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Out of state car purchase - with a wrinkle
I love this board. I'll bet you guys can answer this question in 5 minutes....
I'm helping my mom buy a certified used car. She doesn't like dealing with dealers. In a sick way I like the negoatiation process. I guess that's because I'm pretty good at it. I can't find what she wants locally or within a reasonable drive. However I travel frequently for my job so I thought I'd look for a car where I'm traveling. Next week I'm in NJ and it just so happens the car she wants is on a dealer's lot 15 miles from where I'll be. So, I could check out the car, possibly make a deal, and drive it back. The questions is: is there any way for me to do the transaction without her there and not have any problems titleing it in her name? We're in OH and the purchase will be in NJ. I've never bought a car outside the state I live in either. Thanks for any advice / suggestions. |
where in nj is it? if it is near me i can check it out for you
you will not have to pay tax in nj or anything else of thet nature..however be aware that dealer doc fees here are VERY pricey some times...it is like a built in extra profit for the dealers so if they charge more than say $90...negotiate it. they will charge for the temp tag to get the car going...like $50 she will personally have to sign all the docs... |
Call the dealer and ask them. No reason why you can't buy a car for someone else.
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Would a limited power of attorney thingie do it? IANAL...
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NICKG: The car is in Princeton and I appreciate your offer, but since it's so close to where I'll be, I don't mind checking it out myself.
Also, thanks for the clarification on taxes. That's good to hear. It makes sense that I'll be responsible for taxes where the car is going, not there it's being sold. I'll look out for the dealer doc fees too. So about signing the docs - would she physically have to be there to do so? If so, that kills the deal. Or, can this be done by fax or after the fact mail them back to the dealer? |
Buying from a dealer, you will have to sign documents there. Title and bill of sale are the big ones, I don't think they'll sell it to you without signing the documents. But, ask them. If they want your money bad enough, maybe there's some other way to do things.
If you buy from an individual, you could pretty easily convince them to leave the title and bill of sale blank. |
Again, call the dealer, if he wants the sale, he'll figure out how to do it. Dealers buy auction lots and cars from out of state all the time, I'll bet.
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Oh yeah, and if you're a notary state, she's legally required to be there in person to sign the title. The notary is required to witness it.
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Thanks for the advice all. I like the idea of "let the dealer figure it out". This is a cash transaction so that makes things easier.
I think I know the answer to this: would you call the dealer in advance and lay out the scenario, or just show up and say "I want that car and you have to figure out how to send me home in it". |
Okay, new information. I just called the Ohio BMV and learned that there is no tax implication when a title is transferred and no money changes hands.
So, why don't I just buy and title the car in my name, drive it back, and sign the title over to my mom? Sounds too simple, but I think it will work. Can anyone shoot a hole in that theory? |
Call them first so you don't waste your time if it happens to not be feasible. They may have to talk to someone who might not be available when you're there. I'd let them get their ducks in a row so you know it's doable and minimize the time you spend there. They might need to fax a form for your mom to sign (maybe notarize) in advance.
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I wouldn't recommend stating that you gave the car to your mom. Why lie if you don't need to? What did they say about you buying it on your mom's behalf?
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In KS at least, you would have to buy the car yourself, register it in your name and pay sales and property taxes on it, tag it, wait 4-6 weeks to receive the new title with your name on it, then give it to your mother. You would then have to return your tag to the DMV for a pro-rated refund on your property tax/tax fees, and your mother would have to go pay property tax and registration fees.
Also, note that many states do not allow you to give a car away with no money exchanging hands. Others make you pay sales tax on the book value of the car with each transaction. Call your local DMV and make sure you know what will be required to make it work. |
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