Buying car in Texas?

[SoonerDave]

A friend of mine was considering purchasing a new car in Texas, but wasn't sure of the subtleties involved relating to fees and taxes.

I know Texas has a form you can prepare that affirms you will not operate the car in Texas and can this escape the state 6.5% vehicle sales tax collected by the dealer at time of purchase. But I found mixed I formation about whether dealers always, sometimes, or never collect *registration* fees up front for an out of state registration. I just need to advise thrm about when a dealer is truly handling that aspect of the transaction or just padding profit. I'd have to be sure up front how much those fees would be up front and make sure the totals match.

Does anyone here have experience with buying new vehicles in Texas and have any guidance or insights to offer? There are a *lot* more dealers especially in the DFW areas and
and often can come up with more selection and sometimes better deals than OK dealers...

Thanks in advance.

[chssooner]

You'd have to pay use taxes in Oklahoma on it, I believe.

[Martin]

i bought my current vehicle in the dfw area almost 10 years ago. my experience was that both selection and price were better in texas than in oklahoma. i can't remember too many specifics from that long ago, but i don't think i paid any sales tax to texas... but i could be totally wrong. it was a used vehicle, but i'm not sure if there would be any difference. i definitely paid tax to register the vehicle in oklahoma. i do remember that the transaction went smoothly and there weren't any complications. the only dumb move on my part was that i had a trade-in and didn't bring the title with me. also, you'll want to call up your insurance agent and let them know that you have a new vehicle. you'll likely get coverage under your existing policy, but it's a good idea to give them a heads up just in case anything happens when transporting the vehicle back here.

[Jeepnokc]

I have bought 4 different cars from texas dealerships over the last 9 years. Each time the dealership sent the paperwork for me to register and pay taxes in OK. Never had an issue with them trying t collect Texas tax. In today's internet world, they are pretty used to out of state sales.

[gjl]

In the last 20 years I've bought 2 used trucks in Texas, one new car in Kansas City and one used car in Indiana. You just take the papers to an OK Tag Agent and pay excise tax and tag/title fees no different than if you bought the vehicle in Oklahoma. Back in 1990, I bought a used car in Iowa. That was a state that required the owner to remove the tag when they sold a vehicle. I drove the car back to Oklahoma with no tag. I got stopped 4 times on the way home, once in Iowa, twice in Kansas and once in Oklahoma. Each time I showed the signed title and bill of sale. If I remember one of the stops in Kansas I was told I should have got a temporary tag in Iowa but it was a weekend and I didn't know where or how to get one before I left. I didn't get any tickets but got a few stern lectures.

[MagzOK]

We've purchased several vehicles over the years in the DFW area -- generally more selection and better prices. When we bought our new Mini from the BMW/Mini dealer they actually mailed us a check made out to the OTC for the Oklahoma TTL along with the new vehicle paperwork. We just walked into the tag agency and provided the required info, gave them the dealer printed check, and walked out with our plates. This has never happened with the used vehicles we've purchased down there. We have never paid the tax based on Texas rates I'm assuming because we aren't Texas residents. But overall the process is pretty painless, just like buying one here.

[Roger S]

Bought my last used truck in Texas and only paid tax in Oklahoma when I got the tag.

[Swake]

I've gotten really good deals in Texas, wanted the deal in writing before I drove down. Took the written offer to a local dealership and had it matched. Never felt bad about it at all, because they are car dealers.

[April in the Plaza]

Has anyone tried the Montana LLC gambit? Heard some states are cracking down on it, but I doubt Oklahoma is one of them

[SEMIweather]

Has anyone tried the Montana LLC gambit? Heard some states are cracking down on it, but I doubt Oklahoma is one of them

Sounds like a fantastic way to get audited.

[Rivalyn]

Depends on whether you're financing at the dealership in Texas. Generally if you finance they're a little more fastidious in how they handle it aka they'll calculate the OK taxes/registration and roll that into financing. They then send the registration in for you via a power of attorney form you sign and eventually you get your plate and registration mailed to you.

If you're paying with a check or cash, they're usually less concerned. You sign an affidavit that you're not registering in Texas so they can file that they didn't collect taxes on it and you sign a piece of paper that says you will register in your given state and are responsible for all taxes/filing fees/etc... on your own.

[Elrenogolf]

Has anyone done this recently? I am having a Texas dealer tell me that hey have to collect the sales/excise tax and then send it to the Oklahoma tax authority. They said it was due to a recent law change, not sure Texas or Oklahoma. I’m struggling to reconcile this in my head because if I were to buy a car in Oklahoma, I would just pay sales/excise tax at the tag agency.

[Jersey Boss]

Has anyone done this recently? I am having a Texas dealer tell me that hey have to collect the sales/excise tax and then send it to the Oklahoma tax authority. They said it was due to a recent law change, not sure Texas or Oklahoma. I’m struggling to reconcile this in my head because if I were to buy a car in Oklahoma, I would just pay sales/excise tax at the tag agency.

My advice is to contact a tag agent in Oklahoma. I bought a lease return from a dealer in Texas in '20. I did not have to pay any Texas fees at all, including vehicle inspection fee.

[SoonerDave]

Has anyone done this recently? I am having a Texas dealer tell me that hey have to collect the sales/excise tax and then send it to the Oklahoma tax authority. They said it was due to a recent law change, not sure Texas or Oklahoma. I’m struggling to reconcile this in my head because if I were to buy a car in Oklahoma, I would just pay sales/excise tax at the tag agency.

On the surface, this seems bogus. Oklahoma will have no authority over the behavior of a Texas business entity, so it would almost have to be a Texas law change. I've done a bit of checking and have found nothing different or new in this vein that changes what I learned when my son was considering purchasing a vehicle from Texas: You avoid Texas sales taxes by preparing a "No Texas Use" affidavit to present to the dealer, then pay your fees and taxes in Oklahoma when you register it.

[Elrenogolf]

I took Jersey’s idea and called a tag agency. She mentioned that sometimes a dealership would include a check with the paperwork you receive. This would seem to jive with if you are financing the amount of sales tax. She caveated it with every dealership does it differently but didn’t mention any sort of requirements to for a Texas dealership to collect Oklahoma sales/excise tax.

[MagzOK]

On the surface, this seems bogus. Oklahoma will have no authority over the behavior of a Texas business entity, so it would almost have to be a Texas law change. I've done a bit of checking and have found nothing different or new in this vein that changes what I learned when my son was considering purchasing a vehicle from Texas: You avoid Texas sales taxes by preparing a "No Texas Use" affidavit to present to the dealer, then pay your fees and taxes in Oklahoma when you register it.

When we bought from BMW of Arlington, then Moritz BMW, we paid cash including all the fees and taxes. In return, they sent a check and paperwork directly to a tag agency I designated within 30 days. Then the tag agency called me to come get the tag. It was pretty simple. We've also had Reliable Chevrolet down there give us a check with the required paperwork as we left with the vehicle and went to a tag agent with the information and walked out with the plate. We have bought used vehicles down there that did not do that, so maybe it's for new cars? I'm not sure.