Buying new bike out of state with financing

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8/27/2017 11:16 AM

I've seen several threads in hear about buying bikes out of state and avoiding sales tax. Is that still possible if you're financing?

I've gotten different answers from a few Yamaha dealers. One said no problem you'd pay the sales tax if you go to title it. Another said I'd have like 45 days to title it (so mandatory). Others had no clue. One even said I'd pay sales tax to them the dealer.

I'm an OK resident potentially buying in NY FWIW.

I'm going to try to call Yamaha directly tomorrow but figured I'd post in the meantime.


8/27/2017 11:47 AM

There is a zero percent chance that Yamaha will give you tips on ducking sales tax on a new bike.


8/27/2017 12:59 PM

You will pay taxes on it when you title it. Not avoiding that.


8/27/2017 1:10 PM

I'm in Arkansas and had the same conversation with an out of state dealer. They really couldn't answer the question. Arkansas does not require u to register and licence off road only dirt bikes as far as I know so I think I could get around sales tax. If your state requires it then you can't.


8/27/2017 1:36 PM

Here on the west coast most of the states have an agreement with each other so there is no way to duck the tax man on a new bike even when buying cash... believe me I have tried every way I can think of over the past few years.


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8/27/2017 2:32 PM
Edited Date/Time: 8/27/2017 2:33 PM

Seems to me, NY has an extensive reciprocity with a lot of states on sales tax, as in they report to each other, collect and remit it to the appropriate state. It may be unavoidable.


8/27/2017 2:43 PM

I don't have a clue how it is in other states. In NC though, 'they' might not catch up with you right away. It might be 3 to 5 years down the road. And when they do come wanting their cut, it will include penalties and interest. They can ruin a man's groove. It ain't worth it.


8/27/2017 2:47 PM

You can only avoid sales tax if you buy the bike over the phone or internet, from another state where the dealer you buy from or their parent company does not have a brick and mortar store, and if you never register it. Collecting sales tax on a purchase made across state lines, but not in person amounts to a border tax between states, and is illegal under federal law. If you make the purchase in person, no matter where you're from, you're paying local sales tax, then you're gonna get taxed when you either title or register the machine in your home state, depending on what the laws are. Also, your home state might have a "use tax" like Ohio does, which requires you to pay a tax on items bought over the internet, by phone, or mail order....voluntary reporting in Ohio though.


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8/27/2017 2:59 PM

I bought a new truck in Wisconsin and registered it in Michigan. I didn't pay any sales tax to Wisconsin, I had to pay Michigan sales tax when I registered and titled the truck. Some states like California are more stringent- if you buy a vehicle there and title/register it out of state, California will collect something like 7% use tax if you drive it away. You don't have to pay it if you ship the vehicle though.

You will definitely be paying NY sales tax when you title the bike.

I also assume you have to title the bike because you'll have a lien on it.


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8/27/2017 3:00 PM

That's actually a really good idea I never even thought about that.


8/27/2017 4:20 PM
Edited Date/Time: 8/27/2017 4:20 PM

Not paying taxes, who do you think you are? The president or something? smile


8/27/2017 6:16 PM

abomination wrote:

I've seen several threads in hear about buying bikes out of state and avoiding sales tax. Is that still possible if you're ...more

Just buy from the local dealer and pay your taxes, if its too much to pay the tax and you are already needing to finance the bike then maybe you should fine a cheaper alternative like a private sale used bike.


Ed Johnson

8/27/2017 7:44 PM

I've always avoided sales tax buying a new bike, with cash. However, with finance they'll want to know the vin on the motorcycle. with that said, it's a motorcycle with a mso/title. you will pay the sales tax on the loan. The way to avoid this would be a personal loan. Get a loan for the particular amount you want to borrow and take it to the dealer to buy the bike with cash. However, they usually give low terms and ridiciuous interest rates on personal loans.


8/27/2017 10:47 PM

Was mostly curious because of the recommendation here, and then the aforementioned wildly differing answers from shops. Just want to know what I'm getting into $$-wise and sales taxes aren't trivial.

I don't have a 'local' dealer as I've only been in OK a few months and am moving shortly.

LOLed at president comment.


8/28/2017 3:51 PM
Edited Date/Time: 8/28/2017 3:52 PM

Lenders will require a lien placed on the title. Liens are done by the states and requires taxes be paid which generates a title. If there is no lien, you could go and request a lost title application (which means you paid taxes)and the lender has no security, therefore it becomes a signature loan, which would draw a much higher interest rate for an unsecured loan.

It is easy enough to avoid taxes by having an address in another state and being exempt as a result. Pay cash and never register the bike, get an MCO from the dealer and never have a title is what is commonly done. With financing that's a problem.


8/28/2017 5:38 PM

Here in Canada I buy my bikes in Alberta , I think it is 7% tax then I drive to my house in bc. The only time you have to pay taxes is if you register for insurance. They said that you had to do it mandatory , I said send some one to my house to go through every thing I own, because every thing i paid 7% tax on not 12%. That guy shut up pretty fast.


8/28/2017 5:38 PM

I'm surprised we made it this many posts without any Dave Ramseys putting in their 2 cents about financing toys.


8/30/2017 9:46 PM

So I purchased today. Never mentioned sales tax to the salesman. He didn't charge it.

We were walking out to the warehouse and on his own he was telling me to not title it and Yamaha won't care. Who knows.


8/30/2017 11:32 PM
Edited Date/Time: 8/30/2017 11:34 PM

You don't own the bike, the lender does. They are just letting you ride it. And they will follow the law on what's required as far as titles, taxes and registration, its not up to you.


8/31/2017 12:51 AM

15 years ago, I bought a new RM out of state, financed it through Suzuki, which was actually an unsecure loan, basically a credit card with a crazy interest rate. But, I never titled it, and never paid sales tax. Save on sales tax, pay triple in interest...


8/31/2017 6:02 PM

Rockinar wrote:

You don't own the bike, the lender does. They are just letting you ride it. And they will follow the law on what's required as ...more

His quote was something along the lines of having sold thousands and never had a buyer have to. He had no reason to lie…paperwork was signed and I was almost out of there. He could certainly be wrong. I'm not worried about it. I'll gladly pay if it comes to it.


8/31/2017 6:13 PM

I always heard if you did not pay tax at the time of purchasing that it would catch up to you when you go to title the bike. Well I bought a new bike out of state with cash and it came with the MSO and I did not pay tax. Never titled it because I didn't want to pay tax. Well when I went to sell it, I decided to title it because it would be easier to sell. I went to one of those 3rd party DMV places and gave them the MSO and they were able to issue me a title. The fee was minimal, less $50 and not a word about taxes. Maybe I'm the exception and not the rule, or maybe AZ is different, or maybe the dealer played some games. Not sure. Whatever the case, I was mad I didn't title it sooner so I could have gotten a plate to ride trails.