Can You Move States with a Leased Car: Moving to another state with a leased vehicle presents logistical, financial, and legal issues. In this guide, we break down all aspects of moving across state lines with a leased car to ensure you comply with the rules and avoid costly surprises.
What happens if I move to another state with my leased vehicle?
If you move to another state with a leased vehicle, you must notify the company or lessor immediately.
Remember that a leased vehicle is not your property; it is the property of the leasing company. When moving to another state, you must notify them and, in many cases, obtain formal permission.
Here’s everything you need to know when leasing a car and moving to another state:
Can you move out of state with a leased car?
First things first: before you start making plans or preparations, you need a definitive answer to the question “Can I move out of state with a rental car?”
The easiest way to find the answer is to review your lease agreement: it should state whether you can take the rental vehicle out of state or not.
Therefore, carefully read the lease agreement you signed with the lessor and look for a clause that allows or prohibits moving out of state with the rental car:
If you have the right to take the rental vehicle to another state, you should find out under what terms and conditions you can do so and what obligations you have.
If the lease agreement prevents you from permanently moving the car out of state, you may have no choice but to terminate the agreement unless it can be amended to suit your needs.
If the lease agreement does not specify whether you can move out of state with the rental vehicle, or if the relevant clause is unclear and difficult to understand, you should request a definitive answer from the lessor.
In any case, the next step is to call the lessor, inform them that you are moving to another state, and discuss your options:
Clarify whether or not you can take your leased car out of state.
Even if the terms and conditions for moving a leased car to another state are clearly outlined in the lease agreement, confirm your rights and responsibilities with the lessor.
If the lease agreement stipulates that you cannot permanently move the leased vehicle out of state, ask the lessor if the agreement can be modified or added to so you can take your leased car to your new state without any legal obstacles.
Now that you know for sure whether you can move your leased car to another state, you can plan your course of action.
What to do if you can’t move your leased car to another state
If you don’t have permission to move out of state with your leased car, you’ll most likely have to terminate the lease and return the vehicle to the lessor.
Keep in mind that this can cost you quite a bit: you’ll likely have to pay the outstanding balance, plus any fees and penalties associated with early termination. It could easily amount to thousands of dollars, depending on the terms of your lease and how far in advance you terminate it.
If your lease allows it, you may have the option to sublease the car. It may not be easy to find someone to take over your lease, and you will be charged a transfer fee, but it will be much lower than the early termination fee.
What to Check
Before planning your move, review your lease for clauses regarding relocation. Most leases include terms regarding:
Permitted Use Area: The geographic region where the car may be operated or stored.
Notification Obligations: Most leases require lessees to report address changes within 30 days.
Transfer or Registration Clauses: Some leases require the lessee to handle all registration updates.
Failure to comply with these terms can result in breach of contract and early termination penalties.
How to Register a Lease Car in Another State
When you move your leased vehicle to your new state, you’ll need to take care of a few additional procedures to ensure you can drive it in your new area without legal issues.
First, you’ll need to make sure the car is properly titled and registered in the new state (most states require cars, even leased ones, to be retitled after a move; all states require reregistration).
You’ll have a limited amount of time to complete this task (usually up to 30 days after the move, but it can be as short as 10 days in some states), so it should be one of your top post-move tasks.
To have your leased car retitled, the leasing company must send the original Certificate of Title to the local titling authority in your new state (as explained above). Once all the paperwork is completed, you’ll receive a new Certificate of Title.
To register your leased car, you must go to your local DMV. Contact them beforehand to learn their requirements and make sure you bring all the necessary documents. The procedure may vary slightly by state, but generally, you will need:
- A certified copy of the vehicle’s certificate of title
- A current vehicle registration
- A driver’s license
- Authorization from the leasing company to register the vehicle in the new state (the limited power of attorney provided to you by the lessor)
- An insurance identification card
- Proof of paying all applicable taxes in the new state
Depending on the state, you may need to update your auto insurance policy and the car may need to pass a state emissions test before it can be registered.
Emissions and Safety Inspections by State
Some states require vehicle inspections before allowing out-of-state registration. Leasing companies may cover this cost or leave it to you.
| State | Emissions Required | Safety Inspection Required |
|---|---|---|
| California | Yes | No |
| Texas | Yes | Yes |
| Florida | No | No |
| New York | Yes | Yes |
| Arizona | In select counties | No |
Always check your new state’s DMV site for accurate requirements.
Final Checklist Before Moving with a Leased Car
✅ Review lease terms for relocation rules
✅ Notify the leasing company in writing
✅ Request POA and other registration docs
✅ Update insurance for new state
✅ Register vehicle in the new state within the legal timeframe
✅ Schedule required inspections
✅ Confirm lease-end return options in your new state
