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Vehicle Sales Tax Questions

1081 messages,  Last post on Mar 01, 2013 at 6:35 PM

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Messages Page 107 of 109

#1057 of 1081 Re: tax question - lease trade [tsxowwner] by dwynne

Jan 03, 2012 (11:23 am)

Replying to: tsxowwner (Jan 02, 2012 7:56 am)
In most states the title from a leased car can pass to the lessee (you) or a licensed dealer. So I could not buy your leased car - you can or you can sell / trade it to a dealer.
 
In most states, tax would be due if YOU purchased the car based on the buy out (at that time) price. In your example you used $16k - so that would be the taxable amount.
 
If a dealer buys your car, no tax is due (at this point) so if the dealer offered you $18k to buy / trade your car your net would be $2k and you could ask for a check or roll that into the next deal. I have found that Carmax offers as good / better money than local dealers if you have a clean, low mile, never wrecked car to get rid of. It is nice to car shop without a trade as well, makes things a lot simpler.
 
Always be sure you get the buyout price inclusive of any fees (disposal fee, etc) but excluding the taxes. This is the price a dealer would have to pay to buy the car, if you buy it you can simply add the tax to this amount yourself to figure the total. You do not need to wait until lease end either, at any point your car is worth more than the current buy out you can sell / trade and net the difference. At certain ages (like after the warranty expires) and certain mileages (like when major maintenance is due) the value can drop a good deal. Ditto market conditions like time of year (selling a convertible now, for example) and supply and demand can make not waiting until lease end a better option.
 
I have heard there are some lease banks that will not allow any 3rd party to buy their lease vehicles, you either buy it yourself or turn it in. These are rare, however.

#1058 of 1081 Re: tax question - lease trade [dwynne] by tsxowwner

Jan 03, 2012 (12:10 pm)

Replying to: dwynne (Jan 03, 2012 11:23 am)
thanks a lot for the info!

#1059 of 1081 Soon to be resident of AK, want to buy car elsewhere by lovethedeals

Feb 01, 2012 (6:05 pm)

Hi all,
 
I am looking to buy a new car. AK doesn't have a sales tax, but they do have overpriced cars for the car I am looking for I want to buy it ENROUTE to AK and then just register it in AK when I arrive. Anyone know if that is possible?
 
 I would really like to use the new car to drive across the US but I heard there is some kind of stipulation that you would need to register the care within 10 days of purchasing. Is that correct? I really don't want to waste money on sales tax!
 
To make matters more complicated, I am trying to trade my current vehicle in for the new car (old vehicle is registered in Alabama). Thoughts??

#1060 of 1081 Re: Soon to be resident of AK, want to buy car elsewhere [lovethedeals] by lovethedeals

Feb 01, 2012 (6:09 pm)

Replying to: lovethedeals (Feb 01, 2012 6:05 pm)
Also, what is considered proof that you are "living" in another state? Is a bill good enough or do you have to have a state driver's license too?

#1061 of 1081 Re: Tax on a buy in California for use in Alaska [djunaf] by lovethedeals

Feb 01, 2012 (6:38 pm)

Replying to: djunaf (May 15, 2005 10:44 am)
Did you ever get an answer on this? I am considering doing the same thing with a slight twist: I live in Alabma, want to buy a vehicle in TX, and within 20 days I will be registering it in Alaska. I have a friend in Alaska who will let me use his address for a bank statement or bill so that I don't pay the tax in TX

#1062 of 1081 Re: moving to AZ, buying car elsewhere, ship to AZ. Who gets the tax? [cccompson] by lovethedeals

Feb 01, 2012 (7:19 pm)

Replying to: cccompson (Oct 01, 2006 6:45 am)
"""""Sales tax is owed and due to the state of which you are a resident at the time of the purchase. It has to be paid in order for the title to be issued by your residential state. The selling dealer is responsible for making sure that you get the title. """""
 
So how does the dealer "know" what state you are a resident of? It gets complicated: I have a driver's license, voting, and pay income taxes to CO (residency), but my current vehicle is registered and insured where I live now (Alabama). I am moving to AK and want to buy a car in Texas enroute, thus registering my new car in my new state, Alaska and changing EVERYTHING (voting, license, registration, etc). I am planning on trading my old car in at the Texas dealership. I already checked with AK and they won't charge me any tax on the vehicle, only registration. But how do I get the Texas dealer to let me out the door without paying any sales tax?

#1063 of 1081 Re: moving to AZ, buying car elsewhere, ship to AZ. Who gets the tax? [lovethedeals] by dwynne

Feb 01, 2012 (7:28 pm)

Replying to: lovethedeals (Feb 01, 2012 7:19 pm)
I have purchased or leased from out of state dealers many times (though never from Texas) and I have never had to pay sales tax to the dealer. We pay tax when we title the car and get the tags. Any dealer used to selling to out of state folks should not try to collect any tax from you. It should not matter what state your ID shows as long as it is not Texas.

#1064 of 1081 Re: sales tax [joel0622] by lovethedeals

Feb 01, 2012 (7:40 pm)

Replying to: joel0622 (Feb 24, 2007 1:30 pm)
So how does the dealer "know" what state you are a resident of? It gets complicated: I have a driver's license, voting, and pay income taxes to CO (residency), but my current vehicle is registered and insured where I live now (Alabama). I am moving to AK and want to buy a car in Texas enroute, thus registering my new car in my new state, Alaska and changing EVERYTHING (voting, license, registration, etc). I am planning on trading my old car in at the Texas dealership. I already checked with AK and they won't charge me any tax on the vehicle, only registration. But how do I get the Texas dealer to let me out the door without paying any sales tax?
 
Also, I will be financing the vehicle either through the dealership or through USAA. Please help!

#1065 of 1081 Re: sales tax [lovethedeals] by stickguy

Feb 01, 2012 (8:00 pm)

Replying to: lovethedeals (Feb 01, 2012 7:40 pm)
most likely your driver's license is enough. Plus the registration is out of state. Pick one!
 
but as others noted, as long as you have proof you aren't a Tx resident,you should jsut be given an out of state transport/temp tag.

#1066 of 1081 Dealer claiming they have to collect out of state tax by cabanadan

Mar 20, 2012 (5:39 pm)

I live in NY, and am thinking of buying from a dealer in NJ. The dealer is saying that to obtain financing, I have to finance the purchase price plus NY sales tax, and the dealership will cut me a check for the sales tax so I can pay it myself.
 
The salesman is saying they won't get funding unless he can prove I paid the sales tax. I don't see how me paying additional interest and them cutting me a check helps prove anything.

Messages Page 107 of 109

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