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purchasing an out of state car for nj tax ?

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smi2710

New member
Location
NWNJ
HI guys not sure where to post this but since i'm looking at purchasing a 2017 VW GLI from out of state and i live in NJ. When speaking with the sales manager he said they wouldn't collect sales tax which i assumed and that NJ caps there sales tax at 525.00 which i found odd since nj is the taxation state so i did some reading and found this

https://www.salestaxhandbook.com/new-jersey/sales-tax-vehicles

now if this is true i stand to save about 700 in sales tax by purchasing from this dealer ( worth the 8 hour drive there and back)

Can any NJ resident confirm this before i stop by the DMV in the morning to ask.
 
Diggs24

Diggs24

Autocross Champion
Location
de plains! de plains!
Car(s)
2015 GTI
You pay tax based on where you register the car. The out of state dealer may not ask you to pay it at point of sale but when you go to register the DMV will want to see bill of sale and see that you didn't pay the dealer the tax money and will stick out their hand and ask you for $525. No way around this. There is never a way to "save money by not paying taxes". You pay it, either up front or later at registration. So you need to look at the deal outside tax and compare vs locally as you will pay that $525 regardless of where you buy, even if that means flying to tax free Oregon. You'll drive it back and BAM owe $525 to NJ.
 
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smi2710

New member
Location
NWNJ
yes i am ware having to pay tax of course was ust curious if anyone in NJ hear dof this capped price of 525.00

example car price 18k nj sales tax at 6.625% is roughly 1200.00 but this capped tax being 525 would be awesome but im erroring on the side of its going to be 1200.
 
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DiscusInferno

Go Kart Newbie
Location
Kalifornia
I doubt there is a cap of $525. Otherwise, everyone will be buying their cars out of state, and NJ government will get pissed that they are losing out on sales tax revenue, so they would have to change the law and/or increase registration fees, taxes, etc.

You should go to the local MVC as you have to physically get the registration slip/form from the MVC. Then since you're there, you can ask the questions.
 
jimlloyd40

jimlloyd40

Autocross Champion
Location
Phoenix
Car(s)
2018 SE DSG
DiscusInferno said:
I doubt there is a cap of $525. Otherwise, everyone will be buying their cars out of state, and NJ government will get pissed that they are losing out on sales tax revenue, so they would have to change the law and/or increase registration fees, taxes, etc.

You should go to the local MVC as you have to physically get the registration slip/form from the MVC. Then since you're there, you can ask the questions.
Click to expand...

The link he posted does say it's capped at $525. But maybe they have a deal with other states to prevent that loophole.
 
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smi2710

New member
Location
NWNJ
I did stop at local MVA and they called me crazy which i assumed was the case. I was curious if anyone else in NJ ever ran into this situation.

I did find out along my search that SC i believe was a state that caps there out of state sale tax.

I'll find out when i bring our new car home this weekend
 
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