Question - If your State gives a tax credit for trading your vehicle for a new one; how does it work when you trade you car out of State. Do they just title and register you car at time of sale in your State so you receive the tax credit ?

Any info appreciated

 

I wouldn't be surprised if this varied depending on which state(s) were involved, but in general I would imagine that the transaction would be governed by the laws of the state in which the transaction was occurring, i.e. the dealer/seller's state. If that state is not the same as your state of residence and you end up paying sales tax in that other state according to their laws (which they'd probably need to collect since the sale occurred there even if the car won't be registered there), then typically you can deduct it from the use tax you would owe upon registering the out-of-state car in your home state, although if the amount you paid was greater than what you would've owed, you wouldn't get a credit. Use tax is just sales tax collected on cars purchased out of state, and it exists as a disincentive for people to purchase cars from other states with more favorable tax rates. The dealer may or may not actually take care of registering and titling your car in your home state on your behalf.

 

1) Review the paperwork prior to signing it. This ensures that you get the salestax credit. Make sure its the correct salestax per your address.
2) Most Porsche have sold out of state at one time or another so they are familiar with the process.
3) Not every state has dealers function as an extension of the State's DMV. Not only that but even if they were the extension doesn't mean they will file on your behave since it some cases physical presence is required.

This is based on actual knowledge and not guessing based on ones own state processes - having done this several times.

 

Depends on the States and dealers involved.
Most often, the selling dealer will submit the registration material to the buyers MVD and collect the tax (if any) due in the buyer's State.
Some MVD's and some States have screwy rules and regulations, so you need to find out based on your circumstances.

 

I agree 100% with this. Just make sure you communicate your plan with the selling dealership and review the documents prior to signing them. Typically most dealers should have a good understanding and knowledge of the correct procedure and paperwork.

I live in Washington State and I buy all of my cars from Oregon. The dealers in Oregon set up the paperwork to show the trade in value clearly in the sales contract which what is needed when I registered my car in Washington. In one instance the Porsche dealer missed up as I traded my car 3 months earlier prior to taking delivery of my new Poreche and listed the amount as a deposit and Washington state, ended up refusing to honor the trade in value, so I went back to the dealer and they revised the paperwork and all was good. So even if they miss up the paperwork you can still have them revise it and it should be ok, but why go through the hassel, so review the documents and just make sure the paperwork is correct before singing the sales contact. Good luck. Mark

 

I am sure that different dealers probably handle it different, but my experience was the opposite. Last year I bought a 'vette out of state in Virginia. Dealer asked me what state the car will be titled in first (TX) and then stated that the transaction will be done using the tax laws of the first titled state (TX). They then withheld TX sales taxes and titled the car for me in my home state of TX (which they screwed up, but that's another story...)

I was frankly surprised; however, it should have made my life a lot easier if they did it correctly. I have no idea whether this is the norm though...

 

Interesting. I guess if the dealer is willing to do all of the legwork to register and title in a different state, remit the appropriate tax, and file whatever tax-exempt sale paperwork may be required by the dealer's own state, that makes sense. I didn't think dealers would typically do all that, but then I had never bought a Porsche before and this one was bought in my state of residence.

 

Bought out of state multiple times. They always have done the trade in taxes and registration the way it needs to be based on my state of residence without asking.

 

Thanks all.