You’ll need to get the vehicle smogged and the VIN inspected/verified. Then it’s on to the DMV with the paperwork…
1 Like
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.
1 Like
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:
1 Like
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.
1 Like
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
1 Like
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
5 Likes
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.
1 Like
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.
2 Likes
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
1 Like
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.
Leasing is definitely the better way to avoid tax. Hmm…get my next car up in Oregon and drive it down?
sorry. it is a lease. I have already given up on doing it this way though.
I just assumed since we’re on a leasing forum, that we were talking about a lease.
However, per CDTFA, if you purchased out of state and paid tax to that state, you only pay the delta between the CA tax and the tax paid.
1 Like
After doing it once myself, I’m more comfortable with out of state leases. There was a bit of a learning curve in the beginning, but if the deal is strong… we can put up with a lot lol
1 Like
I don’t know why, it’s pretty easy
For you as the lessee, for the Dealer they have additional paperwork. Which most don’t like that.