you'll be able to register it where you live. Ask the dealer or seller to provide a photo of the emissions label so you can confirm.
• Delivery: Discuss your intentions for getting the vehicle. For example, do you plan to travel and pick up the vehicle on your own or arrange to have it delivered to you? If you're considering delivery, ask about pricing to get a sense of your total costs.
• Title: If you're buying from a private seller, they may not be in possession of the title unless they own the car free and clear. If they have an outstanding auto loan, you may need to involve their lender in the conversation to ensure the title is transferred to you without a hitch.

If you're planning to travel to the dealership or to meet the private seller in person, discuss the timing. Depending on when you expect to make the trip, you may need to put down a deposit to prevent someone else from snatching up the car before you get there.

3. Get a Pre-Purchase Inspection

If you're buying a used vehicle, it's crucial that you hire a mechanic to perform a thorough inspection before you move forward with the process. The cost can vary depending on the destination, but you can generally expect to pay between $100 and $200.

The mechanic can attest to the vehicle's condition and point out potential problems that can impact its value, such as rust, body damage and mechanical or electrical issues.

As you search for qualified mechanics in the area, here are some tips to find the best fit:

• Look for someone who specializes in the brand of vehicle you're planning to buy.
• Focus on mechanics that offer full-service mobile inspections.
• Check for reviews online to get a sense of their expertise.
• If you're a AAA member, you may be able to find qualified mechanics through your account.

If you're making the trip to buy the vehicle in person, you can also take it for a test drive and do your own inspection to make sure it handles well and meets your expectations.

Learn more >> How to Buy a Used Car

4. Negotiate the Price

Depending on your preferences and comfort level, you can negotiate the car price in person or via email or text message. Before you get started, determine your preferred sales price and the most you're willing to pay.

Here are some tips to help you improve your chances of securing a great deal:

• Use your research. If the vehicle is priced higher than the estimated market value you found in your research, or you can find a similar model for less in the same area, you may be able to use that information to justify paying a more reasonable price for the car.
• Note any issues you find. If the mechanic found any problems in the pre-purchase inspection, you may be able to use that information to negotiate repairs or a lower sales price to compensate for the added repair costs you'll incur.
• Leverage a trade-in. If you're buying from a dealership, you may be able to trade in a vehicle to reduce the amount you have to pay for the new vehicle. If that's the case, use valuator tools to get the trade-in value for your vehicle. Then, getting the car detailed and fixing minor issues can help you secure more money.
• Ask about incentives. If you're buying a new vehicle, ask the dealership about incentives to close the deal. For example, the dealer may not have much wiggle room with the manufacturer's suggested retail price (MSRP), but you may be able to negotiate a lower interest rate or a cash rebate.
• Know when to walk away. No matter how prepared you are for the negotiation process, there's no guarantee that you'll come to an agreement with the dealer or seller. If they're unwilling to budge or you can't get them to meet your maximum budget, don't be afraid to walk away. In fact, some dealers and sellers may be willing to accept your offer just to complete the sale, especially if the vehicle has been listed for a while.

Learn more >> How to Negotiate a Car Price

5. Get Insurance

You'll typically need to have proof of insurance to buy a vehicle and get it registered, regardless of who the seller is.

If you already have an auto insurance policy for one or more existing vehicles, you can simply provide your policy information to satisfy the requirement. Auto insurers typically give you a grace period for adding new vehicles to your policy, which can typically range from seven to 30 days.

If you don't already have car insurance, Experian can help you shop around and compare quotes from over 40 top insurers. In addition to shopping around, you can check out other ways to save money on car insurance.

6. Finalize the Paperwork

If you're buying from a dealership, it'll typically handle all the paperwork for you—all you need to do is review it for any discrepancies or unnecessary add-ons and sign it.

Note that the sales tax will be based on the state where you plan to register the vehicle, not the state where you're buying it.

If you're buying from a private seller, you'll need to take care of the paperwork on your own. Check with your state's department of motor vehicles (DMV) to find out what documentation you'll need to register the vehicle. This may include things like a bill of sale, an odometer disclosure and a VIN verification. You'll also need to obtain a temporary registration allowing you to drive the vehicle back home. If you're taking out a loan, you'll also need to involve the seller's lender to complete the title transfer to your lender.

7. Register Your Car in the State Where You Live

Once you get home, you'll need to complete the registration process at your local DMV office. If you bought the car from a private party, you'll need to pay sales tax and any other required fees.

If you bought from a dealer, however, you may have already paid the necessary fees, and you'll just need to finalize the paperwork to get the car registered.

Frequently Asked Questions

• Is It Cheaper to Buy a Car out of State?

  When using an online car valuation tool, you'll often need to provide your ZIP code because car values can vary depending on where you live. As a result, it's possible that you can find a better deal for your preferred model if you go out of state.

  However, that's not always the case, and you'll also need to consider other costs, such as travel expenses or delivery fees.

• Where Do I Pay Sales Tax if I Buy a Car out of State?

  Because you're registering the vehicle in the state where you live, that's where you'll pay sales tax. If buying from a dealer, the dealer will include sales tax in the contract and send it to your state. If buying from a private seller, however, you'll need to pay the tax when registering the vehicle.

• What Are the Emissions and Safety Requirements for Out-of-State Cars?

  Each state has its own criteria for emissions and safety testing, so it's important to verify that a vehicle is roadworthy in your state before you buy it. If you're not sure how to do that, contact your local DMV office to learn about the requirements.

• What Credit Score Do I Need to Buy a Car?

  There's no universal credit score requirement for buying a car, and if you plan to use cash, there's no credit check at all.

  However, if you're taking out a loan or a lease, having a higher credit score will help improve your chances of securing an affordable interest rate.

Make Sure Your Credit Is Ready to Buy a Car

If you're financing your vehicle purchase, it's important to prepare your credit profile before you start the car-shopping process. You can start by registering with Experian to get free access to your Experian credit report and FICO^® Score^☉ .

If your score needs some work, review your credit report and pinpoint areas you can address. Then, take steps to improve your credit based on the information you find.