Out of State Car Buying and Taxes So You Drive It Home

Laws vary from state to state where taxes are concerned, but there are a few standing rules of thumb that will help you know what to expect when you want to know how to buy a car out of state and drive it home. Some states have agreements with neighboring states where the dealer is required to collect the sales tax where the vehicle will be registered and licensed and the tax is calculated at the rate where the owner is going to register the car. For example; if your state and county of residence sales tax rate is 7% and the state of the dealer that is selling the car is only 6% the dealer will collect the 7% sales tax and pay the state. Even though the selling dealer usually collects 6% sales tax they will collect 7% because you are from the state that charges 7%.

Now to make things more confusing, not all states have agreements between states and therefore the dealer will not charge the buyer any sales tax at all at time of purchase. That’s right they will not charge you any sales tax at all on your vehicle purchase, but when you get back to your home state and get your license plates or vehicles tags you will be required to present your paperwork from the purchase and pay the state and county sales tax along with any charge for license plates. So be prepared to pay your tax when you want to buy a car out of state and drive it home.

Wait there is one more scenario when it comes to how you buy a car out of state and drive it home and this when you finance a vehicle and pay the sales tax. Lenders that finance vehicles typically will require the financing dealership to collect the sales tax at the time of purchase and then the dealer will write a check to the state for the taxes. The dealer will give you the buyer a check made out to the state for taxes that you will in turn give to the D.M.V. when you get your license and registration. The lender feels more comfortable this way and does not have to worry about a government agency putting lien on the vehicle for taxes because a government lien takes priority of a lender lien. Which is always part of the process for buying a car.

Out of State Car Buying and License Plates or Registration

Buying an automobile in a state other than the state where you reside is not uncommon and therefore in most states the dealerships will provide or charge you for a temporary tag or license plate. The car dealer fees are the same amount that the state charges and is usually valid for 7 to 10 days. That should be sufficient time for you to buy a car out of state, drive it home and get to your local licensing authority.

Laws can vary from state to state, but these cover most of what you need to know. Some states may require a police department inspection to check used vehicles for warrants and others may have emissions requirements to be met. Either way that is the long and short answer of how do I buy a car out of state and drive it home.

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The car buying process of any successful car dealership is one that is planned, scripted, measured and monitored. The car salesman is trained to walk their car buyer through a series of pre-determined car selling steps and processes while using carefully scripted words, phrases and questions. Every step builds on the next step with the intention of getting you to buy a car. The car salesman is well trained and armed with psychological car dealer tricks that are used make you comfortable and break down your defenses will allow them to sway you from your intended logic choices and decisions.

The Process for Buying a Car

The process for buying a car at your local dealership is broken into many steps that vary from dealer to dealer. The steps have been called many different things such as 10 steps to a car sale or the road to the sale. Each step of the car buying process is design to accomplish a specific objective and bring you, the car buyer closer to buying a car. To illustrate the steps of the buying a car process is as follows.

Steps to the Process for Buying a Car

1. Meet and Greet: This is the first step of the car buying process and the step where you meet you car salesman and they meet you. You exchange names and your car salesman’s chance to start selling himself or herself to you. They try to get to know a little about you so they can size you up and figure what kind of customer you are.

2. Determine Needs: This part of the process for buying a car is for the car salesman to determine what kind of car you may want and what you need in a vehicle. The salesman will ask you questions in an effort to determine what model car to show you along with any special requirements you may have. They will try to determine your price range, desired monthly payment and you ability to finance a car.

3. Walk Around: This part of the car buying process is to show you some cars and their features and benefits. It is also used to check you level of emotional or logical involvement in your decision making. The plan is to get you to select a car you want to buy.

4. Test Drive: This is a major part of the process for buying a car because some people fall in love with the idea of a new car after they drive the car and get a whiff of that new car smell. The salesman wants you to fall in love with the new car because it makes their job easier when it comes time to negotiate the car deal. The process of buying a new car at many car dealers requires the car salesman to have you drive the car so you will not want to leave the car dealer without buying a new car. During the test drive the car salesman will demonstrate the features that you seem to be interested in while pumping you for information that they will use to sell you a car.

