Buying A New Car In Texas

Buying a car in Texas is nearly as simple as mastering the two-step. However, unlike traditional dance rhythms, there are numerous approaches to this process. You can finance, pay cash, buy from a dealer, or even someone you met on social media. Given all of these potential car-purchasing options, read more about buying a car in Texas, including what questions you should ask, what documents you should bring, and how to walk away from a happy, satisfied new car owner.

From Dealership

Assume you've decided on a budget and want to buy a new car. This gleaming new vehicle is most likely to be found at a dealership. When looking for new cars and engaging with a salesperson on the lot, be prepared for any upselling tactics or add-ons that may cause the car's price to rise unexpectedly. In this process, you are the decision-maker, so be firm and confident in establishing your requirements and budget.


  • Driver's license
  • Proof of insurance
  • Your last two pay stubs
  • Proof of residence, which would be a bill (or something similar) in your name and current address
  • List of references
Dealerships have more formal processes than private sellers when purchasing cars off their lot. To purchase a vehicle from a Texas dealership, you must bring a valid driver's license and proof of insurance. Remember that proof of auto insurance is required in Texas when purchasing from a dealer.

Finance Options

If you buy a new car from a dealer and don't have the cash upfront, you'll have to finance it. Many dealerships offer to finance. However, in Texas, you are not required to use the dealership as a financier. Please do your due diligence and shop for reasonable interest rates and loan approvals elsewhere before agreeing to their financing. Credit unions frequently offer lower auto loan rates than dealerships. Compare these financing offers to those offered by dealerships and make an informed decision. In general, purchasing a new car from a dealer should be straightforward. One interesting note about car shopping in Texas is that the state does not allow car manufacturers to sell directly to consumers. So, if you want to buy a Tesla directly from one of its showrooms, you'll have to go out of state. Essentially, dealerships serve as intermediaries, shielding consumers from skyrocketing prices while giving car dealerships complete control over what they sell.