Buying an Out of State Car from a Dealer

[CosmosMpower]

Looking at a few cars out of state at dealerships. Some are telling me that I would have to pay taxes in the state it's purchased. My experience with buying cars out of state was always that I just paid tax/title/license when I got home to TX but those were all private party deals.

[Dave04]

The only way I would do something like that is if they would get the car titled/tagged in that state for you. You could then drive it to Texas and just pay to retitle it here.

If their idea is to get you to pay their sales tax and send you on your way with just the titled signed for transfer (so you'd have to pay double tax) I'd walk away from it.

[OZMDD]

+1, that is a dealer trick to collect sales tax that they don't actually have to pay, so they make a little extra. So long as the final bill of sale doesn't represent it as a tax paid to the state, they can keep it. Be sure it isn't listed as "tax, title, license, fees." all rolled together.

[POS Racing]

I think the rules vary state to state.

State sales tax

If you’re buying a vehicle in the state in which you live, you’ll have to pay the sales tax. If you’re buying a car out of state, you’ll pay sales tax when you register the car in your home state. Most dealers can handle registrations in other states, too.

But if you intend to relocate soon after your purchase or lease, or if you’re buying the vehicle for somebody else who lives in another state, you’ll probably have to register it temporarily where you bought it, then reregister it in the new state of residence before the temporary title expires, usually within 30 days. You can claim a refund for the first state’s sales tax by submitting proof that you’ve reregistered the vehicle, and paid tax, in the state where permanent tags are issued.

http://www.consumerreports.org/cro/c...bers/index.htm

[Rob®]

Yeah to varying by state - I didn't want to say anything because of that. But now that you bring it up, I bought a Miata in CT when I lived in NY and I had to pay CT tax. I needed to show the NY DMV proof that I paid the CT tax and they credited it to me or waived it or whatever technical term you want to use. I didn't have to pay the entire amount again, that's for sure. And I certainly didn't get a refund from any state.

[CosmosMpower]

Thanks guys, spoke to a buddy that sells cars here in Dallas he told the dealer should be able to collect my 6.25% TX taxes and fees and my bank will do the title work and the plates will be mailed. The local Collin county tax office said I could also pay the CA tax and show proof that it was paid to TX and they will collect from CA. Sounds like either way I wouldn't have to pay sales tax twice (I would walk away from any deal like that).

CA only has a max of a $55 doc fee so I would just make sure any other fees on the purchase order is in line with TX state regulated fees.

[OZMDD]

Cool. Now, spill the beans on the potential new whip!

[goofygrin]

OK if we're talking CA... if you take delivery you DO have to pay CA taxes. If they ship or deliver out of the state then you don't pay their sales tax (CA has f'ed up laws).

However, NEVER trust an out of state dealer to collect and pay your Texas sales tax. That's a great way to get boned and I know a couple people that have been boned by this.

You will pay an "out of state" "foreign" vehicle sales tax when you bring it to Texas either way.

[CosmosMpower]

Cool. Now, spill the beans on the potential new whip!

You'll see when it shows up to play with you in Y/Class 2 this year :)

[NissanFairladyZ32]

You'll see when it shows up to play with you in Y/Class 2 this year :)

The guy you sold the s2000 too, such a waste of a car for him, he drives it like a grandma, is afraid to get the rpms higher then 3,000
Gosh that was such a nice car.

[CosmosMpower]

The guy you sold the s2000 too, such a waste of a car for him, he drives it like a grandma, is afraid to get the rpms higher then 3,000
Gosh that was such a nice car.

LOL, he couldn't drive stick when he bought it so maybe he's still getting used to it. I still see it parked at Market Street in Coppell when he's at work. He parks it wayyy in the back far away from everyone else. At least he's taking good care of it. I might want to buy it back someday

[OZMDD]

I'm back in class 1/X this year, since that's where are the recently-purchased NC's are congregating. Better tell Jessica to lower her displacement plans...

[CosmosMpower]

I'm back in class 1/X this year, since that's where are the recently-purchased NC's are congregating. Better tell Jessica to lower her displacement plans...

She said she ain't driving no puny displacement mobile

Truthfully we don't really know what we're buying yet. Had a line on a few cars but the deals didn't work out so we're still open to all sorts of different cars at the moment. From 4 door grocery getters to 2 door muscle cars :)