Have you bought your car in a neighboring state? (insurance, vehicle, fuel)

[Giesela]

I will need a new/used car in the next couple of years. In that time frame I will be moving to a new state (retiring). It got me wondering if buying in one state was cheaper than another.
Michigan has a 6.0% sales tax and some higher fees than Ohio which is 5.75 with a little lower fees.

So sales tax on a 30,000 purchase is a difference of 75.00 and its probably close to 100.00 in fees?

Not the big savings I was hoping for but I guess I should buy before I leave.

Unless.........cars are cheaper in Michigan in terms of general market price? I have no idea how to check that.


Anyone else near a state line gone over to save a few bucks? Or maybe used an online service like USAA?

[marlinfshr]

You'll still need to pay taxes to the state you are registering it in. I live in MD but bought my car in DE because it was cheaper and in stock. DE has no sales tax but that doesn't benefit me for a vehicle I have to register in MD. So I still payed the DE dealer my MD taxes and registration and went and picked up my MD tags from the DE dealer when they arrived.

[unit731]

Usually makes no difference if not moving.
You still pay all home state fees.

Granted, every state is different.

I have purchased new out of state. They used to want sales tax in purchasing state but that has changed (here). They used to want to deliver the car to home state for a fee. That has changed also.

Just purchased. Get plates/tags/ etc in home state and pick up and drive home. Some states have temporary plates - so just get insurance and drive home. Then pay all sales tax and fees.


If you are just attempting to save a dollar or two, I don't see any advantage to shopping in another state.

I bought a newer used car from a dealer in Ohio once. Mandatory to get a new Ohio title. Then drive home and get home state title. Seems odd to me.

[minibrings]

Ive bought out of state frequently if the savings are there. You pay sales tax in the state where you live. Massachusetts is odd.. Dealers cant issue temp plates so they drove my car to New Hampshire.

[POS VETT]

It has been many, many years since sales tax in Ohio was 5.75%. The lowest-taxed Ohio counties now have a 6.5% sales tax rate; most have 7.5%. Have the car titled in MI.

[ukrkoz]

Normally, to benefit from lower or no tax in a particular state, you have to have state residence established. OR used to have no sales tax on cars, so WA was hording on cars bought there. Then OR said - nope, unless you are OR resident - you pay tax just like anyone else.

[pknopp]

As has been noted, you pay the taxes in your home state regardless of where you bought the car. If you live in Ohio your taxes will the same whether you buy in Ohio, Michigan or New Mexico.

[us66]

Pretty sure if you buy in metro Toledo, a lot of the new car dealerships will handle the MI registration process. I came very close to buying in Ohio this time and I know people who have, and a Toledo purchase wasn't difficult at all- Toledo people go to Monroe and Ann Arbor all the time.

[Dburger]

From private sellers, yes. If I want it, I'll go get it.

[StealthRabbit]

you can really only save significantly if buying / moving to / from a sales tax free state and buying something of high value... .

I am in a high tax state that allows you to import a car tax free if you are first time moving to WA and have owned it for 6+ months. Oregon and MT (sales tax free) are next door, so retirees moving to WA from those states (or who have LLC's in tax free states that hold ownership of their cars) can bring their 'new car' into WA AFTER they have owned it 6 months. (Only when moving to the state... NOT as a resident)

States are pretty picky about their revenue, so follow the rules! Some states have a value based registration fee on vehicles. If you retire to those states, you should drive a beater! (I do... 39 yr old car... cost me $35... gets 50 mpg on free fuel (WVO) good plan for this early retiree)