Tips for Buying a Car Out of State
Updated December 2, 2020 . AmFam Team
Buying a car out of state is much easier than it used to be thanks to online auto dealers. Whether you’re buying a used or a brand-new car, you may have discovered out-of-state dealerships offering discounts or incentives not available locally.
You may also be able to find the make, model, color or options package you want when they're not available nearby. And used car buyers will love the wide variety of vehicles available that they can’t find in their own state. As the internet continues to even the playing field on purchasing a car, either in person or virtually, it's just smart to explore how to buy a car out of state. You could save a ton of money and find something you'll really love driving. But can you avoid paying sales tax on a car out of state? Let's find out.
Should I Buy a Car Out of State?
Buying a car out of state can seem like a good idea, because many wrongly assume they're able to save on sales taxes when buying in a state that doesn’t charge sales taxes. Not to rain on that parade, but auto sales tax is typically paid on the purchase of a vehicle in the state where the vehicle will be registered — not where it’s purchased. If you’re wondering “should I buy a car out of state and save on taxes?” The answer is: you might not save much.
Budget for paying sales taxes
If you’re going to be shipping the car to your home state after making the purchase, much of that tax-free savings can be offset by the transferring fees. You may need to buy a temporary registration tag from the purchase state if you’re planning on driving it back. And you'll likely not be off the hook for tax payments when your register the new vehicle in your home state.
Review smog testing requirements where you're buying
Some states will not allow the sale of a car that did not pass a smog test. Even if you make a purchase from a private seller, if the car's failed it's emissions test, the you may be required to make adjustments and get the car re-certified. Because purchasing used vehicles are generally understood to be an "as is" purchase, it will be up to the buyer to ensure EPA compliance.
Check in with both DMVs
Be sure to check in with your home state’s DMV before committing to an out-of-state automobile purchase to better understand your local tax burden after purchasing. To avoid any unpleasant surprises, it’s best to do your homework and contact the other state’s DMV so you’ll know how you’ll be required to pay taxes, title fees, etc., after buying a new car out of state.
Get the car in front of a mechanic before making an offer
When making an out-of-state car purchase, be sure to get on the calendar of a nearby and well-reviewed mechanic. This is key for high mileage vehicles that no longer have an active warranty. Ask the mechanic about the physical condition of the car and what repairs or maintenance costs to expect. Then base your offer to purchase on those findings. The small upfront cost for the technician’s time could save you thousands down the road.
Buying a New or Used Car Out of State
As far as car insurance is concerned, you’ll likely be able to transfer your current auto policy to the new vehicle when buying a new car out of state. But because values between vehicles can vary, it’s best to revisit your auto policy, even if you’re buying a used car out of state. Here are a few other things to think about when making a purchase on a car elsewhere:
Out of state car purchase coverage options
Between gap/lease & loan coverage and comprehensive coverage options, it pays off to have the right policy in place before you take ownership of the car. In many cases, when your vehicle’s financed, certain coverage can be required by your lender.
Explore municipal and county fees
Other financial issues can arise when purchasing new or used vehicles out of state, like the impact that local and county taxes where you're buying the car can have on your bottom line. Even purchasing from a private seller can require you to pay out to all local entities when the time comes to purchase temporary vehicle plates.
Requirements for Buying a Car Out of State
Out-of-state car shopping definitely involves extra preparation and greater due diligence. Here’s a handy checklist that’ll help you get into that sweet set of wheels you’ve been dreaming of:
Title and registration for out of state cars
With a new car, the dealership will handle the title and registration paperwork for you in the state of purchase and will mail the title to your state depending on how your state handles titles. But after that, you’ll have to title and register it in your home state.
If you’re buying a used car from a private seller out of state, there may be some extra paperwork necessary depending on the states involved. Again, it's best to contact DMVs in both states to see what steps you need to take when buying an out-of-state vehicle privately.
Smog, emissions and safety inspections
Some states require EPA inspections, and may have certain requirements and restrictions that others don’t. If the car is not compliant, be prepared to take steps and pay additional costs to get it certified.
Don't let sales taxes and fees surprise you
It’s important to keep in mind that you’ll need to pay sales tax in the state where your car will be registered (your home state) — not in the state where it was purchased. A dealership may handle it for you but they don’t have to. So, do yourself a favor by making sure your state’s sales tax is properly paid, so you don’t have any hiccups when you register it at home.
Car insurance should be purchased before you buy a car out of state
Contact your insurance agent (Opens in a new tab) before you make the purchase so you have your auto insurance ready to go. This can speed up the process and gives you the protection you want for your new ride.
It’s important to know you’ve got the right coverage before you hit the road. Be sure to check out our state vehicle coverages index where you can learn about policy requirements where you live.
Buying a car out of state may require some additional work but is it also a great way to find the best vehicle for your needs. The last step when buying an out-of-state car? Take that car out on the open road and enjoy the ride!
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- How to Prevent Distracted Driving
Sending a text, eating your burrito, applying makeup — what do all of these tasks have in common?
They’re all everyday examples of distracted driving.
As a driver, it’s your responsibility to focus on the road to keep you, your passengers, and other people on the road safe from accidents. We’ve put a spotlight on some risky driving behaviors that we hope can help influence you to keep your focus on the road.
What is Distracted Driving?
Distracted driving is when the driver is doing something that takes their attention away from the task of driving. Any time your eyes and/or mind are taken away from the road, you’re technically distracted, which means an increase in the risk of an accident.
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The Deadliest Driving Distraction: Texting and Driving
It should come as no surprise to you that texting is the most common distraction while driving as well as the most dangerous. It’s so deadly in fact, that it gets its very own section.
It’s easy for us all to see the dangers of texting while driving, but even with that knowledge, so many of us fall into the temptation of sending off a fast text message while behind the wheel. But even a quick text can have horrible consequences.
