Out of State Car Title Transfers

A lot of people dread the DMV, and for good reason.

Spending long hours sipping room-temperature water in a disposable cup while you wait to sign a form isn’t anyone’s idea of a good Thursday. 

Still, you can save yourself a lot of time in these procedures if you have the proper know-how. 

Now imagine yourself being the brand new owner of a shiny vehicle with just one minor issue: it’s in another state. 

The very necessary and very legally-beneficial process of transferring its car title to your state is less work than you might think, so let’s get into everything you need to know about it.

What Is An Out Of State Car Title Transfer?

If the vehicle you purchase happens to be out-of-state, you need to get it titled under your name within 30 days of the date of sale. An out of state car title transfer is simply that process.

Why do you need to do it within 30 days? This is because you may face delinquent transfer penalties if you cross this deadline. The vehicle itself must also be registered within 30 days of being brought to Texas. 

How Do You Start? 

Those are easy questions, as overwhelming as they may seem! First things first, you need to get the original out of state title assigned to you. Next, get the vehicle inspected and obtain a Vehicle Inspection Report. You’ll need proof of liability insurance that meets the requirements of the State of Texas.  

This can either be a standard proof of liability insurance form, which you can get from the Texas Department of Transportation or your insurance provider. They all provide Form SR-22, which is just a certificate for this whole process.

Next, you need an odometer disclosure statement if that’s required. After that’s done, all you need is a proof of sales tax payment. If that was paid in another state, you need acceptable proof like a receipt, invoice or a sales contract from that specific purchase that indicates the amount of sales tax that was paid. 

If it wasn’t paid, you need to pay 6.25% motor vehicle sales tax on the original purchase price of the vehicle or its presumptive value, whichever of the two ends up being greater.  You’ll find sections for all this information on Form 130-U, which is an application for a Texas Car Title. 

All that’s left is to just provide proof of insurance and any form of personal ID. 

Where Do You Go Next?

If you have all the information in order, congratulations! You’ve done the bulk of the work, and if you just get these forms ready beforehand, you’ve saved yourself several back-and-forth trips.

Take all of these documents to the local county tax assessor-collector’s office and present all of it. They’ll ask you to pay the following fees, so keep some spare change:

• Registration fees. 
• Title application fees, which can either be $28 or $33 (depending on what county.)
• The state’s portion of the vehicle inspection fee, which is $30.75
• Local county fees, which can be up-to $31.50.
• The previously mentioned sales tax.
• A dollar for the insurance verification fee.
• And just $4.75 for the service of handling and processing all of this!

State To State: How It’s Different

Depending on where you buy your car from, you may have a vastly unique experience.

Cars that are bought in one of the following counties, for example, don’t need to do a passing safety inspection: Dallas, Fort Bend, Galveston, Harris, Kaufman, Williamston, and Rockwall.

Yet they do still need to pass an emissions inspection! It’s important to check with the local DMV or visit their website and see what their regulations are! 

Conclusion:

You may not believe it, but a lot of the most common issues with out of state car title transfers are simply gaps in this entire process. 

A missing form, fees that haven’t been paid, a signature that isn’t eligible anymore, paperwork that hasn’t been filed properly, or not understanding the many different formalities. 

Make sure your dream car gets to you with no stress or mess by keeping yourself informed on the entire process, who knows, you may need it someday!