5. After Test Drive: After you have driven the new car the salesman will have a series of questions they will ask you to make sure you like the car, are receptive to buying the car and your ability to buy the car. If this part of the car buying process has turned out favorably your car salesman will move forward to the next step in the process for buying a car.

6. Showroom: The car salesman will bring you into the showroom and you will sit down at their desk. They will be some more talk and questions to confirm that you are ready to buy a car before your car salesman moves to the next step of the car buying process.

7. Negotiation: This is the part of the car buying process that is loaded with car dealer scams and car salesman tricks. The negotiating part of the process of buying a car is something that the car dealer spends the most amounts of time and resources when training their car salesmen. The negation step involves psychological tactics and techniques that are specifically designed to get you to buy a car.

8. Making a Deal: This is when you, the car buyer and the car salesman comes to an agreement on price, terms, financing and payments. This usually called “Closing the Deal” by car salesmen. The steps 7 & 8 are sometimes considered one step of the car buying process, but some dealerships count it as two steps when it comes to intense training they use to condition their car sales people.

9. Business Office or Finance Office: The car buying process and steps that I have covered so far all comes together in the Business Office. This is where all the paperwork is signed and everything is finalized. The Finance Manager that is processing your car buying paperwork will tell you that you can relax now, but in reality the negotiation is just getting started. The Finance manager will try to sell you all sorts of things like an extended warranty, car window etching, car loan life insurance, service contracts, tire warranties, car dealer fees and any number of other things. The will roll you extra purchases into the dealership financing and sell you on the payment rather than the price. This step in the process of buying a car is where many people become the victim of car dealer scams.

10. Car Delivered: While you are in the finance office your new car is being prepped for a Spot Delivery so you can drive it home as soon as you come out of the Finance Office and complete the final step of the process for buying a car. One you take delivery you have completed the process of buying a car. Congratulations you bought a car, but there are no returns after you take delivery. It’s your car no matter what happens.

The car salesman has scripts and word tracks that they have memorized to move you through every step of the process for buying a car. Every word and action is deliberate and designed to make buying new cars seem like an effortless and natural process. Whether it be the process of buying a car that is a used car or a new car it is practically the same, except that you car salesman will use slightly different tactics, terminology and techniques when you are buying a used car. Buyer Beware

Buying a New Car?  See How To Buy a New Car for Step by Steps Directions.

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The Bill of Sale – Car Buying Paperwork

The automotive bill of sale is the legal document that shows that you purchased a car or truck. Whether you pay by cash, check or finance your car this part of the car buying paperwork is the same. This is the document you will need to get your license and registration if you did not get it at the car dealer. Dealers will usually handle that process in most states, but if you bought a car in a different state you will have to go to your home state and get your plates and registration.

Car Buying Paperwork Line by Line Bill of Sale

A. This section of the car buying paperwork is very easy to understand. It contains your personal information, phone number and date. When you are reading this document before signing check for accurate information and have the car dealer correct anything as needed.

B. Vehicle Being Purchased: This one is easy to understand it contains all the pertinent information about the car you are going to buy. No secrets or car dealer scam here, just make sure that the serial# or V.I.N. matches that of the car you are buying.

C. Trade-In Vehicle: When you trade in a car on your new car purchase the information get placed here. Nothing special here just all the information about your trade-in, like the section above be sure to confirm your serial number or V.I.N. If you do not have a trade-in this section would be blank.

D. This section will be where the information goes when you still owe money on your trade-in to a lender. When you owe money to a lender on your trade-in these spots will include the name of the lender, your account number and the amount of the pay-off that the lender requires. That way the car dealer will send a check to your lender to pay off your old car loan as part of this transaction. Make sure that the pay-off amount is correct. If for some reason the pay-off is different than the amount of this car buying paperwork bill of sale you are responsible for the difference, not he car dealer. For obvious reasons you want to be this that the payoff amount is accurate.

E. This section of the car buying paperwork contains the amount of any manufacturers rebate, the amount of your deposit if you left one earlier and any cash down. Pretty straight forward, just check for the rebate if there was one.

