Buying a new car out of state

Hi all,

How do the tax, title, license fees work when you are buying out of state?

Do you pay the state tax of the buying state or Texas?

Sounds like the dealership is going to give me all the necessary paper works for the DMV visit. Does that mean I do not have to pay for some fees when purchasing a car

TIA,

Alan :D

You will have to transfer the title to Texas to get TX plates. You'll also pay the diff. in sales tax if your state-of-purchase rate is lower.

When I bought the 335i in Arkansas, I didn't pay any AR taxes. I did pay out the nose here in Texas (6.25% of the presumptive value per the VIN [there's a calculator, google it]). You can get the trade in tax credit if you buy out of state and trade in as well.

If the seller wants to keep his plates you can get a temp tag for 30 days. Use that to drive it back, make sure you add it to your insurance. When you get back to TX take the title to the DMV and pay the taxes and get TX plates.

Funny thing, I also bought my 335i in Arkansas.

You'll have one too many cars. Time to sell me the Civic!!:D

Who cares about the financial details. Whatcha buying? :mrgreen:

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Originally Posted by altiain

Who cares about the financial details. Whatcha buying? :mrgreen:

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+1!

You pay nothing in the purchase state other than the price of the vehicle..........once at your local tax office you will pay all your normal TX taxes, fees, etc.

Just remember you need to get it inspected before you go try to do the title transfer... ask the inspection station for a "green sheet".... this is the extra paper work the folks at the title transfer will need before they do the transfer.

Thank you everyone!

Quote:

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Originally Posted by Dave04

Just remember you need to get it inspected before you go try to do the title transfer... ask the inspection station for a "green sheet".... this is the extra paper work the folks at the title transfer will need before they do the transfer.

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That's something I didn't know! So I need to take the car to do a state inspection before the title transfer? Even the inspection is valid for another year in another state?

Something with 4 doors, 6 speed, comfortable and low key. ;)

Quote:

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Originally Posted by altiain

Who cares about the financial details. Whatcha buying? :mrgreen:

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BMW 335i sedan?

I've got an M5 that fits that bill that I'll sell you ;)

The out of state inspection is not valid here in Texas. You'll have to pony up your $40 before you can get it registered. You'll need to insure it before you can inspect it.

So the order is:
- buy
- insure
- inspect
- register/pay sales tax

Quote:

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Originally Posted by apex2apex

So I need to take the car to do a state inspection before the title transfer? Even the inspection is valid for another year in another state?

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Quote:

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Originally Posted by goofygrin

The out of state inspection is not valid here in Texas. You'll have to pony up your $40 before you can get it registered. You'll need to insure it before you can inspect it.

So the order is:
- buy
- insure
- inspect
- register/pay sales tax

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Correct...