Buying a car from out of state dealer
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    Buying a car from out of state dealer

    I'm considering buying a car from a dealership in Minnesota. Anyone done this before? How do you handle the taxes? For title and license I believe I have to do everything myself at the county courthouse after I bring the car back in state. FYI the car I'm looking at is an 07 VW Passat Wagon (actually there are three at that dealership). There are a few in Iowa, but the dealership in the Twin Cities has everyone beat on price by over $1000. The dealership is Luther Burnsville and Luther Westside if anyone has any experience dealing with them.



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    Re: Buying a car from out of state dealer

    I bought a car in Wisconsin last year - private party. Had to pay just taxes when i licensced it in Iowa.



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    Re: Buying a car from out of state dealer

    The dealer will walk you through it, they have to have done it before. Do not worry about it, in my opinion.



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    Re: Buying a car from out of state dealer

    Luther's is huge. Usually bad dealerships don't become huge. I wouldn't think twice about buying out of state. I've done it 3 times when local dealers didn't want to deal.



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    Re: Buying a car from out of state dealer

    I just went to Nebraska to get a Buick Enclave for my dad. He had to register and pay sales tax here in Iowa



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    Re: Buying a car from out of state dealer

    Quote Originally Posted by cytech View Post
    I just went to Nebraska to get a Buick Enclave for my dad. He had to register and pay sales tax here in Iowa
    Quote Originally Posted by erikbj View Post
    I bought a car in Wisconsin last year - private party. Had to pay just taxes when i licensced it in Iowa.
    These guys are correct. Since the dealership has no connection to Iowa they will not charge you tax and register it for you like you normally do when buying here in Iowa.

    You will just buy the car and when you register it pay the use tax on it.



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    Re: Buying a car from out of state dealer

    I bought a Nissan Quest in MSP in January. Go to the courthouse pay the 5% transfer tax, and the registration (don't forget to pony up for your IState plates). Of note is the fact that if it's a used car they told me that you don't have to show a bill of sale, even if it's from a dealer. It's just your word on the document.


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    Re: Buying a car from out of state dealer

    I bought a car in December from Luther Infiniti. Great experience all around. my buddy just bought one from the same guy last month. As far as tax and title. They took what they thought would be tax as well as a nominal amount ($25) for title since they didn't have a way to calculate it and sent it on to Polk County. Once the county received it, I went downtown, transferred the new car to my old (I-State) plates and paid the difference.



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    Re: Buying a car from out of state dealer

    So the sales tax for a car is based on where you live, not where you buy?

    I wouldn't have thought that.

    Registration makes sense, but not the tax.



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    Re: Buying a car from out of state dealer

    Quote Originally Posted by DaddyMac View Post
    So the sales tax for a car is based on where you live, not where you buy?

    I wouldn't have thought that.

    Registration makes sense, but not the tax.
    That's because the purchase price of a car is not charged sales tax, but rather use tax.

    Thus, the tax is paid in the state where the car will be used/registered.



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    Re: Buying a car from out of state dealer

    Quote Originally Posted by d4nim4l View Post
    That's because the purchase price of a car is not charged sales tax, but rather use tax.

    Thus, the tax is paid in the state where the car will be used/registered.
    I didn't know that (shows how much attention when signing that paper work, huh)

    Thanks for the clarification.



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    Re: Buying a car from out of state dealer

    Ive bought two cars from Minnesota and one form Washington and Id buy out of state again. The only state I wouldnt buy from is California since they are the only state I think that will try to force you to pay their sales tax.



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    Re: Buying a car from out of state dealer

    I was confuzzled about the "sales tax" as well. Thanks for the clarifications.



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    Re: Buying a car from out of state dealer

    Quote Originally Posted by tec71 View Post
    I bought a Nissan Quest in MSP in January. Go to the courthouse pay the 5% transfer tax, and the registration (don't forget to pony up for your IState plates). Of note is the fact that if it's a used car they told me that you don't have to show a bill of sale, even if it's from a dealer. It's just your word on the document.
    If they suspect that you are lying about how much you actually paid for the car they will ask for documentation. be careful!



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    Re: Buying a car from out of state dealer

    Quote Originally Posted by DaddyMac View Post
    So the sales tax for a car is based on where you live, not where you buy?

    I wouldn't have thought that.

    Registration makes sense, but not the tax.

    It is where you register the car first, not necessarily where you live, but for most people, the only place you can legally register the car is you where you live. There are some exceptions for military and possibly full time students living in a state which is not their primary resisdence.



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