Originally Posted by drtbkr
One more question you or someone else might know...This is my first car purchase from an out of state dealer and I was curious about sales tax. Is it paid in your home state upon registration or in the state where the vehicle was purchased?
Sales Tax is generally paid when the car is registered. Sales tax is only paid on the difference with the trade in, at least in the states I have lived. Once, I traded in a car that was worth more than the new car and paid no sales tax at all on the new car. I got a check from the dealer when I bought the new car.
If you sell your car to a third party, you do not, at Least in Florida, get the reduced sales tax. I usually sell my car to Carmax because they give me more and make up the difference in what I lose on the sales tax.
If you buy a car in a Tax free state like New Hampshire and then after a period of time move to a tax state like Florida, very often you don't ever have to pay the tax.
Another issue of buying in another state is you a driving an unregistered vehicle back to your home state. Many states allow temporary registrations many do not. If you are trading in a car very often you can put the trade-in's license plate on the new car and drive with the bill of sale for a period of time.
Of course, regardless of your registration you should have insurance on your new car. All you need is your VIN number to secure your insurance. Contact a local insurance carrier with your new VIN number before you go to buy it.
Except for insurance the procedures for registration and sales tax can be completely different in each state. Contact your local registration office; this can be a town/city, county or state run office depending on your area. They will explain everything you need to know.
2014 Jeep Grand Cherokee Overland 4X4 | Black, Inside and Out
5.7 liter HEMI | ORAII | Advanced Technology Package(w/ stop)