How to Buy a Car in Another State

At Lafayette Volkswagen we’re lucky to have customers not just from Indianapolis and Avon, but from all over the region. That includes customers from neighboring Illinois, Michigan, and Ohio. Many Purdue students who purchase vehicles from us have permanent addresses that are out of state and ask if they can buy a car out of state. The answer is yes, you can buy a car out of state! Knowing how to buy a car in another state helps make navigating the differences easy. And, in many cases, enjoy significant savings. Learn how to buy a car in another state with the Lafayette Volkswagen finance department today! 

Buying a Car Out of State: Registration

If you’re buying a car in another state besides the one where you have your permanent address, you’ll need to know how to navigate the red tape of registering your car in the state where you live. Just follow these steps when you’re buying a car in another state: 

1. When buying your vehicle, ask for a bill of sale that has the purchase price you paid listed clearly.
2. Find your local DMV on a website like DMV Near Me.
3. When you visit your local DMV, make sure to have the following items with you:

• 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

Let the DMV clerk know that you purchased the car out of state with the intent of titling and registering it at your address.

1. The clerk will keep your IN title and ask that you pay the appropriate difference in sales tax between the two states. 
2. Keep your eye on your mailbox for a new title.

Buying a Car Out of State: Taxes and Fees

While this is the most complicated part of buying a car in another state, it’s still relatively easy to navigate. Each state sets its own sales tax rates, so the rates in Indiana are likely different than they are in your home state. You’ll pay the sales tax on your car in the state where you register it. You’ll also owe the difference between your home state’s taxes and what’s charged in Indiana if your home state’s sales taxes are lower. You’ll also be responsible for any processing fees charged by the DMV. 

Buying a Car in Another State is Easy at Lafayette Volkswagen! 

At Lafayette Volkswagen, we welcome drivers from Noblesville and far beyond! We hope that, no matter where you are in the Midwest, you’ll look at our new VW selection and compare our prices with those in your hometown. Our new vehicle specials can make it worth the trip to Lafayette!