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      09-23-2014, 12:21 PM   #1
Zguy52
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Used car sales tax in CA from private party Out of State?

I live in Texas and I am looking at purchasing a M3 from a private party seller listed in the forums. First time buying out of state and trying to figure out everything I need. I stumbled across a post on another site saying If I drive the car back to Texas I have to pay CA used car sales tax. But if it's trucked out of state I do not have to pay tax.
In Texas you also pay sales tax when you register cars in Texas so would I end up paying twice?
Also what do most buyers do for License plates when driving cars back to their home state. My plan was to have notarized bill of sale and Title and the bank when finalize the deal and transfer funds. use existing plates and my current insurance for the drive home and mail plates back if necessary.
Finding clear answers to theses questions has been difficult as most DMV info is for in state sales and residents.

thanks for and advise,

Zguy52
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      09-23-2014, 12:41 PM   #2
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You will not pay California sales tax, you will pay Texas tax though. I have purchased many a cars in California and drove them out of state. When I get to my DMV I give them the bill of sale and title and I pay taxes in my state.

As far as the drive back...if the previous owner is comfortable with allowing you to keep the plate on the car it is the best option in my opinion. You then have a clear bill of sale and title in hand in case you get pulled over. The previous owner will not be responsible as they will also have a clear official bill of sale that shows that it wasn't in their ownership if there are issues. If they will not allow you to take their plate you can go into your local DMV and let them know you will be driving a car purchased out of state back home and they can issue a temporary plate. You will then still need the bill of sale and title.

Hope that helps. I don't think I've ever purchased a car in the state I was living and have gone through too many in the past 5 years, most purchased in CA.
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      09-23-2014, 01:23 PM   #3
WingZeroX5
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1) you pay tax in the state you are going to register the vehicle in
2) Doesn't TX have a transit / temp plate that you can get for now?
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      09-23-2014, 03:57 PM   #4
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The transit paper must be done in California. They usually allow a three day transport permit given to you same day you purchase the car... bring the tittle and 5 bucks you should be good. California may be more. I did it from Virginia to GA it only cost me 5 bucks at the DMV. Drove to GA and pay the GA taxes and got a tag the same day.
The paper they will give you in CA would have to be placed on the rear windshield no tag needed.
Good Luck with purchase.
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      09-23-2014, 06:10 PM   #5
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If you're driving it back, you need to either apply for a Texas temporary tag or ask the owner if he'll let you drive the car back with his plate and you'll mail it back to him. Most private sellers are reluctant to do the latter. Your best bet is to contact the department of public safety. http://www.dps.texas.gov/

Whatever you do, don't drive it back without a tag because you'll get caught which will cost you even more than the temporary tag. Don't ask how I know.
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      09-23-2014, 10:20 PM   #6
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Quote:
Originally Posted by bdaddylo View Post
Whatever you do, don't drive it back without a tag because you'll get caught which will cost you even more than the temporary tag. Don't ask how I know.
I too have been cited for not having a plate even though I had a bill of sale and title in the car. I was even 3 miles from home from the trip, go figure.
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      09-23-2014, 10:23 PM   #7
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Most importantly call your insurance ASAP or before pick up and give them the new VIN number so you're covered right away.


You pay taxes (or lack of) upon registration.
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      09-23-2014, 10:33 PM   #8
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What if the car has a lien and title is not released until 3 weeks from payoff?


Quote:
Originally Posted by duvinclunk View Post
You will not pay California sales tax, you will pay Texas tax though. I have purchased many a cars in California and drove them out of state. When I get to my DMV I give them the bill of sale and title and I pay taxes in my state.

As far as the drive back...if the previous owner is comfortable with allowing you to keep the plate on the car it is the best option in my opinion. You then have a clear bill of sale and title in hand in case you get pulled over. The previous owner will not be responsible as they will also have a clear official bill of sale that shows that it wasn't in their ownership if there are issues. If they will not allow you to take their plate you can go into your local DMV and let them know you will be driving a car purchased out of state back home and they can issue a temporary plate. You will then still need the bill of sale and title.

Hope that helps. I don't think I've ever purchased a car in the state I was living and have gone through too many in the past 5 years, most purchased in CA.
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      09-24-2014, 09:16 AM   #9
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What if the car has a lien and title is not released until 3 weeks from payoff?
Have a really official looking bill of sale then. If you are paying off someone else's loan to get the car usually the bank can provide an official bill of sale. I actually haven't bought one where I haven't actually had the title in hand but would assume the bill of sale will work.
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      09-24-2014, 10:12 AM   #10
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Quote:
Originally Posted by duvinclunk View Post
Have a really official looking bill of sale then. If you are paying off someone else's loan to get the car usually the bank can provide an official bill of sale. I actually haven't bought one where I haven't actually had the title in hand but would assume the bill of sale will work.
In some states like Texas, title is hold with the bank until loan is paid off.

The question is if seller doesn't want to give plates and title is not released. Can I drive car back home with just bill of sale and temporary tags (no title)? Or I might be in trouble if I got pulled over?
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      09-24-2014, 11:53 AM   #11
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Quote:
Originally Posted by OneSickM View Post
In some states like Texas, title is hold with the bank until loan is paid off.

The question is if seller doesn't want to give plates and title is not released. Can I drive car back home with just bill of sale and temporary tags (no title)? Or I might be in trouble if I got pulled over?
I believe by law all you need are temporary tags and proof of insurance.
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      09-24-2014, 03:34 PM   #12
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Quote:
Originally Posted by OneSickM View Post
In some states like Texas, title is hold with the bank until loan is paid off.

The question is if seller doesn't want to give plates and title is not released. Can I drive car back home with just bill of sale and temporary tags (no title)? Or I might be in trouble if I got pulled over?
Bill of sale will do and as mentioned above the temporary tag. I always take a proof of insurance with me but I never insure the actual car. With my policy they give me 7 days from purchase of the new vehicle to get coverage. If anything happens in that 7 days it is covered by my existing policy. You may want to confirm the details to your own policy to see if this is or is not the case with it.
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      09-24-2014, 07:13 PM   #13
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Point of Sale

OP, you really need to be careful. California is a Nazi on collecting taxes. The general rule is point of sale/delivery. If a product is shipped out of state, then no problem. If you pick it up, be careful and get advice from someone really qualified to give it.

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