You can buy a new car from a dealer in another state and register it at home. In general, you pay sales tax based on where you register the car, the dealer gives you a temporary tag, and you title and register it with your own state. Rules vary by state, so confirm tax and paperwork with your DMV before you sign.
How an out of state purchase works, step by step
- You agree on a written, itemized out the door price with the out of state dealer.
- The dealer prepares a buyer's order showing how it will handle sales tax, title and registration for your home state.
- You sign, pay or finance, and either pick the car up or have it shipped.
- The dealer issues a temporary tag or permit so the car can be driven legally.
- Either the dealer files your title and registration with your home state, or it sends you the documents to file yourself.
- You receive permanent plates and registration from your home state.
The steps that cause trouble are tax, the temporary tag and who files the title. Settle all three in writing before you commit.
Where you pay sales tax
As a general rule, vehicle sales tax follows the place where the car will be registered, not the place where you bought it. That means a lower tax rate in the dealer's state usually does not help you. How that tax gets collected varies.
- The dealer collects your home state's tax. Some dealers are set up to collect tax for nearby states and remit it for you. This is the simplest version.
- The dealer collects no tax. You pay it when you register the car at home. Budget for it, because it will not be in the dealer's total.
- The dealer collects its own state's tax. This is the case to avoid. Many states give a credit for tax paid to another state, but not all do, and the credit may not cover the full amount. Ask your DMV or state revenue department how it treats tax paid elsewhere.
Ask the dealer one direct question by email: "Which state's sales tax will you collect, at what rate, and will you remit it?" Then check that answer with your DMV. Trade-in tax credits and the taxability of rebates also differ by state, so ask about those if they apply to you.
The doc fee follows the dealer, not you
Sales tax usually follows your home state, but the dealer's doc fee follows the dealer's state. That can change which dealer is cheapest. CarEdge reports a national average doc fee of $477 and an average of $973 among Florida dealers, which are uncapped, in its dealer fee report. The same report lists reported caps in other states, including $398 in Ohio, $490 in Pennsylvania and $800 in Maryland.
For example, a Delaware buyer looking at dealers in Pennsylvania and Maryland would face different doc fee rules at each store. State rules change, so check each state's current rule before you rely on these figures. Our doc fees by state guide has the full reported table.
Temporary tags
The selling dealer normally issues a temporary tag or transit permit from its own state so you can drive the car home. Check three things before you leave:
- How many days the tag is valid. You need enough time for your home state to issue plates.
- Whether your home state recognizes it for that full period.
- Who to call if the tag expires before your plates arrive.
If the car is shipped, ask whether the tag and paperwork travel with the car or arrive separately.
Title and registration at home
A new car comes with a manufacturer's certificate of origin rather than a used-car title. Your state uses that document to issue the first title. Some dealers file the paperwork with your state's DMV for you. Others hand you the documents and you visit your DMV or tag office.
Ask your DMV what it needs before you buy. Typical items include the certificate of origin, the bill of sale or buyer's order, proof of insurance, proof of identity and an odometer statement. Some states require a VIN verification or inspection for vehicles bought out of state, and some have emissions or safety inspection rules. If you are financing, your lender will need to be listed as lienholder on the title, so confirm the dealer has the lender's details.
Flying in versus paying for delivery
A cheaper car three states away is only cheaper if the trip does not eat the difference. Compare the two options as totals.
| Option | Costs to count | Watch out for |
|---|---|---|
| Fly in and drive home | One-way airfare, a hotel night if needed, fuel, meals, your time off work | Inspecting the car at the dealer is easy, but a long drive adds miles before your first service |
| Dealer or carrier delivery | The delivery or transport quote, in writing | Inspect on arrival, before you sign the delivery receipt; damage noted later is harder to claim |
| Pick up from a nearby dealer | Fuel and a few hours | A slightly higher price may still win once travel is counted |
Get any delivery charge in writing as part of the out the door quote, or as a separate written quote from the carrier, so you can add it to the dealer's total.
Inspecting the car at delivery
Whether you pick it up or it comes on a truck, inspect before you sign anything that says you accepted the car in good condition.
- Match the VIN on the car to the buyer's order.
- Check the odometer. Note anything beyond normal delivery miles.
- Walk around for scratches, dents and chips, including the roof and lower panels.
- Confirm the options, both keys and the temporary tag are there.
- Write any damage on the delivery receipt or bill of lading, take photos, and tell the dealer the same day.
Our new car buying checklist has the full inspection list.
Warranty, recalls and service
A new-car factory warranty is honored by franchised dealers of that brand, not only the one that sold you the car. Recall repairs work the same way. You can buy in one state and service the car at your local dealer. Register with the manufacturer's owner site so recall notices reach your home address.
Is out of state worth it?
Sometimes. A wider radius means more dealers competing on the same car, which can surface a better price or the exact color and package you want. It also adds tax questions, a different doc fee and travel or delivery cost. The only fair comparison is the total to your driveway: out the door price plus getting the car home. Our out the door calculator helps you build that number, and the out the door price guide explains each line.
How SnagMyCar handles cross-state dealers
We serve buyers who live in Florida, Ohio, Tennessee, Massachusetts, Delaware, Vermont, Wyoming and Idaho. You set the search radius, and if it reaches into another state we serve, we include those dealers. We only contact dealers located in states we currently operate in. Every quote you see is a written, itemized out the door price with an estimated pickup or delivery cost added, so a distant dealer has to win on the total. Because each quote itemizes taxes and fees, you can see how a dealer plans to handle sales tax before you choose it, and we check the buyer's order matches before any success fee is charged. See how it works and pricing for the details.
When you know the car you want, start your search.
Questions
Do I pay sales tax in the state where I buy the car or where I live?
In general, vehicle sales tax is based on where you register the car, which is usually where you live. Some dealers collect your home state's tax, some collect none and you pay at your DMV, and some may collect their own state's tax. Ask the dealer in writing which tax it will collect, then confirm with your DMV how your state handles it.
Can I drive a car home from another state on a temporary tag?
Yes. The selling dealer normally issues a temporary tag or transit permit from its state. Check how long it is valid and whether that gives your home state enough time to issue plates. If the car is being shipped, ask whether the temporary tag and paperwork come with the car or separately.
Who registers a car bought from an out of state dealer?
It depends on the dealer. Some dealers file the title and registration paperwork with your home state for you. Others give you the manufacturer's certificate of origin, bill of sale and related documents to take to your DMV. Ask before you buy, and check your DMV's list of required documents, which may include a VIN verification.
Is it cheaper to fly in or have the car delivered?
It depends on distance, airfare and the delivery quote. Add airfare, a hotel if needed, fuel and time off work for flying in, and compare that with a written delivery quote. Whichever you choose, add it to the dealer's out the door price so you are comparing the full cost of getting the car to your driveway.
Will my local dealer honor the warranty on a car bought out of state?
Yes. A new-car factory warranty is honored by franchised dealers of the same brand, not only the selling dealer, and recall repairs work the same way. You can buy in one state and have the car serviced near home. Register on the manufacturer's owner site so recall notices reach your current address.