MW Buying a car out of state can save you thousands of dollars - but ask these 3 questions first
By Genna Contino
'I'm not afraid to get on a plane and fly halfway across the country to pick out the car I want and drive it home,' one auto expert said
If the sticker prices at your local dealership are too expensive, shopping online to see what's available out of state might help you find a car that fits your budget.
When Lauren Fix's local Buffalo, N.Y., car dealership wouldn't budge on the decked-out, six-figure Porsche (XE:P911) $(DRPRY)$ she wanted, she started shopping around. A dealership in Bethesda, Md., had the same car for $8,000 less - so she booked a flight.
"[The car dealer] was super excited. He picked me up at the airport. He had Porsche shirts for me and swag, and [said] 'Oh my God, I have lunch for you.' The whole nine yards," said Fix, an automotive expert who runs the site Car Coach Reports. "I thought to myself, 'That's customer service.'"
It's not just luxury-car buyers who shop this way. In a postpandemic world, buying a car online has become more common, Fix noted - and stubbornly high car prices are pushing more buyers to expand their search radius beyond state lines to find a deal.
The average new car costs about $50,000, while the average used car comes with a $25,000 price tag, Kelley Blue Book data shows. And a Cox Automotive index tracking used vehicles sold at wholesale auctions rose 6.2% year over year in March, to its highest level since the summer of 2023.
From the archives (Oct. 2025): The average new car price just surged past $50,000. How to shop for a loan so you don't end up underwater.
This move can be a real money saver - and even if you never leave home, experts say that knowing what out-of-state competitors are offering is powerful leverage to bring to the negotiation table at your local dealership.
But there are important things to consider before deciding on a car without actually seeing it in person, especially if you're hunting for a used car on a budget.
'Subarus would be stronger in Colorado and trucks would be stronger in Texas'
Fix emphasizes the importance of shopping around beyond your local dealer because of how prices differ regionally. Dealerships in flyover states, for example, have less demand than those in big cities, which can bring prices down.
But it's not always so black and white, said automotive-finance expert Joel Kansanback. Prices vary based on regional preferences.
"It's not necessarily that cars are always less expensive in Montana," Kansanback said. "It's more vehicle specific, where Subarus (JP:7270) $(FUJHY)$ would be stronger in Colorado and trucks would be stronger in Texas" - meaning high demand in those regions can drive up prices, making it smarter for deal seekers to look in areas where those specific models are less popular.
It's unclear how common out-of-state car buying is, but Kansanback said that depending on a dealership's location, out-of-state buyers can make up anywhere from less than 5% to up to 20% of a car lot's business.
From the archives (Aug. 2025): Is now a good time to refinance your car loan? Here's how to tell.
When expanding a search for a new car, experts recommend shoppers go directly to the automaker's website - not a local dealership's site - and use the inventory search tool to expand their radius to however far they're willing to travel, whether that's 100 miles, 500 miles or even the entire U.S.
Even if buyers have no intention of leaving their state to get a car, experts say they can build negotiating power by researching what cheaper markets are offering before stepping foot in a dealership. If you ask for that lower price, the worst they can say is no.
If a dealer asks how you arrived at a lower offer and you haven't done your research, it can be undermining to admit you're just guessing, Kansanback said. A buyer has more leverage if they can point to a specific out-of-state price as the basis for their negotiation, rather than just shaving a few thousand dollars off the sticker price.
Before buying a car sight unseen, ask yourself these questions
Even if you found a great deal on your dream car that you think is worth traveling for, ask yourself these questions first:
Will the dealer transport the car to me, or pay for my flight to pick it up?
Before booking anything, ask the out-of-state dealer directly whether they'll cover transportation or reimburse your travel costs - you might be surprised. Fix said dealers in smaller markets are often eager enough for the business that they'll offer to deliver the car or help offset the cost of your flight.
If they won't budge, do the math yourself to make sure the savings are worth it. Calculate the cost of a rental car and gas - the latter of which now costs upwards of $4 per gallon on average nationally. And don't forget about travel time: A weekend day trip from New York to Maryland and back could be reasonable, but traveling from Seattle to Miami might not be worth a few thousand dollars in savings.
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If you're up for it, a cheap one-way flight and a road trip home may be the more cost-effective option - and a better story.
"I'm not afraid to get on a plane and fly halfway across the country to pick out the car I want and drive it home," Fix said.?"We'll make a road trip of it. We'll stop at some great places."
Do I have insurance, taxes and registration details worked out?
The paperwork is less complicated than it sounds. Kansanback said dealers handle the tax and registration logistics routinely and have web-based tools to sort out what's required state by state.
Buyers do, however, need to sort out insurance before the car leaves the lot. One of Fix's friends learned this the hard way when he bought a car out of state and arranged for it to be transported. He planned to wait until it arrived to add it to his insurance policy - but the car disappeared in transit, stolen by the transport company. Because he had no coverage, the loss was entirely out of pocket.
Read more: These hidden costs of car ownership are giving buyers sticker shock long after they leave the dealership
Most states give buyers anywhere from a week to 30 days to transfer coverage from another vehicle, but don't count on that window to protect a car in transit.
"The moment you say 'I'm buying it' and you send over a deposit or money, that insurance policy should start," Fix said.
How do I know the used car is in good condition?
This is where out-of-state buying gets genuinely tricky, especially for budget buyers. Kansanback recommends pulling a Carfax report of the vehicle's history as a baseline to check for flood damage, serious accidents or a salvage title.
Beyond that, Fix said "it's not cheap but it's worth it" to get a local mechanic to inspect the car for some peace of mind. But make sure you're factoring in the cost of a prepurchase inspection, which can run anywhere from $200 to $500, to make sure the math still works in your favor.
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-Genna Contino
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April 10, 2026 14:44 ET (18:44 GMT)
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