If you purchased a new or used car from a private seller or dealership outside Washington DC as a resident of this state, you’ll need to pay DC sales tax and submit the necessary documents, including the original title, to register your new car in Washington DC.
Purchasing a new car can be a complex process, but purchasing one out of state can complicate the process even further.
Thankfully, Jerry
, the trustworthy insurance comparison app
, is here to walk you through the process of purchasing a car as a DC resident from out of state, and vice versa. We’ll go over what you can expect from the registration process and what you should keep in mind during the purchasing process. We’ll even cover tips on how to save on Washington DC car insurance costs while we’re at it! 
4.7/5 rating on the App Store | Trusted by 5+ million customers and 7 million cars4.7/5 app rating | Trusted by 5M+ drivers How to buy a car out of state as an Washington DC resident
If you’re a resident of Washington DC and recently bought a car out of state, you may have not considered what you’ll need to do once you bring your new purchase home. How does registration work, how do you pay taxes, what’s the process for transferring the certificate of title to Washington DC?
The good news is that it’s totally possible to purchase a vehicle out of state and then register the vehicle in Washington DC. The bad news is that this process can sometimes be frustrating to navigate. You’ll have to pay 6% sales tax in Washington DC, and you’ll have to submit the signed vehicle title and all required forms to the DC DMV.
First, you’ll need to make sure that you obtain the vehicle title and have it signed by you and the seller, as this is a DC DMV requirement for title transfer. Bring the signed title and the following documents to your local DC DMV to get the registration process started:
Transfer title with actual purchase amount written in the transfer block (used cars only)
Certification of odometer mileage on the back of the title, when it is signed over (used cars only)
Dealer’s odometer statement
Lien or lease contract if applicable
All of the required documents must be original copies and must be brought in-person to the DMV. Once all of your documents have been verified and you’ve successfully filled out the DC title application form, the DMV will process your application and you’ll be issued a DC title and corresponding plates.
How to buy a car in Washington DC if you live out of state
Maybe you’re in the opposite situation and plan on buying a car in Washington DC but you don’t live there. The exact process depends on the state you live in, but generally, you’ll need to do the following to register a vehicle purchased in DC in another state:
Obtain a signed bill of sale and copy of the title for the vehicle purchase (some states will require a notary stamp on the bill of sale)
Bring all required documents, including the bill of sale, to your state’s Department of Motor Vehicles (DMV). These documents usually include photo ID, proof of insurance, proof of residency, odometer disclosure, and any applicable lease or lien contracts
Complete your vehicle registration in the state you live in
Depending on the state you live in, you may be required to pay sales tax on your new vehicle in your state of residency, or cover the difference between the sales tax in DC and the sales tax in your state at the time of registration. Keep in mind that you’ll have to return the car’s DC plates to the DC DMV before you drive your new car back home, so you’ll have to obtain temporary license plates to drive your new ride to your home state.
MORE: District of Columbia license plates
What if I don’t have a physical title?
Unfortunately, Washington DC requires the original paper copy of your new car’s title when registering it with the DC DMV. A photocopy or electronic copy won’t be accepted in lieu of the original. Some states use the electronic title as the default, so if you purchase your new vehicle from one of these states, make sure to request a physical copy of the original title from that state’s DMV!
If you’re financing your new vehicle, this process is a bit more complex, as your lienholder will have to deal with the title request. In this case, you may be able to obtain a temporary registration
and car insurance so you can drive your new car home while your title request is being processed. In some cases, buying a vehicle out of state is a good idea, especially if you’ve found a rare vehicle in a different state, or you’re able to pay a lower price for a new vehicle in a different location.
Regardless of the reason, purchasing an out-of-state vehicle can be a complicated process. Keep these helpful tips in mind when considering your next out-of-state vehicle purchase:
Always check out the vehicle history report, especially if you’re purchasing a car from a private seller. Online services such as CARFAX
provide vehicle history reports, so you can check out any accidents or other notable vehicle issues before purchasing. Make sure your vehicle inspection is at home. Your new car needs to meet inspection requirements in the state you plan to drive it in—not the state you purchased it from. Check out car inspections in the District of Columbia
here. Check if your new car needs an emissions test. Your new vehicle may have to undergo emissions testing
as part of its registration process in DC! Figure out your local sales tax laws. It’s likely that you’ll need to pay sales tax on your new vehicle in your home state—not the state you purchased the car from. Brush up on local sales tax law to ensure you’re paying the right amount to the right people.
Make sure your car is insured before you drive home. If you’re driving your new purchase home, don't do it without valid insurance. Make sure you have coverage that meets Washington DC state minimum requirements before setting off on your journey.
How to save on car insurance in Washington DC
Purchasing car insurance
is crucial when buying a new vehicle, no matter where you’re from. But with all the paperwork, DMV visits and phone calls involved in an out-of-state vehicle purchase, you may not have the time to shop for the best insurance rate for your new car. If you’re struggling to juggle it all, let Jerry
, the top-rated insurance broker app on the App store, do all the hard work for you. It’s this simple: download the Jerry app and in less than 45 seconds, Jerry collects all of your information from your existing insurer. Choose from competitive quotes from top insurance companies and Jerry takes care of the rest—securing your new policy and helping you cancel your old one upon request. No long forms, no calling around, no hard work. The best part? The average Jerry user saves over $800 per year on car insurance.
“I’m young and just got my first car, so choosing an insurance company for the first time was scary. My friend recommended this app to me and Jerry
made everything simple! I put in my info and got something more affordable than what I expected for my age!” —Leslie T.
RECOMMENDEDNo spam or unwanted phone calls · No long forms
