Buying a Car From Another State
Discussion
So after doing six months of hard overtime at my new job I'm thinking of purchasing a car to establish some credit history for myself and because I wanted to have something nice for when I turn 30.
Its probably mostly common sense and something I could google, but I wondered if there was anything to be concerned with when purchasing a car out of state?
I'd originally looked at getting a car close to where I live, but due to the fact that there are only about 40 of the car I'm looking at for sale in all of America, I'm a bit s
t out of luck for that. The upside of this is that I will potentially get a memorable road trip back in my newly acquired steed.
I'm looking at Z4M Roadsters, and from what I've read they seem to be pretty reliable, many of them have quite low miles considering the age of the car so there shouldn't be too much wrong with them. From what I can see the process should be along the lines of:
1.Plane ticket to said area of Americur
2.Hand over monies
3.Drive the nuts off it back to California
4.Hand over monies to DMV for registration, sales tax etc
5.Drive the nuts off it in California
Now, who can be the first to pick holes in my bombproof plan?
Its probably mostly common sense and something I could google, but I wondered if there was anything to be concerned with when purchasing a car out of state?
I'd originally looked at getting a car close to where I live, but due to the fact that there are only about 40 of the car I'm looking at for sale in all of America, I'm a bit s
t out of luck for that. The upside of this is that I will potentially get a memorable road trip back in my newly acquired steed.I'm looking at Z4M Roadsters, and from what I've read they seem to be pretty reliable, many of them have quite low miles considering the age of the car so there shouldn't be too much wrong with them. From what I can see the process should be along the lines of:
1.Plane ticket to said area of Americur
2.Hand over monies
3.Drive the nuts off it back to California
4.Hand over monies to DMV for registration, sales tax etc
5.Drive the nuts off it in California
Now, who can be the first to pick holes in my bombproof plan?
Any good dealership will be able to handle an out of state sale. Some dealers in California are usually hesitant to sell out of state, but there are ways around it.
Essentially, it is all about ensuring that the correct amount of sales tax has been paid and that the car is registered in the appropriate state - it's not a huge deal.
We bought a car on finance from an out of state dealer and drove 600 odd miles to collect it - no problem. In fact, it was odd, we completed all the paperwork etc. arrived with a cashiers cheque and drove off - painless.
It sounds like you are looking to finance this? If so, I would look at a CPO car from a BMW dealership as iirc, BMW offer excellent finance on used cars through their dealer network.
Essentially, it is all about ensuring that the correct amount of sales tax has been paid and that the car is registered in the appropriate state - it's not a huge deal.
We bought a car on finance from an out of state dealer and drove 600 odd miles to collect it - no problem. In fact, it was odd, we completed all the paperwork etc. arrived with a cashiers cheque and drove off - painless.
It sounds like you are looking to finance this? If so, I would look at a CPO car from a BMW dealership as iirc, BMW offer excellent finance on used cars through their dealer network.
Check that the state you are buying the car in has a reciprocal arrangement with the state you live in or you may have to pay sales tax twice......
Interstate sales tax can be a bit of a minefield and the rules vary state by state. In Indiana we used to have to charge Indiana sales tax wherever the car was going to be titled unless the buyer did not set foot in the state (if we shipped the car). If we shipped we charged no tax and the buyer could sort it out at the other end. That's all now changed and we have to charge and collect the sales tax applicable to the state and county where the buyer lives.
If you're buying from a dealer they should take care of it all. If you're financing they will have to deal with it all at the point of sale anyway as it will be tied up in the finance agreement.
Interstate sales tax can be a bit of a minefield and the rules vary state by state. In Indiana we used to have to charge Indiana sales tax wherever the car was going to be titled unless the buyer did not set foot in the state (if we shipped the car). If we shipped we charged no tax and the buyer could sort it out at the other end. That's all now changed and we have to charge and collect the sales tax applicable to the state and county where the buyer lives.
If you're buying from a dealer they should take care of it all. If you're financing they will have to deal with it all at the point of sale anyway as it will be tied up in the finance agreement.
Edited by unrepentant on Tuesday 7th July 19:08
unrepentant said:
Check that the state you are buying the car in has a reciprocal arrangement with the state you live in or you may have to pay sales tax twice......
Interstate sales tax can be a bit of a minefield and the rules vary state by state. In Indiana we used to have to charge Indiana sales tax wherever the car was going to be titled unless the buyer did not set foot in the state (if we shipped the car). If we shipped we charged no tax and the buyer could sort it out at the other end. That's all now changed and we have to charge and collect the sales tax applicable to the state and county where the buyer lives.
If you're buying from a dealer they should take care of it all. If you're financing they will have to deal with it all at the point of sale anyway as it will be tied up in the finance agreement.
Thanks everyone. Some good tips. Interstate sales tax can be a bit of a minefield and the rules vary state by state. In Indiana we used to have to charge Indiana sales tax wherever the car was going to be titled unless the buyer did not set foot in the state (if we shipped the car). If we shipped we charged no tax and the buyer could sort it out at the other end. That's all now changed and we have to charge and collect the sales tax applicable to the state and county where the buyer lives.
If you're buying from a dealer they should take care of it all. If you're financing they will have to deal with it all at the point of sale anyway as it will be tied up in the finance agreement.
Edited by unrepentant on Tuesday 7th July 19:08
I hadn't known about the sales tax in another state thing. I'm hoping to get a personal car loan through my bank and buy privately. Thats the ambition anyway. Whether it will work out is another story.
Buying privately is different as the seller cannot give you a temporary tag.
So...to drive the car home you would need to go to the sellers local DMV armed with the signed title, deed of sale and proof of insurance.
Also funds for that States sales tax, transfer and tags. The seller can also hand in the old tags at the same time.
On reaching your own State you can then get a title issued by your own State on which there should be no Sales Tax due as the issue of a new title is not a sale.
Alternatively, get the car shipped and register it in your own State and pay sales tax tags etc.
However a lot of people just stick any old tags on a car and just drive it home, not something I would do.
It is of course possible to drive home on the sellers tags and his insurance and then mail back the tags, most would not go for that, liability issues and their lic would get suspended if you the buyer didn't bother to return their tags and they were not handed in correctly.
So...to drive the car home you would need to go to the sellers local DMV armed with the signed title, deed of sale and proof of insurance.
Also funds for that States sales tax, transfer and tags. The seller can also hand in the old tags at the same time.
On reaching your own State you can then get a title issued by your own State on which there should be no Sales Tax due as the issue of a new title is not a sale.
Alternatively, get the car shipped and register it in your own State and pay sales tax tags etc.
However a lot of people just stick any old tags on a car and just drive it home, not something I would do.
It is of course possible to drive home on the sellers tags and his insurance and then mail back the tags, most would not go for that, liability issues and their lic would get suspended if you the buyer didn't bother to return their tags and they were not handed in correctly.
pasogrande said:
Does California have any different regulations (eg emissions, etc.) compared with other states?
Wilf.
The ones I'm aware of are:Wilf.
- there are very few new diesels you can register in CA. If you've used a diesel out of state for 6+ months, then you get an emissions exemption when you move it to CA.
- CA is very restrictive on engine mods (including intakes and exhausts). If it doesn't have a CARB sticker and number, you won't get it approved. For the OP, this means checking carefully for non-OEM parts (even things like shiny coloured vacuum hoses) as our American cousins do love modding their cars!
- FWIW the 25-year-old free pass for imports doesn't apply in CA. You can bring in any pre-1976 cars to CA, but the excitement in the other 49 states about late-80s/early-90s European and Japanese imports is sadly not going to happen in CA.
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