How to Buy a Car in Ohio From Out of State

How to Buy a Car in Another State: A Guide

Buying a car in another state can be an exciting and rewarding experience, especially if you've found the perfect vehicle at Beechmont Subaru. While the process might seem complex, understanding the steps involved-particularly regarding taxes-can simplify the journey. This guide will walk you through how to buy a car from another state, focusing on how taxes are applied based on where you live. Using Alexandria, KY, as an example, we'll cover everything you need to know to make your purchase stress-free.

Step 1: Research the Car You Want

Begin by exploring Beechmont Subaru's online inventory to find your desired vehicle near Anderson Township, OH. Once you've chosen a model, verify details such as price, warranty, and additional fees that may apply when buying out of state.

Step 2: Understand How Taxes Work When Buying Out of State

When you purchase a car in another state, sales tax is typically paid in the state where you register the vehicle-not where you buy it. For residents of Alexandria, KY, this means you'll pay Kentucky's sales tax rate, regardless of whether you purchase your car in Ohio or any other state.

Key Tax Details for Kentucky Residents:

  • Sales Tax Rate: Kentucky has a six percent sales tax rate on vehicle purchases.
  • Usage Tax: If a vehicle is purchased out of state, Kentucky requires a usage tax that matches the sales tax rate.

How Taxes Are Collected:

  • If you purchase from Beechmont Subaru, the dealership may collect Kentucky sales tax during the transaction and remit it to the Kentucky Department of Revenue.
  • If the dealership does not collect Kentucky sales tax, you'll pay the usage tax when you register the vehicle in Alexandria, KY.

Step 3: Arrange Financing or Payment

Whether you plan to pay cash or finance the vehicle, ensure all payment details align with your out-of-state purchase. Beechmont Subaru, in Cincinnati, OH, offers financing options that can accommodate out-of-state buyers, so speak with the finance team to explore rates and terms.

Step 4: Transporting Your Vehicle

You can choose to drive your new car home or have it transported. If you decide to drive, the dealership will issue a temporary tag to allow you to legally transport the vehicle to Kentucky.

Step 5: Register Your Car in Kentucky

Once your vehicle is in Alexandria, KY, you'll need to register it at the Campbell County Clerk's office. Be prepared to provide:

  • The vehicle title or Manufacturer's Certificate of Origin.
  • Proof of Kentucky insurance.
  • A completed Form TC 96-182 (Application for Title/Registration).
  • Payment for applicable registration fees and taxes, if not already collected by the dealership.

FAQs About Buying a Car Out of State

Will I Pay Ohio or Kentucky Sales Tax When Buying from Beechmont Subaru?

You'll pay Kentucky sales tax since you'll be registering the vehicle in Alexandria, KY. Ohio sales tax will not apply in this case.

What if the Dealership Doesn't Collect Kentucky Sales Tax?

If Beechmont Subaru does not collect Kentucky's six percent sales tax, you will pay the usage tax directly to the Campbell County Clerk's office when registering the vehicle.

Do I Need to Pay Double Taxes?

No, you will not pay sales tax twice. Kentucky ensures that you're only responsible for paying the six percent rate applicable to your state of residence.

Are There Additional Fees When Buying Out of State?

Yes, there may be additional fees such as:

  • Title and registration fees in Kentucky.
  • Dealer fees from the out-of-state dealership.

Can Beechmont Subaru Help with Out-of-State Purchases?

Absolutely! Beechmont Subaru's team is experienced in handling out-of-state transactions and will ensure all tax and registration details are properly addressed.

Why Buy from Beechmont Subaru?

Beechmont Subaru, serving Cincinnati, offers a wide selection of high-quality new and pre-owned vehicles, competitive pricing, and exceptional customer service. If you're shopping locally or from Alexandria, KY, we'll ensure your buying process is seamless.

Visit Beechmont Subaru Today

Buying a car in another state is easier than you think when you work with Beechmont Subaru. With a clear understanding of how taxes and registration work, you can confidently shop for your next vehicle and enjoy the benefits of working with a trusted dealership. Visit Beechmont Subaru today or contact our sales team to learn more about how to purchase your Subaru near Alexandria, KY.