Buying a car out of state?
 

Alright.. So I'm looking at a car located in Wisconsin (I live in Illinois.) My question is this: how are the taxes handled? Do I pay local tax in Wisc AND a tax in Illinois when I title it, or is it just taxed in my state? Sorry for the dumb question.. I just like to have as much info as I can before I do something. TIA

you pay in the state you live in.

yep, you just pay taxes on the car in Illinois.

Damn. So that means I'll have to pay $1000 out of pocket here, since I'd be financing the car through the dealer I buy it from in Wisconsin? Or can I have them add on extra money so that I can use it to pay the taxes in Illinois?

you have to be a resident in that state (or have an address that you can use). Usually the dealer includes tax, title, and liscense fees into the price already. Just make sure to tell them that you are trying to register it in illinois.

The best thing to do is to talk to the DMV and have them help you, as states differ from time to time. When I got my mustang, which was registered in Louisiana, I went to the DMV and got temp tags so that I could drive it back to NC and get the real tags. (it was already in my driveway at the time, but I did not have the title and I wanted to be as legal as possible).

The dealer will provide you with temp tags so you can drive it, but yes you are going to have to plan to pay taxes when you go to title and register the car in your state.

The real answer is.....it depends. In most cases, just as others have stated, you will NOT pay any taxes when you buy the car, but instead pay taxes when you register it in your home state. Before you can register a car, you usually have to proove that taxes were paid.

There are some cases where you will have to pay taxes in BOTH states. You may have to pay the tax rate in your home state, and if the state were you bought the car has a higher tax rate, you may have to send them the difference. But, I don't think Il and WI are like this. I have lived in both states.

The dealer will likely know how to handle this.

If you are financing the car, this might prove to be a pain in the ass.

The dealer that has the car said I would only pay taxes in Illinois. If I do decide to move on this car, I will have it shipped to the Ford dealer near me. That way I can do the trade-in locally, and have it financed for the full taxed amount through my local dealer.