E-Class (W212) 2010 - 2016: E 350, E 550

What's involved with buying from an out of state dealer?

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Old 01-26-2014, 06:14 PM
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What's involved with buying from an out of state dealer?

Since my closest MB dealer decided to ignore my emails about an E550 that they have I decided to look outside the area. Found a CPO E550 coupe (haven't had a 2-door since I was a kid....LONG time ago) that the wife and I really like. It is at an authorized MB dealer but it is 900 miles away. Did my search on the dealer and the BBB, dealer rater, EBAY reviews were all excellent. There are 100+ reviews total so I feel comfortable with what is being said.

Assuming I can make a deal with the out of state dealer what do I need to watch out for? I know transportation is an issue but what else?

I will finance through MB Financial because of the current offer. Getting approved is not an issue for me.

If the price is right I will buy the car outright. But should I offer up my '08 E350 as part of the deal (I'm OK selling it on my own)? Getting it back to the dealer seems like a hassle and additional expense.

The feedback indicates that this dealer does do out of state deals.

Insight from those of you that have done this buying cars across state lines would be GREATLY appreciated.

TIA,
BB
Old 01-26-2014, 06:28 PM
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Keep in mind that in some states you get salestax credit when you trade in a car. Since you presumably register the new car in your state of residency the salestax credit will extend regardless of where you trade.
Old 01-26-2014, 06:51 PM
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If you finance they will collect sales tax and submit to your local state and do tags for you. Make sure the 2 states have a reprocity agreement for the taxes. Hard to trade 900 miles away. Better to sell or take to Carmax. Shipping 900 miles will run 600 each way and they will have to low ball the trade since they can't see it.
Old 01-26-2014, 09:35 PM
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Originally Posted by BBowles
Since my closest MB dealer decided to ignore my emails about an E550 that they have I decided to look outside the area. Found a CPO E550 coupe (haven't had a 2-door since I was a kid....LONG time ago) that the wife and I really like. It is at an authorized MB dealer but it is 900 miles away. Did my search on the dealer and the BBB, dealer rater, EBAY reviews were all excellent. There are 100+ reviews total so I feel comfortable with what is being said.

Assuming I can make a deal with the out of state dealer what do I need to watch out for? I know transportation is an issue but what else?

I will finance through MB Financial because of the current offer. Getting approved is not an issue for me.

If the price is right I will buy the car outright. But should I offer up my '08 E350 as part of the deal (I'm OK selling it on my own)? Getting it back to the dealer seems like a hassle and additional expense.

The feedback indicates that this dealer does do out of state deals.

Insight from those of you that have done this buying cars across state lines would be GREATLY appreciated.

TIA,
BB
Like others already has said you need to be careful with the state sales tax. In some states you pay tax on the full purchase price of the car regardless if you trade your old car in or not in the deal. The worst case is you could pay full sales tax in both the selling state and the one you will register it in.

I was fortunate as the state I live in gives credit for the trade in meaning that I had to pay tax only on the money I paid between the cars and the state where I bought the car from allowed me to buy it without tax as I took it out from that state to my home state so I paid tax only on $9000 that I paid between the cars instead of the tax on $54000 that the car I purchased sold for.

And I drove 975 miles to get my old car to this dealer and then the new one back home. Would do that any day if it cost $600 to ship a car that distance.
Old 01-26-2014, 09:43 PM
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[QUOTE=BBowles;5920758]Since my closest MB dealer decided to ignore my emails about an E550 that they have I decided to look outside the area. Found a CPO E550 coupe (haven't had a 2-door since I was a kid....LONG time ago) that the wife and I really like. It is at an authorized MB dealer but it is 900 miles away. Did my search on the dealer and the BBB, dealer rater, EBAY reviews were all excellent. There are 100+ reviews total so I feel comfortable with what is being said.

Assuming I can make a deal with the out of state dealer what do I need to watch out for? I know transportation is an issue but what else?

I will finance through MB Financial because of the current offer. Getting approved is not an issue for me.

If the price is right I will buy the car outright. But should I offer up my '08 E350 as part of the deal (I'm OK selling it on my own)? Getting it back to the dealer seems like a hassle and additional expense.

The feedback indicates that this dealer does do out of state deals.

