Buying a car can be a complicated process and should be done carefully. You have to consider several conditions, such as shipping costs, when purchasing an out-of-state vehicle. Here are some factors to consider.
5 things to consider when buying a car from out of state
1. Amount of sales tax
Depending on where you live, out-of-state purchases can have a significantly higher sales tax than in-state car purchases. Be sure to consider this amount in the cost of your vehicle. Sales tax is a percentage of the purchase price that is paid by the buyer and given to the state. The rate varies based on your state of residence, but is usually around 6%. If you find a car out of state, you will be responsible for paying sales tax on that vehicle.
2. Emissions test
You need to find out if the car will pass emissions testing in your state as emissions testing is required for registration in some states. If you live in a state that requires emissions testing, you should be aware that most cars manufactured before 1995 are exempt from emissions testing and may not be eligible for registration.
3. Calculate the shipping costs
If you decide not to fly or drive to collect the car, you will need to ship it. You will need to find a company that will transport your car on a flatbed trailer. Several factors determine the calculation of shipping costs.
• Distance between the two states. Shipping rates are based on the distance between pickup and delivery locations. A shorter length will cost less than a longer one.
• Vehicle dimensions. In addition, the size of the vehicle is also a determining factor. The weight of your car affects the cost of interstate shipping. Larger vehicles require more fuel for transportation, so they are more expensive to ship than smaller cars, trucks or SUVs.
4. Check a buyer’s remorse policy
If you have decided to buy a car out of state, you should know how to protect yourself. The best way is to look for a “buyer’s remorse policy” that allows you to return the car within a certain period, usually three days. This is especially important if you are purchasing an invisible view vehicle and rely on seller-submitted photos or videos. Some states have imposed buyer remorse policies as laws, which is great news for consumers. If you get it in writing, even better.
5. Whether the current insurance policy covers the purchase
You must contact your insurance company before purchasing a vehicle. Whether you are funding the purchase or paying in cash, there are essential things you should be aware of.
When financing a car, your lender will require you to have full coverage insurance as a “loss payee” with them listed on the policy. This means that if the vehicle is totaled into an accident, they will be paid first and then they will pay any remaining balance to you.
When you buy a car outright (which means you own it outright), you may be able to carry liability-only insurance as long as the lender doesn’t request full coverage. Liability insurance covers damage caused to other vehicles in an accident, but does not cover damage caused to your car. If your car is damaged or stolen, you would have no coverage under this policy and you will have to pay for all repairs out of your own pocket.
This article was published by: Rick Mony by title: 5 things to consider when buying a car from out of state
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