If i was to purchase a vehicle in Arizona (im in california) how does the registration and taxes work?
The tax rate at the VW dealership there is 8.3% im 8.75%, do i just have to account for the difference between the two when registering it here?
is there anything else to be aware of?
Be sure to specify your location when asking for input on a deal! Tagging by state (e.g. CA, NJ, NY, usa-nationwide) is mandatory.
Please tag if your question involves to a specialized topic (e.g. tax, legal, shipping etc.). You will reach experts faster that way. View all tags at Leasehackr Forum.
If you asked for a deal check, circle back after you have signed a deal – the community always loves to hear back! Submit your deal to SIGNED! (https://share.leasehackr.com).
Normally yes, when you register it in California, generally California will give you credit for any tax paid to Arizona; therefore, typically you would just owe the difference and any CA registration/title taxes/fees. The most important thing to do is to ask the dealer whether or not they will be collecting CA taxes/DMV up front or only the AZ charges. I would also confirm the vehicle has CA emissions compliant equipment and ask about a temp/non-resident permit for the drive back. [SIZE=1]​​[/SIZE]
Taxes and reg are always based on buyer not dealer. AZ dealer should be able to process CA registration for you but you’ll likely need to get it VIN scanned and smogged when you bring it in.
You might have to pay an additional fee for a third-party service to do the out-of-state registration.
It’s probably less common with states that share borders, but some dealers still may not want the hassle or liability if they don’t do many out of state deals.
Doc fees will be higher than CA’s, which are capped at $85, so make sure you account for the difference in your offer so you aren’t surprised when (if) you sign the docs.
Arizona is one of those markets to me. I associate AZ with low discounts, as well as “Desert Protection Packages” and other such absurdities. Caveat emptor.
There was one odd exception that I can recall, and it actually dealt with CA.. imagine that lol. An out-of-state buyer (i.e. me) would be subject to CA sales tax if I were to take physical delivery on CA soil. I wouldn’t have to pay the CA sales tax if shipping the car.
The only other odd car buying was from MA. The car has to be fully registered before taking delivery, or something like that.
They told me they process with AZ taxes, will issue a 90 day registration to drive back. im assuming i go to the dmv to register/pay tax difference when i get back to CA? im also trading in my current lease at the vw there.
This is the game they play. You peel off some or all of the worthless trash and feel like you’ve won because you got rid of that plus a modest discount (which is then largely clawed back with the higher doc fee).
Of course none of this matters if you’ve established a firm, market-supported target and are ready and willing to walk if you can’t get there.
If you are at all apprehensive about whether you’re aiming for a worthy target, post the vehicle and your target price (and some rationale about how you determined it) and you’ll get feedback.
