Forum Thread

New Car - out of state

jxmiller 1,059 251 June 26, 2016 at 06:05 AM
I found a dealership 750mi away that is selling the car I am in the market for for $7,480 below MSRP. I am in communication with a sales person via email only. My local dealership has only 2 on lot and nothing near what I am looking for options wise, and they are currently at only $1000 under MSRP. So by traveling 750mi (one way flight from local airport to airport they would pick me up from is running $175) I can save ~$6305. Lets just say $6000. I will have to drive the car back which is about a 13 hours drive.

Here is the most recent email communication from the dealer.
Hi Johan,

Here's your out-the-door price based on registering at zip code 50thousand.
Vehicle Price: $28,185
Freight: $820
Processing Fee: $599
Tags: $350
Taxes: $1826.57
Total: $31,780.57

My response to that was a slight distaste for the $599 processing fee but I wasn't too pissy about it. Awaiting response.

Anyhow, I am not in here to ask about buying new vs used. I am here asking about risks or unknowns from buying a new vehicle out of state. Am I going to get slapped with tax twice? Anything I am not considering / a common mistake?

Thanks for any advice! If anyone is curious I am looking at a 2016 VW Golf GTI Autobahn w/ Performance package, DCC package, and DSG Transmission (basically the most top tier GTI you can configure).

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#2
Bought my avalon out of state a year ago for 6k below value. you do not need to pay taxes or anything else from then since you are out of state you can get that all done in your state, but with proper proof that you paid taxes else where supposedly can clear you paying taxes again but still wouldn't risk it. They should be able to throw on a 30 day temp tag for free. I got the dealer I was in communication with to take the car to a mechanic of my choice for analysis and spoke with them to see if and anything was wrong. I then wired the money to them after validating that their bank account was a business account matching the name of the business/owner. I then paid $500 to get it shipped to my front door from 12-13 hours away. Hope this helped
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#3
They may be bound by the rules of their state to charge taxes, but if you have proof you are a resident of another state then it shouldn't be a problem to purchase the vehicle and not pay the registration taxes. I'm not sure if you are still responsible for sales tax since the other state may still collect that. The only way to avoid that would be to have it shipped. I think if you seal the deal at their location you may just get double sales taxed? The only way to know that would be to consult the state tax boards to understand those rules for each state.

Here is an example for Washington State. Its quite complicated:http://dor.wa.gov/Content/FindTax...fault.aspx
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Last edited by truckinusa June 26, 2016 at 10:51 AM
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#4
Out of state sale they should not be charging sales tax. All states share this reciprocity on vehicles. You will pay when it is registered in your home state. There is also no reason to go out there to pick up the vehicle. Do the paperwork over the net, notarize, and have them ship the car to you.
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#5
Quote from dealgate View Post :
Out of state sale they should not be charging sales tax. All states share this reciprocity on vehicles. You will pay when it is registered in your home state. There is also no reason to go out there to pick up the vehicle. Do the paperwork over the net, notarize, and have them ship the car to you.
They don't handle shipping, it would be my responsibility. I have only got 1 quote so far on shipping but it was $1100. While I would still be able to save a large amount of $ if I went this route (saved over buying the car at my local crappy dealer for about $6000 more), I think I would go ahead and fly there and drive the new car back and eat the 13 hours, gain $, and get to know the vehicle.

I am in talks with them now, no response yet, but I am trying to get them to forgo me paying taxes and tags. If they give me a 30 day tag, I'd have an additional month to come up with $ to pay it here and it would not be wrapped up in a loan.
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Last edited by jxmiller June 28, 2016 at 04:52 AM
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#6
Quote from jxmiller View Post :
They don't handle shipping, it would be my responsibility. I have only got 1 quote so far on shipping but it was $1100. While I would still be able to save a large amount of $ if I went this route (saved over buying the car at my local crappy dealer for about $6000 more), I think I would go ahead and fly there and drive the new car back and eat the 13 hours, gain $, and get to know the vehicle.

I am in talks with them now, no response yet, but I am trying to get them to forgo me paying taxes and tags. If they give me a 30 day tag, I'd have an additional month to come up with $ to pay it here and it would not be wrapped up in a loan.
There should be no "trying to get them to forgo me paying taxes and tags". If they are that incompetent, you should look elsewhere for a vehicle. You can also get a 30 day tag and temporary registration from your own DMV and bring it with you.

Driving the car home is a good idea it gives you time to break it in and have a nice long initial break-in period.
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#7
As was noted already, you pay taxes in your state of registration\home state. You should not have to pay the out of state sales tax or registration fees to the best of my knowledge. Your state DMV will hit you with those when you go to register the vehicle with them.

I doubt you get anything cheaper than the $175 flight. Maybe a rental car one way, but driving 750 miles there to save maybe $50 is not worth it imo.
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#8
what exact vehicle are you buying anyway?
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#9
Quote from oyouno View Post :
what exact vehicle are you buying anyway?
It was in my original post, very last sentence.

If anyone is curious I am looking at a 2016 VW Golf GTI Autobahn w/ Performance package, DCC package, and DSG Transmission (basically the most top tier GTI you can configure).

*It also has the lighting package.

MSRP: $35,665
Instant Savings:$7,480
Price: $28,185

My local dealer does not have this configuration, and the 2 they have are 2 door, I want 4-door... among other things. And my local deal is only $1000 below MSRP. Even if they carried exactly what I want, they would only be $1000 under that MSRP. The difference is then $6,480 - flight - 750mi drive home. Roughly. That's all FYI, and cool, but not why I posted here.
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#10
Just FYI, since this post I have been in communication. After I mentioned I wanted to forgo paying sales tax and I would pay it locally, as well as bring my own temp tag... I have not got a response email. That was 4 days ago.

I also called with some questions, talked to another sales person. Was talking about buying from 750 mi away. He didn't want to send me paperwork through email, said I had to come in. Also said its policy to have tax paid when the car is purchased... he had no idea if that was state law or dealership policy 'just how we do it'.

Not really sure I am going to be making a purchase after all... I'd rather completely finalize the sale before I even book the plane ticket. And don't really want to pay tax up front and roll it into financing... I'd rather have 30 - 60 days to get it plated and taxes paid.

Why would a dealership forgo a sale for trivial BS like this? /shrug. Maybe next year.
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