driving a car home from out of state vs shipping

Decolliber · 04-15-2004, 03:54 PM

Have been thinking of buying a car out of state (Conn.) and driving it home to Iowa. The Conn. DMV website says that to do this I have to get transit plates/registration, pay sales tax and do a bunch of paperwork. I assume that means I do not have to pay sales tax again when I get back to Iowa. But if I stay home and just pay to have the car shipped home, I do not have to pay Conn. sales tax (or transit registartion) but only pay Iowa sales tax when I register and retitle the car. If my understanding is correct, this could be a big disincentive to drive a car home from out of state (depending on the difference in sales taxes, and one's aversion to filling out forms) instead of just shipping it. Am I missing something here? I keep seeing stories of Pelicans who buy cars out of state and drive them home, so it must not be that much of a hassle ...

singpilot · 04-15-2004, 03:59 PM

My bet is that if you drive it home legally, you will pay sales taxes in both places.

What I mean by that is, if it is currently registered in CT, drive it home and don't say anything to them.

The rub comes if it is lapsed registration, and you need to get that fixed (by confessing to Conneticut that you have lots of money, and want plates and reg just to leave the state).

Best of luck.

campbellcj · 04-15-2004, 10:38 PM

I bought a car in AZ last year and drove it back to Calif. It was purchased from a dealer and they required me to pay their local sales tax, which was fully documented. They also provided temporary tags.

The CA DMV did not charge sales tax as it had already been paid in the state where sold. I just had to pay the regular title transfer and registration fees, and provide a SoCal-approved smog check cert.

It was quite straightforward, but I can't vouch for other locations or situations...

imcarthur · imcarthur's Garage

I was hoping to drive home too, but have since given up & opted for shipping.

Whether you pay 2 x retail sales tax depends upon your home state & whether they will accept tax paid in another state & waive the second dip. Some states easily dispense temp transit registration & some demand taxes. I found CT & FL to be the most anal.

Check with YOUR DMV.

Ian

Rot 911 · 04-16-2004, 05:31 AM

In Missouri you can just slap some plates off your old car onto your new car and you pay sales tax when you register. If you pay sales tax in the state you purchased the car you don't have to pay a second time. I would check with the Iowa DMV.

Decolliber · 04-16-2004, 06:24 AM

Thanks for the feedback. Iowa DMV says you have to pay sales tax if car was purchased within 30 days of entering Iowa. So doing this legally would mean paying sales tax twice. But if I just take the plates off my old car and put them on the new one in CT, then start driving it home, what hapens if I get stopped by a CT state trooper who finds out I have no registration and fake tags on the car? ... squeal like a pig?

RickM · RickM's Garage

Why don't you insure and register the car in Iowa? Then go to Conn with plates (or sticker) in hand to drive home with.

Rot 911 · 04-16-2004, 06:50 AM

First off, Conn. is a small state, you will be out of there in an hour. Second, I have bought cars and driven them home with no registration just a bill of sale from the owner and the title signed over to me. I think that would suffice to get you home. For all the times I've driven with no plates on a car I have never been stopped!

Decolliber · 04-16-2004, 06:58 AM

Quote:

Originally posted by RickM
Why don't you insure and register the car in Iowa? Then go to Conn with plates (or sticker) in hand to drive home with.

Good idea, except that would require having the title before I go to pick up the car, which would require either buying it without seeing it, or going out there, seeing it, buying it, returning home with title, and flying back out again. Still, would be cheaper most likely than paying sales tax twice. Car in question is an S6 Avant, so air fare is small relative to transaction value.

RickM · RickM's Garage

Yup....the title.

singpilot · 04-16-2004, 09:18 AM

The unanswered question is:

Does the car have current plates and tags now?

A) If it does, drive it home.

B) If it doesn't, ship it.

Under A), the plates (CT) will get you home. If stopped, show your insurance (you did get insurance to cover it) and the bill of sale. Your Iowa Drivers' License will let the police know you are for real. I think I would make sure there are no wants or warrants on the plate before I left. A call to the local CT police dept. would cover that. Do that before you close. Your insurance company will write a policy to start at midnight the same day after you close, or before you close if you want. If the sale doesn't go thru, you'll owe for one day's insurance. You'll get a chance to learn your new car on the way home. Ask the seller if there is anything you should keep an eye on before the close again.

Good Luck.

Porsche-O-Phile · Porsche-O-Phile's Garage

It's iffy - CT is small but the New England states are very tough on vehicle law enforcement (I know - I grew up there). You'd be taking a heck of a gamble if something happened and you were on a expired registration. I'd just do what was suggested and register it in your home state (if the seller will provide you a bill of sale or whatever you need to do this) and put 'em on when you're there. If it has a current set of plates and registration, just drive it (make sure your insurance covers this - it's worth a call to them) and deal with it there. Why pay CT if you can avoid it? That's a bogus, BS law, I'd avoid it if possible.