Out of State Taxes
 

Hey everybody... I've been lurking/reading up, in preparation for hopefully getting a Camaro later this year, and I'm in Illinois, close enough to go up and get my Camaro from CamaroScotty himself, but I have a dumb question. How do I have to handle the sales tax? I'd like to have the taxes in the loan, but since it's out of state, (IL instead of WI) is that possible? anyone know?

I'm also going to have to shop for winter tires/wheels -- anybody think it would be beneficial to see if the dealer can get the tires/wheels so i can put them in the loan, too? otherwise I guess I could watch ebay for the 18" steelies.

Looking forward to hanging out here @ Camaro5! :)

Talk to your dealer. Many will put the sales taxes in the loan and then give you a check for you to use for taxes. Kind of like a cash out refinancing of your home. Some dealers will do this, some won't. Good luck.

An out of state dealer can and will charge tax for your state/county.

that's kinda what i thought, but wasnt sure how it works

Be careful with blanket statements like this. You're probably not in the car industry and, if you are, you're not qualified to make a statement like this or you wouldn't have posted it. This is not true everywhere. Not every dealer can or will do this unless they work with/remit taxes to a particular jurisdiction on a regular basis. Mistakes are easy to make with tax issues and the dealer is on the hook for the money if they make an error. Simple things like what is and is not taxable (i.e. rebates, trade value, etc.) and the actual tax percentage can vary state to state and sometimes county to county within a state.

Border dealers who sell a lot of cars over state lines are well informed and do this regularly as a service for their customers, but dealers who rarely sell cars into a jurisdiction have no reason to establish a relationship with the state/county or learn the tax laws. As a result, it can be a pain for some dealers to figure it out and actually remit the taxes, so they don't. Since the customer needs to go to their local DMV to register their vehicle anyway, most dealers won't charge taxes at all and will suggest the customer pay them at their DMV.

If the customer needs to put the taxes in the loan, some lenders will allow the dealer to cut a check to the customer for this and some won't. In fact, some states have laws for exactly how this needs to be done. It's best to let the local dealer sort this out on a case by case basis with the customer.

I have purchased 5 automobiles over the years from out of state (some as far as 600 miles away). For the out of state purchases I just provided the phone number of my local county tag office for them to coordinate the sales tax & tag purchase. I'm not saying that it would always be this way. I've just never ran into a problem getting the taxes added into the loan. :)

This is what I wanted to know also you beat me to it!!lol

i didnt want to have to shell out the sales tax so hopefully my dealer will finance them in! buying my car in arizona paying sales tax in new mexico so im sure since it is bordering theyve done it many times

True. I'm not in the car industry, but my dad was. Also, I've gotten quotes for multiple dealers out of state and they have all included my local taxes. Besides, if they don't charge me the sales tax, then when I go to register the car, I'm pretty sure the DMV would. I appreciate your clarification. :)