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Buying a car from a Texas dealership

Posted on 7/1/20 at 12:28 pm
Posted by saz_1
Member since Aug 2005
321 posts
Posted on 7/1/20 at 12:28 pm
If I buy a car from a texas dealership, how do taxes and plates get handled? Will the dealership be able to pay LA taxes or do I have to register the car and pay taxes again when I bring it back? What about LA plates?
Posted by MikeBRLA
Baton Rouge
Member since Jun 2005
16448 posts
Posted on 7/1/20 at 12:30 pm to
The dealer will take care of everything. That’s what you are paying them for.
Posted by FieldEngineer
Member since Jan 2015
2117 posts
Posted on 7/1/20 at 12:31 pm to
quote:

The dealer will take care of everything. That’s what you are paying them for.


This. Also expect for them to be shocked at your sales tax rate.
Posted by Huey Lewis
BR
Member since Oct 2013
4644 posts
Posted on 7/1/20 at 12:32 pm to
You'll get a Texas title which you'll bring to La dmv to register and pay taxes. La dmv will keep your Texas title and send you a new La title in the mail.

Unless you finance in which case it will play out differently.
Posted by MrLSU
Yellowstone, Val d'isere
Member since Jan 2004
25939 posts
Posted on 7/1/20 at 12:33 pm to
quote:

If I buy a car from a texas dealership, how do taxes and plates get handled? Will the dealership be able to pay LA taxes or do I have to register the car and pay taxes again when I bring it back? What about LA plates?


Most dealers will submit paperwork on the sale to Texas (takes 2-3 weeks to process paperwork) and then will send you title which you will then need to register & pay sales taxes in Louisiana.
Posted by fredrod8545
Member since Sep 2019
77 posts
Posted on 7/1/20 at 12:33 pm to
Dealership will add tax depending on where you live. They'll remit everything to Louisiana, and you'll get the plate in the mail. Of course, the dealership we bought from screwed everything up, and it was a huge headache working with the state to get the registration and refund for overpaid taxes.
Posted by AverageJoe26
Hwy 42
Member since Sep 2012
346 posts
Posted on 7/1/20 at 12:35 pm to
Little bit different but when my wife moved here from Texas, it took damn near a month to get everything transferred over. She had to pay taxes here, registration took weeks, and the DMV asked her several times "why she bought a car in Texas and moved to LA". Not the brightest folks.

In short, I'd reccomend you buy the car here. Way less BS to deal with.

Posted by SportsGuyNOLA
New Orleans, LA
Member since May 2014
16974 posts
Posted on 7/1/20 at 12:35 pm to
Are you paying in full?

If so, it’s simple. You pay them in full for the purchase price and you get a bill of sale and the title.

Then you register the vehicle in Louisiana and are issued a new title. You pay sales tax to Louisiana at the time of registration.

I’ve bought cars in Mississippi and Georgia and registered them in Louisiana with zero hassle.

If you are financing, I have no clue how it works.
This post was edited on 7/1/20 at 12:36 pm
Posted by X123F45
Member since Apr 2015
27351 posts
Posted on 7/1/20 at 12:36 pm to
quote:

The dealer will take care of everything. That’s what you are paying them for.



Only if financing.

If paying cash they merely notarize your paperwork.

And then you pay taxes in your home state.

If new, they will not provide you with a title, rather a certificate of origin from the manufacturer.

A title does not exist until taxes are paid for the first time.
Posted by MLCLyons
Member since Nov 2012
4708 posts
Posted on 7/1/20 at 12:38 pm to
quote:

If I buy a car from a texas dealership, how do taxes and plates get handled? Will the dealership be able to pay LA taxes or do I have to register the car and pay taxes again when I bring it back? What about LA plates?


I bought a used car from a dealer in Texas. I just had to pay the taxes when I registered it in LA. Some dealers may do things differently though.
Posted by Tigerpaw123
Louisiana
Member since Mar 2007
17252 posts
Posted on 7/1/20 at 12:39 pm to
quote:

Only if financing.

If paying cash they merely notarize your paperwork.


