Buying a Car From Out of State

At Dave Smith Motors, we assist customers every day with navigating the out-of-state car buying process. Here’s what you need to know:

Paying Sales Tax

When you purchase from an out-of-state dealer, you generally won’t pay sales tax at the time of sale. Instead, the responsibility falls on you to pay the applicable sales or use tax when you register the vehicle in your home state.

The dealership may be required to submit a report of your purchase to your state’s DMV. This ensures the state knows you owe sales/use tax that must be paid before getting license plates.

Registering and Titling

You will need to title and register the vehicle in your home state once it's purchased. This involves submitting the proper paperwork and documentation to your local DMV, which may include:

• Out-of-state title signed over to you
• Bill of sale
• Odometer statement
• VIN inspection
• Proof of sales tax payment

Some states make you get a VIN inspection to verify the car’s identity before registering it. Check your state’s DMV website for specific titling and registration instructions.

Emissions and Safety Inspections

Your state may require a vehicle emissions test and/or safety inspection before registering an out-of-state car. Some states exempt new vehicles under a certain age. Again, check your local laws.

If required, you’ll need to take the vehicle to an approved inspection station, pass the tests, and submit the inspection paperwork along with your registration application.

Insurance Requirements

You must have auto insurance that meets your state’s minimum liability requirements before driving the out-of-state vehicle there. Insurance cards are typically requested as part of the registration process.

Let your insurance agent know you have an out-of-state car coming so they can set up the right policy. Some adjustments to your rates or coverage may occur.

Temporary Registration

To drive the car legally while you complete the registration, you may be able to obtain temporary registration tags, known as trip permits. These temporary tags are issued by either the seller or your state’s DMV.

Trip permits allow you to operate the vehicle for a short period, usually under 30 days, before getting permanent license plates. They also ensure you have valid registration while traveling home.

Avoiding Double Taxation

What if you already paid sales tax on the vehicle to the seller? Request the out-of-state seller provide a tax paid receipt. You can then submit this to your DMV when registering so you don’t end up paying tax twice.

For trade-ins, most states offer a sales tax credit equal to the value of your trade to offset the sales tax due. Work with the seller to properly document your trade-in value.

We Can Help With Out-of-State Purchases

While buying a car out of state takes a little extra work, it opens up many more possibilities to find the perfect vehicle. Dave Smith Motors has experience assisting customers across the country with completing registration and titling for their new vehicles in their home state.

Our team is here to make the out-of-state buying process seamless. Contact us today to begin custom ordering your ideal new car regardless of where you reside.