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Can You Finance a Car in Another State?

Financing a car in another state is possible. You may even find that the borrowing process is no different than when buying a car in your home state. In generally, there may be a few extra hoops during the loan application phase and one big one after you have a title in hand.

Loan Issues

The main issues with the loan process will be with identification. If you apply to a lender from another state, you may be required to show your social security card or another form of ID other than your driver’s license. You can avoid any aggravation by finding pre-approved financing through a bank or credit union near your home, then buying the vehicle.


If you buy a car from another state, then take it home, you may be required to have it inspected prior to being able to title it in your home state. If you are buying the vehicle from a reputable dealership, they will most likely perform the inspection and offer you an Out of State Motor Vehicle Inspection form. If not, the local branch of the DMV (BMV) should perform the inspection…for a price. Once your vehicle has been inspected, you will be able to receive a new title from the state you live in and register your vehicle.

One last item to consider. Some states will allow you to travel without tags from one state to another if you have just purchased a vehicle and are headed home. Others will not. You will have to know the regulations for every state you are going to pass through before trying to drive home. Fortunately, your dealer is likely to know all of these rules, especially if they are located within an hour of the state line.

About the Author

The author has many years of experience in automotive finance and insurance. However, each consumer's situation is unique. It is best to contact a finance specialist for further assistance.
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