Buying A Used Car In Florida From Out Of State
However, some states may require proof of residence before they register your vehicle. Typically, you should register and insure your car in your home state or the state you primarily live in. So, what happens if you plan on buying a car in Florida from out of state, or if you live in Florida and bought your new car from another state?
buying a used car in florida from out of state
Whether you have just moved to Florida and have a car registered in another state, or you are a Florida resident that decided to purchase your new vehicle from an out-of-state dealership or private seller, it needs to be registered in Florida. Your license plates need to be transferred to the state of Florida, too.
Authorized car dealerships can issue a temporary license plate, handle all the titling, and charge a registration fee. The fees that go along with the titling and registration won't usually appear in your contract with the purchase price. Should this happen, the dealer can only ask for the exact dollar amount in fees already paid. All charges need to be disclosed separately from the purchase price of the new or used car.
If your car buying journey has led you away from dealerships and to a private seller, then you need to complete all the titling and registration forms on your own and turn them into your local county collector's office.
If you are not a Florida resident but have purchased your new or used vehicle in the state of Florida, then you may be able to get temporary registration. This means you will need a temporary license plate and car registration tag from the local county tax collector's office.
It is important to remember that it is illegal to drive your new car from one state to another until you are the registered owner. Law enforcement officials will impound your vehicle if you cannot provide proof of insurance and proper vehicle registration.
At CARFAX, we collect events from the lives of millions of used cars from 20 European countries, as well as the USA and Canada. We can then create a vehicle history for every car in our database and make it available to you.The information helps you to check sales data, avoid expensive follow-up costs and negotiate a fair purchase price.
Are you registering a vehicle in florida and looking for information on how to register your vehicle for a new florida license? My Improv has you covered on everything you need to know about motor vehicle registration and vehicle registrations in florida being a florida vehicle owner and driver. Get information about florida license plates, vehicle identification number vin, florida insurance, florida residents vehicle title, outofstate title, outofstate title transfer, heavy truck registration, registrations renewed, the florida DMV, vehicle inspection, proof of insurance, taxes and fees, and title transfers.
To understand the how the change in GA law affects sales tax in Florida, we must first examine Florida's strange sales tax law on vehicles. Each state has their own sales tax rate and Florida happens to have one of the higher sales tax rates in the country. Historically, this had a negative impact on Florida car dealers. Consider what tourist would want to buy a car in Florida and pay up to 7.5% sales tax (6% state plus up to 1.5% local) when the tourist could buy a virtually identical car in their home state and pay considerably less sales tax. Florida was also losing out on this potentially lucrative sales tax revenue because many tourists where not buying cars in Florida.
So the Florida car dealers banded together and lobbied a receptive Florida legislature for a change that would help both the car dealers sell more cars and Florida raise more revenue. The new Florida law allowed someone from another state to buy a car in Florida, drive it off the lot, and only have to pay sales tax at the purchaser's home state sales tax rate on cars (presuming that the purchaser agreed to take the car out of Florida within a limited time frame). The sales tax would still be a Florida sales tax payable to Florida, but if the purchaser's home state had a 3% sales tax on cars, then 3% would be all the Florida sales tax the purchaser would have to pay. The purchaser's home state would be required to give the purchaser credit for the sales tax paid to Florida. So the car dealer was no longer disadvantaged by a high state sales tax rate and Florida received the sales tax revenue on the additional sales.
Florida's law allows the purchasers to pay their home state's "sales tax imposed on vehicles." If a purchaser was from a state with no sales tax on vehicles (e.g. Montana), then the Florida dealer did not have to charge any Florida sales tax on the sale. Georgia car dealers and Georgia's Revenue Department, being most affected by Florida sneaky law, decided to tackle the problem legislatively in Georgia. If Georgia did not have a sales tax on vehicles, then tourists visiting Florida would not have to pay sales tax when purchasing vehicles in Florida. But Georgia, of course, did not want to give up ALL revenue from car sales, so this is where Georgia got very creative. Georgia changed its tax on vehicles from a sales tax to an "ad valorem tax," essentially a property tax. According to the Georgia Department of Revenue's web site:
Vehicles purchased on or after March 1, 2013 and titled in this state will be exempt from sales and use tax and the annual ad valorem tax. Instead, these vehicles will be subject to a new, one-time title ad valorem tax that is based on the value of the vehicle.
