how to buy a car from another state

Some states allow the dealer to not collect sales tax if you provide proof — such as an out-of-state driver’s license — that the car will not be registered in that state.
Your state might have specific rules for registering out-of-state cars, such as rules governing local smog guidelines and safety inspections.
If the dealer is required to collect sales tax, you need to take the documentation showing tax was paid to your home state DMV when you register the car.
If you buy from a car dealer in another state, the dealer will follow the sales tax collection rules of his state.
If your home state tax rate is higher than the one where you bought the car, your state might collect additional tax to bring your rate up to its level.
The rules that most effect the sales tax you pay are those from your home state, where you will register the used car.
If you buy your used car from a private party in another state, your home state will collect sales tax when you go to register the car.

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So, if you live in New York, for example, and buy a used vehicle in New Hampshire, a state without sales tax, you still must pay New York’s sales tax.
For instance, you cannot drive a vehicle in California (as a state resident) if it cannot pass a smog check.
Depending on the rules of your state, an out-of-state vehicle may need vehicle identification number (VIN) verification.
Shopping for used cars in other parts of the country comes with advantages – the most obvious being that it gives you more of used vehicles selection to choose from, bettering your chances for finding the car of your choice at a bargain price.
Before inking a deal on a new car, learn about leasing, buying a car online or at a dealership, new car incentives, taxes, researching the market, and more.
Review the advantages and disadvantages of buying a car online or going in person to buy a car at an auto dealership.
Our used car buying guide covers everything from buying online to going through a dealer or private party.
Lemon information & articles – find out if your car meets the definition and what consumer protections you have.
If you’re planning on buying a vehicle out of state, you will need to have an understanding of car shipping prices so that you can find a good deal on having the vehicle delivered to you.
Other variables that need to be considered in calculating shipping costs are where the vehicle will be picked up and the amount of liability that the transport service will bear.
In some cases, companies that charge relatively low transport fees may require you to drive up to two or three hours to a rather distant terminal or shipping yard to retrieve your vehicle.
The most important factor that will be considered in calculating the shipping price of a new car or truck will be the distance the vehicle must be delivered.
You should know that depending on the type and size of the vehicle and the distance the vehicle must be transported, that shipping a car new car or truck will cost between $600 and $3000.
One element in determining how much the shipping cost for the vehicle will be is the type and actual size of the vehicle.
So, unless the amount of money you’re saving is at least this much, then shipping the vehicle from a faraway dealership is probably not really worth it.
The shipping company should contact you and inform you that the vehicle has been picked up.
Even if the vehicle is far away, the low pricing at CarsDirect will help largely offset any shipping expenses you may incur.
(Use taxes are like sales taxes, but for items purchased from outside of the state for use within the state you live in.) Depends on your state’s rules of whether you’re responsible at all or only for the difference between the sales tax paid in the other state (assuming it’s lower) and what it would have been in your state or for the whole amount.
For example, if I purchase a vehicle anywhere in the USA as a resident of several Western states, and drive it home within a year, it will be subject to my local sales taxes upon titling it in my home state.
But, it might be to your advantage to pay lower taxes in the state of purchase, and title it there, and then transfer the title to your state, with no sales tax payable there.
You can’t just simply title a car in many states where you are not a resident for the purpose of ultimately evading the taxes in your home state; the "system" is wise to these dodges and is set up to collect from you if you bring the car home within a fairly long time period.
You will need to pay the sales tax in the state of purchase and then apply for a refund or credit after paying the appropriate taxes in your state of residence.
Several states require that you pay their applicable sales/ownership taxes upon the purchase of the vehicle in their state.
Need to know the states involved … purchase state and residence state.
To specifically answer your question, No, you never need to pay sales tax in the state where you buy the car, only in the state where you intend to title it.
Some states do use the NADA or KBB for price guidelines to collect taxes on, so the tax basis does vary from state to state.
When shopping for new cars on AutoTrader.com, one of the best features is the ability of the dealer to include a link to the actual window sticker, so you can see exactly which options are included and what the price breakdown is – again, very helpful when you can’t see the car in person before buying.
But how do you make sure the car you want has the exact features and options you’re looking for? Thankfully, AutoTrader’s "Find Cars For Sale" has different filters to help you find just the right car.
Most new cars these days have 50-state certification, but if not, and you live in California or one of the other states that follow its pollution laws, then you need to be sure that the model you are buying is outfitted for California’s emissions requirements.
