I live in California and will be buying a new car soon. I'm thinking about going to Oregon to buy the car, where there is no state sales tax, and then driving back to CA. The removal of sales tax would come out to about a 2K savings.
Are there any flaws in this plan?
2007-08-02 12:03:42 · 4 answers · asked by Kavan Lee 2 in Business & Finance ➔ Taxes ➔ United States
A REALLY big one. Although you won't pay any tax in OR, CA will most certainly collect the use tax when you register the vehicle in CA!
Been there, done that!
2007-08-02 12:22:45 · answer #1 · answered by Bostonian In MO 7 · 2⤊ 0⤋
I'd love to hear that phone call to the police. The car is sold as is when two individuals do a deal. Unless you're a dealer, you have no obligations other than to deliver the car and the title. Now, they could take you to court and sue you but have little chance of winning. As long as you didn't say anything stupid like "I guarantee this car will not give you any problems for the next 10 years" or something similar, you should be OK. Hopefully the buyer is not a psycho who starts stalking you. This is another reason I'd rather trade a car in and lose money than deal with idiots who experience buyer's remorse.
2016-05-21 03:57:13 · answer #2 · answered by ? 3 · 0⤊ 0⤋
California will definitely want the difference between what you would have paid in California and what you paid in Oregon.
When you buy in California you can get the tax included in the financing. If you buy out of state and then have to go to the DMV and pay the tax outright all at once, you probably won't get anyone to finance it, and could have to come up with $2000 all at once.
2007-08-03 17:29:57 · answer #3 · answered by shoredude2 7 · 0⤊ 0⤋
Yes, there's a huge flaw. When you go to register the car in CA, they'll expect you to pay the sales tax on it. Bye-bye $2K savings.
2007-08-02 12:23:12 · answer #4 · answered by Judy 7 · 1⤊ 0⤋