Should we buy our next car in Oregon or Colorado?

June 13, 2009 9:03 AM

We're planning to move from Oregon to Colorado. We also plan to buy a new car soon. Should we buy it in Oregon (no sales tax) or just wait til we get to Colorado?

If we do buy here in Oregon, I know Colorado will ding us when we register our new car there. But would that ding be as costly as simply paying sales tax on a new car purchase there? Thanks.

posted by diastematic to travel & transportation (6 comments total)

Don't know the answer, but you should be able to find it here. A cursory glance at the numbers suggests it will be cheaper to buy in Oregon.
posted by torquemaniac at 10:19 AM on June 13

Most states make you pay the sales tax (or the delta) if you buy it elsewhere and move to that state within some time period (90 days in CA). They collect when you register the car. So, keep that in mind.
posted by jeffamaphone at 12:17 PM on June 13

What make of car are you buying? If it's a GM or Chrysler, and there's a dealership that's being dropped by the manufacturer, you could potentially get much better deal there as they try to reduce their inventory. (example) So in that case, it would depend on whether or not there's a dealer in OR or CO near you. You could easily save enough to cover the potential sales tax hit.
posted by mr_crash_davis mark II: Jazz Odyssey at 1:56 PM on June 13

To expand on what jeffamaphone mentions:

In every state I've lived, cars purchased outside the state had full sales tax due upon registration in the new state unless they had been licensed and registered in another state for some period of time. In WA, that's 90 days; in PA, it was something like six months I think; I don't know what it was for MO.

There are even states (like Louisiana) where you'll be charged a tax on any car brought into the state. My brother-in-law wound up having to pay something astronomical, like 100% of what he paid (it was used, and they go by bluebook, not sale price), in taxes when he brought his car to New Orleans.

So, if you're leaving tomorrow, you should definitely buy based simply on the cost of the car. If you're leaving in four or five months, you should look up the laws in CO and see how the sales tax of CO vs. OR line up. It may be cheaper to buy and register it in OR, drive it for 90 days (or whatever), and then take it to CO; or, the sales tax in CO could be so much cheaper that it's worth waiting and buying it there.
posted by Netzapper at 2:28 PM on June 13

I don't know about CO, but having lived in Vancouver, WA (borders Portland, OR), I can tell you that it does you no good to buy a car in OR. As soon as you bring it up to be registered in WA, you'll get charged "Use Tax" instead of sales tax at exactly the same rate to make up for the sales tax you didn't pay. The only way around this is if you register the car in Oregon with a fake address, but that's Against The Law.
posted by floam at 5:53 PM on June 13

For anyone following this thread:

I called the Boulder DMV for the straight answer (God forbid they should put this in their FAQs.)

Colorado/Boulder will NOT ding me for a sales tax as a new resident bringing in a car. As long as the car is registered and plated in Oregon prior to registration in Colorado, there is no penalty or tax assessed for me coming from a sales-tax-free state.

In other words, I should hurry my ass up and get that car in Oregon before I head out to Colorado.
posted by diastematic at 2:47 PM on June 23