Purchasing a car period can be a hassle, but purchasing a vehicle out of state can lead to an even longer list of paperwork and extra work to register the car in your home state.

Thankfully, trusted

car insurance

broker app

Jerry

is here with a complete guide to buying a car in Michigan from out of state (and vice versa). Whether you’re trying to bring a Michigan car home to your state or register a new out-of-state vehicle in Michigan, we have all the answers.

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

So you’re a Michigan resident, but you’ve just purchased an out-of-state vehicle. What do you need to do to make sure you can legally drive your new car on the roads?

Thankfully, the process for registering and converting the title to a Michigan title is pretty straightforward, but you’ll have to visit a Secretary of State office to complete it.

After you’ve

scheduled an office visit

, make sure you have the following documents ready:

The original vehicle title (photocopies and electronic copies won't be accepted), including a complete and accurate odometer mileage reading, the seller’s signature, and a completed and signed purchaser’s section

Completed and signed Application for Michigan Vehicle Title form

Proof of Michigan No-Fault insurance for the vehicle

A statement from the loan provider, if there has been a loan or lien against the vehicle

Payment for the $15 title transfer fee, or $16 if there is a loan on the vehicle, plus 6 percent Michigan sales tax

Bring all of these documents with you to your appointment at the office to successfully transfer your title and register your new vehicle in Michigan.

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

Maybe your situation is a little different. What if you live out of state, but you’d like to purchase a car in Michigan? The process is pretty much the same, but it may differ slightly depending on the state you’re bringing the new car to. Generally, you’ll need to do the following to register your new vehicle in a different state:

Obtain a valid bill of sale for the vehicle purchase (some states will require a notary stamp on the bill of sale)

Bring the bill of sale to your local Department of Motor Vehicles (DMV) along with photo ID, proof of insurance, proof of residency, odometer disclosure, and any other documents required

Complete your vehicle registration in your state of residency

You might be required to pay local sales tax or the difference between Michigan sales tax and your state’s sales tax, depending on where you register your vehicle.

MORE:

Title transfer in Michigan

What if I don’t have a physical title?

To register your vehicle in Michigan, you need the original physical title of your car. Some states automatically issue electronic titles, so if you receive an electronic title but want to register your car in Michigan, you’ll need to specifically request a physical copy from that state’s DMV.

If you’re financing the vehicle, the process may be more complicated. The title request will need to go through your lender (the lienholder), but you may be able to obtain a temporary registration and

car insurance

so you can drive the car home while the paperwork is being processed.

Tips for buying a vehicle out of state

Buying a car from out of state might be a good idea if you’re on the hunt for a model that isn’t available in your state or if prices are significantly lower in a different state. But the process of purchasing an out-of-state vehicle can sometimes be complex.

Keep these tips in mind when purchasing a car out of state:

Always review the vehicle history report. This is a very important step—especially if you’re purchasing a used car from a private seller. Services like

CARFAX

provide vehicle history reports that tell you about prior accidents or other important details about the car’s history so you can make an educated purchase.

Have your vehicle inspected at home. Your new car needs to meet the inspection requirements of the state you plan to register it in, not the state you bought it in. Review Michigan’s car inspection requirements here.

Make sure you understand your state’s vehicle sales tax laws. You’ll have to pay sales tax for the state you register your vehicle in, not the state you buy it from. Sometimes, you’ll have to pay an additional local sales tax, depending on the state.

Insure your car before driving it back to your home state. If you’re driving your new car back to your home state, make sure it’s insured with coverage that meets Michigan’s state minimum requirements, even if other paperwork is still being processed.

MORE:

How to find temporary car insurance in Michigan

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“
Jerry
is a great service made easy for a newbie. It was my first time buying car insurance and everything was quickly taken care of. Everything was done in the app, so that was incredibly satisfying.” —August M.

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