Out of State PHV Purchase

I wouldn't worry about it, I say go for it....

From here: 2012 Toyota Prius Plug-in Hybrid

 

Agreed. Go for it! =]

 

I live in Texas, put myself on the Plug-In list, and have talked to a dealer in Tucson.

 

Make sure you check out the sales tax issues. For example California insists on charging it even if the car is sold to a non-resident, unless the car is actually delivered outside the state (i.e., shipped). Arizona doesn't have that problem, but it is apparently still possible for a local city sales tax to apply. Most states will give you credit for sales tax paid in another state, but that too needs to be confirmed, and you could still wind up paying more tax than you would in your home state. Another issue is the greater likelihood you won't be trading in out of state. In Texas, if you are trading in, they deduct the value of the trade in when calculating the tax.

 

If you purchase in Washington State, there is no sales tax for cars which get over 40 miles per gallon. Oregon has no sales tax at all.

 

Good to know. I'll bet the first ones off the boat land there too! Anyone got dealer recommendations for Portland or Seattle?

 

Let us know if they confirm no state or local tax if sold to a non-resident. Thanks.

 

ggood

I live in Spokane Valley, WA, very near the border with Idaho. People from Idaho often purchase cars in Spokane. They pay no Washington sales tax but Washington dealers often license the cars for Idaho and collect the Idaho sales tax. The issue of your state sales tax will come up when you license your car in your home state. There may not be such arrangements as there are between states which border each other here.

This is not an overwhelming problem.

If you wish to purchase a Prius PHV, get on the web site and register, here:

2012 Toyota Prius Plug-in Hybrid

The priority registration closes the 22nd of this month!

 

Other than the over 2,000 mile drive? I think maybe Tucson might be a tad closer! On the other hand I've never been to Oregon or Washington....

Then of course I still have to get over my current aversion to the lousy suspension.

 

I think a lot depends on the order process that Toyota use. It looks to me like they plan on using a system similar to the one used when they launced the GEN 1 where the order is finalized on their system and the car is then delivered through a dealer of your choice. If that is the case it may be difficult to buy one of the early cars if you are not a resident of one of the roll-out states.

Noel

 

I have purchased a couple of cars from out of state dealers and typically the transaction is pretty easy, but you do need to be careful. You will be required to pay sales tax on the car in the state that you register it in and as long as the dealer handles the paperwork properly you will not have to pay it in the state that you buy it in. I was working in Providence RI but living in Philly when I bought my Prius and it was pretty smooth - the one issue that I had was getting the official registration - it took about 6 weeks to come through but I needed to have it to get the car inspected which I had 30 days to do so I had a bit of time where I did not have it. Not a huge deal, but a pain.

As for service - I would imagine that for the first year or so there could be some issues that your local dealer might not have the training for - dealing with the new battery pack would be one, but they should be able to handle most issues. After the first year they should be up to speed with the plug in. So there is a small risk there - I'd suggest calling your local dealer and see what they say.

 

Hmm.. it is a 15 hour drive from Tuscon to Ft.Worth. Tempting. But I'd want to trade in our existing Prius, which would make the trip twice as long. Otherwise, I'd just fly to Tuscon and drive the Prius back home.

 

TAXES:
I just talked to Ernestina at Desert Toyota in Tucson. She told me that when I buy my Plug-In there. I will pay 6.25% state tax plus 2% Tucson city tax. I will get credit for the 6.25% tax in Texas and won't pay city or county tax in Texas since it was purchased out of state. So essentially, I'll be paying the same tax that I would have paid if I bought it here in Texas and nothing extra.

TITLE:
As far as the Title goes, an AZ title will be issued to the holder of the lien. Then it is up to me to contact the lien holder to get the title transferred to Texas.

REGISTRATION:
The dealership will give me 90-day tags and not register the car in AZ so I can register the car in Texas.

The sales person I am working with at Desert Toyota is Joe Baechler. He is their
plug-In specialist. I like dealing with him.

 

The Prius Team has said right here on PC that ALL dealers in the U.S. will be able to service the PHV right away. For those who are not familiar, this group is part of Toyota Motor Corp., Marketing.

It never hurts to contact your local dealer.

 

Here is the AZ sales tax info for nonresident buyers:

Sales of Motor Vehicles to Nonresidents

In a nutshell, if your home state has a lower tax than AZ, and will credit you for the AZ tax, then they charge your state's lower tax rate. So a TX resident only pays 6.25%, instead of the usual 6.6% an AZ resident would pay.

Unfortunately, this does not save the TX resident from paying the local city tax in AZ. Since there is no local sales tax on cars in TX, that means a TX resident is paying an extra 2% or so (local sales tax may vary) if they buy a car in AZ.

 

You're right the AZ state tax IS 6.6%, but because I am an out of state (Texas) buyer and the Texas state tax is 6.25%, 6.25% is what they will charge me in Tucson.

There IS local tax on cars in Texas. It just happens that I don't have to pay the local tax in Texas having bought the car out of state. But, the local Texas tax (if I had to pay it) amounts to the same amount as the Tucson city tax which I have to pay.

So, whether I buy the car in Tucson or in Texas the tax is the same. Since they are not selling the Prius PHV in Texas until 2013, I am buying it in Tucson in 2012.

If I have to wait until 2013, I may not buy a Prius because there are other Plug-ins coming out in 2013. Hyundai has announced their plug-in will be available in 2013. Ford is also coming out with their C-Max Energi plug-in hybrid at the end of 2012. So, I'll just have to look at my choices if I can't buy the Prius Plug-In in 2012.

 

A lot will depend on demand and supply. If there are 30 buyers from the state and only 10 cars it is easy to say "That person does not reside in the roll-out state so no car". If there are 30 cars and 10 buyers then they probably won't say no.

What they couldn't stop is someone buying the car in one of the roll-out states turning around and selling it to you, assuming they don't go the lease only route.

Just to say what can happen, When GM were leasing the EV1 they would make you return the car if you moved out of California or Arizona. In one bizare episode a guy from Colorado leased on using his sisters address in Tucson. When he took the car in for service they apparently analyzed the dust on the car, determined it was from Colorado, and demanded the car back. In this case he was able to convince them to let him keep the car, at least until the first recall.

Noel

 

Sorry, for motor vehicles, there is no local sales tax in Texas:

Texas Sales Tax Rate and Exemptions 2010/2011

The Texas motor vehicle tax is treated as a separate tax in Texas, and the cities do not get to piggy back like they do on the regular sales tax. If I had more time, I would research and cite the applicable statutes. I even went to the trouble last night of confirming I was only charged 6.25% sales tax on my motor vehicle purchases.