How does taxation on automobiles work?

Alex G: How does taxation on automobiles work?
In Canada or the US.
I mean taxation on new automobiles from a dealership as opposed to taxation on pre-owned ones. Someone told me that when you buy a new car from the dealer, you pay taxes and get a warranty, but when you buy a car off someone, you pay no taxes but get no warranty – you could then go to the dealership and pay them for a warranty if you car isn’t too old. Is this true?
Thanks a lot!

Answers and Views:

Answer by J-10
Sounds like you’re referring to sales tax. New or used, if you’re buying it, you’ll likely pay sales tax on it. I live in Massachusetts, and sales tax is levied at the DMV when I register the car – so whether it is purchased from a dealer or individual, I still get dinged for sales tax.

More so, it depends on what state you live in. If I lived in New Hampshire (no sales tax), and registered a car there, I wouldn’t have to worry. Canada/US is a bit broad, so hard to say for sure.

Answer by Judy
In the US at least, you pay tax on a car purchase no matter who you buy it from. If from a private party, you’d pay it when you register the car and apply for your license plate.

A new car has a warrenty. A used car from a dealer sometimes does. If you buy a used car no matter where, you MIGHT be able to then buy a warranty for it.