when do you have to pay sales tax (specifically, in michigan)

[damian]

If i opt to not have the dealer cut a check for the sales tax and want to pay it myself, when do I do this? When i register the vehicle/apply for the new title?

I feel retarded for not doing this on previous car purchases.

[jtsherri]

Damian,

I honestly haven't heard of opting out of paying sales tax during the purchase - I always thought it was required at that time (this is when I paid my taxes); however, I'll be anxious to see what others have to say.

Jason

[damian]

Sorry, i should clarify. Michigan retailers are obviously required to collect sales tax. I am buying my car from Yark Auto in Toledo, and typically they cut a check for the sales tax, hand it to me, and I bring it to secretary of state when i register. I'm wondering if I can tell them not to this time so it's not added to the loan amount, and then simply pay the sales tax when i register my car 30 days later.

From what i can tell, it's probably going to come down to whether or not the dealer trusts me.

[jtsherri]

Originally Posted by damian

Sorry, i should clarify. Michigan retailers are obviously required to collect sales tax. I am buying my car from Yark Auto in Toledo, and typically they cut a check for the sales tax, hand it to me, and I bring it to secretary of state when i register. I'm wondering if I can tell them not to this time so it's not added to the loan amount, and then simply pay the sales tax when i register my car 30 days later.

From what i can tell, it's probably going to come down to whether or not the dealer trusts me.

Ahh, OK. That makes more sense. :smile:

I don't have any experience doing this with a new car; however, I've purchased several used cars out of state and simply came back and paid the tax. While I know most dealers would want you to pay at the time of purchase, I'm guessing that since you are doing your business in Toledo you shouldn't have a problem getting them to let you do it the way you're hoping to.

I'm still anxious to see what others have to say about this. Definitely a good question.

[damian]

Originally Posted by jtsherri

I've purchased several used cars out of state and simply came back and paid the tax.

This is exactly what I'm hoping is possible. I figure rather than rolling the 2300.00 or so in sales tax into the loan, I can save for the next 30 days until i have to register and pay the sales tax then.

I guess i'll find out tomorrow morning when i pick up my car. I'll let you know how it works out.

[jtsherri]

Originally Posted by damian

This is exactly what I'm hoping is possible. I figure rather than rolling the 2300.00 or so in sales tax into the loan, I can save for the next 30 days until i have to register and pay the sales tax then.

I guess i'll find out tomorrow morning when i pick up my car. I'll let you know how it works out.

Definitely do so.

And congrats, man - enjoy the ride home! :smile:

[damian]

Apparently Ohio has state sales tax "reciprocity" with Michigan as of January. This means they now required to charge us sales tax up front.

So, i just rolled it into my loan. I guess it's worth it to ask depending on what state you pick your car up in, if you purchase out of state.

That said, this car rocks. Time to get some of that Griot or some other bullshit.

[amybang]

Why couldn't you have just upped your downpayment by the sales tax amount?

amy!

[damian]

i could've, but i wanted to pay the sales tax 30 days later when i titled the car. in other words, 30 days later = 2 more paychecks, and you're not paying interest on 2300.00 for an extra month. Ideally, it's better money management.

[amybang]

Ah, I didn't realize you get a grace period on that. In Massachusetts, you have to have proof of insurance before you can get title and plate, and you need that before you can drive the car off the lot.

amy!