Any advice for a new roadster purchase?

[dhrivnak]

Yes one has to pay taxes on private sales but the Tesla prices are a bit higher and you pay the taxes on all options. I am just saying private will save some money and often can be faster. You are just cutting out the middleman.

 

[pgwoosley]

That is very unusual. The 4 states I've lived in have all required paying sales tax on a private sale. I expect most states do.

You are correct that most states collect sales tax on purchases from private parties, but there are a few places where used vehicle transactions with private parties get some sore of a preference compared to dealer transactions. I am not sure the following still have lower sales taxes when a vehicle is purchased from a private party: North Carolina, Illinois, Arkansas.

California had a preference up until November 1976. One generally could use a formula that was often very beneficial. It was eliminated administratively in 1976 and by statute in 1991.

To put things in perspective, in most (if not all) states, if you pay $50k for just about anything other than a vehicle from a private party, there is no sales tax. But collection of sales tax on private party transactions is easy for the states due to the titling and registration process.

 

[shrink]

That is very unusual. The 4 states I've lived in have all required paying sales tax on a private sale. I expect most states do.

Ya' know, I have never actually bought a used car from a private party, but I read about the private party used car tax exemption in ads and heard from friends about it.

I just googled it and the law reads, "Casual sales between individuals are not subject to the use tax."

http://www.azdor.gov/Portals/0/Brochure/610.pdf

I also found a post on a dealer forum in which they were arguing this exemption was an unfair disadvantage to dealers:

States that don't charge Sales Tax on Private Party Vehicle Sales - DealershipForum.com

Yet another google search took me to a Yahoo answers page in which someone asked what other states have this exemption and someone said Georgia. I have no idea how accurate that is.

So I guess this exemption is quite rare indeed.

 

[hcsharp]

Most states have a law that exempts "casual sales" from sales and use tax. But most of them have a statutory exemption to the exemption when it comes to vehicles. Like you said it's too easy to collect and too much revenue to pass up.

Ya' know, I have never actually bought a used car from a private party, but I read about the private party used car tax exemption in ads and heard from friends about it.

I just googled it and the law reads, "Casual sales between individuals are not subject to the use tax."

http://www.azdor.gov/Portals/0/Brochure/610.pdf

I also found a post on a dealer forum in which they were arguing this exemption was an unfair disadvantage to dealers:

States that don't charge Sales Tax on Private Party Vehicle Sales - DealershipForum.com

Yet another google search took me to a Yahoo answers page in which someone asked what other states have this exemption and someone said Georgia. I have no idea how accurate that is.

So I guess this exemption is quite rare indeed.

 

[jammerdjc]

My understanding is that in California they will get you when you transfer the title and change the registration. So the buyer gets a little surprise after the transaction appears complete.

 

[adiggs]

Even better - if you don't live in California, but buy from somebody in California and then also take delivery in California (like say you want to drive the car home), then you have the joy of paying California Use Tax on the transaction, and then paying your local state sales/use tax when you actually register the car (the rationalization is that if you put the car in service for even a mile in California, then Use Tax is owed).

 

[bollar]

Even better - if you don't live in California, but buy from somebody in California and then also take delivery in California (like say you want to drive the car home), then you have the joy of paying California Use Tax on the transaction, and then paying your local state sales/use tax when you actually register the car (the rationalization is that if you put the car in service for even a mile in California, then Use Tax is owed).

This is true in most states with use taxes, but most states also have reciprocity, so they will give you full credit against what you paid to California. Unfortunately, I think California has the highest use tax on cars in the country, so you'll still pay more than if you took delivery in your home state.