Out-of-state purchasing. Making sure I don’t get screwed on taxes.

alksion

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I am picking up my 392 a week from Friday. I live in California and I will be buying the car in Scottsdale Arizona.

I’ve heard of people getting screwed on the taxes, whether the dealer intentionally pulled one over or they messed up accidentally, I just want to make sure I’m not doing anything wrong.

This is the information I received from the sales manager. Can someone clarify what she means?

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supermike

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luckily I don’t have to pay any additional out of state taxes other than CA.

From my experience(just did it yesterday) you will have to do a lot more work. They will probably mail the forms and paper work to your closet dmv. Then dmv will contact you with a incomplete registration and you have to

1, get a smog check. $50
2, get a vin verification. Free but time
3, pay any remaining fee if they mess up your taxes. I had to pay $0.55

AAA cannot handle the transaction you have to go to dmv. However now you can get in line online at dmv website so much quicker.
 

supermike

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Get the smog, and when arrived at dmv, do the vin verification first, and bring the paperwork all together to the counter and by that you get in the line only once, or maybe twice if they send you to another window to pick up plates and tags.
 

Some Random Guy

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I’m just going to restate something dumb, not trying to insult your intelligence.
It sounds like of the Tax Title and Licensing (TTL) from the sale, you are paying 6.3% in AZ taxes. This is DEDUCTIBLE from your state taxes in CA. Meaning, you must immediately pay the difference if CA taxes are higher (pretty sure they are). Keep in mind there can be multiple brackets. I know CA used to slap on an extra tax called a luxury tax to any vehicle sold over a certain dollar amount.
So to finalize registration, you must pay the difference plus all local (city, county, regional) fees/taxes/assessments. The AZ local stuff is just lost, doesn’t count towards anything. If you don’t or can’t, your car is unregistered. Plus smog as mentioned above, but I think most mew sales don’t require a check for several years as long as the vehicle VIN shows CA compliant (50 state, whatever).
 

dalema

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I am picking up my 392 a week from Friday. I live in California and I will be buying the car in Scottsdale Arizona.

I’ve heard of people getting screwed on the taxes, whether the dealer intentionally pulled one over or they messed up accidentally, I just want to make sure I’m not doing anything wrong.

This is the information I received from the sales manager. Can someone clarify what she means?

454FBA7C-26FF-4422-B07B-46B396705718.jpeg
I'm following as interested - but something about the way that is written doesn't make sense with it not being applied to your CA taxes.

Are they saying it would be different if you were not picking it up - ie being shipped to you?

I also recall seeing someone (perhaps on 4xe thread) posted they had an agency do it all for them for a fairly small fee, to save you time.
 

jaymz

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I’m just going to restate something dumb, not trying to insult your intelligence.
It sounds like of the Tax Title and Licensing (TTL) from the sale, you are paying 6.3% in AZ taxes. This is DEDUCTIBLE from your state taxes in CA. Meaning, you must immediately pay the difference if CA taxes are higher (pretty sure they are). Keep in mind there can be multiple brackets. I know CA used to slap on an extra tax called a luxury tax to any vehicle sold over a certain dollar amount.
So to finalize registration, you must pay the difference plus all local (city, county, regional) fees/taxes/assessments. The AZ local stuff is just lost, doesn’t count towards anything. If you don’t or can’t, your car is unregistered. Plus smog as mentioned above, but I think most mew sales don’t require a check for several years as long as the vehicle VIN shows CA compliant (50 state, whatever).
That's how I understand it. For example, if you pay 6.3% tax in AZ, and CA tax is 15%, you will need to pay CA an additional 8.7%.

https://www.dmv.ca.gov/portal/how-to-9-register-a-vehicle-from-out-of-state-nonresident-vehicle/
 

Xcoaste

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When I bought out of state the dealership collected my states tax(6%) as part of the transaction. I then received a check from that dealership a few days later and had to go to my local dmv and give them that check when I registered the vehicle for my state. If your state requires an inspection make sure you find out how long you have to get your new jeep inspected.
 

Cypher

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Also just remember CA lemon laws do not apply to out-of-state car purchase. Jusy FYI
I hate buying here in AZ, thats why I ordered from CO. dealers here are known to add in charges.

on a side note, if you want to hit a fun close trail to test out the Jeep let me know. Its a quick one that can be done under an hour but will really let you test everything.

feel free to message me on here and ill give you my cell number.
 

supermike

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I'm also concerned about this. I ordered my Jeep from a dealer in Idaho, but the taxes/fees quoted are nearly $1k over what I got using the CA DMV's tax calculator. Not sure why that is. Anyone have any ideas?

https://www.dmv.ca.gov/portal/vehic...egistration-fee-calculator/calculate-my-fees/
It is very depend on the person dealer hired doing the paperwork, some are meticulous and competen, some are just monkeys. They will have you sign a Power of attorney and use a 3rd party company to represent you to do the registration. Make sure you look at the fee breakdowns and go over line by line. Make sure you pay nothing else, if you pay more to the CA DMV you will get an refund, just make sure you pay nothing else besides CA DMV and your vehicle cost.
 

Come2elmo

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Not sure how it is in Az but I just bought mine from gupton in tn and they didn’t charge tax. I just had to sign a form veriying to the state of tn that I would take care of it in tx. Gupton is going to send me all the necessary forms to take to the dmv. couple of calls to az and ca tax offices should confirm if you need to pay the dealer the tax or not.
 

Cypher

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Not sure how it is in Az but I just bought mine from gupton in tn and they didn’t charge tax. I just had to sign a form veriying to the state of tn that I would take care of it in tx. Gupton is going to send me all the necessary forms to take to the dmv. couple of calls to az and ca tax offices should confirm if you need to pay the dealer the tax or not.
I did the same with my Jeep I bought in CO. Paying AZ city tax when you dont live here is odd, but i believe that they will charge it.
 

rent

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Your dealer will collect from you 8.05% of purchase price as sales tax paid to AZ (including city and county). Out of this 8.05%, 1.75% is city/county sales tax, which is the portion not "reciprocal" with CA. The remainder 6.3% out of the 8.05% is "reciprocal" with CA.

When you bring the vehicle to CA to register, let's say your sales tax rate is 8.25%, you will pay CA 8.25% - 6.3% = 1.95%.

In essence, you will have paid 8.05% + 1.95% = 10% in sales tax on this deal.
 
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