Insight from those of you that have done this buying cars across state lines would be GREATLY appreciated.

TIA,
BB[/QUOTE

Last edited by Arrie; 01-26-2014 at 09:55 PM.
Old 01-27-2014, 01:15 AM
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I am in Canada but I purchased a E350 in Ontario and it is being shipped to BC via rail which i negotiated in the price.

I tried to get the vehicle Master Inquiry report but was not able to get it so had the vehicle inspected before hand.

check whether there are any state specific inspections that may need to be done, In BC we have to get the vehicle provincially inspected before the car can get insured. As other mentioned, verify what taxes need to be paid, in my case the taxes are lower in our province so I had to make sure they were charging taxes based on the vehicle being delivered into BC.

look into the insurance itself while it is being transported from one state to the other.
Old 01-27-2014, 07:34 AM
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I bought a car from california and had it shipped to Texas.

Decided on the car - narrowed down the dealer - negotiated the price - flew in - inspected and completed paper work - flew out.

Taxes WERE NOT PAID in CA and all documentation was mailed to me, so I could pay them in my county.
Old 01-27-2014, 01:50 PM
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Local DMV staff here is very helpful....gave a list of things that need to happen.

A few things I learned:

1. You can add the sales tax into the purchase price for financing. Dealer should send you a separate check for the amount of the sales tax.

2. Some states actually tax the sales tax from another state. If dealer is in one of those states request proof that he paid that additional tax in his state.

3. Much easier if you title the new car exactly the same as the one being traded in.

Still in negotiation with the dealer but so far he has agreed to pay transportation both ways.
Old 01-27-2014, 02:24 PM
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We purchased our W212 out of state. We flew to the nearest airport and we were picked up and drove it home.

We had to bring the license and cash. You need valid drivers license. You will need proof of insurance. You will need everyone there who will have their name on the title. So you and your significant other or just you. Bring title.

If you sell the E350 yourself. I would recommend doing this instead.Bring title Take that car off the road. Transport the plates and transfer them onto the new car. Then you need proof of insurance and you will get a temporary tag if you choose to drive it home. Sales tax varies on the state that you buy it in at least in our situation it was. You sometimes get a tax break for trading in a car but that depends on the state.

I think that about covers it.
Call your dealer and they will tell you along with the DMV.
Old 01-27-2014, 04:50 PM
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I bought my '10 E63 sight unseen from almost on the opposite side of the country. (from Colorado to South Carolina)
I was lucky and got the dealer to just send me the title and everything since I told them I was registering it in my home state. The only trouble I had registering it was that the original lien on the title was with a different "Mercedes" name than that of the "Mercedes" person who signed off on clearing the lien.
I just sent them a check for the whole amount so I did not pay any tax to him. I got out with just my $300 sale tax here, and transferred my tag to the new car. I went to the Tax Collector also and paid my car property tax a little ahead of time also so I could go another year before I had to pay property tax on a newer car.
I know you asked about things to look out for before the sale but some of these things I found out might need to be addressed before to agree to the deal also.
Here are a few things I found out/learned.
1. Ask for a Carfax and Autocheck. (if it is CPO'ed then there shouldn't be much to worry about here but it is good to have in hand).
2. Try to get the car delivered in a covered truck because when it gets to you it might be dirty, nasty, and hard to inspect. Make the covered truck part of the deal.
3. The deal is not complete also till after it is unloaded and you inspect it. You might not be happy with a certain scratch, blemish, or those horrible holes drilled into the front bumper for a license plate that South Carolina does not have to have.
4. Try to get everything confirmed in an email. When the dealer and I talked on the phone, I hung up and sent an email where they verified everything we talked about.
5. Hold your excitement and inspect the car totally when it gets to you. I was surprised at some of the things the delivery driver pointed out to me so I took it for granted on some other things. I missed some of the components in the spare tire area and the car was so nasty from being uncovered across the country that I missed some oil drip spots on the hood from the car stacked above it in the hauler.

Good luck!
Old 01-27-2014, 06:21 PM
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I am also buying a "new" car from Colorado and having it shipped to SC. Am I correct in thinking that I will only have to pay $300 in sales tax (which is the cap for SC)? The dealer in CO is trying to charge me 5% for sales tax?

