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      03-08-2016, 11:33 PM   #1
pruettfan
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Out of State purchase live in AZ buying in CA

Anyone live in AZ and have experience buying in CA? From what I have read I have two options pay sales tax in CA (8% where I am buying) or have the car shipped to AZ and pay 6.6%. I want to fly over and pick it up, the sales tax difference is likely not enough to warrant paying a truck and I don't want to give up control to a shipper. Has anyone in AZ had any issue picking up their new car in CA that I should be concerned with other than the tax issue??
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      03-09-2016, 12:04 AM   #2
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Quote:
Originally Posted by pruettfan View Post
Anyone live in AZ and have experience buying in CA? From what I have read I have two options pay sales tax in CA (8% where I am buying) or have the car shipped to AZ and pay 6.6%. I want to fly over and pick it up, the sales tax difference is likely not enough to warrant paying a truck and I don't want to give up control to a shipper. Has anyone in AZ had any issue picking up their new car in CA that I should be concerned with other than the tax issue??
There is no option with sales tax. You pay the sales tax for the state the car is being registered in. In this case AZ.

Not sure why you are choosing Cali when they generally have the worst incentives.
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      03-09-2016, 12:09 AM   #3
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Originally Posted by PackPride85 View Post
There is no option with sales tax. You pay the sales tax for the state the car is being registered in. In this case AZ.

Not sure why you are choosing Cali when they generally have the worst incentives.
Choosing CA because that is when I can get allocation first, need to get the car before we start the mortgage process otherwise I would just wait. AZ and CA have a reciprocity agreement for sales tax on car sales so I in fact do have options but thanks.
When you register your car in AZ they look for proof that sales tax was paid, if it was paid in CA then they don't charge you tax in AZ. If you did not (had the car delivered, a co-worker did this) then you pay the 6.6% to MVD at the time of getting the car registered and in the case of used cars inspected.
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      03-09-2016, 12:36 AM   #4
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Originally Posted by pruettfan View Post
Choosing CA because that is when I can get allocation first, need to get the car before we start the mortgage process otherwise I would just wait. AZ and CA have a reciprocity agreement for sales tax on car sales so I in fact do have options but thanks.
When you register your car in AZ they look for proof that sales tax was paid, if it was paid in CA then they don't charge you tax in AZ. If you did not (had the car delivered, a co-worker did this) then you pay the 6.6% to MVD at the time of getting the car registered and in the case of used cars inspected.
I'm probably stating the obvious, but -- before you pay 8% in CA, make sure that you'll get a refund of 1.4% somewhere for the overpayment difference when you register it in AZ. Otherwise, don't pay any sales tax (or pay the AZ tax only) upon delivery.
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      03-09-2016, 12:46 AM   #5
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I'm probably stating the obvious, but -- before you pay 8% in CA, make sure that you'll get a refund of 1.4% somewhere for the overpayment difference when you register it in AZ. Otherwise, don't pay any sales tax (or pay the AZ tax only) upon delivery.

AZ won't refund the difference. If I drive off the lot in CA I have to pay the 8%. If I have it trucked to AZ I can just pay the 6.6 to the MVD when I register but it will likely cost more than the $800 difference in sales tax to have it hauled. I am going to see if their sister dealer (Penske owned dealer) will be willing to do a courtesy delivery in AZ. Probably a long shot but Penske has good customer service so it is a possibility. If I were to do that I would probably have to pay Scottsdale sales tax which is actually 8.5% so now that I think of it, probably not a good idea.
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      03-09-2016, 01:10 AM   #6
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When I have bought new cars out of state before, the dealer charged me the CA sales tax rate based on proof of residence in CA. I'm surprised a national chain like Penske can't similarly charge you the AZ rate based on your state of residence. Is it a CA law/limitation that prevents this?
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      03-09-2016, 01:15 AM   #7
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Originally Posted by Kouper View Post
When I have bought new cars out of state before, the dealer charged me the CA sales tax rate based on proof of residence in CA. I'm surprised a national chain like Penske can't similarly charge you the AZ rate based on your state of residence. Is it a CA law/limitation that prevents this?
From everything I have read CA requires the tax to be collected if you drive it off the lot from CA regardless of residence. If I bought the car here in AZ I would actually pay more sales tax so it probably isn't an issue really. The 6.6 is the state rate you pay if you have a car shipped in from out of state.

I read some posts through a google search that talked about issues getting a temp tag from CA to drive to another state so that is probably the only real concern I have to clear up. I will check with the dealer when we get closer. Not expecting my car to be delivered until August / September but that doesn't stop my mind from wanting to plan every detail.
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      03-09-2016, 01:41 AM   #8
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That was my other thought -- some kind of temp tag allowing you to drive it to AZ and register there. Worth pursuing/clarifying. Post what you find out. Best of luck!
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      03-09-2016, 07:15 AM   #9
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Wow Cali really does screw people over with buying new cars in multiple ways.
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      03-09-2016, 10:02 AM   #10
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California will always make sure they get their pound of flesh.
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      03-09-2016, 12:35 PM   #11
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pruettfan, the following thread is somewhat on point. See especially post #13 re AZ temp tag. Worst case, give Greg a call -- he does a ton of out of state business. Hope you get a good answer.

http://www.bimmerfest.com/forums/sho...d.php?t=900869
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      03-10-2016, 04:02 AM   #12
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Quote:
Originally Posted by pruettfan View Post
Choosing CA because that is when I can get allocation first, need to get the car before we start the mortgage process otherwise I would just wait. AZ and CA have a reciprocity agreement for sales tax on car sales so I in fact do have options but thanks.
When you register your car in AZ they look for proof that sales tax was paid, if it was paid in CA then they don't charge you tax in AZ. If you did not (had the car delivered, a co-worker did this) then you pay the 6.6% to MVD at the time of getting the car registered and in the case of used cars inspected.
This is really good to know. Thanks for the tidbit.
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      03-10-2016, 10:15 AM   #13
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You should get a temp tag, drive car to AZ and register it there and get a tag. One thing to keep in mind you'll have to take it someplace in AZ for a state inspection. The dealer in CA should reimburse you the cost.
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      03-13-2016, 12:27 AM   #14
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Quote:
Originally Posted by Kouper View Post
pruettfan, the following thread is somewhat on point. See especially post #13 re AZ temp tag. Worst case, give Greg a call -- he does a ton of out of state business. Hope you get a good answer.

http://www.bimmerfest.com/forums/sho...d.php?t=900869
Thanks, that helps a ton.
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