The Money Side of Car Buying Paperwork

F. This line of the Bill of Sale is the cash price of your purchase. This should reflect the real price after negotiations. (example: if you are buying a $20,000 car and negotiated the car dealer down to $18,500, the $18,500 should be shown here. If you followed the Steps to Buying a Car I am sure you got your 4 FREE -No Obligation Price Quotes from Yahoo! Autos before you went to the dealer.

G. Most dealers do not use these couple of lines. Any factory installed options would be included in the line above. Some dealers may use the section to list certain items such as sunroof or navigation, but the price is included in section F.

H. Dealer Installed Options: These lines would include any options that the dealer installed or will install as part of the purchase. It might be any number of different items like a trailer hitch, DVD, sunroof or anything that will be included in the vehicle. The prices of the options should be listed here on the car buying paperwork.

I. Documentation Fee: This is the documentation fee that is allowed by the state for processing the car buying paperwork and documents. This fee is regulated by the state in which you buy you car. I have seen this fee be anywhere from from about $100 up to several hundred. You can check with your state for the exact amount.

J. ERT Fee: This is the Electronic Registering and Titling Fee. Some states have car dealers set up online to do vehicle registering, licensing and titling via the internet and the state controls the amount of the fee that the dealer can charge. This is not something that can be negotiated. It is usually around $25.

K. Dealer Services: What is this???  The car dealer can use this section for anything they need to add on to your car buying paperwork. One of the most common would be a lost title charge, temporary insurance or anything similar. What ever amount shows up here you want a complete explanation and breakdown. If you decide to purchase an extended warranty I am sure you went here and got FREE Warranty Quotes so you will know if you are getting scammed.

L. Cash price of vehicle and options. This is a subtotal of lines F through K. No mystery here just add each line starting with line F.

M. Less Trade-In Allowance: Check your car buying paperwork closely because this line contains the amount that you agreed on to accept for your trade-in. Car dealers have been known to slip a number on this line that is less than the amount you agreed. This car dealer scam often goes unnoticed at the time of signing the paperwork because of all the numbers on the bill of sale. You can’t come back tomorrow and say they made a mistake. This is a contract so be sure ALL of the numbers are correct before you sign.

N. Amount Subject to Sales Tax: Many states allow you to deduct the amount of your trade-in allowance from the car purchased so that you are only subject to sales tax on the difference. This is a pretty good thing that can save you a couple of bucks. If you sold your car to private party and did not have a trade-in you would not have any way to reduce you sales tax. Be sure to take this tax savings into consideration when you are selling your old car to a private party.

O. State Tax: The sales tax based on the state in which you are registering the car. Most people don’t realize that you pay sales tax based on where you live not where you buy. No secrets here.

P. County Tax: This is the sales tax based on the county in which you reside. It is a small amount anywhere from 1/2% to 3%. All sales tax is usually thought of as the state sales tax, but in the car business it is broken down down to state and county tax because it is based on where you live not where you buy the car. This is a way to keep things fair between car dealers so one car dealer doesn’t have an unfair advantage of a car dealer that is in a higher county.

Q. County Flat Tax: Not all counties have this tax but when they do it is a one time tax on new vehicles ( not used) that is usually small about $15 to $25 and mandated by the specific county.

R. Title & Plates or Transfer: This is an amount that depends on the state of registration. This where your charge for new or transferred license plates goes. This is the same amount you pay for plates no matter where you get then because it is controlled by the state.

S. Service Contracts: If you agreed to buy one from the car dealer the amount would be entered here because it is not taxed. Just make sure the amount is what you agreed on with your Finance Manager.

T. Subtotal: This the the sum total of lines from section L through S.

U. Plus Payoff on Trade-In: This amount comes from section D and is the amount that is added back in to your price so the dealer can write a check to pay off your car. Check the numbers to be sure they are accurate. Remember what I said you are responsible for any errors or shortages.

V. Less cash Down and Rebate: These numbers come from section E and are a negative number so it is subtracted from the amount you are paying for you new car. Notice the brackets on the car buying paperwork in this section that mean that it is subtracted.

W. Balance Due on Delivery: This is the final car buying paperwork amount that you are responsible for paying. At this point you write a check or you finance this amount. If you are financing your new car this is the amount financed.

