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Purchasing a car out of state


elle

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hey all, i was wondering how this purchasing a car out of state thing works. what tax do u pay? do rules of insurance and registration apply to the home state or the purchasing state?
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Guest JessterCPA

Insurance & registration are all your home state.

 

Sales tax should be in the state of purchase.

 

Can anyone confirm this?

 

Jesse

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Do you currently own an insured car?

Yes - than you can buy a new car anywhere and you have up to 30 days (with my company) to add that car and/or drop your old car from your policy. Still call your agent and disuss details.

No – You will need insurance before they let you drive the car off the lot. Call an agent in your state and disuses the details. It's still possible.

 

More

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I purchased my Car in PA, but I live in NJ. All NJ rules and regs applied. The dealer collected NJ Sales Tax and did the registration in NJ for me. I did have to go to a NJ inspection station within 30 days to get an NJ inspection sticker, but I did not have to go through inspection.

 

As long as you are in a neighboring state you should be OK. I imagine if you buy a car in North Dakota that you want to regitser in Georgia, the dealer might not be set up to help you.

 

For me, the best place for info was the NJ Motor Vehicle Commision website, they had all the procedures listed.

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Guest JessterCPA

That is because NJ & PA have reciprocity with each other, meaning they agree to share some tax & regulation laws. NJ & NY have the same, but NY & PA do not.

 

Doing some quick Google research, looks like you will files sales tax in both states. If you buy in one state, as long as you register the car in your home state withing 30/60/90 days (depending on state) the home state will give you credit for taxes you paid. The only caveat I see is if your home state has a higher sales tax than the state you purchased from. You may have to pay the incremental sales tax rate on the purchase as a "use tax". Check with your local state website on this.

 

Jesse

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We purchased a BMW in Florida and shipped it to CA where we live. The dealer in Florida did not collect sales tax though they required proof of insurance at purchase. We paid DMV sales tax and registration in CA when we registered the car within 30 days of arrival. And of course insurance always depend on where you live.
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I am a weird situation, I live mainly in NYC and bought the car there, but have a CT license. They gave me CT taxes on the car and I had a temp New York Regristration till they got my CT plates in. I was going to buy in CT but i just went to look at the LGT up close and see what kind of price i could get but i was offered the CT taxes and i signed the next day and picked it up 3 days later.
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I live in Nevada but bought my car from a friend in California. I paid Nevada sales tax and Nevada registration. Needed proof of insurance before they handed over the keys. I think I did have to pay a $8 California tax on tires or something.

 

I wasn't allowed to drive the car in California until I got the car registered in Nevada. Had to sign and get notarized one document saying as much.

 

I think it differs from state to state, so you'll have to look into your state and the state you are buying from.

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Hmmmm, this is interesting. I'll be buying my LGT from a dealer in MD, and then bringing it back to NC. I knew to contact my insurance and notify them of the new car purchase, but never gave the tax thing a second thought.
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Originally, I had no intention of buying out of state. But thus far none of my indiana dealers (only talked with 3) will go below 500 under invoice. This is making the 8.5 hour ride to Fitzmall seem reasonable. They are all about 1500 to 2000 under invoice, the bad part other than the drive is that they have limited selection in black or silver, which are the colors i'm interested in.
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