Buying a car out of state

If it is a good deal for you...you should always make the move to get the car...However, if it is a significant ways away...might as well consider purchasing the car and then...having a shipping company move it to ur desired location

 

Are you buying from a private seller or dealer?

I flew to Milwaukee for car a found on EBay. We ended up not using EBay (seller didn't want to pay fee), but since this was an unsafe method of buying a car from a stranger, I did the following:
(1) paid off the sellers remaining balance by mailing the cashiers check to the financier (in this case, Mercedes Financial)
(2) Met the seller at the airport and handed him a cashiers check for the remaining due

From the airport, we went to the Wisconsin DMV, he signed off on the title and left. I stayed at the DMV and finished off the title transfer. Then got Wisconsin paper plates.

After a week in Madison, WI, I drove 26 hours with a friend back to Texas.

When back in Texas, I brought the bill of sale (created by me, but approved by the seller) and other relevant documents to the Texas DPS to register and pay taxes.

 

So the out of state title has to be in your name to get a Texas title? Didn't you pay taxes twice?

 

The whole reason I bought it was because it was the color, price and every single spec I wanted (ie: manual transmission, Dealer upgrades, etc). My friends in Wisconsin test drove it for me, and looked over the car for anything out of the ordinary. If I didn't have someone to look at it that I could trust, I wouldn't have done it.

The drive back was terrible, would not recommend unless you pay for a hotel. We did it nonstop and switching drivers every 2 hours.

This happened back in 2007, so it was hard to remember the details. But, I don't remember paying taxes in Wisconsin. Maybe because I wasn't registering the car there? Idk, just know I didn't pay taxes there. May have paid a title transfer fee, but I don't recall that either

 

Do you know if I can transfer a out of state title to a texas title if the OOS isn't in my name? I guess because your car had a lien it wasn't possible.

 

Don't think you have to pay taxes twice if the Title is already in your name. Just the registration fee.

The sale happening up there not in Texas so I don't think so.

Also to the OP, are you financing the vehicle or paying it out of hand. I know some financial institutions will make you handle the title work yourself if its an out of state vehicle

 

I think you have to have the owner and yourself sign off on the title, and then submit paperwork and title to that States DMV. Not sure of any other way to transfer title, I believe you have to release it from the seller first.

My seller got his title after I paid off his car, and asked the financier to expedite the title to him. Just in time for my arrival at the airport

 

Within 30 days of bringing the vehicle to Texas, you must obtain a vehicle inspection and visit your county tax assessor-collector to title and register the vehicle. The vehicle must pass inspection before it can be registered and titled.

The following fees:
Registration fee (base fee of $50.75 for passenger vehicles and light trucks),
Title application fee of $28 or $33, depending on the county,
6.25% vehicle sales tax,
Local and county fees ($5-$20),
$1 Insurance verification fee
$1 Automation fee

http://www.txdmv.gov/motorists/buying-or-selling-a-vehicle/out-of-state-and-foreign-vehicles


So you will need to pay a sales tax to texas when you register it.

 

Yep, that's what I said in my earlier post. Never paid taxes in Wisconsin

 

Can't argue with experience but I don't how that can be true. I think you would have had to pay 5% in WI and then the remaining 1.25% here. You bought the car there so why would WI not want their taxes? There are counties that don't have sales tax on used car sales but were you in one of those?

http://www.dot.wisconsin.gov/drivers/forms/mv1.pdf

Waukesha is 1%, Washington and Milwalkee counties are 6%.


I am curious because with all of the transplants some bring cool rare motorcycles with out of state titles.

 

You could be right. This was 7 years ago (about to be 8) and I'm surprised I even remember this much. I do remember that it was a hassle to do it myself.

When I was in college, a friend sold his car to someone and the buyer asked for him just to sign the title and he would take care of the rest. A year later he started getting warrants sent to his parents house (where it was originally registered) and it became a huge ordeal to clear his name.

Advice: always transfer the title and don't think that the other guy will do it for you

 

Do you remember if you HAD to transfer it in WI first. Meaning, could you have gone to the texas tax office and handed them a WI title in the sellers name and got a tx title in your name?

As for your friend, when selling a used car, just take your plates. This is perfectly legal and forces them to register it without you holding their hand at the tax office.

 

Ah, gotcha. You know my seller in Wisconsin took the plates when we got to the DMV, and I was like "WTF?" Now I realize why he did it.

As far as doing it all in Texas, you got me, I don't know. Sorry buddy.

But don't see why you couldn't (as you mentioned the new Texas transplants are probably dealing with the same issue).

 

There is also a form you can fill out and hand in when you hand in your plates. After that, your part is done.

 

I bought a CPO car from Alabama...everything went pretty smooth because it was through a dealer.

Would I do it again..probably not.

 

I might be able to answer that since I just bought a car from San Francisco.
For CA at least, if you buy from an individual then you don't have to pay taxes if you pick up the car and drive it straight out of the state for the purposes of going home. You can't go touring through the state because it's considered a 'use' tax and you would be 'using' it at that point.
I bought from a dealer and so I would have to pay taxes even if I drove it straight home. And since their taxes are at least 2% I decided to have it shipped instead. Since I shipped it I did not have to pay CA taxes. But once I registered it in Texas then I pay 6.25%.
One bad thing that happened was the dealer did not send me the title immediately. I'm required to register the car in Texas within 30 days. I did not make it within that period so I was charged penalty... I can't remember if it was a percentage or a straight cost but ultimately about $500.