morssolis

ok as some of you know from my other post i am buying a 2005 rx8 from a dealer. it is out of state. i live in PA its in OH.

we agreed on the price of 14k otd.

i woke up in the middle of the night and this thought hit me.

so i am going to get a temporary tag from oh till i register it in pa. now when i go to register it in pa they are going to want sales tax, fees and such. i just know the dealer is counting on me to not know this and they will have my 14k and i will be left to pay the taxes. i have no problem with the fees as they will be minimal because the bank will have title and i will need a plate and registration.

i guess i need something from the dealer saying the sales tax is paid and they are going to send the money. i have read somewhere that a receipt showing that the tax is paid is ok also.

has anyone bought out of state before? i know all states are different. how should i handle this.

i am going to bring it up before i sign for the loan or anything. i am going to tell them i need something saying tax has been paid. i guess i will start it by saying what do i have to do when i get in pa. they will say take it to get plates and registration. and i will say when they do that they require sales tax.

i can just see it now. they are going to try and screw me and i am going to have to walk away on a car i really want and is a good price.

Lebren

iTrader: (5)

It's your money so make it known your intentions are to spend 14K max. "That's it or I walk!" I assume you test drove it already..... what kinda mileage?

morssolis

i did drive it. it have 15k miles. its a GT without nav. was not sold till may 2006 so under full warranty still. carfax shows a lot of maintenance. its in great shape.

Lebren

iTrader: (5)

excellent, still make it known you're willing to walk away if things start to smell fishy.

Cf05

I bought out of state and its a pita, to get a temp tag you need to pay sales tax in your current state, you will need to have proof from the state that you paid sales tax, you will than take this proof and your temp title signed over to you and register with ur home state. You will have to pay any additional sales tax that you may owe if your state has a higher sales tax % if its lower you will not get a refund... its much more complicated than it looks on paper good luck all i can say once it was all said and done it was totally worth it!

morssolis

well he said when we were talking price pa sales tax is more than oh. so they know what it is. i just need proof 7% sales tax was paid? who does it have to be paid to though? if its to oh or pa does it matter?

Mr.ThunderMakeR

I think youre making things out to be harder then they really will be. Im pretty sure you will only have to pay sales tax in the state where the purchase occured. Are you buying the car through a local dealership who is then getting the car from PA, or are you dealing directly with the PA dealership?

Just call your local DMV and see what they say. I highly doubt you can be forced to pay tax twice.

morssolis

i am buying it in oh and taking it to pa.

i am not saying i will be paying sales tax twice. i am saying the dealer is going to take the otd price and keep it all.

i know you have to pay / show tax has been paid when you register it in pa.

RIWWP

iTrader: (2)

I bought my 8 from Ohio, registered and titled it in RI.

I paid the $19,500 to the dealer, the list price only. My bill of sale does not show any other charges other than the price of the car. I got everything he had with the car, and a single Ohio temporary tag.

I got a loan from my bank for $20,865, to cover the $1,365 in sales tax (7%) RI was going to charge me, I opted to pay for the titling and registration out of my pocket. I made it clear to the dealer ahead of time exactly what I was paying for, and not to add anything additional, because I knew that RI was going to charge me 7%, regardless of what I paid in OH. I could show that I paid sales tax in OH, and RI would have charged me 7% anyway.

They are like that.

PA is probably different there, but as long as you are clear from the beginning exactly what you are paying for, and get documentation, then you should be fine. I would recommend calling your DMV to see what their procedure is, if it isn't online, just to make sure everything is being handled correctly.

Mr.ThunderMakeR

Sorry I got the OH/PA thing switched around, I was trying to type that without getting caught by my boss haha.

The part about the dealer keeping all the otd money sounds highly illegal. If they are a legit dealership then they are a licensed business in the state of OH, meaning they are responsible for collecting sales tax from their customers and giving that collected tax to the state. All businesss have to report all sales made and all sales taxes collected when they file their state taxes. The responsibility of collecting sales tax falls on the business, not the customer.

I could see it being different if you were dealing with a private seller though. Please don't take my word for it though, I could easily be wrong, you really should call your DMV, even if it means waiting on hold for 2 hours (God DMV's suck haha).

Edit: Oh and make sure you ask the dealership for an itemized bill of sale before you sign anything, that should include sales tax. Just curious, is this an actual Mazda dealership or some ma and pop used car dealership? I ask because if it was a Mazda dealership they should take care of the tax and title for you. I bought my car from CA through a local AZ dealership and never had to visit the DMV once. It was brand new so that could be the difference.

mbentley

iTrader: (1)

when i bought my 8 from wisconsin, i just paid their 5% (if i remember correctly) and then when i registered with the indiana bmv, i was just required to pay the difference. the paperwork you get from the dealership will show how much you paid in sales tax in the state you purchased your car from. they will just calculate how much you still owe.

if the state you buy it in has more sales tax, i am not sure what happens. i would assume that you could not pay sales tax at the time of purchase and just pay it when you register your car in your home state. these sort of things are tricky as each state has different laws. really the best thing would be to call your bmv and ask them what should be done in your situation.

valpac

iTrader: (2)

I bought my car outta state and it wasnt difficult. The dealer figured/added local state sales tax to the final bill. When I registered in my resident state I was creditted with that payment. It's called reciprocity and didnt hurt me at all. It depends on the tax difference between states whether you get a refund or owe.

Razz1

Gee... you can't find a member here that wants to sell there car in the for sale section that lives in PA?

morssolis

ok thanks for in the input. very helpful

i am going to get a itemized bill from the dealer before i sign.

it is a group of car dealers. they are big in that area i guess. its not a mazda dealer but gm.