Buying a Car in California From Out of State

Buying a car in California from out of state can be a complicated process due to the state’s many laws and restrictions.
Written by Melanie Johnson
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If you’re a
California
resident and you purchase a new car from out of state, you’ll need to prove that it is certified to meet California’s smog laws. If you purchase a car in California and plan to register it in another state, you’ll need to check out your state’s requirements for registering an out-of-state vehicle.
  • The state of California has some of the strictest laws in the nation when it comes to vehicles that can be registered within the state.
  • If you’re purchasing a new or used car from out of state as a California resident, it will need to satisfy the state’s emissions standards in order to get registered—but some exceptions can apply
  • If you purchase a car in California but live in another state, you may need to pay local sales tax

How to buy a car out of state as a California resident

Before you purchase that “perfect” out-of-state car: It’s important to understand California’s requirements for registering a car bought across state lines.
If you’re a California resident and you purchase or acquire a new car from out of state: You’ll need to prove that it is certified to meet
California’s smog laws
in order for it to be registered in the state. The California Department of Motor Vehicles DMV (CA DMV) will not register a new vehicle—or one that is less than two years old or has less than 7,500 miles—without a smog certification. 
Not all new cars conform to California’s emissions testing requirements: Some car manufacturers produce vehicles to be sold only in the other 49 states. These “49-state” vehicles pass federal emissions requirements—but not California’s! That said, once a 49-state vehicle is more than two years old or has more than 7,500 miles on it, it may be registered in California, assuming it can pass the smog check.
Pro Tip: The emission label under the hood of your vehicle will tell you if the car is legal for sale in California.

Exceptions to California’s emissions law

There are some exceptions to California’s emissions law. 
You may be able to register a 49-state vehicle in California if:
  • The vehicle was obtained as part of a divorce, legal separation, or inheritance
  • The vehicle was purchased to replace a California-registered vehicle that was stolen and/or destroyed/made inoperative beyond repair while using it out of state
  • The vehicle will be used as an emergency vehicle in accordance with California Vehicle Code §§27156.2 and 27156.3. 
  • The vehicle was registered by you in the state of your last active military service outside of California

How to buy a car in California if you live out of state

If you purchase a car in California and plan to register it in another state: You’ll need to be familiar with your state’s requirements for registering an out-of-state vehicle. 
In most cases, you’ll need:
  • To acquire a valid bill of sale for the car purchased (some states, like Montana, Arizona, and Oklahoma, require a notary stamp on the bill of sale)
  • Bring the bill of sale to your local DMV with photo identification, proof of residency, odometer disclosure, and proof of auto insurance
  • Register your vehicle in your state of residence
When you register your vehicle, you will likely need to pay local sales tax or the difference between the sales tax in California and the state where you register the vehicle. 
If you purchased the vehicle from a private party: Ask the private seller to create a bill of sale for the transaction. 

What if I don’t have a physical title?

Registering a car in California requires:
  • A physical car title
  • An emissions inspection certification
  • A filled-out vehicle registration form 
  • Title and registration fees
If you only have an electronic title for the vehicle: You’ll need to request a physical copy of the original title from the out-of-state DMV in order to register it in California.
Things can get even more complicated if you’re financing a vehicle: The title request will have to go through your lender, the lienholder, which may take a bit of time. That said, you may be able to get a temporary registration and car insurance policy that allows you to drive the car while the paperwork is being processed. 

Tips for buying a vehicle out of state

If you can’t find the exact car you’re looking for in your state of residence, making your car purchase in a different state might make sense. However, there are some things car buyers will want to avoid when shopping for cars out of state. 
Keep the following car-buying tips in mind:
  • Never skip the vehicle history report: Don’t forget about the
    CARFAX
    report! Reports like these will alert you to any accidents or issues your car’s encountered in the past.
  • Schedule your vehicle inspection in your home state: You’ll need to meet the inspection requirements of the state you register your car in, not where you purchased the car.
  • Don’t forget an emissions test: For Californians especially, this is a must. Don’t purchase a car that can’t pass the emissions test of the state where you live! 
  • Know your state’s sales tax laws for vehicles: You’ll pay the sales tax of the state you register your car in, not the state where you purchased the car.
  • Purchase car insurance before you drive off the dealership lot: If you’re trekking back to your home state, don’t do it without insurance! Make sure to brush up on your state’s minimum car insurance laws. Once you’ve picked your insurance company, be sure to verify your coverage will be active while you’re making the trip back home in your new ride.
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