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Browse: Home / MONEY / Buying

Buying from car dealer out of state and taxes?

ATC2Kobra: Buying from car dealer out of state and taxes?
Is it true that if a car is bought from a out of state dealer and you have the car shipped instead of driving it across the state line that you won’t have to pay taxes at the dealer you bought it from? Therefore once you get it to your your home state you register it there and pay the tax and get plates etc? Is that how it works?

Also if I’m buying from out of state and won’t be paying their state tax doesn’t that mean the asking price should be the OTD price since there shouldn’t be anything left to add on to it?

Answers and Views:

Answer by abaer01
My understanding is you pay sales tax to the state you buy the car and then you pay any more you might owe to your state when you get your plates.

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