Thanks to the power of the internet, you can find the car of your dreams through a quick Google search in seconds. You can type in the exact color, mileage, and model you want, and poof — there it is! But when you find the perfect car online, before you hit the “buy” button, here are a few things to keep in mind before purchasing a vehicle out of state.
1. State Taxes
Sales tax will be paid to the state where you live, not where you bought the vehicle. If your state collects sales tax, you will still need to pay it, even if you purchase the car in a non-sales tax state. Consult your motor vehicle department, a local dealer, or a tax professional for more information on how much you owe on state taxes.
2. Emissions and Inspections
Emissions standards vary from state to state, so be sure that your new vehicle is compliant with your home state's standards. Keep in mind that all cars are not sold in all 50 states. For example, if you purchase a vehicle from a state with more lax emission standards than your state, you may not be able to register the vehicle when you get back home. Your local DMV will be able to give you more information on the inspection tests that are required for your new car. Keep in mind that this also varies between states. You will need the appropriate inspection paperwork for your home state in order to register the vehicle.
3. Insurance
Double-check your car insurance policy before purchasing a vehicle. Some insurers provide coverage on your new car for a specified time, even before you add the vehicle to your policy. Review your state's insurance laws to make sure you have at least the minimum coverage required. Note that some lenders may have certain insurance requirements that you must meet before you purchase a car.
4. Timeline for Registration
After you park your new car into the driveway you’ll want to get it registered with your state. Most states require you to register your vehicle within 30 days of the purchase. Know that you could be subject to fines or penalties if you don't meet your state's timeline, so contact your local DMV to find out how long you have before you need to register your new car. At Bob Penkhus, we make sure to educate our car buyers on state standards so we never run into this issue!
5. Travel costs
Remember to consider the cost of getting your vehicle back home. If your dream car is states away, plan a fun road trip with a friend or family member to make it more memorable! Be sure to plan for travel expenses and time off work. Note: If you're planning to drive the car back to your home state, you may need to get a temporary registration from the state where you purchased the vehicle. Shipping the car to your home state is also an option. Just do a little research to decide what is best for you!
Thinking about buying a car out of state? At our Bob Penkhus dealerships, we can get you the car you've been looking for (even from 15 states away!). Start shopping online today or stop by one of our dealerships to see our incredible new and used car selection! Our online experience is simple and our car specialists are always ready to help!
- Your friends at Bob Penkhus