Questions about buying used car (sales, insurance, DMV)

[Zedon]

I want to buy used car from another state, the dealer told me there isn't sales tax and i'll "be responsible for taxes in my state".
What does it mean? is there a sales tax on used cars from another state or there isn't?
If there is, what am I doing after I get the car shipped to me?
thanks!

[Kion]

You will pay 6.25% in tax on the car when you register/title the vehicle in Texas.

[StealthRabbit]

Yup, you pay taxes / fees based on the state you register it.

If you are into expensive cars / RV's, you will want them owned by your MT LLC (no sales tax or inspections). It is a few hundred dollars to set this up. There are many sharks willing to do it for you for $800.

[JH6]

Originally Posted by Zedon

I want to buy used car from another state, the dealer told me there isn't sales tax and i'll "be responsible for taxes in my state".
What does it mean? is there a sales tax on used cars from another state or there isn't?
If there is, what am I doing after I get the car shipped to me?
thanks!

Bought a vehicle from my father in law in New York.

He sent me a bill of sale.

Vehicle was shipped to me. I put Texas insurance on it, and purchased a 30 day transport plate online ($15-$20). Printed it out and stuck it on the car.

Drove the car to a Texas inspection station to have out of state inspection performed on it, plus safety/emissions. Passed inspection, filled out the registration form with the Texas DMV.

Paid all the fees to get the car tagged. The only hiccup was that they charge the sales tax based on what they calculate the car to be worth, not what I paid for it.

I had paid about half of the book value, but I was taxed on full retail value.

All in all, it was about $700 in fees to register a 2010 Toyota SUV.