Quote:
Originally Posted by Mintsopoulos
So Ive been looking at getting into in M3 in the very near future, and unfortunately most of the cars I find that meet my criteria are out of state. Not an issue, but an inconvenience.
Anyways, when it comes to sales tax I was told 2 different things
1. If I purchase the car and have it shipped, I dont need to pay the sales tax, licensing, or title fees. I need to pay that when it get to my home state and register it.
2. Shipped or not...I have to pay sales tax of the state it was purchased in, but no licensing or title fees.
Does anyone have any experience with this?
Im in AZ, and looking to purchase from either CA or TX
Thanks!
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1. It depends. Some (larger) dealers will collect tax and registration even for out of State buyers as they have agreements with third parties to process the registration in whichever State the car will be registered in. Some will not collect any tax and registration if you're out of State.
2. See #1. Each dealer is different. If they do not have a third party processor that will handle registration in YOUR state of residence on your behalf, they may not collect any tax or registration at all. You can also purchase and drive the car off the lot out of state without paying tax using a dealer provided temporary registration that usually cost less than $100. Like anything else, you will pay all taxes and reg in your State when you register the car.
The bottom line is that there is discretion allowed to dealers by the States they do business in. There is reciprocity between States so ultimately, it doesn't matter where you pay the tax, as long as it's paid. Assuming you're dealing with reputable dealerships, and you're not trying to skirt on paying tax, this is really a non-issue.
Lastly, I suggest not buying any car sight unseen. Good luck.