Buying a car out of state? Why some people choose to travel

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Paul Hanson was looking for a used truck with a specific checklist in mind, like power locks and cruise control, but not many extra features. gas engine. Enough towing capacity to tow a camper.

By the time he narrowed down his search online, he had found only three cars in the country that matched his criteria, and none of them were near his hometown of Brayton, Iowa. He decided to buy a 2021 GMC Sierra Heavy Duty in Seattle, but it would cost about $2,500 to have the car shipped to a nearby location.

But there was another option. Hanson calculated that a weekend road trip with a one-way ticket booked would cost nearly $1,200, including hotel stays, food and gas. It was an easy choice for Hanson, who loves road trips.

“Basically, we wanted a work truck with four doors,” Hanson said. “I could go find a fully loaded F-250, or I could find trucks of all sizes and brands nearby that were fully loaded, but those are astronomically expensive, so I didn’t want that.”

Shopper picky eaters and used car prices are causing some buyers to look out of state for their next car. Buying a car across the country is easier than ever thanks to online marketplaces and shipping options, but experts warn buyers should be especially careful when buying from another state.

Is it worth going out of state to buy a car?

Brian Moody, editor-in-chief of online marketplace Autotrader and car research firm Kelley Blue Book, said it makes sense for some buyers to buy out of state, especially if they’re looking for a specific vehicle. When Moody couldn’t find what she wanted for her daughter nearby, she had a Saab sedan shipped from Maryland.

“This car had 50,000 miles on it and had only had one owner, so I felt it was worth the extra $1,200 to ship it,” Moody said.

However, “Generally speaking, if you live in a town of a certain size, unless you’re looking for something really special, there are plenty of Honda Accords, Chevrolet pickups, and Toyota minivans in your area.”

Mr Moody warned that buyers should take precautions when buying sight unseen. He suggested using a used car pre-purchase inspection service before purchasing.

“It’s really hard to buy a car that you haven’t seen in person,” he says. “You can look at everything about the car[online]and think, ‘This is great,’ and then it arrives at your house and you’re like, ‘Oh my gosh, I need tires in the next six months.’

If you are purchasing from out of state, there are some additional considerations.

  • Buyers typically pay sales tax where the vehicle is registered, so there is no benefit to purchasing from a state that is exempt from sales tax.
  • Drivers must obtain a temporary registration from a dealer before driving their vehicle home. Alternatively, if you purchase from a private party, you must ensure that all appropriate documentation required by each state’s Department of Motor Vehicles is signed and dated before driving.
  • Ivan Drury, director of insights at car research site Edmunds, said drivers should call their insurance company before making a purchase to decide whether to add the car to their plan.

What is the cheapest state to buy a used car?

High used car prices may encourage more shoppers across the country to look for bargains, but affordability remains a challenge for consumers amid high interest rates.

A recent study by lending platform NetCredit ranked used car prices in each state based on 200,000 listings of popular models, taking into account variables such as mileage, number of owners, transmission type, and generation.

According to their findings, the states that offer the most affordable used cars are:

  • north dakota
  • new jersey
  • new york
  • florida
  • Utah

Some of the most expensive states include:

  • alaska
  • Hawaii
  • mississippi
  • montana
  • new mexico

But Drury said shoppers can expect similar pricing across states for many models.

“There may be variations, but for the most part it can be explained as: What trim level do I have? What configuration do I buy?” he said. “That’s not to say you can’t find a deal, but it takes more time and research than just saying, ‘I’m going to two states. It’s going to be cheaper everywhere.'”

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