Also, does SC and CO have a reciprocity agreement? Where can I find information on this topic.

Any help is much appreciated!

Originally Posted by BACnMercedes
I bought my '10 E63 sight unseen from almost on the opposite side of the country. (from Colorado to South Carolina)
I was lucky and got the dealer to just send me the title and everything since I told them I was registering it in my home state. The only trouble I had registering it was that the original lien on the title was with a different "Mercedes" name than that of the "Mercedes" person who signed off on clearing the lien.
I just sent them a check for the whole amount so I did not pay any tax to him. I got out with just my $300 sale tax here, and transferred my tag to the new car. I went to the Tax Collector also and paid my car property tax a little ahead of time also so I could go another year before I had to pay property tax on a newer car.
I know you asked about things to look out for before the sale but some of these things I found out might need to be addressed before to agree to the deal also.
Here are a few things I found out/learned.
1. Ask for a Carfax and Autocheck. (if it is CPO'ed then there shouldn't be much to worry about here but it is good to have in hand).
2. Try to get the car delivered in a covered truck because when it gets to you it might be dirty, nasty, and hard to inspect. Make the covered truck part of the deal.
3. The deal is not complete also till after it is unloaded and you inspect it. You might not be happy with a certain scratch, blemish, or those horrible holes drilled into the front bumper for a license plate that South Carolina does not have to have.
4. Try to get everything confirmed in an email. When the dealer and I talked on the phone, I hung up and sent an email where they verified everything we talked about.
5. Hold your excitement and inspect the car totally when it gets to you. I was surprised at some of the things the delivery driver pointed out to me so I took it for granted on some other things. I missed some of the components in the spare tire area and the car was so nasty from being uncovered across the country that I missed some oil drip spots on the hood from the car stacked above it in the hauler.

Good luck!
Old 01-27-2014, 06:55 PM
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Originally Posted by shashivr4
I am also buying a "new" car from Colorado and having it shipped to SC. Am I correct in thinking that I will only have to pay $300 in sales tax (which is the cap for SC)? The dealer in CO is trying to charge me 5% for sales tax?

Also, does SC and CO have a reciprocity agreement? Where can I find information on this topic.

Any help is much appreciated!

Colorado should not charge sales tax and should fill out this exemption form for there own dept of revenue

SUBJECT: MOTOR VEHICLE PURCHASES FROM COLORADO DEALERS


3. Exception: Vehicle purchased from Colorado dealer by a nonresident with the intent to
register and use vehicle in another state within 30 days.

a. No state or local sales or use tax is due if the vehicle is removed from Colorado
within 30 days. Purchaser must obtain 60-day permit from the dealer or county.
County may not issue another permit for that vehicle after the 60-day permit expires
unless the owner can prove that title has been applied for and registration is being
sought in another state with evidence such as copies of paperwork sent to the other
state.

b. State and applicable local taxes are due if the vehicle remains in Colorado for more
than 30 days even if it is registered in another state.

c. The dealer should complete the DR 0780 “Statement of Colorado Sales Tax
Exemption For Motor Vehicle Purchase”. The form must be signed by the
purchaser. The form may be downloaded and printed from the forms section of the
DOR Website at www.TaxColorado.com.

e. Reference: C.R.S. 39-26-113(5)(a); 42-3-102; 42-3-203(3)(a)


Motor Vehicles


Sales of new or used motor vehicles, trailers, semi-trailers, pole trailers and horse trailers to residents of another state are taxed at the rate imposed by the purchaser's state of residence. The tax cannot exceed the $300 maximum tax imposed by South Carolina on motor vehicles and trailers (except pole trailers). When a nonresident will not receive credit for sales tax paid to South Carolina for a motor vehicle or trailer and his home state does not grant reciprocity to South Carolina residents, no sales tax will be charged. Form ST-385 must be completed on each vehicle sold to a nonresident.
Old 01-27-2014, 07:44 PM
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Originally Posted by shashivr4
I am also buying a "new" car from Colorado and having it shipped to SC. Am I correct in thinking that I will only have to pay $300 in sales tax (which is the cap for SC)? The dealer in CO is trying to charge me 5% for sales tax?

Also, does SC and CO have a reciprocity agreement? Where can I find information on this topic.

