Out-of-state car buying logistics
May 12, 2018 6:24 AM Subscribe
I am a carless Virginia resident who will be moving to North Carolina in a couple months and will need to buy a car prior to the move. How do I do this without paying taxes/fees twice?
The seemingly simplest option would be to purchase in Virginia from a local dealer, get the 30 day temporary tags, and when I move down to NC, get my new license and registration/tags right away. However, I'm confused about the sales tax -- according to this, I would be responsible for paying NC sales tax but how does the dealer handle that if they are not in NC? Am I going to have to pay sales tax twice, once at the point of purchase, and again when I go to the NC DMV to title/register it? I tried calling the NC DMV but they are unhelpful (surprise!)
The other complicating factor is that I would like to buy over Memorial Day weekend to take advantage of hefty sales, but due to work/family obligations I can't be actually be in NC until mid July, at which point my 30 day VA temp tags will have expired. I found out Maryland does 60 day temp tags -- is it feasible to buy in Maryland, temporarily garage the car in VA, then do the permanent title/registration/tags when I move to NC 6 weeks later? MD sales tax on cars is 6% whereas NC is 3% -- will I get refunded the difference?
The least appealing option is to buy once I move to NC. However I have no good way to get from VA to my (car-centric) place in NC without ... doing a one way car rental or something? Which would likely eat up any potential savings from delaying the car purchase. I also don't know anyone in my new city well enough to make them drive me to the DMV to switch over my license, or to car dealerships. But if someone has a way that delaying the purchase makes sense, I'm all ears....
[Given the logistics, I was thinking to buy from a dealer. However I'm open to a private party sale if I find what I want -- I think that means I handle all the stuff above. This will be a non-financed purchase.]
The seemingly simplest option would be to purchase in Virginia from a local dealer, get the 30 day temporary tags, and when I move down to NC, get my new license and registration/tags right away. However, I'm confused about the sales tax -- according to this, I would be responsible for paying NC sales tax but how does the dealer handle that if they are not in NC? Am I going to have to pay sales tax twice, once at the point of purchase, and again when I go to the NC DMV to title/register it? I tried calling the NC DMV but they are unhelpful (surprise!)
The other complicating factor is that I would like to buy over Memorial Day weekend to take advantage of hefty sales, but due to work/family obligations I can't be actually be in NC until mid July, at which point my 30 day VA temp tags will have expired. I found out Maryland does 60 day temp tags -- is it feasible to buy in Maryland, temporarily garage the car in VA, then do the permanent title/registration/tags when I move to NC 6 weeks later? MD sales tax on cars is 6% whereas NC is 3% -- will I get refunded the difference?
The least appealing option is to buy once I move to NC. However I have no good way to get from VA to my (car-centric) place in NC without ... doing a one way car rental or something? Which would likely eat up any potential savings from delaying the car purchase. I also don't know anyone in my new city well enough to make them drive me to the DMV to switch over my license, or to car dealerships. But if someone has a way that delaying the purchase makes sense, I'm all ears....
[Given the logistics, I was thinking to buy from a dealer. However I'm open to a private party sale if I find what I want -- I think that means I handle all the stuff above. This will be a non-financed purchase.]
I'm pretty sure the info in that link speaks to if you already lived in NC and then bought a car from out of state.
If you buy a car in VA while still a VA resident, you will only pay VA sales tax. When you and the car move to NC, you should only need to pay the fees for re-registering the car in NC. No sales tax should apply.
posted by Thorzdad at 6:45 AM on May 12, 2018
If you buy a car in VA while still a VA resident, you will only pay VA sales tax. When you and the car move to NC, you should only need to pay the fees for re-registering the car in NC. No sales tax should apply.
posted by Thorzdad at 6:45 AM on May 12, 2018
I don't understand why you can't just buy your car in Virginia and get the permanent title / registration / tags in Virginia.
Then once you have an address in NC, just follow the procedure for new residents described in the state DMV page.
Also note that NC charges property tax on vehicles. You won't pay the tax when you initially register your car in NC, but will be assessed tax at registration renewal time.
