Last Updated on September 10, 2024
Buying a car out of state can be an exciting yet daunting task. Whether you’re searching for a specific model or hoping to find a better deal than what’s available locally, purchasing a new or used car from another state involves several important steps and considerations. In this comprehensive guide, we’ll walk you through the process, ensuring you know exactly what to expect and how to handle each aspect of your out-of-state car purchase.
Why Buy a Car Out of State?
Car buyers may find it advantageous to look beyond their state borders when vehicle shopping. The new and used car market can range significantly between states, offering a wider selection of motor vehicles, potentially lower prices, and varying vehicle conditions, which can significantly impact your purchasing decision. Here’s how exploring out-of-state options can enhance your car-buying experience:
Access to Larger Inventory
Extending your vehicle search to other states provides access to a larger selection of options. This is especially helpful if you’re looking for a specific color, trim, make, or model that’s hard to find locally. By purchasing a car out of state, you are more likely to find the exact car you want.
Potential Cost Savings
Vehicle prices can vary between states due to differences in car popularity and the supply and demand of the region. Competition can also play a role in places with more dealerships and lead to significant savings. By looking in other states, you might find a better deal than what is offered locally.
Better Condition and Lower Mileage
Vehicles in different states may be in better condition because of the differences in weather and climate. For instance, in a state with no snow, vehicles may have less rust and corrosion from salt on the roads. Comparatively, in more temperate states, vehicles may have less sun damage compared to hotter states. Some states also have lower average annual mileage, meaning you might have a better chance of finding the same car out of state with fewer miles.
Unique Models and Limited Editions
Searching in other states can also help you find unique or hard-to-find vehicles. You can increase your chances of finding specific models or trims, limited editions, or vehicles only released in certain regions. This broader search could increase your likelihood of finding something truly unique.
Negotiation Leverage
Traveling to purchase an out of state vehicle can strengthen your negotiation position. Sellers, whether a dealer or private party, may be more flexible on price if you are willing to travel from another state. Additionally, comparing prices across different states provides valuable insights and leverage, enabling you to negotiate more effectively and secure a better deal.
Finding the Right Vehicle
When buying a new or used car out of state, thorough research is key. Online platforms provide access to a vast inventory of vehicles across the country. Municibid is a stand out option for those seeking unique deals on government surplus items and forfeitures. As an online auction platform, Municibid connects buyers directly with government agencies, schools, and utilities selling surplus goods. This direct connection often leads to competitive pricing and a diverse range of items. Choosing Municibid can help you save money while also supporting local communities.
Once you find a potential vehicle, it’s important to obtain a vehicle history report. These reports, available through services like CARFAX or AutoCheck, reveal important information about the vehicle’s history, including past accidents, title status, and maintenance records. Vehicle history reports provide invaluable insights into the vehicle’s condition and are essential for making an informed purchasing decision.
Buying a Car Sight Unseen
Making an out of state purchase might mean you do so without physically seeing the vehicle or test driving it first. This practice is relatively common for out of state vehicle purchases, especially when choosing your vehicle through an online dealership or participating in Municibid government auctions. There are benefits and risks in doing this, so it is important to consider and compare both to make an informed decision.
Benefits of Buying a Car Sight Unseen
Buying a car sight unseen offers benefits to buyers that can help them make a purchase suitable to their needs, budget, and timeline:
Access to a wider market: While buying out of state in general can offer you a larger vehicle selection than shopping locally, buying a car sight unseen can expand your options even further, since distance matters less. If you are willing to purchase without seeing the vehicle and plan to have it shipped to your location, your options dramatically increase.
Increased convenience: Purchasing a vehicle without seeing it can provide added convenience and time savings. Rather than visiting multiple dealerships or making arrangements with a private party, you can access vehicles you are interested in online. Dealers may also handle all the paperwork and make shipping arrangements, further simplifying the process.
Flexible purchasing options: Many dealers and online platforms supporting this type of purchase offer flexible purchasing options, such as return policies and delivery services. This means that while you do not see the vehicle before you purchase it, you have the flexibility to return it if it does not meet your expectations. This can provide purchasers with added peace of mind and reduce stress.
Risks of Buying a Car Sight Unseen
While purchasing a car sight unseen has some advantages, there are also a number of risks that buyers should carefully consider:
Misrepresented condition: The vehicle description and photos provided might not match its actual condition. Making a vehicle purchase without seeing it first means you have to rely on the seller’s honesty.
No ability to test drive or inspect: Without the ability to test drive or inspect the vehicle, you cannot identify any issues with its condition, comfort, or the way it runs, drives, or handles. When it arrives, it might not have the level of comfort or performance you hoped.
Higher risk of scams: Scams are a risk when purchasing a vehicle sight unseen, especially when dealing with private sellers or lesser-known dealerships. The vehicle might be misrepresented or not exist at all.
