October 3, 2023

Buying a car can be a complicated process, and it should be done carefully. You have to consider several conditions, such as shipping costs, when purchasing a vehicle out of state. Here are some factors to consider.

1. Amount of Sales Tax

Depending on where you live, out-of-state purchases may have a significantly higher sales tax than in-state car purchases. Be sure to factor this amount into the cost of your vehicle. Sales tax is a percentage of the purchase price that is paid by the buyer and given to the state. The rate varies based on your state of residence, but it’s usually around 6%. If you find a car from out of state, you will be responsible for paying sales tax on that vehicle.

2. Emissions Testing

You need to find out whether the car will pass emissions testing in your state as emissions testing is required for registration in some states. If you live in a state that requires emissions testing, you should be aware that most cars manufactured before 1995 are exempt from emissions testing and may not qualify for registration.

3. Calculate Shipping Costs

If you decide not to fly or drive to pick up the car, you will need to ship it. You will have to find a company that will haul your car on a flatbed trailer. Several factors go into calculating your shipping costs.

• Distance between the two states. Shipping rates are based on the distance between pickup and drop-off locations. A shorter length will cost less than a longer one. 

• Size of the vehicle. In addition, the size of the vehicle is also a factor. The weight of your car influences the cost of shipping it from state to state. Larger vehicles take more fuel to haul, so they are more expensive to ship than smaller cars, trucks, or SUVs.

4. Check for a Buyer’s Remorse Policy

If you have decided to buy a car from out of state, you should know how to protect yourself. The best way is to look for a “buyer’s remorse policy” that allows you to return the car within a certain period, usually three days. This is especially important if you are buying a vehicle sight unseen and relying on photos or videos sent by the seller. Some states have mandated buyer’s remorse policies as laws, which is excellent news for consumers. If you get it in writing, even better.

5. Whether the Current Insurance Policy Covers the Purchase

You need to contact your insurance company before purchasing a vehicle. Whether you are financing the purchase or paying cash, there are essential things that you should be aware of.

When financing a car, your lender will require you to have full coverage insurance as a “loss payee” with them named on the policy. This means that if the vehicle is totaled in an accident, they will get paid first, and then they will pay any remaining balance to you.

When purchasing a car outright (meaning you own it outright), you may be able to carry liability-only insurance as long as the lender does not require full coverage. Liability-only insurance covers damage done to other vehicles in an accident but does not cover damages done to your car. If your car is damaged or stolen, you would have no coverage under this policy, and you will have to pay for all repairs out of pocket.