X. This is where your Finance Manager will sign.

Y. This is where you and your co-buyer (if there is one) will sign the car buying paperwork.

I am sure you noticed that both you and the Finance manager signed the car buying paperwork. That is because this is a legal document. It is a binding contract so it requires both parties to sign. The Finance Manager is not the car dealer but they are the legal representative.

See that car buying paperwork bill of sale wasn’t so bad once you take it line by line and take your time. I hope this helps you next time you go to the car dealer and buy a car.

The Bill of Sale Part of the Car Buying Paperwork

Car Buying Paperwork the Bill of Sale

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The consumers are very frustrated because they want to buy a car but the extremely low inventories are forcing them to purchase cars that they would not otherwise buy. They are buying almost anything so they can participate in the Cash for Clunkers program before the budget runs out of money.

Now on the other hand car dealers are very nervous about the Cash for Clunkers program because they are still experiencing difficulties entering information in the dealer portal of the program. Many dealers say that they have not been able to get all their sales loaded in to the system because of problems with the process and website. From a few of the dealers that I talked to, they said that none of their sales have been approved by the government as of yet.

The Cash for Clunkers official website has posted a notice that they will accept future deliveries, for people that need to wait for a new car from the manufacturer. Sounds great, but it also sounds a little scary. Is it a mess in the making? The dealers are very reluctant to process a Car Allowance Rebate System credit for a car that might not be delivered or picked up for 3, 4 or 5 weeks.

Would you, if you were a Cash for Clunkers Car Dealer?

There was also a notice posted that they would not accept any car purchase transactions that were done prior to July 24, 2009. What happened to all those dealers that were accepting the Cash for Clunkers, clunkers before the 24^th?…… The law was passed on July 1^st, 2009………MESS IN THE MAKING!!!

A quote directly from the http://www.cars.gov/ website.

“We’ve heard that dealers are asking consumers to sign agreements with contingencies when they participate in the CARS program.

CONSUMERS ARE NOT REQUIRED TO SIGN CONTINGENCY AGREEMENTS TO PAY BACK THE DEALER SHOULD THE CARS CREDIT BE REJECTED.

We’ve also heard that dealers are asking consumers to keep their “clunker” until the deal is approved by NHTSA.

IF THE DEALER HAS THE NEW CAR IN STOCK, THE DEALER MUST ALLOW YOU TO TAKE POSSESSION OF THE NEW CAR BEFORE THE DEALER MAY SUBMIT THE CREDIT APPLICATION TO THE GOVERNMENT. PLEASE REPORT ANY DEALER TO NHTSA THAT DOES NOT ALLOW YOU TO TAKE POSSESSION OF A NEW CAR PURCHASED UNDER THE CARS PROGRAM. PLEASE CALL THE CARS HOTLINE AT (866)-CAR-7891.”

Did you read that carefully?

It says that consumers are not required to sign contingency agreements to pay back the dealer……The program does not require them to sign such an agreement, but the dealer probably will.

Cash for Clunkers or Mess in the Making….You Decide!

You can read all the latest at the Official Car Allowance Rebate System WWW.CARS.GOV

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1. Car Dealer Reputation: This is probably the most important factor in selecting a car dealer. Buying a used car with fair, honest and accommodating car dealers is easy as long as you find a reputable dealership. You should check with the local Better Business Bureau at www.BBB.org for car dealers that have had numerous complaints. It is always a good idea to ask relatives and friends for car dealers they have done business with.

2. Car Dealer Services: Finding the best car dealers should not be the only factor to consider. Make sure the services the car dealers offer are a full line of services like the following:

* Full Service Department – Most car dealers provide express maintenance and service appointments to its customers.

* Financing Available – Some dealers extend their services by handling or providing assistance with the availability of financing.

* Service Specials – Each car dealership has customer service discounts. Special service rates may vary depending on the name, location, other benefits, and negotiations.

* Extended Warranty – Some car dealers offer free extended car warranties when you purchase used cars or service and examine vehicles from them.

