Question about financing and taxes...
#1
Question about financing and taxes...
Let's say I wanna buy a new vehicle in another state and bring it back to Mississippi to register it. I know I will have to pay taxes here.
Here's the question...can I buy the car in that other state and not pay any tax on it there? Can I still get the good financing rate if I don't pay TTL in the state where I take delivery?
If I pay any taxes in the other state, I will still have to pay taxes here in MS. There is no reciprocity. Is there anyway for the dealer in the other state to pay taxes directly to MS so I can finance TTL with the good rate?
Kinda confusing?
Thanks!
Here's the question...can I buy the car in that other state and not pay any tax on it there? Can I still get the good financing rate if I don't pay TTL in the state where I take delivery?
If I pay any taxes in the other state, I will still have to pay taxes here in MS. There is no reciprocity. Is there anyway for the dealer in the other state to pay taxes directly to MS so I can finance TTL with the good rate?
Kinda confusing?
Thanks!
#2
You are making it too difficult. You pay the taxes on where you register the vehicle, not where you buy it (unless they are the same state). There shouldn't be too much difference in your finance rate between states. Your credit history and loan term determine your APR more than anything else. The main difference you may see is rebates, which can vary depending on region.
#3
Originally Posted by SVT Pilot
You are making it too difficult. You pay the taxes on where you register the vehicle, not where you buy it (unless they are the same state). There shouldn't be too much difference in your finance rate between states. Your credit history and loan term determine your APR more than anything else. The main difference you may see is rebates, which can vary depending on region.
#4
Originally Posted by DarinFred
Let's say I wanna buy a new vehicle in another state and bring it back to Mississippi to register it. I know I will have to pay taxes here.
Here's the question...can I buy the car in that other state and not pay any tax on it there? Can I still get the good financing rate if I don't pay TTL in the state where I take delivery?
If I pay any taxes in the other state, I will still have to pay taxes here in MS. There is no reciprocity. Is there anyway for the dealer in the other state to pay taxes directly to MS so I can finance TTL with the good rate?
Kinda confusing?
Thanks!
Here's the question...can I buy the car in that other state and not pay any tax on it there? Can I still get the good financing rate if I don't pay TTL in the state where I take delivery?
If I pay any taxes in the other state, I will still have to pay taxes here in MS. There is no reciprocity. Is there anyway for the dealer in the other state to pay taxes directly to MS so I can finance TTL with the good rate?
Kinda confusing?
Thanks!
#5
#6
I bought mine in Idaho and live in Washington. The only thing you have to watch out for is dealer incentives and rebates. My truck (XLT) had $10,000 in incentives and rebates combined. So I paid 23k on a 33k sticker price. In WA, they have a BS tax law, where instead of paying taxes on the 23k I paid for the truck, I had to pay taxes on $28k. They said this was due to 5k being a factory rebate (not taxed) and 5k being a dealer incentive (taxed).
If I had known this ahead of time, I would have tried to get them to write up the contract differently. I don't know if its the same in MS, but I wasn't too happy when I found out I had to come up with an extra $400.
Oh yeah, usually the dealer mails the title to the licensing dept. in your state. Once they receive the title, they let you know and you have to go to the licensing agent and pay up, to get your plates.
What's next? They gonna charge you tax on $33 dollar jeans you bought at a half-price sale from your favorite store? Seems kinda like taxation w/o representation to me.
Good luck
If I had known this ahead of time, I would have tried to get them to write up the contract differently. I don't know if its the same in MS, but I wasn't too happy when I found out I had to come up with an extra $400.
Oh yeah, usually the dealer mails the title to the licensing dept. in your state. Once they receive the title, they let you know and you have to go to the licensing agent and pay up, to get your plates.
What's next? They gonna charge you tax on $33 dollar jeans you bought at a half-price sale from your favorite store? Seems kinda like taxation w/o representation to me.
Good luck
Last edited by alfack; 09-14-2007 at 01:42 AM.
#7
Originally Posted by alfack
I bought mine in Idaho and live in Washington. The only thing you have to watch out for is dealer incentives and rebates. My truck (XLT) had $10,000 in incentives and rebates combined. So I paid 23k on a 33k sticker price. In WA, they have a BS tax law, where instead of paying taxes on the 23k I paid for the truck, I had to pay taxes on $28k. They said this was due to 5k being a factory rebate (not taxed) and 5k being a dealer incentive (taxed).
If I had known this ahead of time, I would have tried to get them to write up the contract differently. I don't know if its the same in MS, but I wasn't too happy when I found out I had to come up with an extra $400.
Oh yeah, usually the dealer mails the title to the licensing dept. in your state. Once they receive the title, they let you know and you have to go to the licensing agent and pay up, to get your plates.
What's next? They gonna charge you tax on $33 dollar jeans you bought at a half-price sale from your favorite store? Seems kinda like taxation w/o representation to me.
Good luck
If I had known this ahead of time, I would have tried to get them to write up the contract differently. I don't know if its the same in MS, but I wasn't too happy when I found out I had to come up with an extra $400.
Oh yeah, usually the dealer mails the title to the licensing dept. in your state. Once they receive the title, they let you know and you have to go to the licensing agent and pay up, to get your plates.
What's next? They gonna charge you tax on $33 dollar jeans you bought at a half-price sale from your favorite store? Seems kinda like taxation w/o representation to me.
Good luck
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#8
New vehicles do not have a title. The dealer supplies a "Certificate of Origin" and the state Motor Vehicle Division creates a title.
When I did some time in the Air Force I bought new vehicles but planned ahead and had the motor vehicle folks in Austin, Texas send me all the documents and I gave them to the dealer in Maryland to fill out and send back to Austin.
When I did some time in the Air Force I bought new vehicles but planned ahead and had the motor vehicle folks in Austin, Texas send me all the documents and I gave them to the dealer in Maryland to fill out and send back to Austin.
#9
Speaking as a Canuck, when I was looking into importing a vehicle from the US, I researched a bunch of different states to find out about taxes. I found that it depended on which state you bought from. Some states would still charge me their state tax even though I'm not a resident. I could have gone through customs etc to apply and receive those tax dollars back (as long as there also wasn't some rediculous county tax cuz that tax you won't get back), but needless to say, I didn't want the hassle so I narrowed it down to which states DIDN'T charge an out of state/country buyer taxes and those were the states I was concentrating on.
This applies to those of you that actually reside in the US as well, so make sure you know what you're getting into before you make the plunge.
This applies to those of you that actually reside in the US as well, so make sure you know what you're getting into before you make the plunge.
#10
I walked...
I walked...the dealer quoted me for $400 under invoice yesterday with a $1000 military incentive for 0% at 60 months. They fax me the purchase order today and there are an extra $400 tacked on for "window etching" and a $600 fee for processing. Yeah right! I talked to a sales manager and they said they wouldn't budge. While it's the truck I wanted, it pisses me off that my military incentive would go right back into the dealers pocket. Oh well, the perfect truck and 0% will come along again. Or I might wait till next summer and just buy a Vette.
#13
Originally Posted by DarinFred
I walked...the dealer quoted me for $400 under invoice yesterday with a $1000 military incentive for 0% at 60 months. They fax me the purchase order today and there are an extra $400 tacked on for "window etching" and a $600 fee for processing. Yeah right! I talked to a sales manager and they said they wouldn't budge. While it's the truck I wanted, it pisses me off that my military incentive would go right back into the dealers pocket. Oh well, the perfect truck and 0% will come along again. Or I might wait till next summer and just buy a Vette.