Heelsonwheels

I may purchase a car from out of state from a dealer in NY.
When do i pay the tax and to who?
Thanks.
Something strange also...in order to get the sale price, they want me to finance thru them and don't want a cash deal.

silver2000stang

typically you pay the tax on where you plan to title the vehicle. also on the financing be very careful, they actually get a commission on the financing that you get through them that sometimes may not not be the best rate and term available to you. I am not opposed to a commission, as I am 100% commission, I just always pre-arrange financing before I go to any car lot, and then if they get me a better rate and term I will go through them for the financing.

good luck on the new purchase.
Thanks,
Brian

luigi524td

First question: You're a NJ resident. Regardless of where you purchase the car you will pay the sales tax based on the state it will be registered in (usually your state of (legal) residence). If you are purchasing from an automobile dealer who is authorized to collect sales taxes for NJ, that dealer may collect the taxes and submit them to the State of NJ. Be certain that the sales tax is noted on your bill of sale so at time of registration there won't be an attempt to collect it from you twice! Just as a safe guard, you might verify with NJ Motor Vehicle that the NY dealer IS authorized to collect NJ sales tax!

Second question: Finance choice - believe it or not, the dealer is probably getting a piece of the action if they finance the car for you. I'd look at the best APR (Annual Percentage Rate) to see if the rate is competitive. Cash is KING ... but if you're financing a big chunk of change, the kick-back (it is legitimate by the way) means extra profit for the dealer. BTW, a check is a safer and more secure means of payment ... don't want a sales guy putting your cash into a brown paper bag and leaving town!

JayDee427

I would just put a $9,000.00 cash deposit on the car and just pay off the balance in 2-4 months, providing that there is no early payment penalties. A transaction of $10,000.00 or more in CASH will invite you to disclose more info about you that the bank MUST provide to the Feds, if they ask. Also think about this, if you pay off your loan early, it would look good on your credit report as well.

Heelsonwheels

Good information ...thanks

Heelsonwheels

I thought the same thing.