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How to Buy a Car in Another State

A common question we hear at Greenway Hyundai of the Shoals is, “Can I buy a car out of state?” Many drivers are hesitant about buying a car out of state. Some are concerned about registration, taxes, and fees, and geography plus the typical stress of the car shopping process. When you shop with Greenway Hyundai of the Shoals, we strive to take that stress out of the car shopping experience. Did you know that buying a car in another state is actually quite similar to buying a car in your home state? We’re here to assist car buyers interested in buying a car in another state. Find the car of your dreams in no time today!

How to Register a Car Purchased in Another State

Once you have purchased a car out of state, it is time to register the vehicle in your home state. Here is how this process works at the DMV:

  1. Before you head to the nearest DMV, make sure you have everything you need:
    • Bill of sale
    • Completed application for vehicle transaction form
    • Title of the vehicle signed by the previous owner
    • Lienholders’ names and address
    • Filled out odometer disclosure state for title transfer
    • Tax Form RUT-50 Private Party Vehicle Tax Transaction
    • Registration Fees
    • Proof of insurance
    • Proof of residency
  2. You will need to inform the DMV clerk that you purchased the car out of state and you plan to title and register it at your address.
  3. In most cases, the clerk will return your bill of sale but hold on to the out-of-state title. You will be required to pay the appropriate difference in sales tax between the two states.
  4. Your new title should arrive by mail soon.

Taxes and Fees for Buying a Car Out of State

Are there additional fees associated with buying a car in another state? Your local sales tax, the difference between Alabama and the other states’ sales tax, and any applicable processing fees at your DMV are the only major payments above and beyond the purchase price of your new vehicle. The cost will likely not be much different than it would be if you purchased a car in your home state.

Car Shopping is Hassle-Free at Greenway Hyundai of the Shoals

If you have been thinking about buying a car out of state, you can expect a stress-free experience from start to finish when you choose Greenway Hyundai of the Shoals for all of your automotive needs. Contact us today if you have any questions. You can even get pre-approved for financing online to save time.

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