When you are car shopping, you may need to know how to buy a car in another state. This will entail a two step process, where you buy a car in one state and licensing it in another. Laws and requirements can vary from state to state, so it is best to check with each states Department of Motor Vehicles (DMV) for exact requirements. When you buy a car in another state, these are the basic steps that are followed.
Some things to remember:
- Some states require that the signature on the title of the buyer and seller are signed in front of a Notary Public.
- Some states require a signed and/or notarized bill of sale to complete the transaction. A notarized bill of sale is a good idea regardless of whether or not one is required when you buy a car.
At the Notary Public or other state authorized facility:
- The seller of the vehicle will sign the title over to the new owner.
- The buyer and seller will sign the bill of sale.
- The state agent will issue a temporary pink slip and license plate that will allow the buyer to drive the vehicle home. Most states require that you have a valid drivers license and insurance in order to receive a temporary plate.
Having to buy a car in another state may seem like a complex transaction but it really is not. It is more time consuming to complete two sets of paperwork. It also can be a little more expensive way to buy a car since you will have to pay agent fees in both states.