Registering vehicle purchased [edit: for lease] out of state in CA

There is a good deal on the Jeep 4XE but it is in Arizona, and I live in CA. Broker says that they will give me temporary tags and it will not be registered. I have to do it in CA at DMV. So, what am I missing? I have to pay all DMV fees out of pocket – I get that.

Any “gotchas” I should know about? I recall reading about this elsewhere on LH and people thought it was an awful task – having to go to DMV multiple times. But that sounded more like bringing in a vehicle registered in another state to CA. From the broker’s description, this sounds cleaner.

Thanks for any tips anyone can provide on how this works, and what to look out for.

edit: I realize I put “purchase” in the title instead of lease. apologies for the confusion.

First and foremost… are wranglers 50 state compliant or do they do a CA specific variant? You’d think in this day and age they’d all be 50 state compliant, especially with it bring a hybrid, but you need to be sure.

Was any sales tax paid at delivery (to either AZ or CA) or is it on you to take care of sales tax?

This AZ dealer says it’s 50 state

Wasn’t sure. A few years back I was shopping for an f150 and about half the dealers in AZ ordered them with the $0 cost 50 state emissions package and half didn’t. As a CA resident, you can’t bring it in to CA until it has 7500 miles on it if it isn’t 50 state compliant. Why all those dealers would kill a potential market is beyond me. It’s not like to cost them anything to keep the door open, even if they only made 1 sale.

You’ll need to get the vehicle smogged and the VIN inspected/verified. Then it’s on to the DMV with the paperwork…

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AAA is your best bet. They can verify VIN verification and paperwork but you will need smog. I’m looking at this right now on a purchase. I don’t know on leases.

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good question. have to ask the broker about that. tax is paid on the lease each month, but the tax on the incentive is a good question. I assume it is rolled into the lease if I do $0 DAS. But maybe better to pay up front if tax is lower in AZ.

If you’re immediately registering it in CA, I would fully expect that you’ll have to pay CA any delta in sales tax between anything paid to AZ and the CA rate.

Interesting , wonder how they smog a car that is in ‘electric mode’ Probably the same procedure to do a Prius Prime.

I came across this post and thread researching this the other night:

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For a new vehicle you’ll pay ALL the California sales tax as a “use fee”. No deduction for what you paid where you bought it. Depending on what county you are in it could be over 10 percent of the vehicle price.

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That doesn’t seem correct.

@jeisensc did you have to pay sales tax on the entire vehicle price on your out of state leases?

Masterblaster is correct, use fee payment required and they expect you to claw it back from AZ, somehow

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I’m not arguing that a payment is required, but that it’s sales tax on the entire purchase price of the vehicle.

To clear up any confusion. Since you are CA based, your tax will be levied on your monthly payment. You wont be charged a different out of state tax and have to adjust. Otherwise it wont get funded by the bank.
Tax is based off your garaging address and will be that way. What is required for CA is a smog check and a car verification ( can be done at any DMV). You will then proceed to take the docs and paperwork and pay the registration fees.
Hope this helps

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Both my out of state-to-CA leases were immediately upon signing (they were never registered in another state). Just like any CA lease, the tax was on the payment.

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Which seems like the same thing going on here. Doesn’t look like this would ever be registered in AZ (which would be a challenge for a CA resident to do anyway).

Point is, no surprise tax on the entire value of the car because you got it out of state.

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The OP refers to an out of state vehicle purchase, not a lease. If that is the situation then the California use tax is due on the full purchase price. Which could be a sizable amount.

If it’s a lease then yes, the tax will be due only on the monthly payment

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As I said, Masterblaster is right, OP says ‘Purchased’ not leased.
When OP gets that new car registered here, they will ask for the Sales Tax right there.

CA Link

Leasing is definitely the better way to avoid tax. Hmm…get my next car up in Oregon and drive it down?