How to Avoid Paying Sales Tax on a Used Car

No one wants to overpay on a used car, and that means everything from sticker price to insurance. Some Shelby and Ashland drivers want to know how to avoid paying sales tax on a used car, and the truth is that it is usually necessary. In most cases, car buyers by law are required to pay sales tax, but there are a few exceptions depending on the driver, location, and the car. However, there are a few exceptions that are worth your research. Check out our car buying tips below:

When Sales Tax on Used Cars Isn’t Required

While the majority of states require sales tax by law, there are a handful of states that do not. This includes:

• Alaska
• Delaware
• Montana
• New Hampshire
• Oregon

If you live in one of these states, there’s no need to pay sales tax. But if you buy your car in one of these states and move to Galion, you’ll need to register in your new state – and that means you’ll have to pay sales tax.

What Are Some Used Car Sales Tax Exemptions?

So, what if you don’t live in Alaska or Montana? There are a few other tax exemptions that exist, even if you live in a state with a high sales tax. Legal sales tax exemptions are as follows:

• Vehicles that were made before 1973 are considered historic models.
• Vehicles made for forestry and agriculture are exempt from sales tax.
• Some individuals with a disability may qualify for a car sales tax exemption.

If you do qualify for an exemption, you’ll need to display your exemption certification on your vehicle.

Tax Credits for EVs Can Outweigh Sales Tax

Another way to save on your next car purchase is to consider the electric market. Electric vehicles often qualify for tax credits, which can offset the cost of the EV. Take a look at the local, state, and federal tax incentives to see how much you can save. But, be sure to read the fine print to make sure you know the regulations before you buy!

Start Shopping with Spitzer Motors of Mansfield CDJR Today!

We’ve gone through how to avoid paying sales tax on a used car, so why not start shopping? Whether you want to check out used cars with low mileage or cars priced under 12k, the team at Spitzer Motors of Mansfield CDJR can help you find the competitively-priced and high-quality vehicles that you deserve. Contact us with your questions or stop by our dealership in Ontario to take a few test drives today!