Buying a car is one of the two major purchases for any American, second only to buying a home. With the internet and the use of online marketplaces, it's very easy to find a car that you really like, even if it's not in your own state.
The proliferation of online shopping during the last 15 years has made it possible to buy anything from a car to a boat, a jet, and even a house without having to be present for the purchase.
Buying a car sight unseen can be both scary and exciting at the same time, especially if it's a classic car that you really want. You can find some great deals, but you can also stumble upon a “lemon” that at first sight seems like a great deal, but turns out to be more of a headache than a catch.
To avoid buyer’s remorse and enjoy a smooth and pleasant experience, here are some super important tips for buying a car in another state.
Pre-Purchase Considerations
Before buying a car out of state, here are some valid pre-purchase considerations that you should think about. For instance, we recommend checking the car’s history to see what sort of title it has:
- Salvage title
- Rebuilt title
- Bonded title
- Clean title
- Lemon title
- Odometer rollback title
- Certificate of Destruction
- Water damage title
- Affidavit
- Export title
- Lienholder title
- Certificate of Origin
Titles, like the salvage title, put the vehicle in a category that states that the vehicle has been in some sort of accident. This can range from a small fender bender to a head-on collision, which has been fixed.
Either way, these titles stick with the vehicle and can be seen through the use of third-party car history checking services. A hidden salvage title can give you an advantage when negotiating the price of the vehicle.
Can You Legally Purchase a Car from Another State?
It’s natural to ask yourself the question, “Is it actually legal to buy a car from another state?” The answer is “Yes”, you can, in fact, legally buy a car if you live in a different state; however, you are still required to submit the car for inspection, pay taxes, and register the vehicle in your own state.
It’s recommended that you check your state's inspection requirements, as there are states with very relaxed regulations, and then there are states that have very strict safety and emissions requirements.
There are states with no safety and emissions regulations. The most relaxed state car inspection states are:
- Alaska
- Arkansas
- Florida
- Michigan
- Minnesota
- Mississippi
- Montana
- North Dakota
- South Carolina
- South Dakota
- Wyoming
If you live in the following states, you have to adhere to very strict emissions and safety regulations, and have to submit your vehicle to a yearly state inspection:
- Massachusetts
- Delaware
- Connecticut
- California
- Rhode Island
With the most strict being California, specifically with vehicle modifications, which prohibit certain things, like downpipes or any exhaust modifications that would cause excessive emissions or noise pollution.
Factors Driving Out-of-State Car Purchases
Once you’ve bought the car, you’d probably want to get it to your own state, and you’d probably consider driving it home. However, there are several legalities that you should consider, the main one being Temporary Transit Permits, or Tags.
As the name suggests, this is a temporary tag that allows vehicles to start their drive through a certain state. It’s valid for a small period of time, usually 7 days, depending on the specific state.
Without a temporary tag, a driver is subject to fines and even vehicle seizures from state troopers until the issue is resolved. It’s mandatory for a vehicle to have valid, non-expired tags. They are required if the vehicle is being driven, but not necessary if it is on a trailer or car carrier transport.
Importance of Research Before Making a Purchase
We also recommend considering the following points before buying a car from any specific state:
- Is it in the “rust belt”
- Is there a state “lemon law”
- State incentives and rebates for EVs
- Are there manufacturer recalls on the vehicle
Rust belt vehicles:
The “rust belt” refers to a region of the U.S. known for its harsh winters and use of road salt, which causes underbody rust. Due to water ingress, it can be hidden by body panels and not be visible on preliminary inspections.
State Lemon Laws:
The “Lemon law” refers to a state law that prohibits the undisclosed sale of a vehicle with factory or use defects. A seller has to disclose if a vehicle has sustained damage or has any flaws to the buyer. This law is both for used and new cars and protects the buyer; all 50 states have some version of it.
Rebates and incentives for EVs
More and more states are considering and implementing incentives for citizens buying and using EVs. If you are buying one, check to see if your state has incentives or rebates, as that can greatly benefit you and offset some of the initial purchase cost.
Manufacturer vehicle recalls
If there’s a mass problem with a vehicle, a manufacturer is compelled to issue a recall for a certain number of sold units. They have to provide a fix for the problem and either fully cover the cost of repair or provide some sort of rebate for the customer. Recalls can be issued for any sort of reason on multiple aspects of a vehicle, like airbags, suspension, engine, etc.
