How To Buy a Car From Another State

While buying a new or used vehicle out-of-state has always been legal, the practice became commonplace with the rise of the Internet and online car marketplaces. Today, buying a car from a seller in a different state is easy and common. Deal-seekers can access numerous online resources to buy cars from private sellers, auctions, and even dealerships across state lines.

Photo: Christian Wardlaw

Buying a car out-of-state is similar to buying locally, but the steps depend on the buyer’s home state, the seller, and the car’s condition and paperwork. 

Top Reasons to Shop for a Car Across State Lines

There are many reasons to opt for an out-of-state seller instead of one closer to home. Reasons to go car shopping in other states include:

• Wider car selection. Browsing car sales out-of-state increases the number of options available. It can also be a good way for buyers to find a specific model, trim level, or car modifications. 

• Finding rare vehicles. For buyers looking for rare, antique, or specialty vehicles, purchasing in a different state may be their only option. 

• Cost. Out-of-state sellers often offer better deals or discounts on specific car models due to differences in popularity, dealer markups, incentives and rebates, and other market factors. Buying out-of-state can be a great way to save money, especially if the price difference offsets fees and registration costs.

• Convenience. 95% of buyers browse for vehicles online, and many out-of-state sellers offer shipping arrangements. These tools allow users to shop for a new car, truck, or SUV from the comfort of their homes.

Important Fees and Documents to Keep in Mind

Purchasing a vehicle in a different state requires buyers to complete a few extra steps. Depending on the buyer’s state of residence, local laws, and the distance to the seller, there may also be additional expenses.

• Sales tax. All new vehicles must be registered at their local DMV before legally driving on public roads, whether or not they are purchased out-of-state. However, for out-of-state purchases, the buyer must pay sales tax in the state where the vehicle will be registered.
  
  For example, if a California driver buys a vehicle from a dealership in Nevada, they need to register it at the CA-DMV and pay California sales tax on the transaction.

• Getting the car home. Once the vehicle is purchased, the buyer must figure out how they’ll get it home or to the address of their choice.
  
  If the vehicle was bought new or used from a dealership, they may help buyers obtain temporary registration tags or organize shipping. For private sales, buyers are solely responsible for transportation and documentation, especially if they plan to drive the vehicle home.

• Emissions laws. Before purchasing an out-of-state vehicle, buyers should verify that it meets the home state’s emissions requirements (or “smog checks”). If the car does not meet these requirements, it may be ineligible for registration. For instance, a car bought in Utah for registration in Colorado must pass Colorado’s emissions testing requirements.

How to Buy a Car Out-of-State: A Step-by-Step Guide

Buyers looking to transport an out-of-state vehicle home must follow these steps for a smooth and problem-free buying experience:

1. Check the Vehicle’s Details and Condition

If the vehicle is used, the first step is to enter the VIN in a vehicle history checker and obtain a copy of the history report. It will reveal the vehicle’s mileage, lien status, title type, and maintenance history.

If the seller is a dealership and the vehicle is new or used with a model year 2007 or newer, it should have an emissions label under the hood. Vehicles compliant with California emissions standards are considered the nation's strictest and “50-state compliant.” Many cars only meet federal or EPA standards but not California’s, making them “49-state compliant.”

2. Schedule an Inspection 

A trusted mechanic can conduct a pre-purchase inspection (PPI) on a vehicle before purchase. 

A PPI is typically performed on a privately sold used vehicle to verify whether it needs repairs or maintenance. If the car doesn’t have an emissions label, they can also check whether it complies with the home state’s emissions requirements.

3. Purchase the Vehicle 

A buyer should only purchase a vehicle after verifying it meets the home state’s emissions standards and their needs. If buying from a dealership, they may offer to collect sales tax and provide a receipt at this point.

4. Decide How to Get the Car Home

Once the vehicle has been purchased, the buyer must decide how to bring the vehicle to their home state. If the buyer plans to drive it home, they must acquire temporary registration tags by asking the dealership or visiting a local DMV. 

Otherwise, the buyer must arrange the vehicle’s transportation through other means, such as a shipping company.

5. Register the Vehicle

After the vehicle has been delivered, the buyer must visit their home state’s DMV and submit all necessary documents to register the vehicle. Standard documents to submit include the driver’s license, title or manufacturer’s certificate of origin (MCO), bill of sale, and proof of auto insurance.

If sales tax hasn’t already been collected from a dealership, the buyer will pay sales tax at this point; otherwise, they must submit the sales tax payment receipt. 

If the vehicle doesn’t have an emissions sticker, the DMV may require an emissions inspection to verify it complies with local smog laws.

Find New and Used Vehicles at JD Power

Browsing cars, trucks, and SUVs for sale out-of-state is a popular way to shop for a new or used vehicle. It can be an excellent solution for buyers looking for a good deal or if the local market doesn’t carry desirable models.

Online resources like the JD Power vehicle locator make it easy to search and filter by distance, make, model year, price range, and individual features. It is one of the most convenient solutions to find a suitable new or used vehicle online, including models sold out-of-state.

Corentin’s passion for the automotive world started when he was just seven years old, during a life-changing visit to an auto museum. Now a seasoned writer, Corentin channels that early fascination into every piece he writes, whether he’s exploring the latest car trends or automotive history. But his expertise doesn't end there—he also brings his insights to topics like home improvement, the boating and yachting industry, personal finance tips, and cutting-edge tech.

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