Author Topic: Buying a new Car. Before or after I move? The Vehicle tax Game...  (Read 2325 times)

davef

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Here is the deal.
I have held on to my gas guzzling SUV because for the past 10 years I had a 3 mile commute so I only go though 2 tanks of fuel per month.
I currently live in Oregon. No Sales Tax.

I am planning on moving to Illinois to take a job there in February - April Time frame.
I will have about a 30 mile commute.

I'm planning on buying a new fuel efficient car (likely a ford focus) Cash.
Please no crap on buying a "new" car here....

Does it make more sense to sell the SUV here, drive the uhaul out and buy a new car there? or buy here in Oregon where there is no tax and trailer it out there? If I do it that way will Illinois make me pay taxes anyway when I License it there?

mandy_2002

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Re: Buying a new Car. Before or after I move? The Vehicle tax Game...
« Reply #1 on: November 18, 2015, 10:41:56 AM »
I don't know how jerky Illinois is with tax, but let me tell you a story about California. 

A friend of mine lived in Michigan.  She was t-boned by a drunk driver, and her car totaled.  She bought a new car in Michigan.  6 months later, she found out she was transferring to California.  Because the tax in CA is higher and she had bought it within the past year, they charged her the difference when she was registering her car.  She told them that she didn't know she was moving, she told them that she didn't decide to buy it, she had to, and there was no budging.  She was told to pay the $900 difference.

All this to say, check the tax requirements in IL before trying to get around them.  You may just get caught in them.

DaveR

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Re: Buying a new Car. Before or after I move? The Vehicle tax Game...
« Reply #2 on: November 18, 2015, 10:55:47 AM »
Illinois charges a use tax, not a sales tax. Doc: http://www.revenue.state.il.us/taxforms/Sales/VehicleUseTax/RUT-5.pdf

The biggie is that you need to buy and use the vehicle outside IL for 3 months to be exempt from the use tax (better act quick for a Feb move).

And tax is $1,000 for a $20-25k valued vehicle, so your new Focus is ~$1k more in IL. Is the hassle/cost of buying and trailering half way across the country worth it? Plus you'll need to factor in title+license in OR and then in IL.

Mother Fussbudget

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Re: Buying a new Car. Before or after I move? The Vehicle tax Game...
« Reply #3 on: November 18, 2015, 03:43:58 PM »
Sell the SUV today.  Buy the Ford Focus in OR tomorrow - and pay the $0 sales tax. 
Drive it across country when the time comes - and be sure to get chains.  Sure, you'll have to license it in OR, and then again in IL, but that cost will likely be less than paying the IL use tax. IMHO...

The_path_less_taken

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Re: Buying a new Car. Before or after I move? The Vehicle tax Game...
« Reply #4 on: November 19, 2015, 07:30:37 AM »
Sell the SUV today.  Buy the Ford Focus in OR tomorrow - and pay the $0 sales tax. 
Drive it across country when the time comes - and be sure to get chains.  Sure, you'll have to license it in OR, and then again in IL, but that cost will likely be less than paying the IL use tax. IMHO...



Probably this.

Although...it might take 2 days back and forth but I'd first internet shop that car in IL.

DON'T PUT YOUR PHONE NUMBER in the query: and I'd open a yahoo or free account so it's not your main email as car dealers will spam you for years.

But if you're only talking a grand difference...it's theoretically possible with hard negotiating to make that up. One reason is different states have different cash back rebates and even finance rates. Also, check seriously at end of the month and especially end of the year: if it's on their lot, they want to move it at that time the most.

I used to live in Oregon...isn't there a 5 year option for registration?

Depending upon how big a town you move to, and how strict they are...I'd just drive with the out of state plates until I was past any additional taxation period. If stopped I'd say, "Sorry: I'm moving back because xyz (not enough cabana boys to play with, serious lack of mountains, poor selection in stand up comedy clubs....whatever).

Most cops will laugh and let it slide one time. YMMV. Although if IL was a second home...it would be legit to keep the OR plate.

ShoulderThingThatGoesUp

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Re: Buying a new Car. Before or after I move? The Vehicle tax Game...
« Reply #5 on: November 19, 2015, 07:35:02 AM »
Depending upon how big a town you move to, and how strict they are...I'd just drive with the out of state plates until I was past any additional taxation period. If stopped I'd say, "Sorry: I'm moving back because xyz (not enough cabana boys to play with, serious lack of mountains, poor selection in stand up comedy clubs....whatever).

Most cops will laugh and let it slide one time. YMMV. Although if IL was a second home...it would be legit to keep the OR plate.

My sister kept plates from a different state than she lived in for four years and never had any trouble.