It's very possible to buy a car in another state and it's perfectly legal. However, there are a number of tax and title issues that you'll need to know about in order to manage the transaction correctly. In addition, you'll need to let the car dealer know what you're planning and contact the DMV here in California.
Keep in mind that you'll be required to pay the 7.25% sales tax here in California and not what might be a lower rate in another state. Of course, there are obvious advantages in buying a vehicle from the new inventory or the used inventory at a dealership like ours. That includes convenience in shopping locally and an easy purchasing and financing process. To help you decide, here's some more information on how to buy a car out of state provided by Red Bluff Chrysler Dodge Jeep Ram in Red Bluff CA.
One reason is that you may have found a rare or vintage model somewhere else in the country. Another common reason is that vehicles can be priced lower in other states, and that's especially true here in California where prices can be high. If a certain make and model is very popular here, it might be high-priced, so you might get a lower price on the same car in another market.
When you're buying the vehicle, notify the dealership that you want to register that car in California. Be sure to ask for a bill of sale that states the purchase price clearly. Contact the DMV and let them know what you have in mind, to get some local guidance. Get your bill of sale, the vehicle's title, the names and addresses of any lien holders plus an odometer disclosure statement.
You should get Tax Form RUT-50 Private Property Party Vehicle Tax Transaction as well as proof of insurance and California residency for your home in a community like Chico, CA.
When you contact the DMV ofice, tell the clerk that you bought the vehicle in another state and you want to register it. In order to finish the process, you’ll need to pay California sales tax that would be due if you had purchased the vehicle here.
Chances are you will need to get a temporary registration card from the state where you bought the car if you plan to drive it back to California. You will also need to make sure the car meets the emissions standards in California, and not those of the state where you bought the vehicle. For example, if you buy a car in Nevada, the vehicle might fail the emissions testing in California. Some cars will have a label that indicates the car meets the emissions testing standards in all 50 states so you should ask the dealer if your car qualifies.
Yes, if you're thinking about buying a car in another state, be sure to get a copy of the vehicle history report before you drive to take a look at it. That report will have information about any recalls, accidents, maintenance or title issues, like a rebuilt title. It will reveal any red flags that can keep you from being able to buy the car. For example, if the report shows the car title has liens, those will need to be satisfied before you can drive that vehicle back to California. Otherwise, you could be legally responsible for the liens.
These are some general guidelines that illustrate how to buy a car in another state. We invite you to contact us to get more information, and review our current inventory to see if you can find the right new or used vehicle closer to home. We look forward to serving you at Red Bluff Chrysler Dodge Jeep Ram in Red Bluff CA.
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545 Adobe Rd
Red Bluff, CA 96080-9623