That is not always true, I have done it both ways (Finance and cash sale) and the dealership handled paperwork both times and had plate mailed to LA
Posted by ike221
Loo A Vul
Member since Aug 2006
13695 posts
Posted on 7/1/20 at 12:43 pm to
quote:

Then you register the vehicle in Louisiana and are issued a new title. You pay sales tax to Louisiana at the time of registration.


I believe Texas has an agreement with Louisiana regarding out of state vehicle registration etc.

I purchased a truck from Texas Direct Auto

2 weeks later I received my Louisiana registration and plate in the mail
Posted by BigD45
Chambers County, TX
Member since Feb 2007
1151 posts
Posted on 7/1/20 at 12:44 pm to
The dealership will handle everything. Texas can get 6.25% of the taxes, but you will owe Louisiana the difference based on the tax rate where you live. Have your tax rate handy.

The dealership will mail everything straight to Baton Rouge, and you will get your plates in the mail.

If you ever buy a used vehicle out of state, make sure you get a bill of sale and title. They both need to be notarized before the LA DMV will accept them.
Posted by X123F45
Member since Apr 2015
27351 posts
Posted on 7/1/20 at 12:45 pm to
quote:

That is not always true, I have done it both ways (Finance and cash sale) and the dealership handled paperwork both times and had plate mailed to LA


You can always pay more for service.

I would rather pay 15 bucks than a few hundred.
Posted by TrapperJohn
Louisiana
Member since Dec 2007
11127 posts
Posted on 7/1/20 at 12:47 pm to
Make sure to grab the plates on your old vehicle if trading in. My brother received a letter in the mail from the Louisiana DMV six months after trading in a vehicle in Texas. The Texas dealer said that he would handle everything...he didn’t. The late fee for not turning in your old plates is pretty stiff.
Posted by OysterPoBoy
City of St. George
Member since Jul 2013
34998 posts
Posted on 7/1/20 at 12:50 pm to
I’ve heard a lot of stories about them hiding kilograms of coke in the door panels and then stealing your car after delivery. Just be careful, especially if it’s from south Texas.
Posted by JDPndahizzy
JDP
Member since Nov 2013
6420 posts
Posted on 7/1/20 at 12:50 pm to
quote:

Make sure to grab the plates on your old vehicle if trading in. My brother received a letter in the mail from the Louisiana DMV six months after trading in a vehicle in Texas. The Texas dealer said that he would handle everything...he didn’t. The late fee for not turning in your old plates is pretty stiff.

True.. I learned my lesson the hard way on that.. Cancelled insurance on a totaled car without turning in plates. Meanwhile people driving around without insurance lol...
Posted by Nawlens Gator
louisiana
Member since Sep 2005
5827 posts
Posted on 7/1/20 at 12:59 pm to

I've bought 2 new trucks in Texas. I called my insurance agent ahead of time and he said to give him the new VIN # and he would switch coverage. The dealer in Katy TX sent the title to the local DMV here in LA and they (DMV) sent me a bill for the TT&L. TX dealer provides temporary new vehicle tag. I had no issue with the old tag I left on my trade in.

Easy Peazy and it saved me thousands $.

Posted by Floyd Dawg
Silver Creek, GA
Member since Jul 2018
3898 posts
Posted on 7/1/20 at 1:07 pm to
I live in GA and just bought a car in Alabama in December. Financed via the dealer.

The dealer handled all the paperwork and collected the TAVT due to GA. They Fedexed the paperwork along with a check to my county's DMV and I went to the tag office the next week to pick up my tag. I went to get it in person for 2 reasons- I live in a small county and it's really fast to get in and out of the tag office, and I was going on a trip the next week. I didn't want to drive out of state with a dealer tag that had no expiration date (GA and TN require them, AL does not).

I had never done that before, but it was easy and I'd do it again if I found a great deal.
Posted by tokenasian37
Member since Aug 2007
942 posts
Posted on 7/1/20 at 1:13 pm to
I bought 2 Toyotas from a dealership in Houston. They use a 3rd party to handle the title/registration in which they collected the right amount of taxes for the state & parish which vehicle will be titled. My plates were mailed a few weeks after.
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