Buying a car out-of-state [Archive] - SaabCentral Forums

: Buying a car out-of-state


Wulf
29-06-07, 01:07 AM
I am going to be living in Michigan, buying a car in Florida and drive it back. As far as I understood from the dealer, they will have to collect 6% Florida sales tax. With the tax receipt, I can transfer the car into my name in Michigan without having to pay the Michigan sales tax. Is that correct?

For insurance, can I just get a Michigan policy for coverage before I pick up the car? What about a license plate for the drive from FL to MI. Will the dealer issue a temporary tag/plate?

This is the first time I am buying a car out-of-state so any help or suggestions will be greatly appreciated.

robw
29-06-07, 01:20 AM
I'm not sure about Florida or if it varies by state but I bought my car in New York, did NOT pay tax to the dealer, but paid the tax to Pennsylvania when I registered the car in state. This worked out well as the PA tax rate is lower than NY. ;) Also, the NY dealer issued me a temporary transit plate for the drive back. As for insurance, ask whoever you have your insurance through in Michigan if they will issue you a temporary card covering the vehicle and VIN# you are purchasing in Florida - State Farm did it for mine.

sleet
29-06-07, 03:07 AM
i live in ohio and purchased my saab in indiana after a long search for "my" car. The dealer issued me temp tags in the state of indiana, i paid indiana taxes for the car and then had a reciept showing i paid taxes and when i registered the car in ohio i was exempt if i remember correctly. for insurance, i just called my agency and told them the situation and they gave me a policy number for the new addition to my plan. i was worried at first about the whole out of state thing but it honestly wasnt really much different, just make sure to have a reciept or something to show you paid that states taxes.

sptsdn
29-06-07, 09:14 AM
Yes, make sure you get a receipt showing you paid sales tax. What is the tax rate in Michigan? If it is more than the Florida 6%, you'll likely pay the difference. Call your local DMV to verify but this is how Washington state works. I would need to pay an additional ~2% (our tax is around 8%) tax when I went to register the car here in WA.

The dealer should give you a temp tag, probably a 5-10 day tag, just depends on what Florida issues. As far as insurance is concerned, typically you have a window to add a vehicle to you policy. In other words, you're covered for a new car as long as you call them within that window. I have something like 30 days on my policy; check your insurance policy to verify how yours works. However, I would suggest calling as soon as you pick it up, maybe while you're there at the dealer so you have the VIN in front of you.

TheRedBaron
29-06-07, 09:19 AM
You should be fine: living in DC, a lot of stuff is bought out of state. I've bought two cars in Virginia, both of which I payed VA sales tax. I then just registered them in DC as normal and payed DC excise tax (or whatever it's called).

Thirsty9000
29-06-07, 10:47 AM
A ring to the local Michigan DMV should settle the curiosity about the necessary money/paperwork.

bkrell
29-06-07, 11:21 AM
Yu, DMW will tell you. I bought both my saabs in Texas and paid no tax their but paid a truckload when I registered them here in Louisiana.

Wulf
29-06-07, 12:36 PM
Thanks for all the repsonses, it sounds like it is going to be easy but I'll check with the DMV just to make sure. Buying from a dealer should also be easier than from a private seller.

sptsdn
29-06-07, 01:00 PM
Buying from a dealer should also be easier than from a private seller.Not necessarily easier. In fact, depending on your tax rate you may "over pay" on sales tax at a dealer. For example if the dealer collects sales tax of 6% as required by Florida law, but your tax in Michigan is only 5%, then you will "over pay" a bit. Unlike a private party who will not collect sales tax, then you pay the tax when you register the car in Michigan.

One dealer advantage is the temporary tag they will provide you. However, in most states, the plate goes with the car so when you buy from a private party, you have the plate on the car until you register it in the new state. Just make sure you have a copy of a detailed bill of sale to keep with the car at all times until you have a new plate.

Either way, an out of state purchase isn't as difficult as some would think. The last 4 cars I've purchased have been out of state (or on the other side of the state) and all have been easy. I'm pretty sure my next car purchase will be the same because there isn't a whole lot of competition so dealers aren't too willing to negotiate here.

On a side note, what car did you get?

Wulf
29-06-07, 01:34 PM
Michigan sales tax is 6% as well so the same as in Florida. The car is $8,000 so it is only about $500 in taxes.

I am buying a 2001 9-5 Wagon with 80K miles I found on eBay. As mentioned, local selection of Saabs are always limited and older cars in southern states are usually in better shape because they haven't been exposed to bad weather and road salt.

http://www.performanceautos25.com/0607%20SAAB/cover.jpg

SaabKen
29-06-07, 02:03 PM
I'm jealous ! That's a beautiful color. And for only $8K ....

Wulf
29-06-07, 02:18 PM
It'll only cost me $250 to fly down there and will be rewarded with a nice long 1500 mile drive back. :cool: One of the great things about the USA is that these kind of things are soo easy. I couldn't imagine living in the UK and buying a car in Italy or Sweden.

As I am in between jobs, perhaps take my time and find some interesting roads between Florida and Michigan. Suggestions anyone?

SaabMon
29-06-07, 05:53 PM
Michigan sales tax is 6% as well so the same as in Florida. The car is $8,000 so it is only about $500 in taxes.

I am buying a 2001 9-5 Wagon with 80K miles I found on eBay. As mentioned, local selection of Saabs are always limited and older cars in southern states are usually in better shape because they haven't been exposed to bad weather and road salt.

http://www.performanceautos25.com/0607%20SAAB/cover.jpg Being in Florida is not necessarily a guarantee of good weather.There have been about 10 hurricanes since 2001,plus if it has been near the sea,salt will cover it from top to bottom.Most rust on cars in Florida starts on the top(I know firsthand).Plus the damnable sun and humidity are relentless.If it has been in an air conditioned garage you are in good shape.Ahh Florida you gotta love it., It,s a beautiful car .Best of luck.

Wulf
29-06-07, 08:07 PM
Great, now you got me worried :):confused: . i guess you wouldn't know with most used cars if they were in a garage or not. But I imagine that if you can afford a $40K car, you'll most likely want it in the garage.

StormCrow
29-06-07, 08:52 PM
I couldn't imagine living in the UK and buying a car in Italy or Sweden.

Neither can I - there are plenty of Saabs in the UK :lol::lol:

Thirsty9000
30-06-07, 02:55 AM
Michigan sales tax is 6% as well so the same as in Florida. The car is $8,000 so it is only about $500 in taxes.

6% of the sale price, or 6% of original sticker price. some states play dirty tricks like that.

Wulf
30-06-07, 03:01 AM
6% of the sale price, or 6% of original sticker price. some states play dirty tricks like that.
6% of the sale price in Michigan. With a private party sale, you just put a lower value on the title than what you actually paid to lower the amount of sales tax you have to pay. As long as it is a fair value, the Secretary of State office (DMV) won't check it. I think they can look up the wholesale value but they never did when I bought vehicles or boats in the last 12 years.