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Need advice on out of state car purchase (from a dealer)

220volt

Ready to race!
Location
Kentucky, USA
So I found a car that I like but it is in TN and I live in KY. So it will be out of state purchase. We agreed on out to door price. I told the dealer that I cannot pay more that what is agreed. They agreed. Now, dealer agreed to pay KY sales tax for me, because if I have to do it, that will put me way over budget and then the deal is not that great. I can find better deal locally and it is not worth my 4 hour drive.
When I asked dealer how does that work, do I get the paperwork stating that they've paid the tax for me (so i don't get taxed twice when I show up in KY to register the car), he told me he is not sure how it all works, and that his finance manager will take care of that. It is a big reputable dealer in TN so I doubt he is playing me, but this is all new to me since I never made out of state car purchase before. Now, I don't want to drive down there just to find out there's some legal issues or tricks.

Anyone has any advice how to proceed here?

Thanks in advance,
 

greasyginzo

Go Kart Champion
Location
North Jersey
The few time I bought a car out of state the dealer just gave me a check for taxes at signing then I took it DMV filled out transfer papers and paid the taxes.
 

zrickety

The Fixer
Location
Unknown
Car(s)
VW GTI
My wife bought an Eos in Florida...we paid some tax there but then Georgia hit us with a few thousand more. It seems like we paid twice but my memory could be off. I would ask the tax office in your state, the dealer just wants the sale and will say you're all set.
 

b42day1

New member
Location
TX
In my experience when you buy a vehicle out of state you don't pay any sales tax since you will not be registering the vehicle in that state, you would pay the sales tax in your state when you register the car. This is at least in Texas, and I have bought many vehicles out of state from many different states...best bet ask your state's DMV. Good luck and let us know what they say. So keep in mind that you WILL pay taxes regardless when you register your car in your state, unless they treat it as a "transfer" and show that taxes have been paid, just as when you move states and change registration...there will still be some kind of title or registration fee so you are better off just registering in your state to begin with...I would keep this "tax" issue out of the negotiation at all...
 
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Greywolf

Passed Driver's Ed
Location
Milwaukee
When we bought my wife's 550i from Cali, the dealer cut us a check for the taxes in WI. We got a loan locally, sent in the full amount including taxes for WI, and the dealer cut us the tax check. Just get all of it in writing prior to closing the deal.
 

220volt

Ready to race!
Location
Kentucky, USA
I just spoke to my DMV and they said if the dealer cuts me a check it will be more complicated for me because I would have to go downtown, register the car, deal with license, title and inspection. They said it is better if the dealer did all of that. But they said to get all in writing prior of signing anything. I'll try to get them to do paperwork online so I can see what I will be signing before I even drive down there.
 

toyvw

Passed Driver's Ed
Location
NorCal
I had a friend who works at VW in California. We probably have the worst sales tax regulations. Buyer didn't want to pay the higher tax rate of CA. So VW had to physically drive the car to Nevada and find a notary to state the car was indeed sold out of CA. I don't know if the buyer was a Nevada resident but they did have an out of state license.

Sent from my SM-G925T using Tapatalk
 

swazey

Passed Driver's Ed
Have the dealer handle all of the paperwork for you. There is now reason why they should not. TN allows temp plates http://www.nashvilleclerk.com/motor-vehicles/temporary-operating-permit/

They can register the car with temp tags in TN, meanwhile contacting your motor vehicle registry, paying the tax and mailing you your plates.

I live in MA and bought my GTI in Ohio. Flew in, the dealer picked me up at the airport, signed all the papers and drove back. I Left with temp plates and 2 weeks later received my MA plates in the mail, with new registration
 

220volt

Ready to race!
Location
Kentucky, USA
Well as it turned out they called me today and said that car has been sold already. Ohh well. At least I've learned few things.
 

swazey

Passed Driver's Ed
Note on Inspection in KY:

http://transportation.ky.gov/motor-vehicle-licensing/Pages/Frequently-Asked-Questions.aspx
"Kentucky does not have a vehicle safety inspection requirement. However, all cars entering Kentucky must have the vehicle identification number inspected by the sheriff in the county in which they are to be registered. The only exception belongs to new cars handled by Kentucky dealers which do not have to be inspected."

No safety inspection, damn. MA is much less lenient!
 

swazey

Passed Driver's Ed
Well as it turned out they called me today and said that car has been sold already. Ohh well. At least I've learned few things.
If you ready to pull the trigger, put a deposot on the car next time, especially if purchasing from out of state
 
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