Depends upon the state. For example, In arizona you don't pay sales tax if purchased from a private party (whether in state or out of state). In cali they get you for sales tax in all circumstances. I'm certain other states have yet other rules. OT: I have to say I love the AZ sales tax rules...you get credit for trade-ins (meaning you only pay sales tax on the net amount of cash you add to your trade-in on a higher priced car) and no sales tax on PP transactions! Very cool after living with the crapy PRoC (peoples republic of California) where you don't get credit for trade-in and you have to pay on PP transactions AND those F$#%'***** you for sales tax "differential" if you happen to move to CA within a year of buying a car in any other state. I hope I never have to go back... What state are you in that you made the statement above?
Thanks AZ Italian, Not sure where Matty was coming from. Many states don't have sales tax on used cars when bought from a private party. In fact, I've never paid sales tax on any of the used cars I've bought. Some states have a "use tax" which is much lower than a sales tax.
Maybe he was thinking of personal property tax. That's due at registration in our state, but no sales tax on private sales. Never heard of such a thing anywhere.
In Kansas you pay sales tax on all used vehicles (about 6%), only receiving a credit on a trade if all done in one transaction through a dealer. Very unfair and biased. In Montana however there is no sales tax and no property tax on vehicles, that is why there are a lot of Ferraris and RVs registered to a Montana LLC but driven in other states I paid $80K for my 2004 Red/Black 6 speed with 12K miles a couple of months ago - had to drive from KC to Shreveport to buy it privately. Love it
I have a grigio titanio with 8500 k 2 nd owner with more options f-1 -clear bra - new clutch and 8 k in recent service asking 99 k - let me know challenge grils tubi. Daytona power seats leather seats and dash with white stitching - battery tender and more