Purchasing from a dealer in another state

Has anyone purchased from an out of state dealer? What challenges does that present with taxes and warranty?

 

I'm buying my tacoma in another state. I've done it in the past with both cars/trucks and motorcycle. Very simple. I'm not paying any tax when I buy and when I register it I will just pay state tax. Find out what the rules are for both the state you are buying from and where you live. Some states like CA make you pay taxes at time of purchase no matter what. In that case, at least in AZ, I would not be required to pay any taxes at registration as long as the taxes I paid were equal/greater than AZ taxes. If I paid less then I would just pay the difference.

So for me, besides getting a much better deal on the price of the truck before taxes, I also won't have to pay any city/county taxes thus saving another 2.5%. Since I am paying cash for my truck the savings seem to matter more than if I just think that i am saving some small amount each month in a payment.

 

Bought my MX5 in Florida. Nine hour drive back ear to ear grin..... Basically you buy the car and they give you a tag good for the drive back or you can have it shipped. If you pay taxes in the state you buy from you get a tax credit at home. Otherwise you just oay the sales taxes in your home state. Out of state dealer know how this works. They do it all the time. I have also rented Enterprise cars one way when 200 miles or less to buy out of state or in state.

Well worth it sometimes.......I will do it if I can get a Spirit $87 flight and airport pick up buy the dealer. If I can save $1000+ its worth the trip for me. But I am retired and have nothing better to do.

 

depending on your state and neighboring states. I will try to explain.

1. I live in ND
2. I goto MN and buy a vehicle
3. MN wont charge me tax since I will be registering the vehicle in another state but
4. I can have the dealer charge me my state tax rate at the time of sale
5. ND has a reciprocity rule that the tax I paid in MN will be valid for ND as long as the tax is equal or more than the tax rate in ND.
6. caveat, if the state your buying the vehicle has a higher tax rate, you don't get a refund of the difference when you come back to ND.

ie : if TX has a 8.5% tax rate and my state has 5.0% rate, I lose the other 3.5% since ND will only recognize up to 5.0%

if TX had a 4.0% tax rate and my state is 5.0%, I would have to make up the 1.0% when I go to register in ND.

and btw, ND is a flat 5.0% across the board on big purchases, otherwise normal small purchases are 5.0% plus local tax rate, which can vary from city/county. my current city rate is another 2.5% on top of the 5.0%.

big purchases, ie: vehicles, are a single tax rate of 5.0%, no city/county taxes are applied to the car purchase.