If I purchase a vehicle which is advertised in the Internet, should I expect to pay sales tax?

Question

The vehicle is being sold by an out-of-state dealership. Also, should I offer to pay the trade-in value as a starting point in my negotiations? (I will be paying cash with no trade-in.)

Answer 1

if you don't pay sales tax up front, you may have to pay once the vehicle is registered in your county and state. Cash deals are usually a cost savings since financing is waived. do whatever you can to get the sales price lowered.

Answer 2

In California, you always pay sales tax at a dealer, and "use" tax
(same as sales tax) based on the sale price, when buying from a private seller. You pay it at the DMV when you transfer title.

If you buy a car that needs work for a real cheap price, or lie to the DMV, (unethical, but often done) you save money on the use tax.

dealers will not sell you a car at tradein price, because they have spent money detailing it and would make no profit.

Answer 3

In response to the Additional Details portion of your question... At least one state (Michigan) is greatly increasing use tax audits of businesses (I don't know about individuals). The auditor will look at the business's depreciation schedules and general ledgers for the past 10 years. On EVERY item for which you can't or don't present a receipt or invoice that proves that you paid the sales tax, you'll be assessed use tax, penalties and interest.

Answer 4

that would be a good starting point ,but you,ll probably pay the sales tax on it when you license it in your own state i own a repair shop,and sometimes buy a few off of a dealer to re-sale and i usually wind up having to pay the sales tax somewhere down the line on it,but id offer them as little as possible on it to see if that was a good starting point,on the sale,good luck i hope this help,s.

Answer 5

You will have to pay sales tax in the state in which it is purchased. Depending on where you live, you may also have to pay a tax in your home state.

Answer 6

I do not know about the rest of the states but in Missouri you must pay the sales tax when you purchase your plates

Answer 7

You'll pay the sales tax when you register the vehicle if you don't pay it to the dealer.

Answer 8

Only in your state B.S the purchase prise it can save you a lot or put even trade in prise box of title . then take to DMV and pay 0.

Answer 9

do u have used car tax in your state? if so when u buy it u will have to pay the tax in your state.just read careful sometimes they have a lot of differnt fees also u will have to worry about shipping