4 ms·
> Can't people then just register the car quickly out of state and then re-register it locally so it looks like "a move" legally and not a sale? Paying twice t
by natermer 10y ago
> Can't people then just register the car quickly out of state and then re-register it locally so it looks like "a move" legally and not a sale?
Paying twice the taxes on a new car is not a cheap thing.
The states cannot prevent you from importing a car, but they can make it a huge pain in the butt. Multiple days of having to take off work, getting the run around and misinformation from bureaucrats, spending hundreds of dollars on fees and inspections to get to what is free if bought in-state. They can be very nasty about it.
(don't ask me how I know. This is based on personal experience)
How unpleasant it gets depends heavily on the state and how much of a vendetta key politicians will be willing to go on when they have a corporation thumbing their nose at their laws.
It's not just registration. Most people buy new cars on credit. Which means they don't have the title. You'll have to provide a out of state title, which you don't actually own, to the state. You'll need insurance that is accepted by the state and your creditor. You'll have to make sure that the insurance agency can communicate this correctly to the state and provide them the right information, or it may be multiple trips to government buildings until it gets sorted out.
And it's not like the state you are buying from is going to be all that happy about losing out of probably will amount to several hundred dollars in sales taxes.
Each of these things is just another thing to go wrong. Another day waiting in lines and getting bad information from people who would rather spit in your face then talk to you.
All of this stuff is very doable, of course. Probably take just a week or two of screwing around at the most, etc. And I am sure that Telsa would help streamline the process as much as possible, but they would still lose customers because of it. Getting dragged through the mud for what really is just a luxury car is nobody's idea of a good time.
- rdtsc 10y agoOh wow. What a hassle. Was wondering if Tesla perhaps can have a friendly state help out. Say Nevada for example exempts cars from a sales tax if it leaves the state within a week (they get revenue from say the plan being there so they "sponsor that industry...). Perhaps some insurance company which operates in both states can partner with Tesla (not sure on legalities) of this and also a few online banks which would specialize in financing Teslas. At least on the surface seems like there are a few opportunities there for other players to jump in and help...
- gregpilling 10y agoI purchased a Toyota Tundra truck in Utah in 2007, and then drove it back to Arizona where I lived. The truck was new to the market and not available yet in AZ. The dealer had no problem whatsoever with titling the truck, financing it, and paying the taxes on it to Arizona and not Utah. It was very painless. The dealer told me that they do it all the time, and it was totally normal . So my personal experience - easy, no problem. Only paid taxes to AZ, not UT. No lines, no DMV, no problem with registration, nothing. I just flew in, got the truck, drove home.
- GrinningFool 10y agoWhen buying a car from a neighboring state , it took only a quick call to my insurance agent at time of sale. The dealership arranged for the taxes and fees based on my state of residence, not the state of sale.