How to Buy a Vehicle Out of State

Buying a vehicle out of state may save you some initial money on the purchase price because you may see the same vehicle for cheaper in a neighboring state. Shopping in another state may even allow you to easily find a vehicle that is hard to find in your state. If you are buying in a neighboring state that has no sales tax or a lower sales tax rate, it does not get you out of paying the tax in your state, however.

Instructions

1

Visit your state Department of Motor Vehicles website to check the vehicle registration requirements in your state before buying. In some states, such as California, a vehicle must be able to meet smog standards to be registered in the state. Find the link for your state on the Nevada DMV website's 50-State DMV Links webpage (see Resources). If you are buying from a current owner, you will need to visit your local DMV in person to purchase a temporary tag so that you can legally drive the vehicle back to your state. Prices for this vary.

2

Arrange financing through your local bank or other financial institution if you want to have financing before you arrive in the other state. If you are buying from a car dealership in another state, you can apply for financing at the car lot if you prefer. If you have enough cash to cover the purchase, you do not have to apply for financing.

3

Pay for your vehicle purchase by signing up for a car loan at the car dealership or giving the seller a check or cash to pay for the vehicle. In return, you should get a bill of sale for the purchase. If you are buying from a current owner, you should also get the current title signed over to you. If you are buying from a dealer and financing, the title still goes to the lender, but if you are not financing it will usually be mailed to you.

4

Drive the vehicle back to your state. If you are buying from a car dealership, you will usually be given a temporary 30-day tag so that you can legally drive the vehicle until you get it registered. If you are buying from a current owner, you must put a temporary tag from your state DMV office in the window of the vehicle to be able to legally drive it back to your state.

5

Take your bill of sale, and title if you have it, and proof of insurance to your local DMV office to register and title the vehicle in your name. You are required to pay the difference in sales tax on the vehicle to your state. For example, if you paid 6.5 percent in the state where you bought the vehicle but the rate is 8.75 percent in your state, you are liable for the additional 2.25 percent when you register the vehicle.