There are many reasons to buy a car from out of state. Perhaps you found the right model and the options you want. Or maybe you found the right vehicle just a bit cheaper.

Whatever the reason, buyers often make a purchase in a different state, and nothing is preventing you from doing so. But there are some precautions you should take. The idea that you’re buying far from home can make the experience somewhat unpredictable because you can’t just stop in at the dealership to solve problems.

For those who want to buy a car out of state, here are some things to keep in mind:

Get prequalified for financing

If you’re shopping out of state, getting your financing in order is a good idea. It can make your transaction smoother. Setting up financing — which you can do even before you shop — allows you to purchase with confidence, knowing exactly how much you’re qualified for and what fits your budget. To see, get prequalified with Credit Acceptance.

Place the car on hold

When purchasing a car from out of state, ensure the vehicle is still available. If possible, ask the dealership to hold the car and obtain written confirmation. This documentation prevents the risk of traveling only to find that the vehicle has already been sold. Additionally, confirming the hold allows you to verify any paperwork required for an out-of-state purchase, ensuring a smoother transaction.

Check the car’s history

If you’re buying a used car, it pays to check its history through Carfax or a similar service. This is especially true if you’re buying in a far-off state and can’t test drive the car.

Consider transportation

Because the car is out of state, you’ll have to make plans to get it home after the sale. If it’s not too far, you can bring it home yourself using temporary license plates obtained from the dealer. For example, Washington, DC residents can easily buy a car in nearby Maryland or Virginia and drive it home. If the vehicle is farther away, you’ll need to arrange shipping, which adds to the costs. Some dealerships will facilitate delivery, but you can also shop around.

Understand what the dealer needs

Call the dealership to make sure you have all the paperwork needed to complete the transaction, whether you’re traveling to do it in person or conducting it virtually. Also, ensure you agree on the final “out-the-door" price and clarify how you’ll pay.

When buying a car from another state, you’ll still be responsible for paying sales tax in your home state. Even if you purchase the vehicle in a state with no sales tax, your state will require payment when registering the car. If you buy from a dealership, they’ll typically collect the sales tax at purchase and forward it to the appropriate state agency.

Verify your state’s requirements

Contact the DMV in your state to learn what’s required to purchase a vehicle from out of state. Ask about complying with smog and emissions standards and any required safety checks.

Insure and register the car

You should insure the car as soon as you take possession. This is because you must provide proof of insurance before registering a newly purchased vehicle. It's important to check with your insurance provider to determine whether your existing policy covers newly purchased cars for a short period or if you need to secure coverage before finalizing the purchase.

Once you bring the car home, be sure to register it promptly. Each state has a specific deadline for registering a newly acquired vehicle with the Department of Motor Vehicles (DMV). You’ll receive license plates and a title in your name during registration. The lender will typically be listed as the title holder if the car is financed. Be prepared to pay any applicable registration fees to complete the process.

Whether you buy your car in your home state or out-of-state, be ready to act when you find your best deal. One way to ensure you’re ready is to take care of your financing in advance. That will help you set a budget and negotiate over price with confidence. To learn about your auto financing options, get pre-qualified with Credit Acceptance. It's a great first step to buying a new car.