Taxes on a used car off Ebay from California (Phoenix: sales, vehicle registration) - City-Data Forum

dash33 · 08-23-2010, 03:13 AM

I am looking to buy a car from an independent wholesale/dealer in California off of Ebay. I am a Arizona resident. I have a few questions about the process since I have never bought a car from another state before. Any help would be great!

1. The seller says that he only charges taxes on the cars he sells to California residents...does this mean that I would not have to pay taxes to buy this car since I am a Arizona resident? Would the state of Arizona come after me for taxes on this?

2. I would obviously need to get the car registered here in Arizona. How much would it cost my for all the docs and fees if the car is valued at around $25,000?

3. I am planning on flying out and driving the car back from LA. Would I need to get the car registered in CA before I am able to drive it back since I bought it there? How would I get insurance set up immediately after purchase if the car is still a CA car until I get it back home?

Any help with these questions will be greatly appreciated!! Thanks in advance!

TRTFSHR · 08-23-2010, 05:46 AM

I believe you are responsible for a use tax, payable to the AZ Dept of revenue. I think it runs at the state rate, which last I knew was 5.6%, but that was before the bump for prop 100. Contact DMV (good luck there though). They will be able to help you.

adventuregurl · 08-23-2010, 10:13 AM

I don't know if this will help you or not but if you by a used car privately in AZ you don't have to pay any taxes on it, you just pay for the tags.

If you buy from a delaer then you pay all kinds of fees and tax (and it varies - Phoenix has a different rate than Gilbert etc.).

I bought a newish used car in April and I saved $1800 by buying privately. Once you factor in an out of state dealer, I don't know how that part works.

Good luck!

PS go into a DMV office and ask them about it...perhaps you can get a trip pass for so many days until you get back and register it here.

Bummer · 08-23-2010, 11:17 AM

Quote:

Originally Posted by dash33

I am looking to buy a car from an independent wholesale/dealer in California off of Ebay. I am a Arizona resident. I have a few questions about the process since I have never bought a car from another state before. Any help would be great!

1. The seller says that he only charges taxes on the cars he sells to California residents...does this mean that I would not have to pay taxes to buy this car since I am a Arizona resident? Would the state of Arizona come after me for taxes on this?

2. I would obviously need to get the car registered here in Arizona. How much would it cost my for all the docs and fees if the car is valued at around $25,000?

3. I am planning on flying out and driving the car back from LA. Would I need to get the car registered in CA before I am able to drive it back since I bought it there? How would I get insurance set up immediately after purchase if the car is still a CA car until I get it back home?

Any help with these questions will be greatly appreciated!! Thanks in advance!

Good questions, Dash.

Unless the laws have changed since I purchased a vehicle from a dealer in Illinois a few years ago . . .

1) You do not need to pay California taxes, however, you will be charged Arizona "Sales Tax" once you register the vehicle.

2) Registration costs are based on the value of the vehicle. An MVD Representative should be able to give you an estimate on total charges.

3) As long as you arranged insurance coverage in advance, you are able to obtain a Temporary License (10 to 30 days) online to cover the trip home.

CONGRATS and Good Luck

ji603 · 08-23-2010, 11:32 AM

No sales tax owed to CA. You will owe it to the MVD when you register here though.

If you already have a car, your new one will automatically be covered by your insurance company. Check your policy for details - usually it's 30 days for a replacement vehicle, and 14 for an additional one. You would of course call your carrier and give them the details to specifically add it to the policy once you own it.

You can get a 3 day trip tag for $1.00 online at servicearizona.com It's good for three business days, so if you get it on a Friday, it's good until midnight Wednesday.

PS. I'd guess the 'use tax' aka sales tax might run you 1200 bucks or so, and the license/registration around 400. Everyone wants their pound of flesh, eh?

From AZ tax webpage: http://www.azdor.gov/Portals/0/Brochure/610.pdf

If you purchase a vehicle from an out-of-state dealer or
manufacturer, the Department of Transportation will
require, at the time of vehicle registration, proof that tax
was paid in the state of purchase and that the amount of
state tax paid is equal to or greater than the applicable
Arizona use tax rate. If tax was not paid in the state of
purchase or was less than the Arizona use tax, the
Department of Transportation will require that the use
tax be paid at the time you register the vehicle.

Just FYI, be clear with the CA dealer that he won't be charging you sales tax even if you drive away. CA is strange... would suck to get hit with a 10% sales tax bill, just 'cause the wheels hit the CA roads. I know people trailer to the state line to avoid the hassle.

adventuregurl · 08-23-2010, 10:08 PM

PS I have no idea how experienced you are but I have one word of warning (someone on the auto site recommended this to me).

I was going to buy a 2009 Nissan Altima with only 7600 miles on it and initially I was not going to have it checked by a mechanic due to the low mileage and the fact that it had so much warranty left on it.

Despite the seller having a clean car fax, I decided to meet him at a Nissan dealer in the valley (I live in Sedona and had not seen the car in person yet) to have it checked to see if there was any sign of a prior accident.

Before the mechanic even looked at it, I could see with my own eyes that the front end had been fixed (and believe me, I'm no expert). Nissan ran another car fax as they could see it too and wanted to double check it and that one came up completely different than the one the seller had and confirmed the accident (in CA). Obviously I didn't buy it.

Bummer · 08-23-2010, 10:44 PM

Excellent advice, Adventuregurl . . .

Definitely money well spent. I would never consider investing in a used vehicle without having it checked by a professional.

dash33 · 08-23-2010, 10:56 PM

Thank everyone for the advise! the seller said that he would drive it down here for me. Does anyone know exactly how much the tax would be if the car was $25k? I will definitely have the dealerships check it out for me

Bummer · 08-23-2010, 11:41 PM

Quote:

Originally Posted by dash33

Thank everyone for the advise! the seller said that he would drive it down here for me. Does anyone know exactly how much the tax would be if the car was $25k? I will definitely have the dealerships check it out for me

Sitting down, Dash?

My wild guess would be about $3K, give or take, for the entire deal.

Good Luck and keep us posted on your MVD experience.

mrspeedyt · 08-24-2010, 12:30 AM

az nails new (and almost new) cars with the value tax. i think cal might be cheaper for the first couple of years....then az is about equal. then after that point, az fees become progessively cheaper.