Buying a Car In North Carolina From Out Of State
When you purchase an out-of-state car in North Carolina, you’ll have 28 days to pay all necessary fees and get it titled and registered.
Written by Abbey Orzech
Reviewed by Lisa Steuer McArdle
Buying a car in North Carolina from out of state requires you to transfer the title and register it at the NC Division of Motor Vehicles within 28 days of the sale.
Any car-buying process is usually a bit stressful, but when you purchase a car from out of state, you may find yourself in an even more complicated situation. Although the titling and registration process is relatively similar, it’s important to be aware of the specific deadlines and any added fees.
And since
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, exists to make your experience as a car owner easier, we’re here to break down the process of buying an out-of-state car in North Carolina. From the titling and registration requirements to the assessed taxes and how to save on your North Carolina car insurance costs,
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4.7/5 rating on the App Store | Trusted by 5+ million customers and 7 million cars4.7/5 app rating | Trusted by 5M+ driversHow to buy a car out of state as a North Carolina resident
Aside from the Atlantic Ocean, North Carolina shares borders with Virginia, Tennessee, Georgia, and South Carolina. All four of these states have major car manufacturers in them and Georgia is a major automotive hub in that region, so it doesn’t take a huge stretch for a North Carolina resident to get their hands on an out-of-state vehicle.
Sometimes the deal is just better in another state or maybe you’re buying a car from an out-of-state relative. Whatever happens to be the case, you’ll want to make sure you’re adhering to North Carolina’s out-of-state car-buying process.
When dealing with an out-of-state title, the North Carolina Division of Motor Vehicles (NCDMV) recognizes that state’s buying requirements. That means you’ll have to pay sales tax in whatever state you’re buying from. But it doesn’t end there. You’ll also be responsible for paying North Carolina’s highway-use tax assessed at 3% of the vehicle’s value, but that won’t be collected until you transfer the title and register your new car at the NCDMV.
You have 28 days from the date of delivery to sort the titling and registration before the DMV starts assessing a late fee of $20. To transfer your new vehicle’s title and complete its North Carolina registration, you’ll need to present all the proper documentation and pay all relevant fees:
- Valid North Carolina driver’s license or ID
- Original vehicle title with the buyer’s name and address, date of sale, and seller’s signature and hand-printed name OR Manufacturer’s Certificate of Origin
- CompletedTitle Application form MVR-1
- CompletedDamage Disclosure Statement form MVR-181
- Proof of valid North Carolina car insurance policy
- Bill of sale
- Current out-of-state registration
- Lien release form if applicable
- $56 Certificate of Title fee
- $21.50 license plate transfer fee
- $6 vehicle registration fee
North Carolina also requires annual safety inspections before registering a vehicle or renewing an existing registration. Safety inspection requirements can be waived if you submit a vehicle maintenance receipt that includes your name, address, phone number, the make, model, year, and VIN of your vehicle, and the name of the company that serviced your vehicle. Maintenance like an oil change or tire rotation will do just fine, but since you’re just coming into this vehicle’s possession, you likely do not have such an invoice yet.
It’s also important to note that the NCDMV can deny or withhold your registration if they find anything wrong with your personal profile including:
- Outstanding debt to the DMV
- Unpaid child support
- Unpaid county taxes
- A drunk driving charge
- Incorrect or no auto insurance
- Incorrect vehicle documentation
- Evidence of a stolen vehicle
If the DMV clears your profile and accepts your application, you’ll have to wait 10 to 15 days for everything to process before you can receive your new title and registration. The NCDMV does offer expedited titling for same or next day titling services if you can’t wait that long, but be warned it will cost a minimum of $105.75.
How to buy a car in North Carolina if you live out of state
If your situation is reversed and you’re looking to buy a North Carolinian car as a non-North Carolinian, your process will look similar but the specifics will depend on the state you live in. In general, you’ll need:
- A valid bill of sale (North Carolina requires NC titles to be notarized)
- All proper documentation and fees for your local DMV, usually including a valid state ID, proof of auto insurance, and an odometer reading
- A completed registration process in your state
Many states will require you to pay local sales tax in addition to the sales tax (or highway-use tax in North Carolina’s case) you already paid, but they’ll often just take the difference between the two.
What if I don’t have a physical title?
If you don’t have your hands on a physical title for your new vehicle, the NCDMV will also accept other proofs of ownership like the bill of sale. It’s also possible for you to order a duplicate title from the DMV.
In the event that you’re not able to provide any proof of ownership, you can title your vehicle in North Carolina using an indemnity bond from an insurance company or a cash bond.
Tips for buying a vehicle out of state
Opening yourself up to an out-of-state vehicle purchase can gain you access to potentially better sale deals or a model of vehicle that isn’t available near you. However, it also provides its own set of complications and vulnerabilities, so here are some tips for buying a vehicle out of state:
- Be sure to get a vehicle history report. If you’re buying a used vehicle, use a service likeCARFAXto get a detailed idea of the car’s accident history or other issues it’s had.
- Get your vehicle inspection at home. Your state may have different vehicle inspection requirements than others, so it will be best to wait until you’re at home to schedule the inspection so you know it will pass that state’s requirements.
- Schedule an emissions test. Depending on the county you live in, you may need to pass an emissions test before being able to register your vehicle.
- Research vehicle sales tax laws in your state and the state you purchase from. You may be responsible for both, just one, or the difference between the two.
- Get your car insurance early. You won’t be able to register your new vehicle (or legally drive it in most cases) without the proper amount of insurance coverage. Brush up on your state’s minimum car insurance laws!
How to save on car insurance in North Carolina
Buying a car is an expensive endeavor that calls for all kinds of fees. Aside from the actual sale price, you’ll need to fork over the registration fee, titling fee, and any car insurance premiums necessary. While Jerry can’t change the registration fee in North Carolina, it can find you the cheapest
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.“With little to no work on my part,Jerrysaved me $70 a month in North Carolina. The process was simple and flawless. I will be working with Jerry in the future!” —Emmanuel K.
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