You finally got your own car. Although buying it using the car dealerships and you’re still making payments. But then, you have to relocate to a new state. Relocating to a new state itself can be both an exciting and stressful experience. Either you’re excited about a new job, relationship, or a change of scenery. However, it can be stressful since you have so many things to deal with. Plus, there is a question about can you move out of state with a buy here pay here car. Can it be done, and what should you do? Here are things you need to consider. So, you can prepare and plan ahead.
What is buy here pay here (BHPH)?
Before we go to the details of whether you can move out of state with a buy here pay here car or not, let’s find out more about buy here pay here. Unlike traditional car dealerships, buy here pay here dealerships sell and finance the cars. Instead of using third-party lenders, they provide in-house financing and act as the lender.
Some of the BHPH dealerships don’t run credit checks on customers. This financing can be the best option for those with bad or low credit. Besides, the process is easier than taking a loan from a traditional dealership or bank.
Buy here pay here dealerships are easy to find, both online or lots near your place. You can recognize them with the sign of ‘no credit check’ or ‘we finance’. Though it may sound interesting, buy here pay here financing may come at a cost. Most dealers give high interest to people with less than stellar credit scores. Plus, they may require nearly 100% of a down payment.
You may not find the latest models of cars in BHPH dealerships. But, they have good quality cars with decent mileage. Customers can pay the installment weekly or bi-weekly. Some dealers require payment to be made in person at the dealership, while others offer auto payments.
If you opt for buy here pay here, note that your car will most likely come with installed GPS. It allows the dealer to locate the car in case they should repossess the vehicle if a customer misses the payment. If possible, find a dealer that reports your loan and payments to the credit bureaus. If you make payments on time, it helps build and improve your credit.
Where can you have Buy Here Pay Here service
Lucky for us, most cities and even towns in the US have dealerships with BHPH options. We have our list of best places to buy cars with BHPH in Marietta, GA, Houston, Springfield, Atlanta, and many other places in the US.
If my car is a buy here pay here, can I move out of state?
Generally, you’re allowed to relocate a financed vehicle out of states as long as your loan contract doesn’t say otherwise. However, it isn’t always working, depending on your credit. So, you should check with the lender about the terms.
Even if you can move your car, you may run into some problems with legal requirements, such as titling and registering the vehicle. Plus, you also need to transfer or change your car insurance policy. But, worry not! There are steps you can take to relocate your buy here pay here car out across state lines.
Check lender and state rules
First thing first before you move out of state! You should check the rules and requirements of your lender, your previous state Department of Motor Vehicle (DMV), and the new state DMV. If you update your new address information to your lender and have full-coverage car insurance throughout the loan term, you can probably move your car.
However, laws and protocol in some states require new residents to have a driver’s license. And when you apply for a new driver’s license, you also need to title and register your car in the new state. Luckily, many states offer a time for new residents to get a new license, car registration, and insurance. Each state may have different times, but usually, it’s within 30 to 90 days of your move to the new state.
Note that if you fail to complete these tasks within this period, you may get fines. It may also delay the process. If your contract says you can’t move the car, but intend to do so, your license plates don’t match your new state. Chances are, the police will stop your vehicle, and give you a ticket.
Applying for a new license
There are many reasons you’re moving to a new state and being there for a while. So, you need to get a new driver’s license in your new state. Getting one is quite simple if you already have a license in some states. All you have to do just go to the DMV where you take a new photo and pay some amount of fee. Other states may require you to take a written exam. Check with your new state’s DMV about the time limit to get a new license.
Purchase a new car insurance policy
If you have full-coverage car insurance on your car, you’re not considered to fail to pay your loan. But, when you get a new driver’s license from a new state, you also need to change your insurance policy to your new address.
Some states will ask you to provide proof of insurance before you register and transferring your car. So, you have to change your car insurance policy address or switch to new car insurance if the insurance company doesn’t operate in your new state.
Before getting the new one, get several quotes from the agent to compare the rates. Remember not to cancel your old insurance policy before you have the new insurance. Also, note that your old insurance company’s rate may differ in your new state.
Transferring your vehicle title and registration
Assuming the answer is yes on the question can you move out of state with a buy here pay here car, your car needs to be registered in the new state. You’re not allowed to keep your vehicle title in your previous state once you move to a new state. Also, in several states, you have to return license plates when you move out.
There is also a chance you have to refinance the vehicle if your current lender doesn’t have the license to operate in your new state. Thus, you should plan ahead to do these kinds of stuff. Otherwise, you won’t be able to transfer your title and register your car. Usually, the process should be done at the same time and place as you apply for a new driver’s license.
To complete registering your car, you will have to submit the required documents. These are your license, proof of insurance, residency status and proof of identity (such as passports, military cards), and car’s title. For a financed car, the process may not so easy because your lender holds the title of your car. So, you need to contact your lender and ask them to mail the title to the DMV in your new state.
When the title arrives and you have insurance for the car, you can continue to complete the registration. Once the process finishes, DMV will send the title back to your lender. Always check with the local DMV for the complete required documents. When you complete all the processes and receive your new license plate, you can send the old plate to your former state’s DMV.
What you should know
Some state allows temporary non-residency, which allows you to keep your car titled, registered, and insured in your former state. Non-residency includes military personnel or college students. You can always check with your DMV if you qualify.
Some other states may put on fines to new residents who fail to re-title or register a car and apply for a new driver’s license within a specific time after moving.
The emissions test
Some states require your car to pass a state emissions inspection at the authorized station. It will determine the level of air pollution from the exhaust pipe. If your car fails the emissions test, you should take the car for some repairs.
There are multiple reasons why your car could fail the emissions test. But, some of the most common reasons are:
- It has too much fuel in the air/fuel mixture
- Old motor oil. Thus, it’s recommended to get your oil changed before the emissions test
- Dirty air filter
- The gas tank cap is too loose or not sealing properly
Knowing some of these reasons allow you to check and fix these problems before going to the inspection.
From the article above, we hope it helps answer your question on can you move out of state with a buy here pay here car. The most important thing you should do before taking your car is to check your contract and let your lender know. If it’s possible, you have to register your car in the new state. The process may take time on financed car. First, you need to apply for a new license driver in your new state. After that, you should change your car insurance policy address or get the new one. Once this process is done, you can start register and re-title your car. Note that if you fail to do that within a time, you may get fines. So, you should plan ahead. That way, you have time to complete all the required documents and the process.