Find the Best Used Car Dealer

3. Good Selection of Various Prices: Most people assume that the price you pay is for the whole vehicle. This is not the case when doing business with car dealers.There are other things to remember such as taxes, doc fee and license.

Most dealerships include “add-ons” that may include window etching, entertainment systems, CD changers, paint protector products, rustproofing, car interior accessories and many more. Some dealers may try and force the customers into purchasing them usually install the add-ons.

If these additional accessories that is important to you, great. However, if you prefer to purchase the car without accessories, check to see the car you want to buy includes add-ons, don’t pay for things you don’t want.

Extra fees such as dealer handling and dock fees (lingo) are charged to set up a used car for sale, maintaining the car and preparing needed documents for the car sale. These extra fees could be negotiated since all of these services would only provide additional profit for the dealer.

Aside from a respectful, dignified and honest dealer, consider these factors in choosing the best car dealer. You may be purchasing a used car, but by looking for the best person to assist you, it will lead to a good investment and a good dealer experience.

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so much about car dealer scams. If you feel out of your element and at the mercy of your car salesman in order to get a great deal, then read on. You will learn about some of the most common car dealer scams that will help you be in control of the car buying process and keep you from getting help up without a gun.

Car Dealer Scams and Car Buying Scams to Separate You and Your Money – There are Many!

In order to have a better understanding of common car dealer scams, let me give you a little background and insider insight of how the car dealers do business on a regular basis.

Misdirect Your Attention Car Financing Scam

The car salesman and dealer try to keep your attention focused on the payment rather than the price. If you are an educated car buyer and did your research you will be concerned about the price because the rest is just math. So during any type of negotiations you will want to stay focused on the price you are paying for the new car, not the payment. While the car salesman gets you to focus on the monthly payment rather than the price they can easily have you paying more than list price for a car.

When you focus on the payment they have many variables that can change, such as interest rate, trade-in value, car buying fees and loan term. The car salesman loves to sell a car to a payment buyer because the dealer can easily pick up several thousand in additional profit from a payment car buyer.

Take Note of These Common Car Dealer Scams

The Low Balling Car Dealer Scams

Perhaps one of the most common of car dealer scams is Low Balling. Your car salesman will try to convince you, the buyer that they have the lowest price for the car so they can start negotiations and get you to focus on the payment rather than the price. The salesman will probably tell you that you can get the car that you want for a lower price and then begin to dance around the issue and start negotiating payments

Best Price Matching Car Dealer Scams-Yeah Right!

If the car dealer fails to sell you a car while you are there, they will tell you just before you leave to visit other dealers that they will match or beat any price that you will get anywhere.  By this time, you are probably sick and tired of looking around and dealing with car salesmen and common car dealer scams that you will take their offer. This is very often the case in the car business. Nobody wants to drive from car dealer to car dealer to deal with car salesman tricks and deceptive practices.

Would This Car Salesman Scam You?

Trade In Car Dealer Scams-Look Out!

When you are buying a new car and trading in a used car it is very common for the car dealer to undervalue your trade-in so they can make more profit on the overall purchase transaction. They will test drive your trade-in and talk about it making noises or something and try to find anything in order to have you accept less money for your trade in. Usually the new car buyer will accept less money for their trade-in car when they feel that they got a good price on the new car. This car buying scam is all about the customer’s perception. Once you start imagining yourself in the new car you usually soften on the amount that you will accept for your trade-in. (This one usually the dealer’s favorite scam)

The Spraying Car Dealer Scams

When you visit your local car dealer and test drive a car, but not buy a car the car dealer salesman will start calling you. The salesman will pursue you relentlessly until you finally buy a car. If you tell them that you bought a car they will ask you what you paid and then tell you that they could have sold it for less and upset you. In order to avoid this common car dealer scam give an incorrect phone number and they will not be able to call you.

The Puppy Dog Car Dealer Scams

The dealer will allow you to take the car overnight. The idea is to get you the buyer to experience ownership for a longer period of time than a test drive.  Then you can see the car in your driveway or garage, your neighbors can see it, your friends see it, and you start to form an attachment to the car and end up buying. After you have driven a brand new car for the last 24 hours do you really want to go back to the car dealer and get back into your old car to leave? Logically it might be the smartest thing you could do, but emotionally you want that new car. They got you!

