I just went through the painful ordeal of purchasing a vehicle out of state. The reason such a transaction was cumbersome was attributed to a lack of preparation on my part. There are many reasons why people consider buying cars from neighboring states. Some people realize that there are better prices perhaps in those other states compared to those offered by local dealerships. Some purchasers look to buy from southern states with the idea of getting a car that is not mistreated by the cold temperatures and associated salt damage. Another advantage maybe that you are looking for a particular model or style that is not available locally.
Regardless of the reasons for buying a vehicle out of state, it is to your advantage of make sure you have all the right paperwork when conducting the transaction. Before you leave for the out of state dealership, you want to make sure you have the title and registration to the vehicle you plan on trading in assuming you are using your existing vehicle as down payment. Also consider knowing your state title and tax laws and make any necessary preparations in advance of the out of state purchase. It is recommended to request title transfer and vehicle purchase tax forms from your state’s DMV or state’s website prior to your purchase. You will not necessarily need these forms with you when you purchase out of state, however you will have to complete them as soon as you return home with your purchased vehicle. It makes sense to get your hands on these forms in advance to eliminate taking extra trips to the department of motor vehicle facilities.
Make sure you go to dealership knowing the fair value of your trade in as well as the value of your purchase. You want this information so you are properly prepared to negotiate the value of your down payment to the dealer as well as get the seller to knock down the list price. Also, consider doing a search online and run comparative prices at out of state dealerships for the model you desire to purchase. Your local home state market prices may be of no use when negotiating prices with a dealer far away. It comes in handy to reference prices from three or four dealerships located within the vehicle purchase state.
Consider any major maintenance and repairs performed on your trade-in and mention this to the dealer if it will help your trade in value. It will be helpful to have this documentation handy to cross reference. Also make sure that all individuals that are titled to the trade in and purchased vehicles are present when conducting the transaction. You don’t want to be hundreds of miles away from home and have the co-signer absent from signing over the title to the dealership or previous owner.
Inspection
Besides doing a test drive, you will also want to conduct a thorough inspection of the vehicle. You want to make sure this vehicle is free of previous damage and consider spending a few bucks to do a vehicle history report. This is extremely important with the risk of flood damaged cars and those vehicles that were engaged in collisions. Be prepared to provide documentation or good explanations for any questions that arise from the dealer’s inspection of your trade in vehicle.
Once a purchase price is agreed upon by all parties, make sure you secure all necessary belongings from your trade in vehicle. Leave behind only the auto manual for the dealer. Take extra time when going over bill of sale and all other paperwork. You will want to make sure you have all title work signed appropriately by all parties. Make sure that the vehicle title is clear of any liens. If there is a lien on the vehicle, secure waiver of lien before closing the transaction. Also make sure you remove your plates from your trade in vehicle assuming you want to transfer those plates to your new vehicle. Please note that most state laws do not allow you to drive the new vehicle with your existing plates until a new title has been issued to you from your host state. Usually the dealership will provide you with a temporary plate that gives you about three to four weeks to secure transfer of title which will allow you to put on your old plates.
