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Buying minivan for wife. Wife found deal on minivan approximately 1500 cheaper than I can find in state. Are there any issues I should be aware of when buying out of state new? I reside in CA. Vehicle is in TX.

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It's not going to be worth the hassle. You're talking a new minivan and traveling half-way across the US for a $1500 sa... (more)

NukeMedDude (Jun. 28, 2011 @ 12:35p) |

I'm in MA, bought a car in CT.
The dealer put dealer plates on my car and had a "runner" follow me to my insurance compan... (more)

johnm4 (Jun. 28, 2011 @ 12:41p) |

It's not as bad as people make it out to be, though you do need to be sure to factor in other costs/goals to see if this... (more)

QuantumSlip (Jun. 28, 2011 @ 3:33p) |

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You may be responsible for use taxes if you buy it out of state. (Use taxes are like sales taxes, but for items purchased from outside of the state for use within the state you live in.) Depends on your state's rules of whether you're responsible at all or only for the difference between the sales tax paid in the other state (assuming it's lower) and what it would have been in your state or for the whole amount.

Compare sales taxes between your home state and the state you're buying in. Consider accepting delivery in the state with the lower tax.

Bend3r said:   You may be responsible for use taxes if you buy it out of state. (Use taxes are like sales taxes, but for items purchased from outside of the state for use within the state you live in.) Depends on your state's rules of whether you're responsible at all or only for the difference between the sales tax paid in the other state (assuming it's lower) and what it would have been in your state or for the whole amount.

As a data point - in California, you get billed the difference on use tax (between CA and the purchasing state) if you bring it into the state within one year.

Useless post without telling us what state your in, rules vary widely.

I found many out of state dealers unwilling to even sell to people out of state because of the associated problems. If you are trying to circumvent paying your state tax, forget it because in the end they will find out and get their money!

This is super simple? I bought a car in Ohio, I live in NY. I got temp tags in Ohio, drove the car to NY, and paid the tax for NY when I went to register at the DMV.

Ross29 said:   This is super simple? I bought a car in Ohio, I live in NY. I got temp tags in Ohio, drove the car to NY, and paid the tax for NY when I went to register at the DMV.

Yes, it is that easy.

I work at a dealership in California. When we sell a vehicle to an out-of-state customer, we have to drive the vehicle to whichever state they reside in; they are not allowed to drive the vehicle in the state of California until they have the MSO (manufacturer's statement of origin) notarized. Buyer then takes that to the DMV, registers it, and pays sales tax to their state. It's a pain in the rear.

If you're talking about a new vehicle, good luck with that, though, since it's so far and not a neighboring state.

I am not trying to circumvent tax or any other fees. It appears after I include transport costs from TX to CA. Vehicle is still 1500 cheaper. So, I am wondering if I am missing anything. I guess it hard to not buying something without seeing it. What happens if it is supposed to be a new vehicle and they give me a used one. I have limited recourse. I appreciate the input everyone.

Also, fun note - you will have to get your brand new out of state vehicle smog tested before the CA DMV will register it, even if it is a CARB certified ULEV like my 2008 Honda Civic.

Call the dealership and ask to speak to the title clerk. I've bought new cars out of state several times, and the dealership knows how to do this. They should be able to do all the paperwork for your home state and charge you the right fees and taxes at the time of sale. I never had to go to the DMV in either state; dealership registered the car and mailed me the tags just like any other transaction.

It's probably different in CA because you have all kinds of crazy DMV laws, but I've done this before in TX and it was simple. I bought a new car out of state. The dealer didn't add any TTL fees to the purchase price. They put an Oklahoma temporary tag on the car, and I drove it into Texas. The DMV then charged sales tax when I registered and titled the vehicle in Texas.

I live in Delaware and bought a new car in New york , the dealer gave me a temporary tag and I paid Delaware Taxes (even though I thought Delaware is Tax free state there are taxes on Car )

clockstopper said:   Buying minivan for wife. Wife found deal on minivan approximately 1500 cheaper than I can find in state. Are there any issues I should be aware of when buying out of state new? I reside in CA. Vehicle is in TX.

