Buying a car out of state
02-05-2006, 09:37 AM
#1
Registered User
Thread Starter
Buying a car out of state
Hi,
I am looking to buy an NSX out of state from a private owner. The owner has the title in hands, and I have cash in hands. If I buy it, how is it going to work? What do I need to do or get from him besides the title and a bill of sale? What's the legal and safe process to go through? I want to make sure once I paid, the car is legally mine. Thanks.
I am looking to buy an NSX out of state from a private owner. The owner has the title in hands, and I have cash in hands. If I buy it, how is it going to work? What do I need to do or get from him besides the title and a bill of sale? What's the legal and safe process to go through? I want to make sure once I paid, the car is legally mine. Thanks.
02-05-2006, 10:05 AM
#2
Go to your states dept of Motor Vehicles (DMA) in person or their web site and see what they require. The former owners title signed over to you and a bill of sale///// " I sold this car vin# to you from them for $xxxx.00 " might be all you need. On teh other hand you might need a form from your DMV that requires the former owners signature..... After you get the car home you are responsible for your states inspection and emmissions tests in required.
02-05-2006, 10:06 AM
#3
Depends on his state and yours, check with your local DMV.
In most states I have found that all I need are the title and my proof of insurance. Some may want a bill of sale, notarized or not.
I ran into a real hassle when I purchased my last car out of state. I paid the owner in cash which he then used to break his lease. The lease holder however screwed up the title and it ended up taking me nearly 9 months before I could legally register the car with real plates.
In most states I have found that all I need are the title and my proof of insurance. Some may want a bill of sale, notarized or not.
I ran into a real hassle when I purchased my last car out of state. I paid the owner in cash which he then used to break his lease. The lease holder however screwed up the title and it ended up taking me nearly 9 months before I could legally register the car with real plates.
02-05-2006, 11:39 AM
#4
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Like everyone said, be sure what your state will require before completing the transaction. I am still having problems with my out of state purchase. Also, in addition to title and bill of sale, you will may need a change of liability form.
Best to get everything sorted out with DMV first than to have a bunch of headaches later. Good luck.
Best to get everything sorted out with DMV first than to have a bunch of headaches later. Good luck.
02-05-2006, 12:47 PM
#5
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I am from NY bought my WRX from a private seller in NJ.
Here is what I had to do.
1. Get proof of insurance.
2. Get loan from bank.
3. Go down to Jersey, fill out bill of sale and back of Jersey Title. Give man check and cash and the car is mine.
4. Go to Jersey DMV (although it is called something different there.) Get temporary Registration. Show them proof I live in NY (so I don't have to pay tax) I showed the lady my Drivers Liscense. The Temp reg counts as the Plates and the Registration. The old Inspection works.
5. Put temp plate/reg in my window, shake the mans hand and head back to NY.
6. Stop at the last Gas Station in Jersey because it is 20 cents cheaper a gallon.
Back in NY.
1. Within a certain amount of days (I think 14) I had to register the car. I had to get plates, Registation and pay the taxes and fees.
2. Go get it inspected within 10 days (they give you a temp inspection sticker).
3. Enjoy new car.
4. ???
5. Profit
Make sure you know how to get a temp registration in that state. And what they want as proof that you are going to register it in another state. You do not want to have to pay taxes twice.
The other way to do it (if possible) is buy the car from him, tow it back or keep it at his place, go to your States DMV and do all the normal paper work. Then get the car from him, or if you towed it just put the tags on and your good to go.
In NY there is a form for tax purposes. I didn't know about this but it did not hurt me, but might hurt you. The form is a simple tax form that is much like a Bill of Sale. The seller and a witness vouch for what you paid for the car. Take it to the DMV and you pay taxes on that amount. If you don't have this you have to pay taxes on the Fair Market Value.
For me my 2002 WRX that I paid $14,500 for had a FMV of $13,800. The guy told me the FMV and asked me "What did you pay" I told him "Whatever number you just said" because it was cheaper than what I paid and it saved me about $50 in taxes. He didn't care and was happy to save me money.
With a NSX the FMV might be alot more than what you paid, so definelty find out if your state has a tax form.
Here is what I had to do.
1. Get proof of insurance.
2. Get loan from bank.
3. Go down to Jersey, fill out bill of sale and back of Jersey Title. Give man check and cash and the car is mine.
4. Go to Jersey DMV (although it is called something different there.) Get temporary Registration. Show them proof I live in NY (so I don't have to pay tax) I showed the lady my Drivers Liscense. The Temp reg counts as the Plates and the Registration. The old Inspection works.
5. Put temp plate/reg in my window, shake the mans hand and head back to NY.
6. Stop at the last Gas Station in Jersey because it is 20 cents cheaper a gallon.
Back in NY.
1. Within a certain amount of days (I think 14) I had to register the car. I had to get plates, Registation and pay the taxes and fees.
2. Go get it inspected within 10 days (they give you a temp inspection sticker).
3. Enjoy new car.
4. ???
5. Profit
Make sure you know how to get a temp registration in that state. And what they want as proof that you are going to register it in another state. You do not want to have to pay taxes twice.
The other way to do it (if possible) is buy the car from him, tow it back or keep it at his place, go to your States DMV and do all the normal paper work. Then get the car from him, or if you towed it just put the tags on and your good to go.
In NY there is a form for tax purposes. I didn't know about this but it did not hurt me, but might hurt you. The form is a simple tax form that is much like a Bill of Sale. The seller and a witness vouch for what you paid for the car. Take it to the DMV and you pay taxes on that amount. If you don't have this you have to pay taxes on the Fair Market Value.
For me my 2002 WRX that I paid $14,500 for had a FMV of $13,800. The guy told me the FMV and asked me "What did you pay" I told him "Whatever number you just said" because it was cheaper than what I paid and it saved me about $50 in taxes. He didn't care and was happy to save me money.
With a NSX the FMV might be alot more than what you paid, so definelty find out if your state has a tax form.
02-05-2006, 01:03 PM
#6
Registered User
Cash in hand makes it easier as Loan providers also require a lot of documentation, such as notarized bill of same.
In order to get a temp registration to legally drive the car back and get emission testing done, you will probably need the bill of sale, proof of insurance, and the vehicle title with assignment of ownership to you.
In order to get a temp registration to legally drive the car back and get emission testing done, you will probably need the bill of sale, proof of insurance, and the vehicle title with assignment of ownership to you.
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