hkc asked:
I heard that some people purchase cars out of state to avoid high sales tax here in California. Does this work or is it worth it for new or used cars? Does anyone know whats involved? Would it be worth it to even fly to another state and then drive back? Anyone have any experience in this area?
I heard that some people purchase cars out of state to avoid high sales tax here in California. Does this work or is it worth it for new or used cars? Does anyone know whats involved? Would it be worth it to even fly to another state and then drive back? Anyone have any experience in this area?
If the State of California thinks you have done what you suggest, they will tax you anyway. I’ve heard of it happening. They look at the purchase date, and know what you’re trying to do.
It would only really work if you can keep it registered in the other state. (edit: For example, if you are in the military) California registrations are based on the purchase price of the vehicle. You can lie about that but it still has to be believable, so you won’t get out of much.
The only reason it would ever be worth it to go out of state for a car is if it’s a car you cannot find locally. For example, new VW TDIs cannot be sold in California (right now) but you can have one registered there if it’s over a certain age (like a year or two). So people would travel outside California to get their diesel Jettas. Or you might find some sweet classic car well-preserved in the Arizona desert, so you fly out to Flagstaff or whereever and drive it back to California.
Other than that, no it would not be worth it.
when you go to the dmv they will charge you the sale tax . you still have to go to the dmv to get a lic, plate for your state
They cannot avoid the sales/use tax, it is due on every vehicle you purchase. If you buy a car in a state that has no sales tax, that’s fine. But when you bring the car for registration/titling, the sales/use tax is due based on your county of residence’s rate.