How to Finance a Used Car From Another State


When you find a used car in another state that you want to purchase, financing it does not have to be any different than buying a vehicle in your state.

Financial institutions do not make lending decisions for auto loans based on where the vehicle is purchased in relation to where you reside.

Financing decisions are based on creditworthiness.


How to Finance a Used Car From Another State

Used Car From Another State

1. Apply for financing with the out-of-state car lot or car dealer

Just fill out the standard credit application. Some car dealers have online credit applications on their website. If you are visiting the car lot or car dealer in-person, you can fill out the application with the on-site finance department.


2. Visit your local bank and submit an application for a car loan

Your bank will not mind that you are purchasing the vehicle in another state. If you submit a credit application for a car loan and pass the bank’s requirements, you can get financed for the purchase.


3. Use the My Auto Loan website (see Resources) if you are buying a car from an individual in another state and you cannot get financing from a local bank

You can get up to four loan offers in a matter of minutes when you submit your application. The loan offers come from national banks and are based on your credit score.


4. Submit an auto loan application with an online lender that works with dealers, such as Capital One Auto Finance or Up 2 Drive (see Resources)

If approved for one of these loans, you get a check that you can take to one of their pre-approved dealers. The check will only be good for up to a certain amount. You can usually view the dealers in your area that are associated with the company before you submit the application.


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