All private seller purchases require you to do this. When buying from a car dealer, the transaction is fairly simple. Often, this means a delicate balance between working with the seller's state's motor vehicle agency and your own. 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. But the fact the title is from out-of-state should have no bearing on the charge. Oregon's DMV, for example, charges $7, while the Kansas Highway Patrol commands $20. Provide your driver's license and proof of insurance as well. Again, refer to our Vehicle Inspections section for safety inspection information specific to both states (your home state, and the vehicle's original state), and how those requirements affect titling, registering, and legally operating the vehicle in your home state. Understand that the following checklist is a guideline only; When you buy a car from a state that requires smog checks, that car might already have a valid emissions inspection sticker; if so, check with your state to see if the current state's emissions sticker is valid/accepted in your state, too. Many states require vehicles to undergo and pass smog checks and emissions inspections before they can be titled and registered in that state. Our Title Transfers and Car Registration sections outline exactly what you need to do to transfer a vehicle's title and register the vehicle in your home state. So What Happens When an Autonomous Car Gets Pulled Over? What to know before buying a car out of state. When buying a car out of state, the responsibility for paying taxes may fall on you or the dealer. The Department of Motor Vehicles (DMV) is hip to this used car taxes loophole. The cost varies by state and inspection unit. These are two different types of transactions when it comes to paying the sales tax. Check our Tax & Tags Calculator to determine your state's vehicle tax and tags fees. You may also have to pay any applicable local sales taxes. Your car shopping should be done at this point. Do I Have to Pay Georgia Ad Valorem Tax on a Car From Another … BUYING A USED VEHICLE WITH AN OUT OF STATE TITLE. The only way around it would be to register the vehicle in New Hampshire, which would require establishing residency there. If you are thinking about buying a car from out of state, consider these tips: Subscribe to stay in the loop & on the road! All Rights Reserved. Sometimes, dealerships handle this process for you and pass along the sales tax to your home state; still, you should always keep records that you paid the sales tax to show your state's title and registration office. Buying a car today is not like it used to be. Here’s What Time You Should Plan on Leaving, Great Again? If you paid out-of-state sales tax, show the out-of-state dealer bill of sale. Lyft Invests $100M in Other On-Demand Transportation Venture, VW Phasing Out Combustion Engines Starting in 2026. Similar to smog and emissions checks, safety inspection requirements vary by state. If applicable, make sure the vehicle conforms with your state's smog and emissions standards. However, there are some things to consider before plotting a cross-country journey. Buying a Car Out of State in 2019: Tips and How to Do It - TheStreet Learn more about your state's requirements in our section on Car Insurance. Traveling with a Pet Soon? This form is only available from authorized agents of PennDOT. Of course, much of this paperwork will be temporary, given you'll need to title and register the vehicle in your home state upon returning. In Oregon, you can take a new or used car home before financing is approved. It must be "California Certified.". You might find buyer incentives at out-of-state dealerships your local dealerships don't offer; similarly, you could find a private seller with the exact make, model, and mileage you can't find at home. Take the out-of-state title and a copy of the sales agreement into your local state department of motor vehicles (DMV) to prove that you paid sales tax in the other state. Depending on where you live, and the state you plan on buying the vehicle in, the process of paying tax, title, and license fees can change. Some states require them; others don't. You might have to pay the difference if the seller’s state sales tax is lower than your state’s. You can usually have this done for a small cost at a local law enforcement agency. Make sure the dealership is holding the car for you, and that you both have all necessary documents and paperwork to make the transaction smooth. If you are buying or selling a car for the first time, you may be unaware of how taxes are paid for this type of transaction. (Rule 810-6-1-.22) If a dealer allows a trade in on a wholesale, exempt or out-of-state sale, the amount should not be deducted on the sales tax return. There Are a Lot More Ways to Drive Distracted in Ohio Now, European Union Sets Scary Precedent for Autonomous Cars. You can choose from a number of online websites to search for the car, truck, or SUV that fits your exact specifications. Some insurance providers put clauses in existing policies that cover newly purchased vehicles for certain periods of time to handle situations such as this; others don't, and require you to purchase insurance on the vehicle before you buy it. You must pay use tax when you license/register your vehicle. © 1999 - 2021 DMV.ORG. If you’ve bought a car from a dealership, they will likely collect sales tax and pass it along to the proper agency in your state. 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