How to Avoid Paying Sales Tax on a Used Car

 
Compared to buying a brand-new model, buying a used car can help you save quite a bit on your next automotive purchase. But, what if you’re looking for a way to save even more? Can you avoid paying sales on used cars? The answer is generally no, but there are a few exceptions that are worth noting. William Lehman Van, Truck, and Bus Sales explains how to avoid paying sales tax on a used car – without breaking the law!

When Sales Tax on Used Cars Isn’t Required 

When it comes to car sales, location matters. Some states don’t charge a sales tax on used cars at all, which can help you save some cash. This is applicable in the following states:

• Alaska
• Delaware
• Montana
• New Hampshire
• Oregon

So, what happens if you live in Ft Lauderdale or Orlando and you buy a car out of state? Can you avoid sales tax? That depends. If you continue to live in Florida, you’ll still need to pay the sales tax once you register the car in your own state. However, if you are relocating to a place like Alaska or Oregon, you can register your car in your new state within 90 days of moving. This helps you avoid the sales tax on your used car completely.  

What Are the Other Tax Exemptions Available?

While state exemptions are the most common, there are also a few other exemptions available depending on your circumstances.

• Age: Cars that were manufactured before 1973 are considered historic models, which are often exempt from sales tax.
• Occupation: Vehicles that are used for specific jobs, like agriculture and forestry, are also exempt from sales tax.
• Disability: Drivers with disabilities often qualify for car sales tax exemptions.

If you do qualify for an exemption, be sure to follow up with the DMV. You’ll need to complete the proper paperwork to get the documentation that you need, but it’s well worth the extra effort.

Find Out More with William Lehman Van, Truck, and Bus Sales  

We’ve discussed how to avoid paying sales tax on a used car, but what other questions do you have? If you need to buy a vehicle in Palm Beach or want to know more about car financing options, just stop by William Lehman Van, Truck, and Bus Sales for more information. You can also contact us or shop our pre-owned vehicle specials online!