Just think, when you look at your phone, your focus is on the screen, not the road; one hand is off the wheel to hold your device, and your mind drifts to the message instead of the task at hand: driving safely.
Why texting is distracting
To put it into perspective, if you’re traveling at 55 MPH and you take your eyes off the road and onto your phone, you’ve traveled about 100 yards – the length of a football field! That’s quite a distance to cover driving “blind.”
The National Safety Council reports that one out of every four car accidents in the United States is caused by a distracted driver who was texting. They also reported that texting and driving is six times more likely to cause an accident than driving while intoxicated.
Let these driving facts be a wake-up call to the extreme dangers of texting while driving.
Is it Illegal to Use Your Phone While Driving?
The truth is that it depends on which state you live in. As of 2020, the Governors Highway Safety Association reports that there is a hand-held cell phone use ban in 22 states, with 48 states banning text messaging for all drivers. Find out the distracted driving laws for your state to ensure you’re following the rules of the road in your state.
It’s always important to know our state laws, and in your state there may very well be no law preventing you from texting while driving. However, for your safety as well as those in your car, and for anyone else sharing the roads with you, it’s best to stick with a firm “no phone use while driving” mentality.
Types of Distracted Driving
The first step to preventing distracted driving is understanding what it is. In a nutshell, anything that occupies your attention while driving is a distraction. Here are a few notable distractors that should be eliminated while behind the wheel.
Checking your GPS
When it comes to directions, we’ve come a long way from the world of fold-up maps. Today, everyone has a built-in navigation system in the palm of their hands: the smartphone. The only problem is that just one quick glance at your phone’s screen is all it takes for a costly mistake behind the wheel.
Your best bet is to leave your phone in your pocket or purse when driving. But if you must use your phone for directions, enable the voice feature so that you don’t have to look at the screen for every turn.
Sifting through your music device
Trying to find the right song for your road trip is just as dangerous as texting and driving. Your best bet is to pick a playlist prior to getting into your vehicle. Or listen to the radio. The key here is to keep your eyes on the road and not on your music device.
Checking social media
Instagram, Snapchat, Facebook, Twitter, you name it – all of them bide for our constant attention. Don’t fall prey to this when you’re driving. That post, tweet, or message can wait. Avoid checking social media when behind the wheel.
Eating behind the wheel
You may be a pro at eating your burrito on the go, but ingesting your lunch while driving is a big no-no. All it takes is one wayward waffle fry to take your attention from the road to your lap. And it’s not just the mess that distracts; it’s the smell, taste, you name it – that makes eating one of the most distracting things you can do while driving.
Other types of distracted driving
There are a few more forms of distracted driving that could cause an accident. If you’re in the driver’s seat, try to avoid these altogether:
- Taking selfies
- Talking on the phone
- Drinking coffee or another beverage
- Putting on makeup
- Using an app
- Loud music
Top 5 Ways to Prevent Distracted Driving
There are easy ways to prevent distracted driving. Try using making these five simple changes distracted driving safety tips to have a safer driving experience.
Use a text-blocking app
There are many apps available that block texts while driving. Several apps exist with different features, ranging from ones that completely block any incoming or outgoing texts while going a certain speed, to apps that will send a message saying you’re unavailable to respond to an incoming text. Here’s a list from DMV.org with great suggestions for apps to fight distracted driving.
Have a passenger navigate for you
If you’re driving with a passenger (of an appropriate age), hand the directions to them. Even a not-so-great navigator in the passenger seat is better than the person behind the wheel being responsible for both driving and navigating. If you’re driving by yourself, take the time to look at the directions before you set off. Then turn the volume up and let the AI lead the way.
Make music selection easy
Make multiple playlists that you can choose from before starting the car. If you really need to change it up, either pull over or wait for a red light. Set your presets to stations you already know you like. Hitting one button is better than cranking the dial until you find music you like.
Don’t text while driving
If you’re behind the wheel, just put the phone away. Social media can wait. It’s not going anywhere — that we can promise. Are the notifications too tempting? Turn them off! No comment or new tweet is worth the risk.
Eat at home or while stopped
If you’re in a rush and want to keep things moving, consider the hazards of driving while eating behind the wheel. Hopefully you can recognize that the risks outweigh the temptation, and you can wait until you get to your destination to eat.
How Does Distracted Driving Affect Insurance?
For starters, getting into an at-fault accident will almost always make your insurance premium go up, simply because your insurance company now deems you a higher-risk driver. Distracted driving is no exception. Even if you avoid an accident but you get a ticket for distracted driving, you’re susceptible to those increases in insurance.
Why does distracted driving increase insurance? For starters, you may be getting a discount for having a clean driving record. But if you get a ticket, such as for texting while driving, you may no longer be eligible for that discount, and you’ll notice an increase in your premium. Another reason your insurance might go up goes back to being a higher risk. If you’re guilty of distracted driving, an insurance company will consider you a high-risk driver (meaning you’re more likely to file a claim due to an accident) and they’ll set your premiums higher.
Many of the discounts that insurance companies give out revolve around rewarding drivers for having no claims and a good driving record in general. Don’t let distracted driving take away those perks!
Protect Yourself From Distracted Drivers on the Road
Avoiding distracting driving behaviors is a great way to be safe on the road, and car insurance is a great way to stay protected from the unexpected. With American Family you can customize your car coverage to meet your unique needs. Talk to your agent today to find the right coverage for you.
The Insurance Information Institute claims driving while interacting with a mobile device can increase the odds of a crash by as much as 3.5 times, compared to the risks that a sober, alert and attentive driver faces. Teens are more susceptible to collisions, even when speaking hands-free on a mobile phone. Let’s explore the many ways you can help prevent distracted driving accidents.
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