I dont know if this is the appropriate forum for this question, but I need help fast.

I am currently negotiating with a dealer in illinois on a 06 m5, but they want me to do the title/registration myself here in georgia. They have agreed to ship the car to me at thier expense. What I dont understand now is... if i finance the car, will I have to pay sales tax when I go to register the car? I plan on financing the car, and to my knowledge I thought I would HAVE to pay sales tax on the car if financing. Does anyone have any experience registering thier car themselves? I dont want to agree on the deal, and then have to pay 4k+ sales tax when I go to register the car in Ga. Please help.

 

GA lawyer here, and also hold a GA dealer license. GA is a bit antiquated in this area. The out of state delaer is not required to collect the tax from you. I would suggest that he not do so, as you will have no guarantee/assurance that he forwards it to GA revenue. What will most likely happen is that once you (or your lender) attempts to file for the title, GA Revenue will send up a red flag that sees you have not paid the sales tax. In the old days, you would get a letter telling you that tax is due, send us the money, etc. Now, the system is a bit more aggressive, and will NOT let the State issue a title until the tax is paid. Also, I am assuming that you live in metro and that the car must be blown before you can get a tag. If there is a GA dept of Revenue office near you, I would ask them if you can pay tax at their office and get a receipt, or at least go down and chat with them. I would also sugest that you call the GA DMVS (dept of motor vehicle services, you can find them online) and confirm any of this. The state has been known to change thier mind/policies with the changing of the wind.
This area is sort of gray and is a bit of a mess. Hope I didn't confuse you, but even those of us in the industry are often unsure what to do.

 

thank you mr allen. not confusing at all. I've been getting some info from another board from people that have purchased cars out of state. some paid tax, and a few got lucky and didnt have to pay tax. I don't mind paying the sales tax, but I just wanted to be prepared to pay when I go to the tag office. Thank you for your advice.

 

I'm not a lawyer, so would defer to poster who is, but I do know that you WILL have to pay GA tax if you buy from a dealer but you do NOT pay tax if you purchase from an individual.
I bought a GT3 last year specifically from a private owner in NY....cost me $38 to register ($18 tag, $20 out-of-state title). I checked with Ga DMV numerous times before I bought the car to confirm (did NOT want any issues later). Hope this helps.

Bill

 

Bill is correct.

Illinois used to be a great state to purchase from They didn't collect the tax and GA was not a reciprocating state to collect it from them. So therefore no tax was collected. I know for a fact since I used to purchase several cars from Illinois until GA got smart with collecting the taxes at the registration. The did this around the same time they changed the rules for requiring a GA drivers license in order to get GA Tags. I have a place in FL and I get my cars insured and registered there and I do not pay Ad Valoreum. FL removed the requirement of having to have a FL license to get FL tags. Just need FL insurance. Also they do not require emissions/inspections.

 

See if the dealer would be willing to write you a bill of sale that says "Trade", and put that on the title instad of a purchase price.

I have a buddy who has done this several times and not paid any GA tax when he registered. It is none of their business what you traded, and they never asked.

 

be very careful. The State does indeed consider this their business, and their money. With revenue collections as far down as they are, the State absolutely intends to pursue every penny that is theirs, and even some that is not theirs (that is, sending you a bill, or making you prove it is a "casual" sale between individuals). As far as getting someone to put down a "trade", the trade would have to come from a GA resident, and the GA resident would have to hold a GA title. When no title came back to the State of GA DMVS, the title or VIN will not show in the system as being legit, and bang, a sales tax file and letter will be created. And if the dealer has purposely attempted to deprive the State from sales tax revenue, they also open themselves up to potential criminal charges. Also, would you have faith in doing business with someone, that you don't know, several states away, who would purposely defraud the government? I know that may seem out there to some of you, but if someone will break the rules once, then....
OK. Enough, hit me if you want to. I've just experienced and negotiated enough tax and title problems to want to avoid them.

 

I agree that you shouldn't ask for a trade when it wasn't. People in FL used to write down $2K on a 20K sale to help out the buyer since they would pay tax on the bill of sale only. Well that didn't last too long once they got computers and trade in prices/sale prices through their database and asked if you sold below value for a reason, gift, friend or family.

Smartest car purchase for GA residences is from a private seller. Especially on a large purchase you can save a lot of money.

 

It is good to use the casual purchase exception as an individual. But you absolutely must know who you are dealing with. Liens, numerous payoffs, and other dangerous hurdles are out there. If there is any way possible to buy from a guy like me (micro sized, no BS, no big car dealer markups), then that is safer, in that by dealing with a licensed guy, you get the comfort of the bond that is required in GA for dealers, the heavy background check, and a guarantee on paper that you get a clean lien free title (or at least you should). That being said, I always try to price my stuff where the net with the tax is a fair pirce. I don't see how these big metro dealers can ask for some of the numbers that they do with a straight face, and then add 7% AND the gall to get 250-499 "admin fee". In any event, it's not going to matter for much longer, as GA is going to eventualyl take the sales tax out of dealer's hands (which they should), and get back to making everyone pay tax on everything. It's coming.
In any event, you just GOTTA know your seller.

 

i have purchased cars from both out of state dealers and individuals. if the title is open and endorsed by an individual - no state sale tax is collected. buying from an out of state dealer is no different from purchasing from one down the street with the exception that you will be remitting the sales tax proceeds upon ...titling or registration.

as far as the FAKE BOS. aka fraud.