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If you buy a vehicle out of state but live in Delaware, you’ll have to get a vehicle inspection, fill out some paperwork, then pay the title and registration fees before getting your new title.

Making a major purchase, like buying a new car, can be hard enough, but then there’s all the paperwork that comes with it. Delaware has a list of requirements to register your vehicle with the state.

This is where

Jerry

, the

trustworthy insurance comparison app

, can step in to help you out. We’ll walk you through the ins and outs of buying a vehicle and then transferring the title to Delaware, as well as how to sell your car to someone outside Delaware. And while we’re at it, we can give you bonus info to make sure you aren’t overpaying on your

car insurance in Delaware!

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

You’ll need to complete paperwork, get an inspection, and pay fees if you purchase a vehicle outside of Delaware. You must apply for a Delaware title within 30 days of the purchase.

The first step is heading over to a DMV

inspection

station. Any vehicle applying for a title must go through the inspection process (fortunately, this part is free). There are three tests:

Safety (tires, brakes, etc.)

Exhaust emissions (exhaust system)

Fuel system (check for leaks)

Do a quick check of your vehicle and get repairs done ahead of time. Once the car passes inspection, the DMV will give you an

Application for Title form (MV212)

. Your car dealer should give you the form if you purchased a new vehicle from them.

You’ll need additional paperwork to go with your title application:

Certificate of Origin or the previous title

Odometer Disclosure

Bill of sale (if purchased from a dealer)

Proof of up-to-date

Delaware liability insurance

Delaware driver's license or proof of residency

If you leased the vehicle, the company must provide you with a notarized power of attorney. If there are multiple owners, be sure they all sign the application. Each owner also needs to sign an existing title or certificate of origin.

Bring a way to

pay the fees

. Trailers and commercial vehicles fees are based on weight, but passenger vehicles are different:

Title without a lien—$35

Title with a lien—$55

Document fee—4.25% of the sale price or current NADA trade-in value (whichever is higher)

Registration—$40/year

While Delaware does not charge a sales tax on vehicles, you might need to pay sales tax in the state the car came from. Once you have the inspection and paperwork covered, expect to see your title in the mail after one to two weeks.

MORE:

Car Sales Tax in Delaware

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

If you sell your vehicle to someone outside of Delaware, then you have paperwork in your future. As the seller, you must fill out the back of the vehicle title, the Assignment of

Certificate of Title section 1

. You have to include the following:

Buyer’s name and address

Date of Sale

Sale Price

Odometer disclosure

Printed name and signature of seller(s)

If there is more than one owner listed on the title, the number of signatures needed depends on how ownership is recorded:

& OR—one owner’s signature and name are required (e.g., John Doe & OR Jane Doe)

AND—all previous owners must sign the title over (e.g., John Doe AND Jane Doe)

The seller must also fill in the back of the registration card and the seller's report of sale section at the bottom of the title. Send both items to the following address:

Delaware Division of Motor Vehicles

Data Management Section

P.O. Box 698

Dover, Delaware 19903

For the seller’s report of sale, include the buyer’s name/address, the date sold, the sales price, and your signature as the seller.

And one more thing—the license plate. It’s the seller’s responsibility to make sure the old license plate is returned to the DMV, but the buyer has to get the temporary tag, so it’s helpful for both of you to make a trip to the DMV.

The buyer needs a five-day temporary tag to legally drive the vehicle until they can apply for a permanent license plate. Make sure they have the following:

Driver license/ID

Proof of car insurance

Bill of sale or certificate of title signed over to the buyer(s)

Vehicle identification number

Vehicle make and year

Tag fee $20

MORE: Title transfer in Delaware

What if I don’t have a physical title?

Delaware requires a physical copy of the original title (no photocopies or digital ones), so anything besides the real deal will not work. Be sure you have a physical copy when you purchase the vehicle, or you will have to request an official title copy from that state’s DMV.

If you purchased the vehicle with a loan, the lender would have to request the title instead as the lienholder (they have the legal right to the car until the loan is paid off). You can get a

temporary registration

from the dealer or Delaware.

Tips for buying a vehicle out of state

Buying a vehicle from another state has advantages, but like any major purchase, it can be complicated. Don’t forget to do the following:

Check the vehicle history report, especially if it’s a used vehicle or you are buying from a private seller.

CARFAX

and other services can help you find out about accidents or other problems.

Don’t forget

vehicle inspection requirements

. Your vehicle must pass Delaware’s safety, emissions, and exhaust system tests. Having a mechanic look over a used car is a good idea.

Keep track of paperwork. Remember that you must have items like a bill of sale, a certificate of origin or the old title, and other documents on hand when visiting the DMV.

Don’t forget about the document fee. While Delaware won’t charge sales tax, you must pay 4.25% of the sales price. And depending on what state you purchased the car from, you might be responsible for that state’s sales tax.

Make sure you have insurance ready to go. Driving without insurance, even for a couple of days, can get you into a lot of trouble. Plus, you need to prove you have insurance before you can get a title, so know

what Delaware requires

MORE:

How to find temporary car insurance in Delaware

How to save on car insurance in Delaware

Of course, you want to make sure your new purchase has insurance coverage before driving it back home! Not only is it required for all

vehicles in Delaware

, but you want to protect your new investment with

car insurance

that fits your needs.

You’re in luck because

Jerry

can help you with that part of owning a vehicle. You can download the trusted app and let the AI do the heavy lifting by comparing more than 55 top-rated insurance companies in under 60 seconds! You can get the best options for your insurance needs, and if you find a better fit, Jerry’s agents can even help you switch over to the new plan.

“Buying my first car was stressful since I’m 19 and it was from out-of-state. But getting car insurance wasn’t, thanks to
Jerry
! The process was simple, easy, and quick! Thank you guys!” —Carl I.

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