May
27
What are the financial benefits of buying a used car from a private owner vs a dealer?
Filed Under Buying & Selling
MississippiSam
I’m thinking of buying a used car for about $25k to $30k. If I buy – let’s say a $30k car from a dealer in Mississippi, the sales tax will be $1500 (5%). But if I buy a $30k car from a private owner, there is no sales tax of course.
I’m thinking of buying a used car for about $25k to $30k. If I buy – let’s say a $30k car from a dealer in Mississippi, the sales tax will be $1500 (5%). But if I buy a $30k car from a private owner, there is no sales tax of course.
My question is: Will I have to pay any additional taxes when I buy my tag if I go the private owner route?
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2 Responses to “What are the financial benefits of buying a used car from a private owner vs a dealer?”
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Even if you buy in a state with no sales tax, you will have to pay sales tax in the state you live in — assuming you don’t live in Mississippi and your state has a sales tax on used cars. You pay at the time your register your car in your state.
MississippiSam, Maybe you need a new car.
I found a nice list of Mississippi car dealers. I think someone in your town can help assist you. Just call one of them or drop by one day when you are not busy. Some car dealers can even arrange a test drive.