This is critical when comparing online prices because you want to be sure that any cars you are comparing are identically equipped, or if they aren’t you need to be able to see the exact differences and the price of those options so you can compare prices accurately.
Although this does not happen often, if you purchase out of state and the prior owner of your vehicle is out of town and has unpaid bills on the vehicle, the bank may choose to hold onto the title until the claims are paid off and the owner is there to sign in the flesh.
If you take the initiative to locate a vehicle further South, in a state like Maryland or Virginia, just by making that half a day trip it is possible to save a couple of hundred, even a couple of thousand, off of the retail price.
If you buy a vehicle out of state, you will notice that the wait period for the title is significantly longer than it is buying in state.
This is where you save the money! You will not save if you simply purchase a vehicle of the same price in a tax free state.
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Some states are a bargain, but consumers in some states can expect to pay an extra couple of thousand dollars for costs you might not think of when you shop for a car – state and local sales tax, registration fee and so-called “doc fees,” short for dealer documentation fees.
Total fees are the sum of average state and local sales tax, average state registration fee and average dealer doc fee.
See the vehicle personally or, if the seller is in another state, ask the seller to take it to a mechanic of your choosing, who can report back to you about the condition of the car, says Keely Funkouser, director of fraud prevention strategies at AutoTrader.com. You also can pay DataScan Field Services, the largest vehilce inspection company, to inspect the vehicle.
You can verify a company’s legitimacy by checking with state regulators, Funkhouser says, or ask to use an escrow company or your choosing, such as Escrow.com. Most importantly, make sure the seller hands over the vehicle’s title when you pay.
If someone claims he’s selling a vehicle at a low price because he needs the money fast (he lost a job or is a soldier going overseas, for example), it’s probably a scam, says Sid Kirchheimer, author of Scam-Proof Your Life: 377 Smart Ways to Protect You & Your Family from Ripoffs, Bogus Deals & Other Consumer Headaches.
The second time, I bought the car in CT, and the dealer actually handled all the paperwork and registration tasks, going to the MA RMV the same way as if he had been in MA.
The first time, when I bought the car in NY, I drove it home with dealer plates (real plates that were owned by the dealer, not paper plates) and then did all the registration once I got back home, the same as if I had bought it in MA.
Obviously a Maryland dealer is more used to Virginians buying cars there than a Missouri one would be, but if you give them advance notice they would hopefully be able to get the paperwork and tax information together ahead of time.
The paperwork took a bit longer because of the time zone issue (bank in one time zone, dealer in another), but place of residence vs.
If you are not a resident of NYS and you apply for an interstate in-transit permit, you can provide a letter or an insurance binder from an out-of-state insurance company, agent or broker instead of a NYS Insurance ID Card.
Interstate In-Transit Permit — The permit is valid for 30 days and allows you to transport a vehicle from New York State to another jurisdiction to register it.
For example, you need an interstate in-transit permit if you buy a vehicle in NYS, but you reside in another state or you move to another state, and you plan to register the vehicle in the other state.
This type of insurance ID card must have "in-transit" or "in-transit permit" printed or written on it, and you must provide an In-transit Cancellation Authorization form (this is not a DMV form) from the insurance agent or broker who prepared the card.
Intrastate In-Transit Permit — The permit is valid for 30 days and allows you to transport a vehicle from one location in NYS to another location in NYS.
For example, you need an intrastate in-transit permit if you buy a vehicle from a seller in another part of NYS and you need to transport the vehicle to your home before you register it.
If you apply for an intrastate in-transit permit, the DMV office keeps the proof of ownership to issue a NYS title certificate.
If you apply for an interstate in-transit permit, the DMV office returns the proof of ownership after it is examined.
Sales Tax: If the applicant for an interstate permit is a NYS resident, the applicant must provide proof of sales tax payment or purchase price and pay any tax at the DMV office.
The DMV issues an in-transit permit (MV-639ITP) that you can use to move a vehicle from one location in NYS to another location to register it.
The Wisconsin Department of Revenue says that if you pay sales tax in the state where you purchase a vehicle, you will receive credit for that amount in Wisconsin and won't have to pay the full 5 percent use tax.
Wisconsin does not collect sales tax on vehicles purchased out of state, but it imposes the use tax so residents can't do an end run by buying a vehicle elsewhere.
