Buying a car out of state

mattocs

Platinum Member
Jan 25, 2005
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Do you pay tax on the vehicle then or when you go to register it in your state of residence? How would that work with financing? Two check or would the dealer forward the tax to the buyers state?

What about plates? Temp plate until it is registered?
 

drinkmorejava

Diamond Member
Jun 24, 2004
3,567
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Well, as for sales tax, it depends how you get the car home. If you have it shipped then you pay sales tax in your home state, if you drive it back, you pay where you bought it. I'm not sure what happens if you have a service drive it back for you though.
 

jagec

Lifer
Apr 30, 2004
24,442
6
81
When you transfer the title to your name (at the DMV in your home state) is when you pay tax on the vehicle. You pay tax when you register as well, but that's not the same tax. Temp tabs while you're driving to your home state (they issue like 2-day tabs, depends on local DMV and how much time you need). I don't know about financing, I've never done it.
 

smack Down

Diamond Member
Sep 10, 2005
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Originally posted by: drinkmorejava
Well, as for sales tax, it depends how you get the car home. If you have it shipped then you pay sales tax in your home state, if you drive it back, you pay where you bought it. I'm not sure what happens if you have a service drive it back for you though.

Not true. I bought a car in the state of Vermont and registered it in NH and I didn't have to pay to sales tax. Had to sign a form saying I was registering it out of state, so that I could get paper plates (30 days) and drove it across the border.
 

mugs

Lifer
Apr 29, 2003
48,924
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Originally posted by: smack Down
Originally posted by: drinkmorejava
Well, as for sales tax, it depends how you get the car home. If you have it shipped then you pay sales tax in your home state, if you drive it back, you pay where you bought it. I'm not sure what happens if you have a service drive it back for you though.

Not true. I bought a car in the state of Vermont and registered it in NH and I didn't have to pay to sales tax. Had to sign a form saying I was registering it out of state, so that I could get paper plates (30 days) and drove it across the border.

Same here (NJ/PA)
 

iamwiz82

Lifer
Jan 10, 2001
30,772
13
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I have purchased out of state three times now, twice at dealers and once private party. The dealers both charged no sales tax but get me a temporary tag to drive on. The car from a private party was a bit of a mess since I purchased it in Iowa, however I picked it up in a different county. In Iowa, you can only get transit tags from the county the car is registered in (big :roll:) so I ended up driving 500 miles with no tags since I was not about to drive 70 miles further into Iowa to get them. Everything turned out ok.