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Hello! I currently live in Wisconsin but I am about to relocate to Northern Virginia in a couple weeks. In terms of taxes and fees, are some states cheaper to buy a car? I'm trying to determine if I should buy the car here or in Virginia. Thanks in advance.
Of course ! Just like sales tax, it differs from county to county. Research thoroughly about this and you can save hundred of dollars. I'm not an expert in this matter but I have heard that VA got a lot of fees including inspection fees. They also have excise tax. No idea what WI got.
if the taxes are less in another state and you buy the car there, when you go to register it in your state you will get banged with the additional taxes.
One thing to keep in mind is living in one state and buying in another and what that means. For example, I live in NJ and recently purchased a car in NY. The NY dealer didn't charge me any tax or state fees and gave me NY temp tags. When I registered my car in NJ I had to pay NJ tax and fees.
So if your current state is cheaper it may mean you have to finalize the purchase prior to moving.
The taxes and fees are applied in the state in which you title and plate the car, no matter where you buy it.
As for the purchase price, every new car comes with the same MSRP on the sticker, no matter where it is sold. However, dealers in one locality might be more willing to negotiate a deal with you than in another, even within the same state. Crossing a state line might affect a dealer's cost of doing business--- insurance, property tax, state regulations regarding employees, etc.
Try going to Edmunds and checking out the used car price of a late model similar to what you have in mind, and enter the Wisconsin zip and the Virginia zip, and see of the quotation differs. Ability to negotiate a deal on a new car could be shifted according to the going rate on late model used cars in the same market. If a used model is cheaper, chances are a new one might be negotiable at a lower price.
Also, certain models might be more in demand on one state than another. When Subaru first came out with the 4x4 wagon, Colorado dealers could charge whatever they wanted for them, but Miami dealers couldn't give them away.
Hello! I currently live in Wisconsin but I am about to relocate to Northern Virginia in a couple weeks. In terms of taxes and fees, are some states cheaper to buy a car? I'm trying to determine if I should buy the car here or in Virginia. Thanks in advance.
- First time car buyer
Yes. All depends on how much taxes and registration fees are paid at the individual State. Also, you will get the best sales deals at States or cities that have low taxes and other fees, plus high unemployment rates.
Okay let me know if I have this right. so from what I understand... No matter what I'm going to be paying the taxes and fees for Virginia since that is where I will title and register the car. So it basically doesn't matter where I buy it?
In terms of the base price that I will be purchasing the car for, that really only depends on the regional market (supply & demand) which would only be a couple hundred at most.
So the only cost savings opportunity would be from the ability to negotiate down the base price? (and maybe whatever regional incentives there may be)
Do I have that right? is there any other areas where I could save on the cost of the car depending on which state I purchase the car?
One qualifier on the state tax. If, for example, you are moving to Delaware, by all means buy the car after you get there, and pay no sales tax at all, as long as you plate it in Delaware. The only wiggle room you have is if the sales tax is lower in Virginia than in Wisconsin, you can save that difference by waiting. But if Virginia's tax is higher than Wisconsin's, Virginia will only give you credit for the tax you paid in Wisconsin, and then charge you the difference.
Often times, city and county sales taxes can make as much sales tax difference as state-to-state differences. Currently, the state sales tax in both states if 5%, but that can vary by about 1% from county to county.
One more thing to watch out for. Some states will assess the sales tax on the purchase price as shown on the bill ol sale, and some on the blue-book valuation of the car.
When we bought my wife her 2007 Tahoe here in Missouri it was $44,000. We visited Georgia 2 months later and they had the same Tahoes for $39,000. Another example would be that Chrysler vehicles fetch much high prices in the STL area then the ATL area.
Then of course there is sales tax. A big kicker for me was that you could always roll your sales tax into your financing in most other states but Mo requires it all when you tag your vehicle. So when I tagged said Tahoe, I had to pay somewhere in the neighborhood of $3000 +tag fees just to get the tags (don't remember the exact tax).
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