Buying a used car in another state: what to know
Sometimes the best price is in another state. You can buy there without trouble, but there’s more paperwork and some extra risk. First step: call or visit your state DMV’s website before buying. Find it at usa.gov/motor-vehicle-services.
1. The title
- It must be in the seller’s name and signed correctly according to the rules of the state that issued it.
- Get an NMVTIS report: it shows title brands from any state. A car that was titled very recently in a different state could be a title washing case (for example, a flooded or salvage car that “cleaned” its title).
- If there’s a loan, get the lien release.
2. Taxes and fees
- Generally, sales tax is paid in the state where you register the car.
- If you buy from an out-of-state dealer, they may charge your state’s tax or theirs; ask and get everything in writing so you don’t pay twice.
- In a private sale, you usually pay the tax when you register the car at your DMV.
3. Inspections and emissions
- Some states require a safety inspection, emissions test or a VIN verification by the DMV or police when you register a car coming from out of state.
- Some states have stricter emissions standards. Before buying, confirm the car can be registered in your state as is.
4. Getting it home
Driving it:
- You need insurance from the first minute.
- You need a legal way to drive it: often a temporary permit or tag from the state where you buy or from your own. In many states the seller keeps the plates.
Shipping it:
- Use companies with good reviews and federal registration.
- Be wary of “shipping services” recommended by the seller that demand payment up front — a common scam in long-distance purchases.
5. Remote inspection
If you can’t go yourself, find an independent mechanic in the seller’s city to do the inspection. Don’t pay for a car nobody you trust has seen.
6. When you get home
- Bring the title, bill of sale, odometer disclosure, lien release (if applicable) and ID to the DMV.
- Pass any required inspections.
- Pay taxes and fees, and get your plates and registration.
- Meet the registration deadline — each state sets its own.
Frequently asked questions
Where do I pay sales tax if I buy in another state?
Generally where you register the car (your state). Rules vary, especially when buying from an out-of-state dealer; confirm with your state's DMV before you buy.
Can I drive the car back to my state?
Only if it is insured and has a legal way to be on the road, such as a temporary permit or tag. Each state has its own rules; ask before you travel.
Official sources
- USA.gov — Motor vehicle services by state (DMV)
- NMVTIS — Information for consumers
- FTC — What to know when buying a used car online