Buying a Car (OUT of STATE) from a Dealer (Top 10 Tips) Kevin Hunter the Homework Guy
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- Опубликовано: 9 июн 2024
- Everything you need to know: Buying an Out of State Vehicle. Can't find a new Toyota near you?
The process of buying an out-of-state car can easily be very straightforward but it can also get ugly on you. If you don’t take all these 10 steps before you leave home. If you have any questions after seeing this show, feel free to comment below or contact us through our website, thehomeworkguy.com.
1 Get a Vehicle History Report for Used cars
Before anything else, it’s critical to obtain a vehicle history report from services like CarFax or AutoCheck.
2 - You need an Independent Inspection on Used cars
Getting a Used Car checked by an independent mechanic cannot be emphasized enough.
3 Handling Sales Tax
When it comes to taxes and state fees, listen carefully. In MOST STATES, You need to pay sales tax to your OWN state ONLY. Wherever the car will be registered, that’s where taxes are paid.
4 Safety and Emissions Testing
Each state has different requirements for vehicle emissions and inspections. You’ll need to verify what inspections are necessary in YOUR home state-these could include emissions, & safety tests, and odometer verifications.
5 Temporary Registration
If you're driving the car back yourself, temporary registration is a must. You can’t drive across the country without a legitimate plate or permit of some kind on your vehicle. Oftentimes, this can be obtained from the state where you bought the car, or in most states you can get a temporary travel permit from your home state website or DMV office.
6 Insurance is also a Key Part of this
Insurance coverage is indeed another critical step. Confirm with your insurance provider about how new purchases are handled.
7 Get That Title
When it comes to the title, following up on it is everything. Most states require you to register your new car within a certain period-often 30 days-to avoid late fees.
8 Verify the VIN
A VIN verification is a simple but powerful step. You caen do this on sites like BeenVerified or by asking for an Autocheck or CarFax report.
9 Understanding the Full Cost
Crunch the numbers thoroughly. Use the OTD templates we have on our website thehomeworkguy.com and make sure you know what you’ll be paying in writing.
10 Test Drive Locally First
Even if your heart is set on a specific car, try to test drive a similar model close to home. You must know that you actually like the vehicle you’re after and that it fits you well.
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0:00 Introduction
0:49 Vehicle History Report Carfax Autocheck
1:17 Independent Mechanic Inspection PPI
1:59 How to pay state sales tax on cars
2:54 Safety and Emissions Testing
3:19 Temporary Registration on a new car
4:06 Car Insurance Coverage on new car
4:37 How long until you get your car title
5:01 Verify the VIN Number on a used car
5:25 How much to buy a car out of state
5:51 Test Drive a car locally before buying a car out of state
6:10 Top 10 steps review
7:00 Hassle Free Car Buying Help from The Homework Guy
7:43 What happened to Kevin Hunter? How to buy a phone call with Kevin Hunter
THE HOMEWORK GUY TEAM (THG) HELPS CAR BUYERS TO:
1. BUY a Car from Dealers or Private Party Sellers at the Lowest Price.
2. PAY Cash or Finance with their own Bank or Credit Union.
3. DECLINE Dealer Fees and Finance Products.
4. TRADE / SELL their current vehicle for the Best Value.
The Homework Guy Team provides car buying consumers with information, automotive news and updates, industry outlook, buying and selling advice, and other help to level the tables. The public face of THG is Kevin Hunter and the master negotiator, Amazing Elizabeth. Tons of time and research goes into every show, with several projects always on the table, all with the goal of getting it exactly right. From Automotive News Updates to vehicle shopping advice and assistance, The Homework Guy Team is the best there is.
Hi, I'm Kevin Hunter, known as The Homework Guy. For the best FREE car buying advice available on the planet, make sure you see our Car Buyers Blog on thehomeworkguy.com! Our new book “Buy Smart, Drive Confidently” is available as an ebook, and links for it can be found on our website, thehomeworkguy.com! The Homework Guy Team has always proudly represented you, the cash car buyer, so let’s roll! 
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For me, the hardest part is figuring out what vehicle I want. Test drove several and didn't like any of them.
