Buy Car in Virginia Live in Maryland Sales Tax

Buying a new car in VA & registering it in MD

Posted on Jul 24th, 2015, 1:09 PM, , User Since 231 months ago, User Post Count: 101

I'm a MD resident looking to purchase a new Honda CR-V. Does anyone know if there are any extra fees/charges if I buy the car in VA and register/title it in MD?
Discussion
Posted on Jul 24th, 2015, 1:13 PM, , User Since 200 months ago, User Post Count: 65490

shouldn't be, they should be used to the paperwork, at least in nova.
Posted on Jul 24th, 2015, 1:13 PM, , User Since 136 months ago, User Post Count: 34513

Titling – Vehicle Acquired from Out of State

Maryland residents who purchase a vehicle out of state may have questions on how to get the vehicle to Maryland. Some states offer a transport tag that, when purchased, allows you to drive the vehicle to your home state. If the state where you acquired your vehicle does not offer a transport tag, you can obtain a Maryland 30 day temporary registration to use to transport your vehicle. You will be required to title and register the vehicle and pay all applicable fees including excise tax, title, lien recording (if applicable) and the temporary registration fee.

http://www.mva.maryland.gov/about-mva/info/27300/27300-out-of-state-vehicles.htm
Posted on Jul 24th, 2015, 1:18 PM, , User Since 231 months ago, User Post Count: 101

Thanks for the responses. How about any fees from the dealer end?
Posted on Jul 24th, 2015, 1:43 PM, , User Since 202 months ago, User Post Count: 3978

I've found that dealers in VA like to bake in a $300 - $600 "processing fee" on the contract and then say there is nothign they can do about it since it's actually printed on all of their contracts. All area dealers do it... straight collusion. I don't recall that being the case in MD but it's been years since I bought a car in MD so maybe they're doing it now also.

The other thing you need to consider is sales tax. I believe vehicle sales tax is higher in MD than in VA and if you title it in MD you'll have to pay the MD tax.
Posted on Jul 24th, 2015, 1:45 PM, , User Since 200 months ago, User Post Count: 65490
Posted on Jul 24th, 2015, 1:47 PM, , User Since 231 months ago, User Post Count: 101

Ah, did not realize that. I thought you pay the tax for the state the vehicle is purchased in. Thanks!
Posted on Jul 24th, 2015, 1:54 PM, , User Since 136 months ago, User Post Count: 48945

Ah, did not realize that. I thought you pay the tax for the state the vehicle is purchased in. Thanks!

Motor vehicle titling and registration is a big profit center for states. They will not let you work the system in any way.
Posted on Jul 24th, 2015, 1:56 PM, , User Since 98 months ago, User Post Count: 7580

I've found that dealers in VA like to bake in a $300 - $600 "processing fee" on the contract and then say there is nothign they can do about it since it's actually printed on all of their contracts. All area dealers do it... straight collusion. I don't recall that being the case in MD but it's been years since I bought a car in MD so maybe they're doing it now also.

The other thing you need to consider is sales tax. I believe vehicle sales tax is higher in MD than in VA and if you title it in MD you'll have to pay the MD tax.

In Maryland, those dealer processing fee are now capped by law at $200. Long story short, the first car I ever bought (a 2000 Pontiac Sunfire) I bought from a dealer in Vienna that my family had already bought three cars from but used Maryland dealer processing fee cap to get the dealer processing fee waived in Vienna.

It is mostly profit for the dealership and while it is hard printed on the Sales Order, like just about everything else, it can be negotiated away if they're afraid you'll walk.

And yes, they'll have to charge you Maryland taxes instead of Virginia and most of them have no problem doing that. Finally, the dealership should give you a Virginia Temp Tag and handle getting the Maryland tags for you.
Posted on Jul 24th, 2015, 2:03 PM, , User Since 192 months ago, User Post Count: 49585

Ah, did not realize that. I thought you pay the tax for the state the vehicle is purchased in. Thanks!

if that were the case, there wouldn't be any car dealerships in maryland because everyone would drive to delaware to save the 2 grand.
Posted on Jul 24th, 2015, 2:22 PM, , User Since 136 months ago, User Post Count: 12391

Ah, did not realize that. I thought you pay the tax for the state the vehicle is purchased in. Thanks!

Also don't be surprised when MD charges the sales tax at a higher basis than what you bought your car for. Bought a car for 11.5k in 2003 in VA, moved to MD in 2006 and they based the 5% tax rate at 14k.
Posted on Jul 24th, 2015, 2:34 PM, , User Since 231 months ago, User Post Count: 101

That happened to me when a bought a used motorcycle. Guy sold it to me for below KBB and when I went to register it, the MVA person said for items purchased below KBB, they charge taxes on the KBB value.