It would be best if you tried to find a car you can afford that is located in your state or, at the very least, in one nearby. Action Alerts PLUS is a registered trademark of TheStreet, Inc. state that does not allow transfer of plates. Annual ownership and usage costs: $2,691. I bought a car in Kentucky (which has a 6% sales tax) and drove it back to NC (which has a 3% highway use tax). If you purchase your vehicle at a dealership, they will likely collect their state's taxes on the spot and you will be required to make up the difference when you visit the DMV at home. If you buy from a private party, you should be prepared to be stopped by law enforcement on the way home for not having a license plate. The Carfax Report may also indicate if the car has ever been in a crash, flooded, or salvaged. Buying a car out of state is not for the faint of heart or the undecided. It can be a lot easier to get scammed if you're purchasing a car out of state without seeing it first. This won't just save you extra time and money when it's time to get your car inspected, but it will also keep you safe. With the passage of Acts 2015-503 and 2015-551, sales of automobiles, motorcycles, trucks, truck trailers, or semitrailers, excluding motor homes and travel trailers, that will be registered or titled outside Alabama, that are exported or removed from Alabama within 72 hours by the purchaser or his or her agent for first use outside Alabama, are subject to the Alabama sales tax in an amount equal to the state automotive sales … For new cars, manufacturer rebates and financing incentives can vary by region. It can save you so much in fact that it might just be worth the drive. Be wary of out-of-town used-car classified listings that involve a third-party agent using a funds-transfer service. If you have questions about this story, please contact us at Editors@carfax.com. Opting for an out of state car purchase is different than buying a car in Washington. Buying a car out-of-state can be a major undertaking. If you want to buy a car out of state, plan to see the car in person before you make your decision. Tips for buying a car out of state. For starters, even though the car may be a fair distance away, never buy a car or truck sight unseen. You’ll probably have to show proof of insurance, as well. Buying a car out of state - and I can't figure out the tax, title, and license fees for AL (Huntsville: sales) User Name: Remember Me: Password ... a cash purchase (mine was a new vehicle if that makes a difference I don't know). You may also have to pay any applicable local sales taxes. Conversely, four-wheel-drive trucks and SUVs tend to be more valuable in northern states than in the South. Use Carfax’s Service Shop Directory to Find Top-Rated Mechanics in Your Area. However, some cars simply aren’t widely available in certain areas. Buying a car out of state can be challenging, but it can also help you save money under the right circumstances. I've been covering cars for more than 30 years, with 17 of those spent as automotive editor for Consumers Digest magazine. A new car is often the second largest purchase (after a house) that a person will make in a lifetime. You might live close to a state border. New vs. Used Car Buying from Out of State. Check the automaker’s website to see whether the offers change based on location. Follow these simple steps to ensure that your vehicle purchase goes as smoothly as possible. You should have this paperwork from the dealer when you purchased the car. Before you make any big out-of-state treks to potentially buy a car, make sure that you're not making the trip for nothing. Many dealerships will give you a temporary registration sticker to use for your drive home. Your registration process will be delayed if your state requires emissions tests. Getting your title and registration in order is an easy process if you're buying your car from an out-of-state dealership. Some states offer “trip permits” that let you drive an unregistered car for a few days – enough time to get it home and get it registered. Some insurance policies provide automatic coverage for a limited amount of time for new purchases. You don't pay TN tax at all, and not Alabama tax until you register your vehicle in AL and get your tags. Use Carfax’s Dealer Directory to Find Top-Rated Dealers in Your Area. Being prepared is key. Many automakers offer deals on their certified used cars, like they do on new cars. Finally, watch out for “title washing.” This is where con artists illegally remove “salvage” or “flood” designations from vehicle documents to make wrecks look like problem-free models, at least on paper. Generally, when you're buying a car from an out-of-state dealership, the dealer handles all title and registration paperwork for you. Further, buying an out-of-state car at Balise Mazda is actually pretty easy, because we take care of all of the tough stuff for you. However, if you are buying your car from a private seller, you will have to handle the paperwork on your own. Use the CARFAX search as one important tool, along with a vehicle inspection and test drive, to make a better decision about your next used car. If you can, get proof that the car passed its last emission test so you know what you're getting yourself into. They will usually help you with all of the necessary paperwork. Even better, take the time to have a used vehicle inspected by a local mechanic who can evaluate its mechanical condition – particularly the parts you can’t see – and alert you to any possible problems. Once you’ve bought the car, you have a certain number of days to register the title at your local DMV, usually paying a fee. Some states require dealerships to obtain proof of insurance before completing the sale. Find out the essential steps you need to take to buy a car out of state in 2019. It’s best to ask the DMV representative. To avoid issues like the ones mentioned above, you should consider obtaining a Carfax Vehicle History Report before purchasing a vehicle. This can potentially help you save a lot of money if dealerships in your area aren't running similar deals. Sometimes, when a person buys a car without doing enough research, being reasonable about finances, or comparing prices, he wants to return the car. If you're buying from a private seller, you may get pulled over on your way home for not having a license plate if you purchased in a state that does not allow transfer of plates. Then, go visit the seller to make sure the car is as advertised, and be sure to take a test drive. Remember the trip home: If you end up purchasing the vehicle, you also want to consider the drive home. Last emission test so you know what you 're buying your car out of state vehicle after. 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