buying a car in michigan from out of state
When you buy a car from a state that requires smog checks, that car might already have a valid emissions inspection sticker; if so, check with your state to see if the current state's emissions sticker is valid/accepted in your state, too. A friend or family member can provide funds to purchase a car for an individual, but cannot have his name "on title" without a valid driver's license. In states where temporary registration is not allowed, the vehicle buyer may be able to purchase a temporary in-transit registration. Sometimes, dealerships handle this process for you and pass along the sales tax to your home state; still, you should always keep records that you paid the sales tax to show your state's title and registration office. 4. Our Title Transfers and Car Registration sections outline exactly what you need to do to transfer a vehicle's title and register the vehicle in your home state. Buying a car in one state and registering it in another can be a complex situation. The process depends on the laws of your state of residence and the state where the car was purchased, and whether you are already working with an insurance company or need to find one. Learn more about your state's requirements in our section on Car Insurance. Some states that require them do so before titling and registering the vehicle; others just require them on a regular basis (e.g., annual, biennial, etc.). Even though you're buying a car from out of state, you'll pay the sales tax to the state in which you'll register the car—i.e. To submit your questions or ideas, or to simply learn more about It Still Works, contact us. The process depends on the laws of your state of residence and the state where the car was purchased, and whether you are already working with an insurance company or need to find one. Depending on local laws, a buyer may have to furnish state-specific paperwork and pay fees at DMV or equivalent office to get either a temporary registration or an in-transit permit. Edmunds: Should I Buy an Out-of-State Car. Check our If the inspection isn't valid/accepted, or the vehicle hasn't had one or comes from a state that doesn't require one (and your state does), you'll most likely need to bring your vehicle in for a smog check before you can title and register it. Depending on the state, the required documentation to obtain this type of registration usually includes the certificate of title, the bill of sale, a valid insurance card and an out of state ID for the owner. Of course, buying a car from out of state requires the same kind of research and shopping you'd do if you were buying one closer to home. Copyright 2020 Leaf Group Ltd. / Leaf Group Media. If your state has higher rates, you will be responsible for paying the difference when registering your car. When you're buying a car out of state, perhaps the best piece of advice related to car insurance is to call your insurance agent before you purchase the car. Military members stationed outside their home state, or people keeping a car at an out-of-state vacation home may also want to own a car in one state and have a license from the other. The primary concerns in driving a recently-purchased vehicle home from another state are being able to insure the vehicle and getting the necessary paperwork to legally drive the car until it is registered in the owner’s state. If this type of coverage is provided, the insurance card likely can be emailed or faxed once the transaction is completed. Legal ownership means obtaining title in your name, as the seller transfers the title to you, the buyer. To submit your questions or ideas, or to simply learn more about It Still Works, contact us. Keep in mind the dealership will probably calculate the taxes based on their home state's tax rates. Buying a vehicle from a family member. © 1999 - 2020 DMV.ORG. Even if you bought the car in another state several years ago and paid sales tax there, you may have to pay some tax in your new state. For a buyer who has existing insurance policies, getting coverage may be as simple as making a phone call. Smog Check and Car Inspection section for emissions testing requirements specific to each state. Make sure the dealership is holding the car for you, and that you both have all necessary documents and paperwork to make the transaction smooth. Thinking about buying a new vehicle from another state in the hopes of avoiding taxes? your home state. Buying from a private party may entail more work to ensure that the car can be driven legally after the purchase. Automobile dealers usually are well-versed in situations where vehicles are purchased by people who live in other states. Some states require them; others don't. If the state allows , an auto dealer may be able to provide a temporary registration that will suffice until the vehicle is registered in state of residency. The Michigan Secretary of State Title Application requires the driver's license number of the buyer. For more information about your state's coronavirus (COVID-19) updates, see our. Here are the facts on that and other out-of-state buying issues to keep in mind. Buying a car represents more than a cash transfer. However, if you're buying from a private seller, you'll need to handle title and registration paperwork on your own. Your car shopping should be done at this point. A common example is if you're going to school out of state, where you want to buy, register and insure a car, but you want to keep your license from your home state. you must check with your own department of motor vehicles or equivalent entity for specific instructions on bringing home a vehicle purchased from out of state. The Michigan Secretary of State Title Application requires the driver's license number of the buyer. In-transit permits generally expire 30 days after issuance. Read on for our general state requirements checklist, plus some helpful tips before you cross state lines. your home state. In other situations, a buyer may have to obtain coverage before driving the car home. For example, Connecticut allows vehicle buyers to purchase an in-transit registration for purchases from either an automobile dealer or a private party. Cars driven in Michigan must be titled, registered and plated, with one exception: You can purchase a car from an individual and drive it straight home without a license plate. Often, this means a delicate balance between working with the seller's state's motor vehicle agency and your own. It is probably not a good idea to travel out of state if you aren't certain you want to buy the car. Vehicle registration of requires identification, title and proof of Michigan no-fault insurance coverage, which requires a valid driver's license. Similar to smog and emissions checks, safety inspection requirements vary by state. Legal ownership means obtaining title in your name, as the seller transfers the title to you, the buyer. Ideally, both parties go together to ensure a legal transfer, but the buyer may go alone. If you are thinking about buying a car from out of state, consider these tips: Subscribe to stay in the loop & on the road! This article was written by the It Still Works team, copy edited and fact checked through a multi-point auditing system, in efforts to ensure our readers only receive the best information. Buying a car out of state can save money, but there may be some extra steps required to drive it home. This article was written by the It Still Works team, copy edited and fact checked through a multi-point auditing system, in efforts to ensure our readers only receive the best information.

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