Buying a car out of state (DE resident, MD dealer)

[BartExp]

I am thinking about buying a car from a MD dealer as a Delaware resident. Anyone know how this works as far as MD sales tax (not paying it). I know I will have to pay the DE registration tax (4.5% I think). And I would get a credit for the MD tax of 6% up to the 4.5%. So I would still be out the 1.5% if I am thinking about this right.

 

[chriskat]

No pun intended but let the dealer deal with the paperwork. As for the tax it's actually a "Titling Tax". Since the car won't be titled in MD you shouldn't have to pay it at all, so you shouldn't be out anything.

 

[Biggfoot44]

Any dealer bigger time than two hoopties by the side of the road , will be familiar and do it routinely .

 

[Docster]

No pun intended but let the dealer deal with the paperwork. As for the tax it's actually a "Titling Tax". Since the car won't be titled in MD you shouldn't have to pay it at all, so you shouldn't be out anything.

^^THIS, exactly.

 

[BartExp]

Thanks all.

 

[adit]

What should happen is you pay/finance the 4.25% in the deal and they'll issue a MD temp tag. If the dealer processes DE tags that will be the end of it.

If the dealer doesn't process DE tags (they'll issue a MD temp tag) then they should cut a check to DE DMV (IIRC this is MD law, and a requirement from most finance companies) in the amount of the tax/tags(2-7 years for new cars)/title fees.

If the vehicle is used you'll have to run it through the (inspection/emissions) lane before you'll get to title/tag.

If the vehicle is new you'll run through the lane for VIN verification only absent the completed Title App (MV212) from the dealer and get your tags.

The further you buy the car from the DE line the less they will understand the process.

Vehicle Services Titling

Vehicle Services Titling, Division of Motor Vehicles, Delaware

dmv.de.gov

 

[Clump]

I've bought 2 vehicles from a VA dealer while living in DE.

What was said above about tax is correct.

DE DMV is S L O W. Your temporary tag will expire before you get your DE tag. Make sure the dealer understands and will send you another temp. I believe MD temps are 60 days, so 2 should cover it. VA is 30 days. It took 4 for my last vehicle.

 

[Cal68]

The advice you have gotten is correct. I bought a car from a dealer in NJ a few years ago and they took care of all the paperwork. Since I live in MD, they got the car registered in MD for me and I only had to pay MD sales tax and license plate related costs. I did not pay the State of NJ anything.

Cal68