Any help is much appreciated!
Don't want to thread jack the OP. I'll pm you.
Old 01-28-2014, 11:32 AM
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Sales taxes will be a major concern. I have never purchased across state lines, but have been told that the selling (out of state) dealer would not charge sales taxes. When you register the car in your state of residence, you pay sales taxes for your state. In S.C. that's a good deal because maximum sales tax is $300 regardless of price of car.
If you purchase car in S.C., you would not pay S.C. sales tax because you will pay the tax wherever you register the car, e.g. where you actually live.
Whatever dealer tells you, I would verify it with your DMV.
Old 01-28-2014, 01:00 PM
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wow. I'm moving to South Carolina! That is a great deal you have going there on sales tax.
Old 01-28-2014, 01:52 PM
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Originally Posted by KEY08
wow. I'm moving to South Carolina! That is a great deal you have going there on sales tax.
We also have the worst schools, worst roads, lowest per capita income, worst medical care, etc.
Old 01-28-2014, 02:20 PM
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I've bought multiple cars from Ohio and the process has been quite pleasing. One simple piece of advice is: negotiate the shipping cost in to the sale. I would say anywhere inside of 1000 miles is worthwhile. Once you get outside of that the cost to ship becomes a bit high and makes the sale less desirable. The entire process can be done through email.

Do not trade. It's not worth the risk or the hassle. You'll get more by selling private which will offset what you would have saved in tax.

Good luck!

Last edited by SolidGranite; 01-28-2014 at 02:24 PM.
Old 01-28-2014, 02:35 PM
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Sold my '08 to carmax. They gave me as much as the dealer offered in trade. My '12 E550 coupe is on its way in a covered trailer from PA. The PA dealer Smail MB has been a real pleasure to work with.
Old 01-28-2014, 03:54 PM
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Originally Posted by shashivr4
I am also buying a "new" car from Colorado and having it shipped to SC. Am I correct in thinking that I will only have to pay $300 in sales tax (which is the cap for SC)? The dealer in CO is trying to charge me 5% for sales tax?

Also, does SC and CO have a reciprocity agreement? Where can I find information on this topic.

Any help is much appreciated!
Seems like, and I hate to say this, that your dealer is trying to make an extra 5% profit on the car. There is NO WAY that they would not know not to collect tax if car will be taken to and registered in another state.
Old 01-28-2014, 09:30 PM
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Looks like I will be moving to another forum now but wanted to show off my ride.....

http://www.smailmercedesbenz.com/use...kj7dbxcf158718

Thanks to all for your help.
Old 01-28-2014, 10:04 PM
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Originally Posted by BBowles
Looks like I will be moving to another forum now but wanted to show off my ride.....

http://www.smailmercedesbenz.com/use...kj7dbxcf158718

Thanks to all for your help.
Nice new ride. Enjoy.
Old 01-28-2014, 10:36 PM
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Originally Posted by BBowles
Looks like I will be moving to another forum now but wanted to show off my ride.....

http://www.smailmercedesbenz.com/use...kj7dbxcf158718

Thanks to all for your help.
Great looking car! You will love that engine!
Old 01-29-2014, 05:54 PM
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One more thing I would add......I received the paperwork from the dealer today for my signature and discovered that they use a company that does all the sales tax/DMV/insurance paperwork with the state they are shipping the car to. These amounts are clearly detailed in the bill of sale. Of course there is a fee for this service but I'm comfortable knowing there won't be any surprises when the car gets here.

I'm really happy with the deal...... $39k (after $1200 from MB Financial) plus TTL and they are paying the shipping. These guys deserve the high marks they have gotten and will get more from me.
Old 02-25-2014, 04:37 PM
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Now that the transaction on my E550C is done I wanted to follow up to this thread and say the dealer used a company called General Systems Solutions out of East Greenbush, NY to handle payment of the taxes in my home state (KS). I received my tag and registration in the mail yesterday. Of course there is a fee plus KS charges an online transaction fee but for me it was worth not having to stand in line at the DMV.

Hope this helps some of you looking to buy from an out of state dealer.

BTW....I couldn't be happier with the car/deal/ transaction.
Old 02-25-2014, 06:05 PM
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Why is it that a car can get taxed over and over again every time it's sold? Shouldn't it get taxed on the original sale and then be tax free after?


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