While there are some risks to be aware of when purchasing a vehicle sight unseen, there are a few steps you can take to protect yourself:
Request a detailed vehicle history report
Ask for additional photos and videos
Get a pre-purchase inspection
Verify the seller’s reputation
Vehicle Inspection and History
Before finalizing any out-of-state purchase, it’s vital to have the car inspected. If you’re unable to inspect the car in person, consider hiring a local mechanic or a third-party inspection service to do it for you. This ensures that the vehicle’s condition matches the description provided by the private seller and that there are no hidden issues.
In addition to the inspection, double-check the vehicle identification number (VIN) against the vehicle history report to ensure it matches the claims made by the private seller. This step helps avoid any unexpected issues or discrepancies after the sale.
Sales Taxes
You might wonder, “Do I have to pay sales tax when buying a car in another state?” The answer is generally “yes.” When you bring a car into your home state, you likely need to pay sales tax based on your state’s rates. It’s important to understand your home state’s sales tax requirements to avoid any surprises.
Five states have no general sales tax on vehicle purchases for their residents: Alaska, Delaware, Montana, New Hampshire, and Oregon.
If you live in a state that collects sales tax and buy a car in a state with no sales tax (like New Hampshire), you’ll still have to pay the full sales tax amount to your home state when registering the vehicle.
Registration and Transportation
After purchasing the car out of state, you’ll need to handle the vehicle registration process. This may involve obtaining a temporary registration from the state where you bought the car, allowing you to legally drive it home. Once in your home state, you can complete the registration paperwork with your local DMV.
Transporting the car can be done by driving it yourself or hiring a shipping company. If you choose to drive, ensure you have the necessary insurance coverage for the trip. If you opt for shipping, compare costs and services to find the best option.
The average cost to ship a car within the country varies slightly, but generally falls within a similar range:
According to MarketWatch, it costs about $1,589 on average to ship a standard car across the U.S. using open transport services.
Forbes reports that the average price to ship a car is $1,150, but prices can range from $550 to $2,450, depending on various factors.
USA Today’s research indicates that the average car shipping cost is around $1,295 in total or approximately 86 cents per mile.
These figures are for standard vehicles using open transport, which is typically the most economical option. It’s important to note that the actual cost can vary significantly based on several factors, including:
Distance and specific locations for pickup and delivery
Type and size of the vehicle
Shipping method (open vs. enclosed transport)
Time of year
Current fuel prices
Demand for shipping services
For a more accurate estimate, it’s advisable to get quotes from multiple car shipping companies, as prices can fluctuate based on current market conditions and the specific details of your shipment.
Shipping may seem like a significant expense, however, this cost may be worth it if you find a vehicle you want at a good price. When you factor in the time, effort, and potential wear and tear on the car if you drive it yourself, paying for shipping can be a smart investment. Shipping companies typically offer the convenience of delivering your vehicle directly to your door.
The savings you may have gained by purchasing out of state may also offset shipping costs and make this option more feasible. If you are considering using a shipping company, ensure you get quotes from multiple companies to have confidence you got the best deal.
Mileage Range (miles) | Open Carrier (Average Cost) | Enclosed Carrier (Average Cost) |
0 – 500 | $500 – $800 | $700 – $1,100 |
500 – 1,000 | $800 – $1,100 | $1,000 – $1,500 |
1,000 – 1,500 | $1,100 – $1,300 | $1,400 – $1,900 |
1,500 – 2,000 | $1,300 – $1,600 | $1,700 – $2,300 |
2,000+ | $1,500 – $2,000 | $2,000 – $2,750 |
Important Considerations
When buying a car out of state, consider the following:
Insurance Requirements: Contact your insurance company to ensure you have the necessary coverage for your new car. Some companies offer temporary coverage for newly purchased vehicles.
Emissions and Safety Standards: Different states have varying emissions standards and safety inspection requirements. Ensure the car complies with your home state’s regulations to avoid costly modifications or fines.
Warranty and Financing: If you’re purchasing a new car, check the warranty coverage and financing options. Some warranties might have limitations based on geographic location.
Tips for a Smooth Transaction
To help ensure a hassle-free out of state car purchase, follow these tips:
Work with reputable sellers: Whether buying from a dealer or a private seller, verify their reputation and legitimacy. Municibid offers a safe option for out of state purchases compared to private sellers because their sellers are municipalities and schools. Dealerships are also typically a safe option. You can check the reviews, verify business licenses, and have legal recourse if something goes wrong.
Double-check all paperwork: Ensure all documents, including the bill of sale and title, are accurate and complete.
Plan for additional costs: Consider potential expenses such as shipping fees, sales tax, and registration fees in your budget.
Conclusion
Buying a car out of state can be a rewarding experience if done correctly. By following the steps outlined in this guide, you can confidently navigate the process and potentially save money on your next purchase. Remember to conduct thorough research, verify the car’s history, and understand your home state’s requirements for a successful transaction. With careful planning and attention to detail, you’ll be driving your new vehicle across state lines in no time.