If you do buy a vehicle outside Wisconsin, you should check with the revenue department of that state to find out whether you have to pay sales tax there.
In addition to the Pennsylvania title you will need to provide several items to the agent to complete your title application.
Applicants are required to contact their lienholders prior to completing their MV-1 application to determine whether or not the lienholder will release the out of state title to the vehicle owner.
Please take a copy of your current Pennsylvania Drivers License or Pennsylvania Photo Identification Card.
Please take a copy of your current Pennsylvania Drivers License or Pennsylvania Photo Identification.
A copy of your current insurance identification card is required if registration is to be issued.
More information can be found on our How to Title and Register Your Out of State Vehicle fact sheet.
The buyer and seller should meet at the office of a notary public, tag service, or motor vehicle dealer to ensure the title application is completed correctly.
If you are a business or non-profit organization buying a car, please make sure you bring the acceptable identification requirements with you as well.
The following information will assist you with the proper procedures when buying a vehicle in Pennsylvania.
If you buy a vehicle at an out-of-state auction where the auctioneer doesn’t collect sales tax, you’ll owe Idaho use tax based on the bill of sale when you title and register the vehicle in Idaho.
However, if you’re moving to Idaho as a new resident and you purchased the vehicle within three months of your move, you have to pay Idaho sales tax when you title and register the vehicle.
If you’re bringing personally-owned vehicles from a state that doesn’t have a general sales tax (e.g. Oregon, Alaska, Montana, New Hampshire, or Delaware), you will need to complete Form ST-102 and give it to the DMV clerk when you title and register the vehicle.
But, it doesn’t apply if the seller is a cousin, aunt, uncle, or foster child.) To claim the family sale exemption, you must Form ST-133, Section I, and give it to the DMV clerk when you title and register the vehicle.
Auctioneers in Idaho are considered retailers and therefore must collect sales tax on the full sales price when they sell a vehicle at auction.
If you’re an Idaho resident and just bought a motor vehicle in Idaho, but will soon be moving out of state, you’re still required to pay Idaho sales tax on that vehicle.
The organization (car dealership, radio station, corporation, etc.) that gives the vehicle away as a prize must pay the Idaho sales tax.
For Idaho sales and use tax purposes, a motor vehicle is defined as a car, bus, truck, motor home, or on-highway motorcycle that’s required to be registered for use on public roads.
However, if you’re a nonresident who will take the vehicle to another state or country and immediately license and title it there, you can buy the vehicle without paying sales tax if you complete Form ST-104-MV and give it to the dealer.
An Idaho resident who buys a vehicle or vessel from a dealer outside of Idaho may not be charged Idaho sales tax.
Sales tax is due when you purchase a motor vehicle for use in Idaho.
However, you must complete Form ST-133, Section II, and give it to the DMV clerk when you title and register the vehicle.
But, keep in mind that the state where the vehicle is registered may want the insurance to be specific for that state.
Also, most insurers require that your insurance policy be issued in the state where your car is located, and your policy status may be affected if your insurer finds that the vehicle is garaged in another state.
The new state may allow the vehicle registration to be transferred via or sale so your daughter becomes the sole registered owner.
My car is still registered in my home state, but I have insurance in the state where I’m working.
The new state may allow the vehicle to be registered to both you and your daughter, where she is the new primary registered owner.
The new state may allow the vehicle to be registered to both you and your daughter, where you are still the primary registered owner.
Most states require your car to be insured in the state where it’s registered, and registrations typically need to match the driver’s current address.
we have 3 children (college students) on our auto insurance policy from the state of wisconsin.
At Esurance, if a student starts out listed on a policy and will be temporarily attending school at another address, we allow them to remain on the original policy as long as their vehicle is still registered at the original address.
Since you’re the title holder, the new state may allow the vehicle to remain registered solely to you, even though you don’t reside in that state.
I am the legal owner of a car that is registered and insured in my state that my son drives in another state while he is there for a medical residency, about four years.
I have a NY state license but currently attending school in Florida I'm looking to insure purchase register and title a car here.
I have questions about car insurance I have a permit and bought a car the title is under my name but my uncle registered it im from nyc but moving to ohio I have my coverage until nov and I also pay a broker.
Similar to the first scenario, you’d be considered the primary driver on the insurance policy and your daughter would be the secondary driver.

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