Necessary Documentation When Buying a Car in Another State
Buying a car in your own state or from an out-of-state seller is a legal procedure with certain requirements that need to be met both in the buyer’s state and your own. It’s better to be prepared and knowledgeable about any requirements, rather than leave it to chance and face issues down the road. Here’s what our experience has taught us.
Essential Documents for Out-of-State Car Buyers
As mentioned before, you can buy a car from another state without any legal documentation requirements on your part; however, there are documents that the seller needs to produce in order for the sale to be valid.
Vehicle title
This is by far the most important of all documents, as it is the most identifying document for the vehicle. It is mandatory as it holds vital information about the vehicle and its current ownership. The seller should produce it upon sale, and it should be in your name as the new owner.
Bill of sale
The bill of sale is a document that shows that a purchase in your name has been made and that a piece of property has changed ownership. The bill of sale should include the purchase price, vehicle details like VIN, make, model, and year, as well as the seller-buyer information and the date of the sale.
In some states, like Louisiana, Nebraska, Maryland, New Hampshire, West Virginia, and Montana, the bill of sale must be notarized.
Driver’s License: What You Need
If you are an out-of-state or international buyer, you need a valid driver's license in order to apply for insurance, temporary transit tags, and vehicle registration. If you are going to drive the vehicle out of state, you need to insure it beforehand.
It’s important to note that you can use your home-state driver’s license to buy a car from another state, and your license can be used for the purchase, driving, and temporary tags.
For insurance, you also need a driver’s license, and the insurance provider will verify the details, so any names mentioned in the bill of sale must match those on the driver’s license.
Proof of Residency: Acceptable Forms
When buying a vehicle from out of state, you’d need to register it in your home state, which requires proof of residence. You can pick any of the following options, but they need to show your full legal name as it is written on your driver’s license or government-issued ID. The acceptable forms for proof of residence are:
- Utility Bills;
- Lease agreement
- Bank or Credit Union Statement
- Pay Stubs
- Government-issued mail
- Voter registration card
- Insurance Documents
- Property Tax Receipts
Insurance Requirements for Purchase
Driving without insurance is illegal, and operating your new out-of-state purchase without a valid insurance, can create quite a lot of trouble. Luckily, if the vehicle is transported, rather than driven, you are not required to insure it upon buying.
You can use the services of a professional car shipping company like Axis Auto Logistics to forgo the insurance requirements for purchase.
However, if you are buying from a dealership, you’d need to ensure the vehicle before leaving the lot. You can insure the vehicle before ownership is transferred, or you can ask the dealer for assistance. There is also the option of a temporary insurance card.
Sales Tax and Registration Forms Explained
This topic may seem complicated to a first-time car buyer, but it's actually quite simple - you only pay sales tax in your own state upon registering the vehicle.
If buying a car from a dealer
The dealer is capable of collecting some of the fees on your behalf, such as:
- Home-state sales tax
- Title fees
Temporary tag fees
- Registration fees
Small dealerships rarely offer this type of service; it's mostly common with big franchises, so it's always good to ask.
If buying a car from a private seller
You only pay sales tax in your home state when registering the car in your local DMV, and not the private seller. Make sure to collect all relevant documentation from the seller, like the bill of sale, title, and odometer disclosure.
Registration Forms Requirements
For registering the vehicle in your home state’s DMV, you will need:
- Application for Title and Registration;
- Proof of Identity and Residency;
- Title Transfer Form
- Bill of Sale;
- Odometer Disclosure Statement;
- Insurance Verification;
- (If Required by State) Emissions or Safety Inspection Certificate.
Temporary Registration: When You Need It
You only need temporary or transit tags if you are planning on driving the car to your home state, and not if shipped to the state.
You can get temporary tags via the dealership, which automatically produces the tags for you at a cost. If buying from a private seller, you can go with them to their local DMV, or you can get temporary tags once the sale is final.
A lot of people, simply for convenience’s sake, choose to transport the vehicle home rather than drive it.
Vehicle Inspection Certificates: State Requirements
As mentioned before, some states require any vehicle to pass a vehicle safety inspection. Some states are more detailed, others are much more lax in their requirements.
States with rigorous inspection and safety requirements are more attractive for out-of-state buyers, as the safety inspections often include a thorough inspection of the vehicle, such as suspension, brakes, lights, etc.