I bought my car from another state when I found a nice car with low miles I called the dealer and told him my trade and sent pictures and he asked how much I expected to get I told him after I checked 1000 over trade value and we settled at 500 over trade value this was looking like the best deal I could find. So next I asked total out the door price and he called my back with it .I said if I drive that far will you stick to that. He said I think we can make a deal. When I got there I looked the car over and under and it looked new. Then he looked at my car and scratched his head and said lets get it done he was nice and I drove home smiling it was the end of the month that may have helped. I got a 3 year old car with 11,000 miles that was 2 years ago now has 22,000 miles and its a keeper for me
No luck for me out of state today in Natchez, Mississippi. Dealership would only go down to $6K over trade in value (2020 Highlander Limited). I offered $3K over trade and they totally refused. For $1k more I could get a 2021 Highlander Limited with 13k less miles. I have not began any negotiation with them in Dallas. (Hate the traffic in/out of Dallas and 5 hr. drive to get there). In the end, I will probably end up buying in Texas which by the way have only a $150 document fee vs. ~$500 in my other neighboring states. Greed for maximum profits per sale has totally taken over in Mississippi, Louisiana, and Arkansas dealerships.
I talked to an out of state dealer that was pretty up front. There was a county tax that couldn’t be avoided, all others were of course avoidable. It was very low, but it was still there.
Living in Louisiana and searching neighboring states for a quality used SUV (3-4 yr. old range only with ~50k mileage) I have found Ark/La/Miss to all have ~$500+ a documentation fee right off the bat. Only Texas dealerships most all have only a $150 document fee. In addition, those 3 same states have used vehicles consistently $8k to $10K over average KBB trade-in value (I use KBB for most accurate real value). So, that leaves me Texas in my search finding vehicles in the DFW and Houston areas where it is the most reasonable and competitive. Yes, out of state is in my case the very best option beyond any question.
Hi @bp39047 Thanks for watching and writing. It helps other Homework Guy viewers get their car buying questions answered.
@@KevinHunter A fine example of how over priced they are and how they are dug in on their super high prices is in Louisiana with a 2020 Highlander Limited (46k miles) with average trade in value of $29,352 with their price being $39,400 ($6K below original MSRP). It has been on the same Ford Dealership lot for 285 days. This price hasn''t moved since day one on their lot. Note: CarMax has the same car/mileage for $4K less in DFW area. Louisiana car prices makes Carmax look like "Walmart" in comparison. I have many other similar examples in 3 of 4 states in my search area (LA, Miss, Ark) that are equally bad.
When they disappear off the internet, I assume they either found a sucker or they shipped them off to the auction. I rarely see a price reduction. Communication with them directly results no interest whatsoever in them lowering the price. The price is the price.
Bottom line: I have seen no evidence of any kind any dealership is hurting for sales with the new strategy go low volume/max profit per sale.
This is exactly what I needed. Thank you.
Glad it helped!
Great video!!!!!
Thanks!!
2:25 - there are a couple of exceptions when buying a car from California - taking delivery out of state via common carrier (registration only) and private party sales and driving the car immediately out of CA (avoid registration and sales tax). When I bought a used car in CA to drive home to AZ, there's a stipulation when purchasing from a private party that if you take the most direct route OUT of the state within a reasonably short time, you can avoid the taxes entirely. You may still need a one-trip permit from the CA DMV to be "legal", along w/ temporary tags from your destination state.
Add to that the lack of AZ sales tax on private party purchases, I escaped tax free!
Per CA "CDTFA" tax/fee website for vehicle purchases for use outside of California: "You may not be required to pay California use tax if the only use of the vehicle in California is to remove it from the state and it will be used solely thereafter outside this state, and you do not register the vehicle in California with the DMV.
This exclusion only applies to a purchase that would otherwise be subject to use tax. This exclusion does not apply to a purchase from a licensed vehicle dealer subject to sales tax.
For example, you purchase a vehicle from a person (private party) in California who does not hold a dealer's license or a California seller's permit. Generally, use tax would be collected by the DMV at the time the vehicle is registered. However, use tax is not required if the only use of the vehicle in California is to remove it from the state and it will be used solely thereafter outside this state. A One-Trip Permit may be issued by the DMV in lieu of registration, for operating certain vehicles while being moved or operated for one continuous trip from a place within this state to another place outside this state."
Wow. Thanks for the explanation
Wow!! So glad I saw this video!!! I thought when you buy out of state you pay taxes in both states.. Thanks for the info!!!!
I enjoy your videos! Super informative and not filled with too much sales pitch for your products. One nit if I may… i’d like them even MORE if you didn’t use that horrific typing sound with the words going across the screen!
That's our editor. I'll pass along the feedback.
Question from a New Yorker: under what conditions would it make sense to consider buying a new car in either New Jersey or Connecticut?
WNY here as well. Add PA to this list as well haha. Go Bills!
I’m assuming this entire video is only about buying an out of state car from a DEALER.
If you buy out of state from a private party and register it in Arizona, then there is NO Sales Tax