Buying a Car Out of State | Montway Auto Transport

Author(s)

Why buy a car from out of state?
The paper you need when buying a car out of state
Paperwork by purchase type: What's different
Taxes when buying a car out of state
How to register an out-of-state car purchase in your home state
Getting your car home: Driving vs. shipping
Paperwork timeline: What you need at each stage
Frequently asked questions
Shop nationwide, ship to your driveway

Buying a car used to mean choosing from whatever happened to be on the lots within driving distance. Today, buyers can go online and search millions of listings across the country, filter by trim level, color, mileage, and price, and find exactly what they're looking for—often at a better price than local options.

Buying a car from out of state can help you find exactly what you’re looking for, but it comes with some logistics that a local purchase doesn't. Title transfers, temporary tags, sales tax, registration, and getting the vehicle home all require some planning. The good news is that it’s not as complicated as it sounds. Here's everything you need to know before you buy a car from out of state.

Why buy a car from out of state?

The U.S. used car market generates roughly 2.6 million listings per month. No dealership lot can come close to that inventory. If you're looking for a specific make, model, trim, or color—or hunting for a deal on a collector car—limiting your search to your local market significantly narrows your options.

Buying out of state opens up that inventory. Online car buying sites like Autotrader and Carvana have made this even easier, connecting buyers and sellers across the country with advanced search filters and detailed vehicle histories.

The paper you need when buying a car out of state

Regardless of where you're buying from or how you plan to get the car home, the paperwork will be the same. Here's what you'll need:

Vehicle title

The vehicle title represents legal proof of ownership, making it the most important document in any car transaction. When buying out of state, make sure the title is in the seller's name, the VIN matches the car you're purchasing, and all fields (date of sale, purchase price, buyer and seller information) are completed accurately before you sign.

Bill of sale

Think of the bill of sale as the official receipt for your purchase. It documents the financial and legal terms of the transaction, including the purchase price, date of sale, VIN, year, make and model, and buyer and seller information.

Emissions and safety inspection documents

Emissions requirements vary significantly by state. Check with your home state's DMV to find out what inspections will be required when you go to register the car. If your state has strict emissions requirements, it's worth confirming that the vehicle you're buying will pass before you commit to the purchase.

Loan or lien documents

If you're financing the purchase, keep your loan documents on hand throughout the transaction. They confirm that you're the authorized buyer and that the vehicle is being financed. This information can come in handy during transit and when registering the car in your home state.

Odometer disclosure

Federal law requires sellers to provide an odometer disclosure statement for any vehicle that is less than 10 years old. This document simply certifies the vehicle's mileage at the time of sale, protecting buyers against odometer fraud.

Proof of insurance

You need insurance coverage in place before you take possession of the vehicle. Even if you're only driving it a short distance to your home, you're responsible for the car the moment ownership transfers.

Temporary tags or transit permit

If you're planning to drive the vehicle home after the purchase, you'll need temporary tags or a transit permit to make it street legal. These are typically issued by the seller's state for a small fee, and are good for 30 to 90 days, depending on the state.

Most dealers handle this automatically. If you're buying from a private seller, you may need to visit the local DMV yourself or work with the seller to obtain a temporary permit before getting behind the wheel.

Paperwork by purchase type: What's different

The main documents are the same regardless of how you buy, but the process of obtaining them varies depending on who you're buying from.

Buying from a dealership out of state

Dealerships are generally the most straightforward out-of-state purchase experience. They handle most of the paperwork themselves and have experience selling to out-of-state buyers.

That said, always review every document before signing, confirm that the title is clean and in the dealer's name, and ask explicitly about any fees that will be added to the purchase price.

Buying from a private seller out of state

Private sales require more legwork. The seller may not be familiar with the paperwork requirements for an out-of-state transaction, and there's no dealership infrastructure to lean on. You'll typically be responsible for obtaining your own temporary tags, and you'll need to handle the title transfer process yourself when you get home.

Before completing a private sale, verify the seller's identity, confirm their name matches the title, and run a vehicle history report. If possible, it’s a smart idea to arrange a pre-purchase inspection of the vehicle to verify its condition. Never send payment before you have a clear title in hand.

Buying from an online auction

Platforms like Copart, Barrett-Jackson, and Cars & Bids have made out-of-state purchases more accessible than ever, but they come with their own considerations. Many auction vehicles are sold as-is, meaning limited recourse if something turns out to be wrong after the sale. Read the vehicle condition report carefully, understand the auction platform's buyer fees, and make sure you know exactly what documents will be provided at the time of sale.

One major advantage of buying through an established auction platform: the title and paperwork process is typically well-documented, and most platforms have experience coordinating with auto transport companies to get vehicles shipped to buyers across the country.

Taxes when buying a car out of state

Sales tax is one of the most commonly misunderstood aspects of an out-of-state car purchase. The general rule: you pay sales tax based on where you register the vehicle. That will almost always be your home state, not the vehicle’s original location.