When you need an inspection certificate
- Before initial registration
- If your state has a mandatory annual or biannual period safety inspection
- When transferring a title from a different state
- When converting a salvage title to rebuilt status.
We recommend you bring all inspection documentation to the DMV, even if you are in a state where there are no mandatory safety and emissions inspections.
Payment Methods: What’s Acceptable?
There are several payment options to consider, all with pros and cons. At the end of the day, it's up to you and the seller (whether private or dealership) to determine which one works best for both parties. Here’s what’s available:
- Bank Wire Transfer
- Cashier’s Check
- Cash
- Crypto Currency
- Escrow Services
- Peer-to-Peer Payment Apps
- Credit or Debit Card
- Financing and Auto Loans
Dealerships only accept officially recognized, safe payment methods, such as bank wire transfers, escrow services, credit or debit card payments, and auto loan financing.
Pros and Cons of Buying Out-of-State
Just like with anything in life, there are two sides to a coin with pros and cons to everything - buying a car from out of state is no different. Here’s what to consider:
Pros of Buying a Car from Out of State
- Specialty Vehicle Availability
- No Rust
- Better Prices and Deals
- More Dealership Options
- Higher Car Variety
Cons of Buying a Car from Out of State:
- Extra cost and time
- Additional paperwork
- Possible emissions and safety issues
- Limited ability to inspect the car personally
- Private sales are riskier
Some pros and offset some cons, and that’s true for a lot of people, because only in October of 2025, there have been more than 1,25 million out-of-state purchases.
Advantages of Buying a Car in Another State
- Greater safety requirements
- Rust-free
- Better prices
- Rarer cars
- Warranties
- EV’s
Disadvantages and Expenses to Consider
- Extra paperwork
- Transporation
- Limited chance to inspect the car
- Buying a car from a state with no safety requirements
- Travel expenses
- Not as convenient as home state shopping
Evaluating the Cost-Benefit Ratio
What is the real total cost of the car?
Calculate the total cost of buying the car, transporting it, registering it, insurance, maintenance, new tires, or whatever needs to be done to it. This is the total cost and is the first thing you should do when evaluating the cost-benefit ratio.
Condition vs Value
Sometimes the condition of the car doesn’t correspond to its value, in a good way. You can get a great deal and get a well-taken care of car, but you can also get one that’s been neglected, and still pay quite a lot.
The time spent
Consider the time you will spend on the car, researching, inspecting, buying, the travel cost, accommodations, everything is time-related - see if it's worth it to you.
Challenges and Risks
There are many challenges when buying a car, used or brand new one; there is also risk, because nothing that is worth it is risk-free. Now, here are some things to consider that might make your choice a bit clearer.
Common Challenges Faced by Out-of-State Buyers
- Not able to inspect the car yourself
- Additional cost of travel and transportation
- Buying from a state with fewer safety inspections
- Buying from a state with heavy car rust problems
- Temporary tags from a dealer
- Additional costs when buying from an out-of-state dealer.
Importance of Vehicle Condition Verification
There is no law that requires you to personally inspect the vehicle yourself; however, biting a car that you don’t for a fact know the condition of, is the definition of risk.
Insurance: Setting Up Coverage Before Purchase
You can arrange insurance before even owning the car; you only need to submit:
- The date of purchase
- Time of Pickup
- Provide the VIN
- Provide the year/make/model of the car
Once ownership is transferred, the insurance is automatically activated.
Financial Considerations
There is a huge financial aspect to buying a car, aside from the actual cost of the vehicle. There are sales taxes, title transfer fees, travel costs, and so forth. Here’s what to consider:
Sales Tax Implications
Once the sale is finalized, you are required to pay sales tax in your own state. The cost of the tax itself depends on the state, with some being quite lenient with their fees, while others, like California, are quite demanding - check to see what % your state’s sales tax is.
Hidden Costs: Excise Taxes, Title Transfer Fees, and More
There are some fees and taxes that are not as obvious, for example, excise taxes generally depend on the state you live in.
Maine and Massachusetts have excise taxes that depend on the vehicle value, model year, and a state-made depreciation formula.
Then there are the title transfer fees, additional dealership fees for insurance, temporary tags, or filing the sales tax with your own state.
