4 answers

Saving on New Car Taxes Plano vs Colony vs OK Etc

I'm buying a new car. I might be buying a Kia, in which case they don't negotiate on price; one dealership should be pretty much the same as the next. (My other alternative is a Toyota). Can I save tax $$ depending on where I buy it? I live in Plano. I heard that it might be cheaper on taxes if I can buy in the Colony, and years ago I heard of people driving up to the Oklahoma border to save on car taxes.

What can I do next?

More Answers

Here, we live close to the border of 2 other states (WI and IA) which both have different tax rates. For vehicle purchases, if I go to WI I have to still pay MN taxes on my vehicle because I am a MN resident - it is the law. If I make "regular" purchase like clothing or food or small appliances, I only have to pay the taxes to the state I made the purchase in regardless of the state I live in. There is a little known "rule" that if you spend more than so much in another state accumulating "small purchases" you are supposed to report the tax difference, but who the heck does that :)

I would call a dealership in OK and ask them directly if you have to pay TX taxes if you are a TX resident. They will give you the straight "poop." Oh, here we have to have and show a DL to buy a car so you cannot "fib" and say you are from a different state. Probably the same there, too.

Good luck!

1 mom found this helpful

In Texas - anywhere in the state -- the tax rate for vehicles is 6.25% (It is not the same as sales tax) So going to different counties or cities will not save you anything. This is charged on the balance after trade in - so having a trade in can save you an additional several hundred in taxes on top of what they offer you for the trade in.

I don't know about buying it in Oklahoma. Some states require that you pay the difference in taxes when you register, if you paid less in another state. Your best bet there is to find out what the tax rate for motor vehicles is in OK, and call the DMV and ask how it works, or google to check.

1 mom found this helpful

I don't know about taxes but I would walk everywhere before I get in Toyota.

Some driving schools are pulling them from the fleet. Hubby uses rentals often, he will not rent a Toyota. We are not willing to take the chance.

I've heard Kia's have really improved in quality. I've never driven or been in one. We are loyal to Mercedes due to quality. I know Mercedes is not for everyone. If we had to get something else, probably Honda.

1 mom found this helpful

I don't live in TX, but I wanted to tell you that Kia definitely negotiates on price. We have owned several Kias purchased in different areas and all were negotiated. I think Saturn had non-negotiable pricing but Kia has always been like other car dealers.

1 mom found this helpful

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