Today Only Price Car Dealer Scams – This Price is Only Good Today

While you are at the car dealer, but have not bought a new car the dealer will give you a great price but they will tell you that the price is only good until the end of the day. This car dealer scam will very often make you think it is a great deal and end up buying the car without checking what other car dealers have to offer for fear of missing out on the great price they offered. This car scam is used every day by car dealers. The car dealer knows that they have a better chance of selling you a car now rather have you leave and logically examine your choices. The strongest motivation for buying a car with this car scam is the fear of missing out on a good price. The car salesman and dealer are trying use your emotions to get you to buy a car. Buying a car with your emotions is the quickest way to become the victim of a car dealer scam.

Throw It In Car Dealer Scams-Stuff You Don’t Want

In order to sweeten the deal and soften you up on price the dealer will offer to give you extras like floor mats, car window etching, fabric protection and other accessories. This common car dealer scam will slow down the price issue negotiations and take your attention away from the price and make you feel that you got something of value.

Everybody wants to feel that they got a good deal when they buy a car, the idea of being taken advantage of with these common car dealer scams is exactly the reason that so many people would rather get a root canal than buy a car. Now when you go to the car dealer you will have a better idea of their lingo and what is going on in order to be prepared to control the process and the car dealer experience. Do your car buying homework and you will be better prepared to control the car buying process.

There are many more car dealer scams and car dealer tricks and many of those are combined with dealership financing. I haven’t even scratched the surface yet, there are many more like dealer prep fee, car dealer fees and car dealer ads just to name a few. You can avoid many of these if you are prepared and follow the steps to buying a car.

You can avoid a whole lot of hassle by getting 4 FREE – No Obligation Quotes from Yahoo! Autos by CLICKING HERE NOW! Get 4 Quotes sent to you email address and you can evaluate your options without a car salesman pulling a car buying scams on you. Avoid the car dealer tricks and the car salesman tricks when you know what is going on by following the steps to buying a car.

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The New Car Spot Delivery – Convenience or Car Scam

The Last Step In The New Car Spot Delivery

At many dealerships after someone calls for a spot delivery, a new car porter will come and get the keys of the new car and fill it with gasoline and then do a final clean-up and remove all window stickers and any protective materials from seats and floor. The plan is to have the car in take home condition for the customer when they are finished in the finance office. Then when they are done signing all their paperwork the new car salesman will escort the car buyer to a delivery area where the spot delivery (car lingo) will be ready for the customer to drive home their newly purchased car.

Sounds pretty good, right. Ideally, the new car buyer is impressed by the efficiency and ease of buying a new car at the local new car dealership. That is exactly how the spot delivery process and dealership wants the customer to feel. They want you, the new car buyer to feel that the entire dealership has worked together to get your new car ready so you can drive it home as soon as possible (new car spot delivery or car scam). Then give you a quick orientation on your new car, thank you for your business and watch you drive away.

New Car Spot Delivery Ulterior Motives

The new car dealer, just like any good business wants you to be happy and impressed with your purchase and your car buying experience. However there are some undisclosed reasons or car buying scams for the new car spot delivery other than making the car buying process and experience as smooth and fast as possible.

They want you to stay busy and overwhelmed with the whole process so you do not have time to think clearly. In the car business they call it “being in the ether” (car scam). Your new car salesman, finance manager, sales manger and new car dealership does not want you to come out of the ether until after you have taken delivery and get home.

Think Twice about the New Car Spot Delivery

There is no cooling off period or fixed amount of time that allows to to return a car in most states. Once you drive your new car off the dealerships lot as part of the new car spot delivery process, you own the car. Period. If you get home and find a problem with the car, it will be taken care of under warranty, If you get home and have an issue with the numbers on your paperwork…..to bad…You signed it…..YOU OWN IT. There are NO returns. This is a very common of the car buying scams.

The moral of the story, be careful. Read everything and check the numbers thoroughly before signing. Inspect your new car in the new car spot delivery area to make sure there are no problems or issues. One you drive it away……IT IS YOUR CAR.

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