Automobile Sales Tax (Boston: insurance, loan, transfer)

[johngolf]

With a new car purchase from a dealer, what is the sales tax and when/whom does it get paid to?

Thanks

[BostonMike7]

6.25%

It gets paid by the dealer when they perform the registry transaction to get you a set of plates or change the registration from your old car. The tax is due then to the registry.

Usually it can be rolled into financing, or other arrangement can be made if paying cash, but it’s due when you go to register the car

[johngolf]

Originally Posted by BostonMike7

6.25%

It gets paid by the dealer when they perform the registry transaction to get you a set of plates or change the registration from your old car. The tax is due then to the registry.

Usually it can be rolled into financing, or other arrangement can be made if paying cash, but it’s due when you go to register the car

It will be a cash deal so what other arrangements? Does the dealer care about sale tax when cash is paid? The dealer is not MA Sales Tax Collector or are they? Not trying to cheat anybody, just curious. Thanks.

[robr2]

Originally Posted by johngolf

It will be a cash deal so what other arrangements? Does the dealer care about sale tax when cash is paid? The dealer is not MA Sales Tax Collector or are they? Not trying to cheat anybody, just curious. Thanks.

It depends on the dealer. If the dealer is arranging the titling and registration of the vehicle, they will collect the sales tax and pay the state on your behalf. Many have plates in the dealership and handle everything right there. I've often been asked to bring two bank checks - one to the dealer for the car and the other to the RMV for the tax and registration.

If you or your insurance agent will be arranging the registration and title, you will pay the RMV directly.

When you say cash are you talking actual currency or cash as no loan?

[massnative71]

Originally Posted by johngolf

It will be a cash deal so what other arrangements? Does the dealer care about sale tax when cash is paid? The dealer is not MA Sales Tax Collector or are they? Not trying to cheat anybody, just curious. Thanks.

You live in SC no? That is where you should be paying the sales tax to, where you register it not where you buy it.

[NewfieMama]

We've paid cash through a dealer and paid cash through a private seller. When done through the dealer, we just had one bank check that included the cost of the vehicle, dealership fees, and registration/taxes. When buying through a private seller we paid the tax at the RMV when registering the vehicle and getting the plates.

[BostonMike7]

Originally Posted by johngolf

It will be a cash deal so what other arrangements? Does the dealer care about sale tax when cash is paid? The dealer is not MA Sales Tax Collector or are they? Not trying to cheat anybody, just curious. Thanks.

Are you buying it from a major brand dealership, or an independent dealer or a small lot dealer.

Also, since this is the MA forum I assume it's being registered in MA?

With big dealers, they tend to have runners that do the registry work for you. They may even have plates on hand, or do the transfer at the dealer. They do these often so they know all the costs. They will sometimes want one cashiers check for the vehicle purchase, and one for the registry transactions. They will pay the tax to the registry directly.

The smaller lot dealers tend to be a little bit more unorganized with this. The big dealers have this system down to an art.

[scorpio516]

And finally, private party: you pay sales tax at the RMV (with registration) to get the plate

[GeoffD]

Originally Posted by massnative71

You live in SC no? That is where you should be paying the sales tax to, where you register it not where you buy it.

From a thread in Automotive, it’s a commuter car for his son in the Boston metro. A Corolla-ish kind of car.

Do local insurance agencies still send a runner to the registry for their customers?

[CaseyB]

Originally Posted by GeoffD

Do local insurance agencies still send a runner to the registry for their customers?

It was the dealer that sent the runner to the insurance co. and the registry.

I believe now it's all done at the dealership.