Hi, I currently have a 2004 IB/B MC but am considering selling it and buying a 2005 specced MC instead. I have heard that there are advantages to buying out of state (for when that time comes). I heard somewhere that there are significant sales tax breaks. Is this true? What are the advantages? Thanks.

-Jeremy

 

It would help if you told us which State you're in.

In CA you owe CA sales tax on the car coincident with registering it, so no savings there. In CA the advantages are less cost (no dealer markup) and less time (waiting lists from 2-12 months.)

 

I depends on what state you buy your MINI in and what state you live in.
I heard that for Washington state you still have to pay state tax even if you buy out of state.

I think for Hawaii you pay the tax in the state where you purchase the car and then ship it back to Hawaii for over $900. We have 4% state tax which is pretty low compared to other states.

You local dept of motor vehicles can tell you what the law is.

 

No tax breaks. You pay the sales tax to your home state just like your normally would. The advantage is delivery time and price (if you avoid paying dealer mark-up in your home state).

 

>We have 4% state tax which is pretty low compared to other states.





but everything costs about 15% more....right?

 

Classic MINI has told me that if I trade in my car in Ohio, I will not pay taxes on the purchase price minus the trade-in price after paying off the loan. So, if I have $8,000 in equity in the car and I put that down, I will not have to pay taxes on that in my state.

 

i live in Maryland and I am considering buying the car in Virginia. The last one I bought was in-state, but I was wondering if maybe I could get a better deal as far as tax elsewhere.