Buying a car out of state with a loan is similar to financing a car in your home state. But since taxes, fees, and title processes differ between states, you’ll want to ensure you understand them in both your state and the one you’re buying from.

There are many reasons that you might want to buy a car from out of state—maybe it's a vintage or rare make and model you’re looking for, you can’t find the features you want from a local seller, or there’s a deal that’s just too good to pass up.

No matter your reason,

Jerry

, the

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, is breaking down everything you need to know about buying a car from out of state with a loan. And if you're looking for

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savings, Jerry can help with that, too!

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Can you finance a car out of state?

Yes—as long as you

qualify for the car loan

The process can be a little more tedious though, and you’ll need to understand the taxes in both states to make sure you’re not overpaying. Knowing the sales tax you’ll need to pay also helps you know how much financing to ask for from your lender.

What are reciprocal states?

Some states have reciprocal tax relationships, which means they provide credits to each other whenever their residents pay sales tax across state lines—and you’ll only have to pay tax in one state.

To find out what states your home state has tax relationships with, check with your DMV. Even if you visit a non-reciprocal state, you might be able to avoid paying their tax if you can show proof that you intend to register your car in your home state.

Key Takeaway Buying a car from out of state is a lot like buying a car at home, but you’ll want to be familiar with state-specific intricacies to ensure you’re not overpaying.

What to consider when buying a car out of state

Once you’ve applied and been approved for a loan, here are some important things to consider before you finalize the purchase of a new vehicle from out of state.

Vehicle history report

If someone has taken a loan on the car and it’s outstanding, you want to know about it.

A vehicle history report will provide information on outstanding liens so that you don’t end up responsible for two vehicle loans.

MORE:

How to find out if a used car has a lien

Insurance

Some lenders may have specific insurance requirements you must meet before they will fund your loan. You’ll also need to secure insurance ahead of time if you want to drive your car back home.

Jerry

can help you find affordable car insurance coverage that meets your lender’s requirements—and handle all the paperwork to make your car purchase that much easier.

Registration

Find out the time limit for

registering your car

in your home state, as most states require you to complete the process within 30 days of purchase or face fines and other penalties.

You may need to provide a VIN verification form, which allows your home state to verify that the car isn’t stolen property.

Getting insurance for your new (or new-to-you) ride

When you’re ready for

car insurance

, use

Jerry

to find the best deal for the coverage you need.

Jerry is the

trustworthy insurance comparison app

that helps you save time and money on car expenses like insurance. Sign-up takes less than a minute and then you’ll enjoy competitive quotes from dozens of insurance companies, including top names like

Progressive

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Travelers

Once you find the right coverage, Jerry will handle the paperwork and even help you cancel your old policy.

Best of all, Jerry users save an average of over $800 per year on car insurance!