(By the way, the link you have in your question is not for an official NC DOT site)
posted by research monkey at 6:45 AM on May 12, 2018
Then once you have an address in NC, just follow the procedure for new residents described in the state DMV page.
Also note that NC charges property tax on vehicles. You won't pay the tax when you initially register your car in NC, but will be assessed tax at registration renewal time.
(By the way, the link you have in your question is not for an official NC DOT site)
posted by research monkey at 6:45 AM on May 12, 2018
Best answer: When you are a newcomer to NC, you will pay a 3% highway use tax based on the value of the car. If you bought the car within 90 days, and have proof of tax paid to another state, you can use that proof as a credit against the 3% HUT. If you've owned the car for longer than 90 days, the HUT is capped at $250. This page outlines it pretty well:
https://www.ncdot.gov/dmv/vehicle/title/tax/
...click on the [?] next to "Tax, Out-of-State Residents".
One of NC's peculiarities is that license plates and drivers licenses are handled in different offices, and you have to have your license first. To get a license, you must have proof of insurance with a carrier certified in NC. When you get your license plate, plan on having a little cash on hand--you can pay everything except the $5 notary fee via debit card or check, but the notary fee has to be in cash. (Very annoying, and I bet the owner of the ATM sitting in the license plate offices clean up.)
Those are most of the pitfalls I know about--despite the separate offices and the notary fee oddity, I've found the NC DOT services to be pretty good, and pretty fast. Good luck!
posted by tybstar at 6:45 AM on May 12, 2018 [4 favorites]
https://www.ncdot.gov/dmv/vehicle/title/tax/
...click on the [?] next to "Tax, Out-of-State Residents".
One of NC's peculiarities is that license plates and drivers licenses are handled in different offices, and you have to have your license first. To get a license, you must have proof of insurance with a carrier certified in NC. When you get your license plate, plan on having a little cash on hand--you can pay everything except the $5 notary fee via debit card or check, but the notary fee has to be in cash. (Very annoying, and I bet the owner of the ATM sitting in the license plate offices clean up.)
Those are most of the pitfalls I know about--despite the separate offices and the notary fee oddity, I've found the NC DOT services to be pretty good, and pretty fast. Good luck!
posted by tybstar at 6:45 AM on May 12, 2018 [4 favorites]
Go to your local DMV. Ask them. And/or call the NC DMV.
posted by theora55 at 7:04 AM on May 12, 2018 [1 favorite]
posted by theora55 at 7:04 AM on May 12, 2018 [1 favorite]
Response by poster: research monkey: I would like to avoid spending a few hundred dollars on a permanent title/registration/tags in Virginia then doing the same 6 weeks later in North Carolina. I know the page I linked is not an official NC DOT page; couldn't find anything on the NC DOT site that addresses the "buying a car out of state" conundrum.
tybstar: thanks for the tip on the different offices and the notary. I don't know if I'll count as an out-of-state resident, as I'm moving there permanently, but I'll ask.
posted by basalganglia at 9:18 AM on May 12, 2018
tybstar: thanks for the tip on the different offices and the notary. I don't know if I'll count as an out-of-state resident, as I'm moving there permanently, but I'll ask.
posted by basalganglia at 9:18 AM on May 12, 2018
Best answer: I bought a car in Maryland a couple years ago. The dealer's default mode was to handle Maryland registration for me (which would have included paying all the fees and tax), but when I told them I planned to register the car in a different state they just gave me the 60 day temp tags and didn't charge me any sales tax. Instead, I paid sales tax when I actually registered the car in Missouri.
I don't think you'll be able to get the 60 day temp tags if you buy from a private party, but unless things have changed, you shouldn't have any problem with getting double-charged on taxes with a dealer.
posted by exutima at 10:04 AM on May 12, 2018
I don't think you'll be able to get the 60 day temp tags if you buy from a private party, but unless things have changed, you shouldn't have any problem with getting double-charged on taxes with a dealer.
posted by exutima at 10:04 AM on May 12, 2018
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posted by wotsac at 6:41 AM on May 12, 2018