How to Buy a Car in Another State

Can you buy a car out of state? Yes, you can—and buying a car in another state isn’t too different from buying a car closer to home. You’ll just need to let the dealership know what you’re planning and contact your home state’s DMV. You’ll also need to pay the difference in sales tax between the state where you made the purchase and the state where the vehicle will be registered.

If you’re gearing up to take the first steps on a new adventure, and you’re searching all over states like New Jersey, New York, and Connecticut, then let us show you how to buy a car out of state with confidence!

Registering a Car Bought in Another State

Buying a car out of state isn’t too difficult; you’ll just have to register the car in your home state once you’ve completed the purchase. Here’s an overview of what that process should look like for you:

1. When you’re purchasing the vehicle, let the dealership know that you want to register the car in another state. Ask for a bill of sale that lists the purchase price clearly.
2. Use a service like DMV Near Me to locate a DMV in your home state that isn’t too far from where you live.
3. Collect your bill of sale, your vehicle’s title (if applicable), the names and addresses of any lien holders, and a completed odometer disclosure statement. You should also have Tax Form RUT-50 Private Party Vehicle Tax Transaction, along with proof of insurance and residency.
4. When you reach the DMV, tell the clerk that you purchased the vehicle out of state and want to register it at this time.
5. If you did not finance your vehicle and have received a title, the clerk will hold onto it. You’ll receive a new title that is applicable in your home state.
6. In order to finish the process, you’ll need to pay any sales tax that would be due if you had purchased the vehicle in the state where it’s being registered. Any taxes you’ve already paid will be counted; you’ll just need to make up the difference.

That’s all you really need to know about buying a car out of state! If you have any questions, feel free to reach out to our financing team. We help out-of-state buyers all the time, and we’d love to be of assistance to you too.

Taxes and Fees on Out-of-State Cars

Will you reduce your total costs by buying a car in another state? Although you might be able to find a great sticker price or secure a better interest rate by crossing state lines, you shouldn’t expect to reduce your tax burden. That’s because the vehicle will still need to be registered in your home state, where the vehicle will stay and be driven. If sales tax is higher in your home state than it is in the state of your purchase, you’ll have to make up the difference at the DMV.

Let Us Help You Take the Next Steps!

Are you interested in learning more about the process of shopping for a new car? We’d be happy to show you how to sell your old car at a dealership, or how to refinance an auto loan for a better rate. Ready to buy a car at Mercedes-Benz of Newton? Even if you’re coming from across state lines, we can help you apply for financing online today!