Budgeting for Travel and Transport Costs
Maybe you’ve decided to make a short holiday of the purchase, or maybe you’re on a tight budget and want to make the most of what you’ve got. There are budget-friendly options, like taking the bus rather than flying, or staying at a Holiday Inn rather than a fancy hotel. Transporting your car from state to state with a professional is also a great way of making the most of your budget, as it saves you the trouble of paying some fees and taxes.
Buying from Dealers
Some people prefer buying from out-of-state dealers because they have a better reputation, better selection, or maybe they found that one special car, with the upholstery they want, and it's available only from that one dealer in Texas. Whatever the reason, here are several things to consider beforehand.
Research Out-of-State Dealerships
It's only natural to first research a dealership before buying from them, because a car purchase is a big purchase, regardless of what your budget is. Dealerships tend to have a mixed reputation, so finding out as much the most before buying can give you peace of mind.
Finalize a Purchase with a Dealer
- Verify the end price (Out-of-the-door price)
- Read through all purchase documents carefully
- See if the dealer handles Sales Tax
- Determine if you need Temporary Tags
- Get insurance before the purchase
- Confirm all title documents are present
- Check for a return policy.
Handling Financing and Paperwork Remotely
Nowadays, it's far easier to make large purchases remotely and without being present at the location of purchase. This includes the payment process, as car dealerships prefer bank wire transfers or financing options, which are remote options anyway. Any required paperwork can be sent over and delivered back to you within a few days, making car purchasing quite easy.
Negotiation Strategies for Dealer Purchases
Some dealerships have a reputation for making the car-buying process difficult, increasing the end price of a vehicle unnecessarily, and tacking on extra fees. It’s important to be careful and be aware of the price of the vehicle from the get-go - check and see all documents, request full transparency on all fees, especially when financing the purchase.
Buying from Private Sellers
There are more private sellers than dealerships out there; in fact, private sellers might have rarer, more desirable vehicles, so if you are a collector or you know what you are looking for, a private car seller might be what you end up choosing. Here’s what you should consider:
Verifying a Vehicle’s History and Condition
Private sellers are required to disclose the type of title the vehicle has. We discussed the different title types at the beginning of the article. There is also the Lemon Law, which is a federal law protecting private buyers from purchasing a lemon.
You can easily verify the vehicle’s history only using the VIN number on the chassis or the documents provided by the seller. Third-party companies make a background check, which shows if it's been in an accident and been retitled, if it’s been stolen, and other details.
Safe Negotiation Techniques with Private Sellers
Private sellers might be more likely to negotiate the price of the vehicle, either based on the condition of the car, their need for money, or the overall conversation.
As they are private individuals, and not a company, they might be more likely to lower the initial price if you have the right arguments, for instance, the condition of the car and other aspects like mechanical issues, visual issues, and so forth. Either way, approach the negotiations with respect and the understanding that you are talking to a person.
Legal Considerations When Dealing with Individuals
There are some legal considerations that are important to understand when buying from a private individual. Like, for instance, complying with state-specific paperwork, like a notarized title, any state-specific bill of sale documents, certificates for emissions, and a safety inspection certificate. Here are some other considerations:
- Know who is selling to you (Verify Seller's Identity)
- Check for loans or liens on the car. The Car can’t be sold if with a lien.
- Ask for a bill of sale
- Fraudulent Title (Title Washing)
- State Specific Paperwork
Transportation of Your Vehicle
Now it’s time to consider whether to drive the car home or have it shipped by a professional car shipping company. There are pros and cons to both sides; here’s what we think about the topic.
Options: Driving vs. Shipping Your Car Home
There are generally two options to consider - either having it shipped or driving it personally to your chosen end location; however, there are some things that might sway your decision.
Driving the car yourself
That is a fantastic way to get to know the vehicle, to bond with it, and enjoy your new purchase. However, you need to have a transit permit or a temporary tag from the state you’ve bought it from, and you need to consider that the vehicle might not be ready for a road trip.
Shipping the car to your state
Shipping the car is a fantastic choice, because it saves you the trouble of insuring the car, getting tags, or worrying about the car being in a good condition enough to be driven a long distance.
The seller themselves might not be aware of mechanical faults that undermine your ability to drive the car, so having it shipped will help you avoid being stranded by the road in your new purchase.
Costs and Considerations for Transporting a Vehicle
The cost of shipping a vehicle to another state can, at the higher end, be around $1,200, depending on distance, car condition, current market rates, etc.
