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Buying a New Car Out of State

Posted on 2/12/24 at 12:46 pm
Posted by Barrister
Member since Jul 2012
5197 posts
Posted on 2/12/24 at 12:46 pm
Question for someone who has been down this road. I am considering buying a new car, but am shopping dealerships out of Louisiana. ( ie Houston, Birmingham, and Mobile area)

I am guessing I would be paying tax twice - - once at purchase is foreign state and once in Louisiana upon registering vehicle. Is that how this works? IF so, what is the process?

Any rule of thumb on how much one would have to save to make any extra expense associated with an out of state purchase worthwhile? (and yes....I know...about tree-fiddy. SO now that we have that out of the way, all knowledgable help is much appreciated.
Posted by The Mick
Member since Oct 2010
44869 posts
Posted on 2/12/24 at 12:48 pm to
No double tax. You would register it in LA from the beginning, not a transfer situation.


ps - shipping for a vehicle is approx 350-500 from Dallas/Houston to LA.
This post was edited on 2/12/24 at 12:49 pm
Posted by CatfishJohn
Member since Jun 2020
18821 posts
Posted on 2/12/24 at 12:49 pm to
Nah you just register where you live/will be driving it.

Posted by zippyputt
Member since Jul 2005
6808 posts
Posted on 2/12/24 at 12:50 pm to
You just tell them it’s going to La and they should not charge you any tax.
Posted by cubsfan5150
NWA
Member since Nov 2007
17797 posts
Posted on 2/12/24 at 12:53 pm to
Depends on the state. CA requires you to pay CA tax if you drive it out of the state, but if you have it delivered out of state then no tax. Also, some states have reciprocal agreements with other states.
This post was edited on 2/12/24 at 1:01 pm
Posted by S1C EM
Athens, GA
Member since Nov 2007
11594 posts
Posted on 2/12/24 at 12:57 pm to
quote:

I am guessing I would be paying tax twice - - once at purchase is foreign state and once in Louisiana upon registering vehicle. Is that how this works? IF so, what is the process?


They will get the location of where you intend to register the vehicle, and you'll be charged the tax for that locale. You don't pay twice.
Posted by DoctorTechnical
Baton Rouge
Member since Jul 2009
2984 posts
Posted on 2/12/24 at 1:01 pm to
Just did this when I moved back to BTR from Birmingham over the new year. At least in Alabama, the dealer will give you a temp/paper Alabama tag good for about 30 days and a form saying taxes will be paid out of state.
Posted by LSUDad
Still on the move
Member since May 2004
61814 posts
Posted on 2/12/24 at 1:02 pm to
I live in Tx, buy everything here in Louisiana, friends and relatives own dealerships. They charge you taxes on your place of residence, where you register the vehicle.
Posted by sidewalkside
rent free in yo head
Member since Sep 2021
4273 posts
Posted on 2/12/24 at 1:03 pm to
quote:

ps - shipping for a vehicle is approx 350-500 from Dallas/Houston to LA.



350-500 is a steal if you can find that unless you're talking about dealership to dealership shipping maybe you can get it then. If you want any "personalized" shipping door step drop off you're paying WAY more than that
This post was edited on 2/12/24 at 1:04 pm
Posted by turnpiketiger
Member since May 2020
11983 posts
Posted on 2/12/24 at 1:03 pm to
They charge you the sales tax based on your residence address

If you buy in Mobile but live in Br you get charged the EBR parish sales tax. Whatever that is these days 8.5%?
Posted by Ramblin Wreck
Member since Aug 2011
3908 posts
Posted on 2/12/24 at 1:09 pm to
First you set up an LLC in the state of Montana. Second, purchase the car in the name of the LLC and pay zero sales tax since cars are not charged sales tax there.

Ever notice a lot of exotic cars with Montana registration? There is a reason.

No tax, no emissions testing, no inspections
Posted by BigBinBR
Baton Rouge
Member since Mar 2023
9169 posts
Posted on 2/12/24 at 1:10 pm to
quote:

Also, some states have reciprocal agreements with other states.


Louisiana is one of them. Some states require you pay taxes at the point of sale. Louisiana will give you a credit for the amount you paid, and then you pay the difference. However, you will not get a refund if the other state charged more than what Louisiana would have charged (although there aren’t very many that would have charged more).
Posted by BigBinBR
Baton Rouge
Member since Mar 2023
9169 posts
Posted on 2/12/24 at 1:15 pm to
quote:

They charge you taxes on your place of residence, where you register the vehicle.


Nope. They pay the Louisiana tax and then it’s credited by Texas. Dealerships tend to deal with Texas a lot so it’s seamless for you.

Louisiana Tax

Texas Tax
Posted by Barrister
Member since Jul 2012
5197 posts
Posted on 2/12/24 at 2:27 pm to
First and foremost - - 12 intelligent, helpful answers. I am blown away. Thank you all very much. I really appreciate the help. ( Still not sure why this garnered 3 downvotes, but I'll take that for the helpful information.)
Posted by Auburntiger
BTR area
Member since Mar 2005
14480 posts
Posted on 2/12/24 at 2:33 pm to
Barrister - a few months ago I purchased a vehicle out of state (Texas) - I had the same concerns as you (which have been addressed by others in this thread) - I will just say that is was a very smooth process. The out of state dealership handled EVERYTHING for me - even mailed me my Louisiana license plate once it arrived.

I would do it again in a heartbeat!!

Best of luck to you on your vehicle purchase!
Posted by KiwiHead
Auckland, NZ
Member since Jul 2014
35737 posts
Posted on 2/12/24 at 2:35 pm to
Did you really save all that much?
Posted by keakar
Member since Jan 2017
30152 posts
Posted on 2/12/24 at 2:35 pm to
quote:

Buying a New Car Out of State

bought one in texas and they registered and licensed it in louisiana. all car dealers do this, but not all used car lots will, so ask in advance before you even go there
This post was edited on 2/12/24 at 2:54 pm
Posted by Auburntiger
BTR area
Member since Mar 2005
14480 posts
Posted on 2/12/24 at 2:41 pm to
quote:

Did you really save all that much?


I saved about $6k purchasing my new truck in Texas compared to in Louisiana - justified the 1 way plane ticket and a day of my time
Posted by keakar
Member since Jan 2017
30152 posts
Posted on 2/12/24 at 2:53 pm to
quote:

Did you really save all that much?


yes you can, especially buying from a place like houston where they sell a ton of cars so the margines allow them to sell way lower than the other dealers local to you.

i saved $5k by buying in houston and it cost me a $75 plane ticket, $25 taxi ride to dealer, and it took me 5 hours to drive it home.

the drive home was a long one, but well worth it to save $5k
This post was edited on 2/12/24 at 3:09 pm
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