Buy a car now or after moving to ABQ? (Albuquerque: van rental, sales)
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I'll be moving to Albuquerque (from Indiana) in early November. Does anyone have experience buying a car in one state and registering it in another? I want to make sure I don't have to pay any fees/taxes etc. twice if I can avoid it.
Also, it seems that NM has much lower taxes than IN for cars (3% excise tax vs. 7% sales tax), however if buying in NM means having to get a 1-way rental car or something to move with, then any savings may come out as a wash. My current car isn't up to the trip.
I lived in Abq for 4 years and went through 3 cars there. I found the used car market to be extremely inflated in pricing and I actually flew to Denver to find the right car at a fair price. Abq is an island with 4-500 mile stretches in any direction to find a decent size city with a competitive car market, so my opinion is that the dealers in Abq just sit back and say "oh you recognize that this car is obviously $1-2k overpriced? Well then go fly somewhere else to get a better deal." Which is exactly what I did after spending $220 on a one way ticket up north and $50 on a tank of gas. And that's what most people do, they'll just pay extra for the car in Abq because the selection isn't as plentiful and they just want the transaction to be over with. True the 3% car tax is nice.
Also the drive from Indiana is the same one I made from Ohio and there is very little to see through the lengths of Missouri and Oklahoma. Maybe stop in St. Louis for some BBQ.
It might be easier to wait and buy a car in NM, just know that you will likely not be getting any kind of good deal on it.
I'll be moving to Albuquerque (from Indiana) in early November. Does anyone have experience buying a car in one state and registering it in another? I want to make sure I don't have to pay any fees/taxes etc. twice if I can avoid it.
Also, it seems that NM has much lower taxes than IN for cars (3% excise tax vs. 7% sales tax), however if buying in NM means having to get a 1-way rental car or something to move with, then any savings may come out as a wash. My current car isn't up to the trip.
We came to New Mexico with two cars, one truck and one motorcycle when we moved here in 1997/98. We have purchased three used vehicles in New Mexico since being here. I'm not going to make claims on the best way to go. I did work in a used car lot in the 60's, some things never change. We do make arrangements in advance on financing through our credit union, which makes things a bit easier.
There is a sales tax when you purchase a vehicle. I do not remember any sales taxes when we brought our vehicles, probably because they were used vehicles, had already paid sales taxes on them when we purchased which probably exceeded the New Mexico rate...
One major point in the calculus is if you'd be able to use your new vehicle to act as a method of moving (load up all your stuff in the new truck and perhaps just tow a trailer). The cost of renting a truck vs. trailer is quite prohibitive sometimes, and Albuquerque is for some reason underfleeted for trailers right now, meaning a rental trailer might be quite reasonable in price.
Alternatively, if you have very little actual stuff, just fly out and buy a car here. 100% guarantee you will not break down in the Texas Panhandle and require two tows and a last-minute replacement vehicle this way.
Generally speaking (not specific to ABQ, but very specific to your situation and sales tax states):
When you purchase a vehicle and register it in your current state, you can move and won't have to pay a tax on the transaction. However, you will have to pay to register it in both states. If you move and then purchase a vehicle that is already titled in the destination state, you will have to pay registration fees in only one state, and the "new car" type fees will only apply if you bought the car new. If you can afford that, you wouldn't have needed to make this post. No problem, I can't afford new cars either. Well, I could buy one, but it would be a terrible financial decision.
Then there is the option of buying in Indiana and moving it to NM without titling it under your name in Indiana. This is generally the worst of both worlds. In order to avoid the Indiana fees you will be hit with new fees/taxes because the destination state considers it to be a vehicle that you purchased from out of state and makes it eligible for all "new car" fees. I don't know if this is how NM works, but it is how many states work.
As a result, your best option (probably) is to either buy and register the vehicle in Indy, or to make the trip without the vehicle (if you have a way) and buy one after you arrive. Buying off craigslist is HUGE in importance. If you look up a mid 90s car with good mileage, you'll usually find that it's worth around 1500 on KBB. The dealership trade in offer is listed around 500, and the dealership sale price is around 2500. Can you afford to take that kind of hit? I know I wouldn't want to do that. On top of all that, if there is something wrong with a dealership car, they have trained mechanics that can hide the defects and ensure you won't be able to find them. Set up meetings off CL, if they look slimy - just end the meeting, if they look respectable and the car looks good, take it to a mechanic before buying. If they say they don't want you to take it to a mechanic, or try to make it hard to do, just walk away.
You're Welcome . I've moved a few times and helped several people find better deals on vehicles and avoid getting owned at the DMV.
Thanks for the tips everyone! I think the best option is to buy, title, and register it before moving, because I will need the vehicle to move in. It's cheaper to pay registration twice than to pay for a one-way truck or van rental. Plus there will probably be more choices around here, having plenty of bigger cities within a few hours radius.
Watch out for the new car gougers in Albuquerque! Have been visiting several Albq new car dealers lately and I seen several using the time-honored old trick of placing of placing another sticker with hand written "things" next to the factory one in an attempt to bump the price up and let you "haggle" down to the full list price. The Mitsi dealer tacks on up to $1900 (!) to the cost of their new cars, Fiat adds about $700 to their version of the hand written extra sticker. Many more Dealers use the same trick here in town. The Mitsi dealer even had a "sale" going on today where the new Mirage with the $1895 extra sticker was slightly marked down to a little over the real list price.
Buy a car anywhere than here in Albuquerque...walk off any lot that is playing the extra sticker trick, The Dealer thinks you are desperate and you engaging a sales rep only labels you as a sucker, or a "payment buyer" before they even say a word. I feel bad for the actual manufacturers who produce a low cost car in hopes of selling big numbers, only to have greedy dealers spoil the plan.
Last edited by CountryCarr; 11-12-2013 at 10:25 PM..
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. I've moved a few times and helped several people find better deals on vehicles and avoid getting owned at the DMV.