In practice, this means that if you buy a car in Florida but live in Illinois, you won't pay Florida's sales tax at the point of sale. Instead, you'll pay Illinois sales tax when you go to register the car at your local DMV. Some states have agreements to collect tax at the point of sale on behalf of the buyer's home state, while others leave it entirely to the buyer to handle at registration.

How to register an out-of-state car purchase in your home state

Once your vehicle arrives home, you'll need to register it in your state. The process varies by state, but here's what the typical experience looks like:

First, gather your documents. You'll generally need:

Signed vehicle title
Bill of sale
Proof of insurance
Completed title transfer application (available at your DMV)
Proof of payment of any applicable taxes or fees

Some states will also require an emissions test, a safety inspection, or a VIN verification before they'll issue registration.

Next, visit your local DMV or title office. Many states now offer online or mail-in options for straightforward title transfers, but out-of-state purchases often require an in-person visit, particularly if additional inspections are required.

Finally, pay any applicable fees. Title transfer fees, registration fees, and sales tax (if not already collected) will all be due at this stage. Bring your checkbook or a payment method accepted by your state's DMV.

Most states give buyers a window of 30 to 90 days to complete registration after a vehicle purchase. Don't wait until the last minute—if there's a problem with the title or paperwork, you want time to resolve it before your temporary tags expire. Learn more about the registration process in our guide: How to Change Your Car Registration When You Move.

Getting your car home: Driving vs. shipping

Once the paperwork is handled, you have two options for getting the vehicle home: drive it yourself or ship it.

Driving makes sense if the car is relatively close by and you're comfortable making the trip. But for longer distances, the math often tips in favor of shipping. A cross-country drive can easily cost $500–$1,500 or more once you factor in fuel, hotels, meals, and time off work. Add in the wear and mileage you're putting on a car you just bought, and shipping starts to look like the smarter option for most buyers.

Shipping is also the obvious choice if you purchased the vehicle at an online auction and never physically visited the seller's location. In that case, a professional auto transporter can pick up the vehicle directly from the auction facility or seller and deliver it to your door.

Paperwork timeline: What you need at each stage

Before purchase:

Financing pre-approval
Seller ID
Vehicle history report
VIN verification

At purchase:

Bill of sale
Lien release (if applicable)
Loan documents
Odometer disclosure
Signed vehicle title

Before shipping or driving home:

Bill of lading (if shipping)
Proof of insurance
Temporary tags or transit permit

After delivery (shipping)

Signed bill of lading
Vehicle inspection report
Warranty documentation

Vehicle registration

Bill of sale
DMV registration
Emissions inspection documentation (if applicable)
Tax forms
Title transfer

Frequently asked questions

Do I pay sales tax where I buy the car or where I live?

In most cases, you pay sales tax in your home state where you'll register the vehicle, not the state where you purchased it. Check your home state's DMV or Department of Revenue for the specific rate and process.

Can I drive an out-of-state car home without plates?

Not legally, without temporary tags or a transit permit. If you're buying from a dealer, they'll typically handle this for you. If you're buying from a private seller, you may need to obtain a transit permit from the seller's local DMV before driving the vehicle.

How do I transfer a title from another state?

Bring the signed out-of-state title, your bill of sale, and proof of insurance to your local DMV. You'll complete a title transfer application, pay any applicable fees and taxes, and receive a new title issued in your home state.

What if I'm buying from a private seller with no dealership involved?

Private sales require more coordination on the buyer's end. Verify the seller's identity, confirm their name matches the title, get a vehicle history report, and never send payment before you have a clear, signed title in hand. You'll also need to handle temporary tags and title transfer yourself. Shop smart, and know what mistakes to avoid when buying a car online.

How long do temporary tags last?

It varies by state, but most temporary tags or transit permits are valid for 30 to 90 days. Check the issuing state's requirements and make sure you complete your home state registration before they expire.

Can I ship my out-of-state purchase directly to my home?

Yes, and for many buyers, this is the most convenient option. A professional auto transporter can pick up the vehicle directly from the seller, dealer, or auction facility and deliver it to your door.

What happens if there's a lien on the car I'm buying?

If the seller still owes money on the vehicle, the lender holds the title. The lien must be paid off and a lien release obtained before the title can be transferred to you. Never complete a purchase without confirming the title is free and clear, or without a documented lien release from the seller's lender.

What is a bill of lading and do I need one?

A bill of lading is the document that records the condition of your vehicle at the time of pickup and delivery when shipping. It's not part of the car purchase paperwork, but it's an important document to review and sign when using an auto transport company. It protects you if any damage occurs during shipping.

Shop nationwide, ship to your driveway

Buying a car from out of state is one of the best ways to expand your options and find the right vehicle at the right price. Once the paperwork is in order, the only thing left to figure out is how to get it home. Montway makes that part easy—with door-to-door delivery and transparent, all-inclusive pricing.

Get a free instant estimate or speak with a shipping advisor at (888) 666-8929.

Why buy a car from out of state?