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Old 03-23-2016, 02:41 PM
 
476 posts, read 517,729 times
Reputation: 380

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Hey guys,

We currently live in NYC, and are looking to move to NJ sometime later this year. We dont own a car, but will obviously need one when we move out of the city. We may purchase one prior to the move so we could stop wasting $$ on zipcar rentals. Figure we would have the car in NYC for no less than 2 months prior to the move. Let's call it 6 months if factoring in the time to find the right house and close on it.

All I am seeing so far is that PA is 6% tax, NJ is 7% tax, and NY is 8.88% tax. In our car search, we have found that better deals could be had in PA, or even MA. NY has the highest prices, and the highest taxes.

I am thinking we purchase the car in PA, pay PA tax, get temporary plates, then register immediately at a families house in NJ, and get insurance for that address too. I presume NJ will send us a bill for the difference in taxes (6% vs 7%), and will not ask us to repay taxes in full. When we move from NYC to NJ, we could edit the home address under NJ registration and insurance.

Am I missing something?

Does NJ motor vehicle tax have reciprocity with PA, NY, and MA?
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Old 03-23-2016, 03:42 PM
 
Location: Cape Fear, North Carolina
192 posts, read 198,151 times
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Buy in PA and get temp tags there. Use your NJ address. Most PA dealers will collect NJ taxes and not charge PA tax. You will need to get NJ tags within 30 days.
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Old 03-23-2016, 03:49 PM
 
476 posts, read 517,729 times
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Thanks!

Do you know what I need to produce at the NJ DMV to register the car? Remember, this will be before I actually move there, so I will be using a family NJ address, but will still be living/renting in NYC. Is this even possible for a first time registration?
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Old 03-23-2016, 03:51 PM
 
Location: Pennsylvania & New Jersey
1,519 posts, read 3,824,655 times
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First car purchase? Yes, you're missing something.

There's this thing about the sales tax on vehicles requiring government registration... such as cars. Unlike furniture, carpeting, diamonds, or almost anything else of value, when you buy and register a car you pay sales tax to your resident state — the state which licenses you to drive — regardless of where the vehicle is purchased.

Want to avoid the New York sales tax? Wait until you move before you buy the car.
Want to pay the lower Pennsylvania tax instead of New Jersey tax? Move to Pennsylvania first!

You can't beat the taxman on this one.
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Old 03-23-2016, 03:52 PM
 
Location: Cape Fear, North Carolina
192 posts, read 198,151 times
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Why not go ahead and get a NJ driver's license? You can always do a change of address later. One thing though: what you are looking to do is less than legal.
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Old 03-23-2016, 03:56 PM
 
476 posts, read 517,729 times
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My license goes back to when I lived in Florida a few years ago, and my wifes license is our current address in NY.

God, this is complicated.
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Old 03-23-2016, 04:08 PM
 
476 posts, read 517,729 times
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I suppose the correct series of events:

1. Spend a day at NYC DMV to change my Florida license to NYS license (this is a precursory to register the car in NY)
2. Buy car in PA, get temp tags
3. Get the car inspected in NY
4. Get car insured in NY
5. Register in NY, pay difference in sales tax between PA and NY (unless PA dealer is willing to charge me NYS tax)
6. Move to NJ, change license again from NY to NJ
7. Get the car inspected in NJ
8. Change insurance to NJ address
9. Register car in NJ
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Old 03-23-2016, 04:13 PM
 
538 posts, read 532,512 times
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Quote:
Originally Posted by JaRuss01 View Post
My license goes back to when I lived in Florida a few years ago, and my wifes license is our current address in NY.

God, this is complicated.
Well, they do try and make it hard to defraud the government on taxes. You do realize that on a $30,000 car, your savings for this complicated tax fraud scheme would be only $660. With purchasing a house in NJ you're in for so many taxes and fees your head will spin.

Don't over complicate things. Just buy the car an pay the NY tax. It's very likely that finding the right house will take longer than you expect. When you do transfer the title to NJ you'll have to give them a boatload of paperwork for it. They are very uptight.

(Your insurance will be cheaper in NYC than it would be elsewhere. And also when you take into account your car payment, insurance and parking you'll find it hard to spend less than renting a Zipcar for a full day every Sunday so you can go to open houses.)
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Old 03-23-2016, 04:18 PM
 
538 posts, read 532,512 times
Reputation: 527
Quote:
Originally Posted by JaRuss01 View Post
I suppose the correct series of events:

1. Spend a day at NYC DMV to change my Florida license to NYS license (this is a precursory to register the car in NY)
2. Buy car in PA, get temp tags
3. Get the car inspected in NY
4. Get car insured in NY
5. Register in NY, pay difference in sales tax between PA and NY (unless PA dealer is willing to charge me NYS tax)
6. Move to NJ, change license again from NY to NJ
7. Get the car inspected in NJ
8. Change insurance to NJ address
9. Register car in NJ
When we were looking at cars while living in NYC we looked at dealerships in both NY and NJ. The dealers in NJ charged NY tax and delivered the car with NY plates. We did eventually purchase from a dealer in NYC because we weren't able to get the car we wanted cheaper anywhere else - the NYC dealer matched the prices that the NJ dealers put forth. (The car in question was a new Mini Countryman that we were getting custom ordered. 'Your mileage may vary' with a different brand of car, of course.)

Transferring the car or our licenses to NJ wasn't very complicated. We had some problems because our names didn't totally match everything. We ended up having to order a birth certificate for me and a marriage certificate for our wife (couldn't find them) as they were extremely uptight about anything that didn't match 100%.
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Old 03-23-2016, 04:18 PM
 
476 posts, read 517,729 times
Reputation: 380
I am cool with the taxes. It was more so focused on finding better deals in PA. I am frustrated by the logistics if anything. I guess I need to burn a day and change my license short term from Florida to NY.

I am only justifying the purchase sooner rather than later b/c the purchase will be in cash. Looking for a loaded turbo Forester CPO for about $26-28k. Parking and insurance is about $500/mo, temporarily, while staying in NYC. Which is about the equivalent of zipcar renting once a weekend (for open houses, family events, etc). So the overall costs are the same, yet, with a car, I could potentially be used 2x a weekend. Going to keep the car very long term, so resale/depreciation doesnt come into play on whether I purchase now or in 6 months from now.

If I were financing, or especially leasing, I wouldnt consider this at all...The overall ownership costs would be $1,000/mo. I would use a zipcar until the day I moved.

Anyway, dont want to get too off track here. Sounds like NJ/PA dealers will handle the NY paperwork, I just need to change my Florida license first.

Last edited by JaRuss01; 03-23-2016 at 04:37 PM..
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