5 Things to Think About When Buying a Car From Another State

Purchasing a car can be a difficult and time-consuming process. When purchasing a vehicle out of state, you must consider several factors, including shipping costs. Here are some things to think about.

1. Sales Tax Amount

Out-of-state purchases may have significantly higher sales taxes than in-state purchases, depending on where you live. Make sure to include this amount in the price of your vehicle. Sales tax is a percentage of the purchase price that the buyer pays to the state. The rate varies depending on where you live, but it is usually around 6%. If you find a vehicle from another state, you will be required to pay sales tax on that vehicle.

2. Testing for Emissions

You must determine whether the vehicle will pass emissions testing in your state, as some states require emissions testing for registration. If you live in a state where emissions testing is required, you should be aware that most cars manufactured before 1995 are exempt from emissions testing and may not be eligible for registration.

3. Determine Shipping Costs

If you do not want to fly or drive to pick up the car, you must ship it. You’ll need to find a company that will transport your vehicle on a flatbed trailer. Shipping costs are calculated using several factors.

  • The distance separating the two states. Shipping costs are calculated based on the distance between the pickup and drop-off locations. A shorter length will be less expensive than a longer one.
  • Vehicle dimensions. Furthermore, the vehicle’s size is a consideration. The weight of your vehicle affects the cost of shipping it from one state to another. Larger vehicles require more fuel to transport, making them more expensive to ship than smaller cars, trucks, or SUVs.

4. Examine the Buyer’s Remorse Policy.

If you have decided to purchase a car from another state, you should be aware of how to protect yourself. Look for a “buyer’s remorse policy” that allows you to return the car within a certain time frame, usually three days. This is especially important if you are purchasing a vehicle without seeing it in person and relying solely on photos or videos sent by the seller. Some states have made buyer’s remorse policies mandatory by law, which is great news for consumers. Even better if you can get it in writing.

5. Is the Purchase Covered by the Current Insurance Policy?

Before purchasing a vehicle, you should contact your insurance company. There are some things you should be aware of whether you are financing the purchase or paying cash.

When you finance a car, your lender will require you to have full coverage insurance with them named as a “loss payee” on the policy. This means that if the vehicle is totaled in an accident, they will be paid first, and any remaining balance will be paid to you.

If you buy a car outright (that is, you own it outright), you may be able to carry liability-only insurance if the lender does not require full coverage. Liability-only insurance covers damage to other vehicles in an accident but not damage to your vehicle. If your car is damaged or stolen, you will have no coverage under this policy and must pay for all repairs yourself.