Buying a car out of state.
04-27-2008, 11:23 AM
#1
Buying a car out of state. I'm in the military. The car(s) I'm wanting to buy is in Texas and I still have my home state address in Texas. Should I go buy the car as a Texas resident and pay the TTL over there or buy it as out of state buyer from AR, deal w/ their taxes, title and license?
I don't know which is easier (less headache to deal). I don't know how much AR charges for sales tax on cars bought out of state. If anyone can give me pointers, that would be sweet.
I don't know which is easier (less headache to deal). I don't know how much AR charges for sales tax on cars bought out of state. If anyone can give me pointers, that would be sweet.
04-27-2008, 12:04 PM
#3
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Here is the deal. If you buy it OUT right I would get it registered in TX because TX RAPES you on TTL. If you are getting a loan and wont have it paid off by the time you move back to TX then register it in TX. Here is why.
When you move to TX you will have to register the car there. If you have a loan you will have to pay taxes on the loan and assumed value of the car. If its paid off completely you dont have to. Does that sound screwy?? Yes. Even if you have paid tax on the car in another state TX will STILL make you pay taxes on it.
Im stationed in TN/KY and neither state charges tax on a car if you are military. However as soon as I register my car with TX they want a slice of the pie. Its a damn scam but there is nothing you can do about it.
When you move to TX you will have to register the car there. If you have a loan you will have to pay taxes on the loan and assumed value of the car. If its paid off completely you dont have to. Does that sound screwy?? Yes. Even if you have paid tax on the car in another state TX will STILL make you pay taxes on it.
Im stationed in TN/KY and neither state charges tax on a car if you are military. However as soon as I register my car with TX they want a slice of the pie. Its a damn scam but there is nothing you can do about it.
04-27-2008, 12:26 PM
#4
I went to Dallas to buy my car a year ago, and I did not get charged any extra for buying out of state. As for taxes, I believe Texas's tax % is 6.25 and Arkansas's tax % is 6. I don't know about title and license in TX but it isn't much here in AR. I would just bring it back here and do TTL here in AR.
04-27-2008, 01:32 PM
#6
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hey bene i bought my vette in Nashville TN...just to give ya a rough estimate i paid $25500 for the car...the previous owner wrote $15000 on the bill of sale...i ended up payin around $1014 in taxes, registration, and tag.....and the last time i checked arkansas sales tax is a lil higher then 6%...more like 8%.
04-27-2008, 01:35 PM
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Yea its a damn good bonus. TN tax is 7.75% and KY is 6.75% IIRC. It saves around 2-3k when you buy a new car. Id check into it on your base. There is usually a site that has a lot of infomation about that stuff.
Its weird too. My car was titled in TN yet I had insurance from KY.
SSthebest: TX doesnt use what the previous owner wrote on the bill of sale. The tax man uses KBB to asses a "fair value" you then pay taxes on that fair value if its a used car.
I sold my old car to my brother for $250 however it KBB for around 3300 and he had to pay tax on that amount.
Its weird too. My car was titled in TN yet I had insurance from KY.
SSthebest: TX doesnt use what the previous owner wrote on the bill of sale. The tax man uses KBB to asses a "fair value" you then pay taxes on that fair value if its a used car.
I sold my old car to my brother for $250 however it KBB for around 3300 and he had to pay tax on that amount.
Trending Topics
04-27-2008, 01:48 PM
#9
"Sales tax, registration and title fees: The state sales and use tax rate is 6%, 7% for Texarkana residents, of the taxable price of motor vehicles, trailers and semi-trailers with a gross purchase price of $2500.00 or greater. Tax is computed on the total delivery price including rebate, freight charges and extra equipment. Federal Excise Tax is not included. Extended warranties are taxable whether or not the vehicle is taxable."
http://www.state.ar.us/dfa/motor_veh..._tagrenew.html
http://www.state.ar.us/dfa/motor_veh..._tagrenew.html
04-27-2008, 02:16 PM
#11
Thanks for the info.
Something I copy and pasted from the link above:
Does this mean I don't have to pay sales tax for the car I'm buying?
Something I copy and pasted from the link above:
Vehicle Registration for Military Personnel
The following documents are required to register and title a new or used vehicle:
If Arkansas is your home of record the requirements are the same as for an Arkansas resident, regardless of where you are stationed.
If Arkansas is not your home of record you are exempt from assessment and personal property taxes.
You must provide a copy of your leave and earnings statement for verification of your home of record and therefore can not renew by phone or internet. If your home of record is other than Arkansas and you are stationed outside of Arkansas you must register your vehicle in one of those states.
The following documents are required to register and title a new or used vehicle:
If Arkansas is your home of record the requirements are the same as for an Arkansas resident, regardless of where you are stationed.
If Arkansas is not your home of record you are exempt from assessment and personal property taxes.
You must provide a copy of your leave and earnings statement for verification of your home of record and therefore can not renew by phone or internet. If your home of record is other than Arkansas and you are stationed outside of Arkansas you must register your vehicle in one of those states.