I live in CA too and explored doing this a few years back. I remember there was something special about California emissions and vehicles with less than 7500 miles. In other words, if you live somewhere else and move to CA for a job, you can register your car here pretty easily if it has 7500 or more miles on it. If it has less (and, OP, this would apply to you), you have to get an emissions test or certification or something.

That turned me off of the idea and I ended up buying my truck in CA, but a really quick Google search turned up this: http://dmv.ca.gov/pubs/brochures/fast_facts/ffvr29.htm

I have no idea how much this certification/test would be, but I imagine that with the cost of the test, the cost of any documentation, and the cost of transporting the minivan back, you'd still save some money, but not $1,500.

I'm pretty sure this is a rule specific to California or states that follow California emission rules (i.e. the New England states). If you live in any other state essentially, you just go and get the car, take it home, register it, pay whatever fees or taxes you have to, and you're done.

In California you will also need to make an appointment at the DMV or at the CHP to get the car VIN inspected before you can register it. Then there is the smog test you will need to pay for, the gas you pay to drive it back, time spent at the DMV registering, and you still have to pay the difference in sales tax between where you are buying the car and the CA tax rate.

It's a lot of hassle. I wouldn't recommend it unless you are saving a ton of money and/or your time is not that valuable. It really only make sense IMO if the car in another state is rare or you are getting an incredible deal.

I have done this twice. First time, non issue. Second time, more of a hassle. I am in CT and tried buying a car from Mass. There are no temp tags available in Mass and the dealership I wanted to buy from was not tied into the CT DMV. As a result, the only way to legally get the car out of Mass was to either put it on a truck or drive with dealership plates and courier to the nearest CT DMV to handle the registration on the day I picked up the car. This was even more complex since I was trading in my old car. My goal was to get this done in a single trip to Mass so it required a fine tuned plan to make the deal work. As it turned out, the car I was buying had some paint damage which we discovered when we went to execute the transaction so it turned out to be a completely wasted trip and effort.

kensat30 - I assume you're talking about VIN verification; I forgot that step - oops. Anyway, you can also have that form completed by a regular police officer, likely without an appointment (though they will be confused and have no idea what you're talking about when you ask for it, so definitely get the form from the DMV and have it with you). I've had to do that for my dealership before.

TL, DR for the whole thread? California is a big pain in the butt.

stook2001 said:   I have done this twice. First time, non issue. Second time, more of a hassle. I am in CT and tried buying a car from Mass. There are no temp tags available in Mass and the dealership I wanted to buy from was not tied into the CT DMV. As a result, the only way to legally get the car out of Mass was to either put it on a truck or drive with dealership plates and courier to the nearest CT DMV to handle the registration on the day I picked up the car. This was even more complex since I was trading in my old car. My goal was to get this done in a single trip to Mass so it required a fine tuned plan to make the deal work. As it turned out, the car I was buying had some paint damage which we discovered when we went to execute the transaction so it turned out to be a completely wasted trip and effort.Was this a NEW (as in, NEVER TITLED) vehicle? The process varies in most states for vehicles that have already been titled vs. those that have only a certificate of origin.

New vehicle - sorry for the omission.

stook2001 said:   New vehicle - sorry for the omission.

It's not going to be worth the hassle. You're talking a new minivan and traveling half-way across the US for a $1500 savings? Get the dealership to match the other dealer's price.

I'm in MA, bought a car in CT.
The dealer put dealer plates on my car and had a "runner" follow me to my insurance company for a stamp and over to the RMV for title/registration. Swapped plates in the parking lot and went our separate ways. Easy for me but it was a 150 mile round trip for their "runner". RMV collected tax when you title the car. I paid the (at the time) 5% MA tax and not the 6% CT tax.

It's not as bad as people make it out to be, though you do need to be sure to factor in other costs/goals to see if this is the ideal route for you. I bought a new 2010 Prius from CA and got it shipped to TX because the color/trimline/options that I wanted wasn't available in Texas at the time. Dealer and I split the shipping fee 50/50. I had gotten paper plates beforehand from my local DMV (just showed them insurance card). Did state inspection, paid use/sales tax to the DMV, showed them the paperwork, and got the real plates. A little more steps than buying a car locally but if you can do it and you come out ahead in the end (or get what you want) then go for it.



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