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Thinking of buying a new car from a dealer in NJ but we live in PA.
How does this work from a registration, title, tax, etc. perspective?
Is it easier to just buy from a PA dealer?
Never did this before but I am getting a good price in NJ.
Thanks in advance.
I've bought cars from out of state before. They give you a temporary interstate tag. You also get a signed title and a bill of sale. Out of state title proves the car was bought out of state, and you don't need the seller at the notary with you. You bring the car home, go to the title and tags place of your choosing, and they sort it out for you.
Some NJ dealers are also set up to issue PA tags and all. Ask them.
Thanks for the quick replies.
So, if the dealer is NOT set-up to issue PA tags/etc., I pay sales tax in PA at time of registration right? I.e. after I get it home from NJ using the temporary interstate tag.
I do not give the dealer any $$$ for tax at time of purchase. Correct?
If it is a registered dealer, I think they will collect NJ sales tax. When it is registered in PA you pay the PA sales tax on the total less the tax paid to NJ.
IIRC most of NJ is 6% and most of PA is 6% so it is a wash. If you buy in one of the NJ special low sales tax zones and you paid the 3%-4% to NJ, you pay 3%-2% respectively to PA too.
NJ is 7%..Quote:
Originally Posted by -JD-
They won't collect tax at the dealer. You pay the tax when you register the car. If you can register it for PA in NJ, I am guessing they would have to collect sales tax for PA. If you register it once you get back to PA, the bill of sale would have the value you paid for the car on it. You pay taxes for it based on that.
Here is a novel idea: since you've apparently already been to this dealer, why not just call them and ask them what you need to do? Granted most of the advice here is right on, but why not just go to the dealer?
I bought a new car in NY as a resident of PA. They handled tax and tags and PA registration. You pay the tax based on where the car is registered. Best bet, call the dealer ;)
I bought my Harley in Delaware, the home of tax free shopping.
The DE dealer charged me PA sales tax and did all the PA paperwork, including transferring my PA tag from my trade in to the new bike. When I got my registration in the mail there was an attached note stating the tax the dealer reported collecting and if it didn't match to contact PENNDOT.
Can't imagine it would be much different buying in NJ, BUT as chrisjames_71 suggested, ask the dealer what they do in your situation.
Bill
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