This simple change in law dramatically affected the situation. Because Georgia no longer has a sales tax on cars, Georgia tourists can now buy a car in Florida with NO FLORIDA SALES TAX as long as the proper forms are signed (DR-123) and the car is taken out of the state within the required period of time. The Georgia resident still has to pay the Georgia ad valorem tax when they register the car in Georgia. This allows Georgia to get all the tax revenue from Florida car purchases by Georgia residents, leaving Florida with nothing. The benefit to Georgia car dealers is not readily apparent, but the situation between Florida and Georgia's taxing authorities is significant.
Yes. If there is a lien on your out-of-state title certificate, the NYS DMV records the lien on your NYS title record and on your NYS title certificate. To remove the lien, you must provide proof that the lien has been satisfied (you paid your vehicle loan off). For more information, see remove or add a lienholder from a title.
Oh, and, by the way: PrivateAuto has private party used cars for sale in Florida and also provides an end-to-end platform to get the deal done, from secure messaging with sellers to instantaneous payment transfers.
Different states have different rules for license plates in a private car sale. Some states allow the plates to remain with the vehicle and pass to the buyer. Unfortunately, Florida is not one of those states. When you buy a used car in Florida from a private owner, Florida law mandates that the seller must remove the license plate from the vehicle.
About the author: David Brennan is an associate attorney with Moffa, Sutton, & Donnini, P.A. His primary practice area is multistate tax controversy. David received a B.S. in Accounting and Finance, with a minor in Computer Science, from Florida State University. He worked as an accountant for a CPA firm before attending law school at Regent University. He received his Juris Doctorate in 2013 and was licensed to practice law in Florida in the same year. In 2015, David earned his Masters of Laws in Taxation from Boston University. As a former senior attorney for the Florida Department of Revenue, he handled informal protest appeals, among other things. You can read his BIO HERE.
** Effective 4/10/2000, all used vehicles coming into Florida from a foreign country must have the vehicle identification number verified by a DMV Compliance Examiner/Inspector prior to being titled, including dealer transactions. This DOES NOT include vehicles from American Samoa, Virgin Islands, Guam, or Puerto Rico. If a motor vehicle or mobile home was purchased in a foreign country, 6% Florida sales or use tax and local discretionary sales surtax is required to be paid before a certificate of title and registration can be issued by the department. The amount upon which the tax is applied is the larger of:
The MSRP is higher than ever for new cars, and used car prices have skyrocketed in recent years due partly to the reduced inventory of new vehicles on dealer lots. Because demand can be regional, some areas have more cars available than others. Finding an automobile nearby that meets your needs and wants for a reasonable price can be difficult. However, if you are willing to look out of state for your next ride, you might save a good bit of money.
Finding a great deal and buying a vehicle out-of-state is one thing; getting that new car in your garage is another. Making a daylong excursion behind the wheel of your new car might be fun, but a cross-country trip deserves careful consideration.
Sometimes buying a car from a different state can be cheaper than the ones in your home state. However, this is not a guarantee. It all depends on the prices in your current state as well as the states that you are looking at.
Whether you are buying your vehicle at a dealership, in a private sale, or from a family member, or if you are leasing, you will need the following to register your vehicle and drive it on public roads in Michigan:
The final step in the out of state purchase process is to take delivery of the vehicle. This is when you will meet with the Finance and Insurance Manager to review loan options and insurance products. As with buying a vehicle locally, you can (and should) come in pre-approved with outside financing and extended warranty coverage quotes.
In conclusion, buying a vehicle in another state can seem like a daunting task, but with the right knowledge and guidance, it can actually be a smart move that saves you money. By taking the time to research the laws and regulations in the state you plan to buy from, and working with a reputable dealer or private seller, you can find the car of your dreams without breaking the bank. 041b061a72