Question:

I want to buy a car in MA but i live in maine. i will be buying it from a dealership.?

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the car is at a dealership and is used. please explain step by step because i am new to car purchasing.

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  1. I recently bought my car in a neighboring State. Reason was the dealer was offering at least $2000 Bellow what my local dealer offered. Here are the Steps I went through.

    1. Drive out to the MA Dealer with a One way Rental with say Budget.

    2. Take your Car from the dealer. He will issue Temporary MA Plates that expire in 15 days. You will receive the MA title in the mail in 15 days. If it doesn't come in 10 days, you will have to call the Dealer.

    3. The Dealer is either going to collect Sale's Tax from you or may not. Either way he won't pay MA Sales Tax. He might issue a Certified Check for Maine Sales Tax in their name.

    4. With the MA title and Maine Sales Tax amount in hand, go down to local DMV. Be prepared to pay Title & Registration Charges over and above Sales Tax amount.

    5. Its a good Idea to call your DMV to get approximate Sales Tax Amount. I think its 5 % of your Purchase Price Minus Trade in. Before any Manufacturer Rebates. Say For example, You buy 20K Car with 5K for Trade in and $2000 Cash Rebate. So your Purchase Price is

    20,000 - 5000 - 2000 = $13000

    But the Price considered for Sales Tax in Maine is

    20,000 - 5000 = 15000. @ 5 % = $750 in Tax.

    Please note both in Maine or MA, there is no Upper Limit on the Documentation Fee Charged by the Dealer. You can negotiate this amount. Its Pure Profit for the Dealer. So you might as well negotiate it. But can't get rid of it. Just make sure its low.

    Here's an Article I use as a Reference.

    Fees you should or Should not Pay.

    http://www.edmunds.com/advice/buying/art...

    Good Luck.


  2. OK.... go buy it. Out of state buyers are not banned. You will pay sales tax to Maine rather than MA.

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