At the lower end, it can be as little as $500, saving you quite a lot of money on driving the car and doing initial maintenance on it, not to mention avoiding some of the mandatory legalities necessary for driving a car.
Then there is the consideration of time - carriers don’t always provide a specific day for pickup, but rather a 48-hour window during which the vehicle must be available - maybe you don’t have that time and can’t arrange for someone to assist on your behalf.
Axis Auto Logistics has a service that makes this a bit easier for you - Guaranteed Pick Up Service - it gives you a 24-hour window for the pickup, without delays.
Insurance Needs During Transportation
Auto car shipping carriers have insurance coverage that is included in the price, usually up to $200,000, depending on the carrier. You don’t have to sign for additional insurance unless you’re shipping an exotic car that exceeds the carrier’s insurance.
Registration and Title Transfer
Registering and transferring the title officially makes you the owner of the vehicle, so it's the most important step of the entire process. Luckily, it's not that difficult.
Steps for Title Transfer and Registration Post-Purchase
Now you’ve bought the vehicle, but need to transfer the title to your name, here’s what needs to be done in your home state:
Secure these documents:
- Signed out-of-state title
- Bill of sale
- Odometer disclosure statement
- Proof of insurance
- Temporary tags or transit permit
- Lien release (if applicable)
- Driver’s license or state ID
- Check the title for names, dates, and infmatches.
- Complete a Registration Application in your own state’s DMV
- Submit the car to the required inspections
- Pay Sales Tax in Home State
- Pay Registration and Title Fees
- Submit All Documents to the home state DMV
Timeframes for Completing Registration
It usually takes up to 15 days for title transfers to be complete if done electronically, and up to 8 weeks if mailed in. That is, if all of your documents are as required and there are no amendments needed.
Registration also must be complete within 30 days of purchase, but of course, there are expectations - some states have a 20-day window, some a 60 window, and others 90 window - check for your specific state.
Inspections can be required to be completed before registration, 10-30 days after registration, or before the temporary tags expire (15 days).
Understanding State-Specific Fees and Costs
States operate differently when dealing with title transfers, sales taxes, and surcharges. The best way to confirm what your state requires is to contact your local DMV and check exactly what sort of fees you should expect. Some states don’t require a safety and emissions inspection, which is one cost you don’t have to worry about.
Avoiding Scams
With a topic like buying a car, it's only reasonable to discuss avoiding scams, because sadly, there are a lot of them out there. Below, we’ll discuss the most common car buying scams and arm you with the knowledge to avoid them.
Recognizing Common Scams in Out-of-State Purchases
Title or VIN Tampering
This is absolutely, positively illegal and might be a sign that the vehicle has been tampered with for questionable reasons. If the Title names or car VIN don’t match or are misspelled, then avoid that purchase.
Price that’s too good to be true
If the car seems like in fantastic condition and there are no visible signs of damage or mechanical issues, but the price is too good, then this might be a sign of a scam.
Pressure tactics
When buying from a distance, you will be dealing with the seller either by phone or through social media platforms. If the seller is pressuring you into buying the car, or being too pushy, they might be trying to offload the car onto you and any trouble that might come with it - Beware.
Sellers who refuse videos or don’t answer the phone
When buying remotely, you need as much information as possible, and if the seller is not helpful or complying, it might mean that this deal is not going your way. Avoid it and go for something better.
Safe Payment Methods for Long-Distance Transactions
Speaking of scams, one way of avoiding them is by using secure payment methods when purchasing the car, which are:
- Bank Cashier’s Check
- Verified Escrow Services
- In-Person Bank Transfer
How to Verify a Seller’s Legitimacy Remotely
Photos and videos are quite helpful in remotely verifying a seller's legitimacy, if it's a private seller, and not a dealership:
Verify the VIN using a third-party service.
You can independently check the VIN of the car and see what sort of public records pop up regarding its history, title, and so forth. There’s quite a lot of information available, as long as you know the correct VIN.
Confirm the seller’s identity.
You can request a photo of the seller’s driver’s license and match it to a photo of the title to see if the names match, and also have them send you a photo of THEM holding the title itself.
Per-purchase inspection
See if they will agree with a pre-purchase inspection of the vehicle. If they do, you can see everything with your eyes and confirm both the condition of the car and the aforementioned information.
We hope this article has shed some light on the matter of buying a car from another state, a topic that is quite close to our hearts. If you need auto shipping, you know where to look - Axis Auto Logistics.
