Buying a Car from Out of State in New Jersey
Buying a car from out of state can save thousands — but registering it in New Jersey requires specific steps, inspections, and tax payments. This guide covers everything you need to know before you buy and after you bring the vehicle home.
Sales/Use Tax
Varies — check your state DMV for the current rate
Registration Window
Typically 30 days after purchase
Inspection Required
No
How to Register an Out-of-State Vehicle in New Jersey
- 1
Get a signed bill of sale from the seller
Before leaving, ensure the seller provides a signed, dated bill of sale with the VIN, sale price, odometer reading, and both signatures. Use the BillOfSaleNow form for a legally-sound document.
- 2
Obtain the out-of-state title
The seller signs the back of the title at sale. Verify the VIN matches the dashboard VIN plate. If there is a lien on the vehicle, request the lien release letter — without it, you cannot get a clean New Jersey title.
- 3
Get New Jersey-compliant insurance
Contact your insurer before the purchase. You need an active policy in New Jersey with the correct VIN before you can register. Drive with the insurance card and bill of sale during the trip home.
- 4
Skip the inspection (not required in New Jersey)
Check with the New Jersey DMV for current inspection requirements.
- 5
Visit a New Jersey DMV office
Visit a New Jersey DMV office with the out-of-state title, bill of sale, and proof of insurance.
- 6
Pay sales/use tax
New Jersey charges Varies — check your state DMV for the current rate. This is paid at the DMV/tag office, not to the seller. If you paid tax in the originating state, bring documentation — New Jersey typically credits out-of-state tax paid.
- 7
Receive your ${stateName} title and plates
You will get New Jersey plates immediately. Your certificate of title will be mailed within 2–4 weeks.
Documents Checklist for New Jersey Registration
Signed out-of-state title (seller signature on back)
Lien release letter (if vehicle had an outstanding loan)
Signed bill of sale with VIN, price, odometer, both signatures
New Jersey-compliant auto insurance card
Government-issued ID with current address
Emissions certificate (if in a testing county)
Odometer disclosure (if vehicle is < 10 years old)
Any warranty documentation or AS-IS disclosure from seller
Vehicle history report (Carfax or AutoCheck)
★ = Required | ○ = Recommended
Does Buying Out-of-State Make Financial Sense?
When it makes sense
- The vehicle is $2,000+ cheaper than comparable local listings
- You can find a rare trim or color unavailable locally
- The vehicle has lower mileage than anything in your local market
- You are near a state border and can easily pick it up
- The originating state has lower or no sales tax (savings offset by New Jersey use tax)
When to think twice
- The savings are less than $1,000 (travel + shipping + inspection eat the margin)
- The vehicle needs to pass a New Jersey emissions test you are not sure it will pass
- New Jersey uses fair market value for tax assessment instead of purchase price (GA, for example)
- The title has a lien and the seller is unclear about the payoff status
- You are buying from a private seller and cannot inspect in person
Frequently Asked Questions
Do I pay sales tax in New Jersey when buying from out of state?
Yes — New Jersey charges Varies — check your state DMV for the current rate when you register the vehicle. If you paid sales tax in the originating state, New Jersey typically gives you a credit. Bring your original bill of sale.
How long do I have to register an out-of-state car in New Jersey?
Typically 30 days after purchase. Missing this window can result in late fees at the DMV.
Does New Jersey require an inspection for out-of-state vehicles?
No — New Jersey does not require a safety or emissions inspection for out-of-state vehicles before registration.
What if the vehicle has a lien from the previous state?
You cannot get a clean New Jersey title without a lien release. The seller must provide a letter from the lender confirming the loan is paid. Never complete an out-of-state purchase without verifying lien status on the title.
Can I drive home on the seller's out-of-state plates?
Generally yes — you can drive the vehicle home using the seller's plates and a copy of the signed bill of sale. Most states give buyers 7–30 days. Once you are a New Jersey resident, register within the typically 30 days after purchase.
Generate a New Jersey Bill of Sale
Use a professional, state-compliant bill of sale for your out-of-state vehicle purchase.
Create New Jersey Bill of Sale