What to Know When Buying a Car from Pennsylvania: A Guide for Out-of-State Buyers
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When you buy a new car, you need to make sure that the sales transaction is legal and properly documented. When buying a car from Pennsylvania, there are unique steps that may not be the same as in other places you've bought a car in the past. Whether you have recently relocated to Pennsylvania or are a longtime resident buying your first car, we'll break down the process from inspection to getting Pennsylvania car insurance.
Introduction to Buying a Car in Pennsylvania as an Out-of-State Buyer
Buying a car in Pennsylvania from out of state involves multiple steps for title transfer, sales tax, and registration. To complete the process legally and efficiently, it helps to have a step-by-step guide, and that's exactly what we provide below.
Step 1: Inspecting the Vehicle Before Purchase
Whether you're buying a used car in Pennsylvania from out of state or a new one, it's vital to thoroughly inspect the vehicle. Track down the CARFAX report to view accident and repair histories and ensure that the vehicle title actually belongs to the person you're dealing with, especially if they're a private seller. A vehicle with an accident history should have a lower price than a similar one that has not had any extensive repairs.
It's also important to inspect the car in person before making a deal. Look for rust, cracks, and other obvious problems. If you can, bring a knowledgeable friend to help you test drive the car or get it inspected by a certified mechanic.
Step 2: Transferring the Title and Handling Sales Tax
The title transfer process is crucial when buying a car in PA from out of state. To transfer a title, you need the following documentation:
- Proper ID for both the buyer and seller
- Certificate of title, which doubles as proof of ownership
- Proof of insurance
As a buyer, it's your responsibility to confirm that the seller has the required documents. Once you have all the documentation in place, here are the step-by-step instructions to transfer a title:
- The seller fills out a bill of sale and lists the purchase price on the title.
- The buyer and seller both sign the title before a Pennsylvania notary public, either by meeting at a notary public, tag service, or motor vehicle dealer.
- The seller reports the odometer reading on the title.
- The seller removes the license plates.
- The buyer gets Pennsylvania auto insurance and proof of insurance.
- The buyer registers the vehicle and pays taxes and registration fees.
In addition to the sale price, the buyer must pay several fees and taxes, including:
- Sales tax: 6% of the purchase price or current market value, or 7% in Allegheny County and 8% in Philadelphia
- Title fee: Depends on the services needed and type of vehicle, but starts at $55
- Registration fee: Fees vary considerably depending on the vehicle and your situation, so check out a full list of fees here.
Step 3: Emissions and Safety Inspections
To register a new vehicle in your name, the vehicle must first pass emissions and safety inspections. Take the vehicle to any licensed inspector and pay the inspection fee. Presuming the garage isn't too busy and the car passes, it should only take a few minutes.
Step 4: Securing Temporary Tags and Registration
After you've purchased the vehicle, you'll need temporary tags and registration to drive the car legally before you have official plates. To get them, you'll need to work with an authorized agent. You can find one by visiting a local DMV office or working directly with an authorized car dealership. You'll need to bring:
- A valid Pennsylvania driver's license or ID card
- Proof of car insurance
- A vehicle title in your name
- Verification that the car has been safety and emission inspected
- An Application for Temporary Registration and Plates (MV-351)
Step 5: Registering Your Vehicle in Your Home State
If you're buying a used car from Pennsylvania with the intention of moving it to your home state, you'll have to go through a different registration transfer process. To get local license plates after your vehicle purchase, you'll need to follow your state's procedures. You'll likely need the vehicle identification number (VIN) and documentation similar to what you needed to purchase the car in Pennsylvania. Check your state's traffic authority to verify the process.
Step 6: Arranging Insurance for Your New Vehicle
New Hampshire is the only state that doesn't legally require car insurance. While you need proof of insurance to get the vehicle in the first place, you don't have to keep the first policy you get. Take some time to find cheap car insurance in Pennsylvania to make sure you have adequate coverage for your budget.
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