04-13-2016, 02:25 PM | #1 |
Captain
784
Rep 763
Posts |
Buying from a state with no sales tax
This would be my first new car purchase and I'm not privy to all the ins and outs of how taxes would work. I plan on doing ED for my M2 purchase so can order from any dealership. My question is, if I purchase through a dealer in a state without sales tax (Montana, Deleware, ect.) would I still have to pay for taxes after I register my car in my state? Sorry if this is a stupid question. Thanks!
|
04-13-2016, 02:37 PM | #2 | |
Always +10MPH
1005
Rep 626
Posts |
Quote:
|
|
Appreciate
0
|
04-13-2016, 02:56 PM | #3 |
Brigadier General
2052
Rep 3,714
Posts |
Unless you live in a state with no sales tax this won't help you at all. Doesn't matter where you buy the car, matters where you register it.
|
Appreciate
1
|
04-13-2016, 02:59 PM | #4 |
Lieutenant Colonel
522
Rep 1,502
Posts |
I live in Ohio and the answer is yes. u pay tax where it's titled, however some states have a lesser tax burden or zero, but you have to pay way more each year when you get your plates based on what the car is worth
__________________
miiipilot
'24 M2 Brooklyn Grey, 6mt, Bi-Color, Black M-Color seats, '16 MG M2, DCT, Exec. Took Delivery 4/30/16 (Sold) |
Appreciate
0
|
04-13-2016, 04:57 PM | #5 |
Captain
784
Rep 763
Posts |
|
Appreciate
0
|
04-13-2016, 05:08 PM | #6 |
Enlisted Member
37
Rep 45
Posts |
|
Appreciate
0
|
04-13-2016, 07:35 PM | #7 |
Brigadier General
1795
Rep 3,071
Posts |
your contract should reflect YOUR registered state sales tax.
For example in Michigan - tax is factored into the lease deal per month at a rate of 6%. |
Appreciate
0
|
04-13-2016, 09:46 PM | #8 |
Brigadier General
1623
Rep 3,402
Posts |
In Arizona you either pay sales tax where you buy the car or you pay when you register the car in AZ. Upon doing that you have to show proof you paid sales tax. The only exception is private party sales which are not taxed in AZ. The good news is if you buy an out of state car you only have to pay the 6.6 base tax rate, your not subject to county or city use taxes that you would be subject to if you bought from any of the instate dealers. I am buying my car from a dealer in San Diego so I did quite a bit of research on this.
|
Appreciate
2
|
04-13-2016, 10:53 PM | #10 | |
Captain
784
Rep 763
Posts |
Quote:
|
|
Appreciate
0
|
04-14-2016, 07:52 AM | #11 |
Major General
4520
Rep 8,942
Posts |
Also have to pay tax sometimes after the fact - say you live in PA and register the car there then move to IL and register the car there. Forget the cutoff but if the car is under however many months old (maybe a year) you have to true up the taxes. So if IL is 3% higher than PA you pay the 3% to IL when you register the car.
You can get REALLY screwed if you lease and do that bc most places only pay tax on portion you use but IL for example pay tax on entire purchase price. I know all this bc I leased a Touareg in NY then moved to IL a few months later and to go get my car registered was a LOT of money. Bastards make you take a written exam to transfer your license too.
__________________
2022 Macan S
2016 F31 328i xDrive Sport Wagon 2006 E46 330ci ZHP Convertible |
Appreciate
0
|
04-14-2016, 04:17 PM | #13 | |
Brigadier General
1623
Rep 3,402
Posts |
Quote:
|
|
Appreciate
0
|
04-14-2016, 04:20 PM | #14 |
Brigadier General
1623
Rep 3,402
Posts |
AZ won't do that. They will make you pay sales tax upon registering because they will look at the State your were a resident. AZ has that one pretty well covered. I looked at all of the angles. The best is probably to buy the car and have it shipped and pay the 6.6%. The rate in San Diego is 8%, the cost of shipping the car is more than the savings I would gain so I am just going to fly in grab my car, pay sales tax in San Diego, drive the coast for a day or two and head home. I will still have to pay licensing fees in AZ which I am guessing will be around 1k.
|
Appreciate
0
|
Post Reply |
Bookmarks |
|
|