If you are a Pennsylvania resident purchasing a vehicle from out of state, you will need to provide the original title to the PennDOT with all required documentation and pay Pennsylvania sales taxes.

Registering a vehicle can be a headache to begin with. Add in the complications of buying out of state, and you are getting into a new realm of paperwork.

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

If you are a Pennsylvania resident and you just bought a car in another state, you’ve come to the right place.

First, you should know that out-of-state lienholders often won’t release their certificate of title until the lien is fully paid off. If you are buying used, and the vehicle has already been fully paid for, then you should be good to proceed. If you are buying from a lender, though, you will likely have to pay the lienholder in full, perhaps through a Pennsylvania lending institution.

The next thing that you should know is that the MV-1 form (“Application for Certificate of Title”) is only available through authorized agents of the Pennsylvania Department of Transportation (PennDOT). It is usually a good idea to consult a dealer, tag service, notary, or the Bureau of Motor Vehicles about out-of-state title transfers if you have any questions or concerns.

If there is a lien on the vehicle, the lienholder will likely send the title directly to PennDOT. You won’t be able to submit the MV-1 form until PennDOT receives the out-of-state certificate of title. If you are buying from a private seller, or if you do receive a physical title, you will want to look carefully at the back of the title for a space for the seller’s signature and odometer reading.

You will need the physical copy of the title to register your vehicle unless it was transferred directly from the lienholder. A manufacturer certificate of origin (MCO), certificate of salvage, or court order are the only other accepted forms of proof of ownership.

If you are buying a new car or a vehicle with less than 7,500 miles on its odometer, you will also need to make sure it is certified by the California Air Resources Board (CARB).

As well, you will have to provide VIN verification when you fill out the MV-1 form. This is usually done by attaching a VIN plate tracing or by getting a notary or certified inspector to verify your VIN and provide their signature.

When you get in front of a PennDOT agent, these are the items you will have to provide:

Out-of-state title with seller’s signature (unless the lienholder chose to send the title to the PennDOT)

Completed bill of sale signed by all owners as proof of purchase price with a notary stamp

VIN verification in the form of a VIN plate tracing or signature from an authorized notary public or certified inspection mechanic.

A copy of your Pennsylvania driver’s license or ID card

Proof of insurance

You will also have to come prepared with a check, money order, or form of card payment for all applicable fees. Some fees that you might incur include:

Title transfer fee

Registration fee

A fee for any additional registration cards

Sales tax—at 6% of the sale price or fair market value, fewer taxes and credits paid in reciprocal states (7% for residents of Allegheny County and 8% for residents of Philadelphia)

A fee to transfer a Pennsylvania registration plate (if applicable)

A fee to record a lien (if applicable)

It should be reiterated that sales taxes are paid to your state of residency, and are calculated based on fair market value, not necessarily the sale price (though often the sale price is used). The PA department of revenue can review the transaction if necessary to determine the correct amount of sales tax due.

It should also be noted that if the vehicle is being given as a gift, then the MV-13ST form must be attached to the title application. That form, however,

can be found online

Once all of your documents are in and the MV-1 form is filled, you will be issued a Pennsylvania title and a Pennsylvania license plate.

MORE: Title transfer in Pennsylvania

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

What if you are buying a car in Pennsylvania but you live in another state? The process is similar but the exact details will depend on your home state. In most cases though, you will need to:

Obtain a valid bill of sale (some states will require a notary stamp)

Bring the bill of sale, title, proof of insurance, proof of residence or driver’s license, odometer reading, and any other documents to your local DMV

Complete the vehicle registration process in your home state and pay all applicable fees and taxes

What if I don’t have a physical title?

If you are purchasing a used vehicle, you will need a physical copy of the title to obtain your Pennsylvania proof of ownership. If there is no physical title, this might be a red flag or you might have to apply for a duplicate title from the state the vehicle is registered.

If you are buying the vehicle from a lender, they can submit the title electronically if they are a part of Pennsylvania’s Electronic Lien and Title (ELT) Program. The PennDOT will need to receive this title before the MV-1 form can be filled. This can pose a bit of a hassle, but you may be able to get a temporary registration and insurance to drive the car home while the paperwork is being processed.

MORE: How to find temporary car insurance in Pennsylvania

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Tips for buying a vehicle out of state

Buying a vehicle from out of state can be a wise move depending on the circumstance or sales price, but there are some possible complications. Here are some tips worth keeping in mind:

Don’t skip the vehicle history report. If you are buying a used car use a service like

CARFAX

to alert you of any accidents or other issues that you should know about.

Do your vehicle inspection in your home state. The car will have to meet Pennsylvania’s inspection requirements, not the state you purchased it from.

Don’t forget your emissions test

Read up on both states’ sales tax laws. You will have to pay sales tax in Pennsylvania, but some states are reciprocal states and may allow you to pay taxes upon purchase that will be evaluated when paying sales taxes back home

Buy car insurance right away. You will need proof of insurance that meets Pennsylvania’s minimum requirements to register the vehicle, and if you have to drive the vehicle home, you will need insurance for it to be street-legal.

MORE: Pennsylvania car insurance laws

How to find affordable car insurance in Pennsylvania

No matter where you live, you will have to buy

car insurance

for your vehicle. Don’t just settle for the first quote you receive. Shopping around can save you hundreds of dollars per year on your insurance, but you don’t always have time to compare dozens of quotes, especially while figuring out how to register your vehicle.

Thankfully,

Jerry

has the solution. Jerry is an insurance comparison super app, designed to make it quick and easy for people to find the cheapest insurance rates available. Jerry is partnered with over 50 top companies, so you’ll never miss the best deal available.

All you have to do is sign up and the app will show you a custom list of free quotes, so you can find the cheapest policy in less than a minute. Then, you can fully switch insurance through the Jerry app in just a few more minutes.

“I was paying roughly $180 a month for insurance, but
Jerry
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