Out of state vehicle purchase.

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04-23-2025, 12:36
Eric P

Out of state vehicle purchase.

If you buy a new vehicle out of state from a dealer, are you expected to pay sales in CO, the other state, or both?

I found an identical vehicle in a lower income state that is about 15% below MSRP while the one in CO is 10% above MSRP and the in-state dealer won't budge to match. The out of state dealer said thier price is for anyone, but the person I talked to wasn't sure of the taxes and the finance guy was busy.

So to save quite a bit, a flight and taxi ride to that dealer would be well worth it.
04-23-2025, 13:21
BPTactical

You pay the sales tax for the state the vehicle will be registered in.
04-23-2025, 15:44
SouthPaw

BP is correct. If you need a transport guy, let me know. I can send the contact info for the guy who I use.
04-23-2025, 19:02
def90

I just bought a new car out of Houston, everything was calculated based on taxes in Boulder where I live. Temp tag was from Texas
04-23-2025, 19:46
Erni

If you all care to share your out of state purchase experience I?d be appreciative. My commuter just pooped its engine and I need a new car.
04-23-2025, 21:31
3beansalad

I purchased a pre-owned vehicle from a dealer in Houston approx. a year ago. I negotiated the price via email/ text and call. I made a deal I was happy but still asked for an additional $250 (the cost of the flight) and they were more than willing to give me what I asked for. And the salesman picked me up at the airport.
I had to pay for the fuel home, meals, snacks, and one night in a hotel, but I still beat the local price by more than a grand.

Based on my experience with the dealer, the price, and the fairly rapid drive home, I might never buy from a Colorado dealership again.
I've never learned more about a new vehicle than I discovered during a 14 hour drive home.
04-23-2025, 23:58
Eric P

Quote:

Originally Posted by BPTactical

You pay the sales tax for the state the vehicle will be registered in.

If my sister buys it & registers it, but I pay, then buy it from her for $1, is sales tax still due on the original amount? Paying sales tax on out of state purchases is plain stupid. Why should colorado benefit from the other states infrastructure?

I guess it would be hard to dodge sales tax on a vehicle, unlike NEVER reporting use tax on out of state big ticket items bought from sales tax free states. Does anyone ever report?