Though purchasing a car out of state is similar to car buying in your own state, there are still certain differences that you need to be aware of. Buying a car out of state comprises three steps: buy your car, register it and get insurance. However, before you go ahead and do this, go through these points to be more informed about the entire procedure.
Get a Good Deal on Wheels
First things first, don't get CONNED. A car and most other stuff, look super cool on the Internet, but beware, because not all that glitters is gold. Before you buy a new car without even seeing it, make an effort to go and check on the car for which you are writing a check.
Get all the information about the car from the dealer. Yes, Graham Bell blessed us when he invented the telephone. You can find out most things about the car through phone from your home itself (considering these things are true). Or you can just use the Internet to make good car deal. Remember, till you see the car and sign the necessary papers to buy the car, you can back out from deal any time. It is better to waste a few hundred dollars on the journey to another state, than buying a dump. Car shopping can be as much fun as any other retail therapy, so enjoy while you can.
On the plus side, purchasing a car from another state would mean that you would have a whole load of varieties to choose from. It could also mean less taxes too as that state could have different taxation rules. If it is a used car you are looking for, then it's a brilliant idea to do a used car title search. Do your homework before going to check on the car in another state. By homework I mean, find out all the information about the make of the car and problems related to that car model specifically. Suppose your heart is set on a BMW, then find out everything there is about BMW engine, other car engine problems and stuff. Even if you are not a car person, it's still never too late to learn some basic things about cars, especially when you are about to be the proud owner of a brand new (or old) car.
If that is done, I would come to the most important aspect of the business deal, the negotiation. Any business guru would preach a lot about its importance, and it's rightly true. Try to negotiate as much as possible before you finalise the deal and buy a car. Having a clear idea about how much you got to shell out for buying the car saves a lot of time and effort when you go to see the car you are willing to buy.
While you are in that state, arrange for inspection of the car from an unbiased third party. Another thing you can do is to go to the DMV office and find out car's details such as car'sits registration number, its ownership, insurance details and car's history. Now that you have almost all the information about the car, use it to reduce the price of the car. Hard bargaining would be the need of the hour. All this detective work would go down the drain if you don't muster up your wits for bargain.
Once you are satisfied with the deal, you can go to the DMV and exchange the title of the car with the dealer. Every state has its own laws for buying and selling. This is where all the leg work you did would guide you. Sometimes getting the ownership of the car takes few days, so don't worry too much about it. Keep your bill of sale of the car safe and make sure that you have paid the right amount of sales tax. Otherwise you might get penalized and would have to pay through your nose for the fine.
Things to Remember
- After you buy the car from another state, you need to register it and get insurance too.
- You will have to pay the sales tax to the state where you have bought the car.
- It will take you longer to transfer the ownership of the car if the vehicle is from another state compared to buying from within the state.
- You need to approach a notary to transfer the title of the car into your state's.
- You will have to pay necessary taxes in your state and also get plate number for your car.
- If the dealership from which you have bought the car is offering a good service discount, then you will probably miss out on it.
- Keep documents like Bill of Sale, Federal Odometer Statement, seller's registration document and Statement of Origin from manufacturer handy during this whole process.
Lastly, laws about car ownership and title transfer differ from state to state. For instance, cars in California have to be "California Certified" whereas the state of Ohio has its own state inspectors who examine the car for safety concerns. Buying a car out of state isn't a big deal, but transferring a car out of that state might not be too smooth a ride.