Buying out of state: sales tax, registration and the paperwork

Tax follows the registration

In almost every case you pay sales or use tax in the state where you register the vehicle, at that state's rate, when you title it. Buying in a low-tax state does not save you anything if you live somewhere else, and buying in a high-tax state usually does not cost you twice — most states credit tax already paid.

Getting it home legally

Your options are a temporary transport permit from the selling state, a trip permit from your own, or simply having it shipped. Shipping is the only one with no paperwork risk attached, and on a long move it often costs less than flying out and driving back.

What your DMV will ask for

• The assigned title, signed by the seller exactly as their name appears on it
• The bill of sale with the price, VIN and date
• Odometer disclosure, required federally on most vehicles under twenty years old
• Proof of insurance in your name
• A state inspection or VIN verification, where your state requires one

Check the emissions rules before you bid

A handful of states will not register a vehicle that does not meet their own emissions standard, regardless of where it came from. On anything modified, diesel, or sold new in another market, confirm it can be registered where you live before the hammer falls, not after.