Sorry to start another thread about car buying but I didn't want this to get buried in the Nice Car thread, its a different problem. My daughter lives here but has found nice used car at a dealer in Ypsilanti and we don't know anything about buying out of state. Can someone give me some info on how this works? If she were here, the dealer would take care of tags and such, right? Do they register it there and get tags and then bring it here and re-register? Get the tags here with the paperwork then go back and pick up the car? Will she have to pay taxes in both states? Thanks for anything ya got! :)
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I bought a car from Knapps in Blissfield 5-6 years back. If memory serves, I got a michigan temp tag at the dealer, paid the tax at the ohio title office and then registered it in Ohio. No big deal.
An Illinois car I bought once had to be inspected for a few bucks at the BMV and then the inspection cert went to the Ohio title place, then back to registrar.
If the dealer does not handle it, the process is relatively painless.
Michigan does not require a notary on their titles when you buy a car titled in Michigan. So you can buy the car and have the seller fill out the appropriate parts of the title.
Go to any BMV in Ohio. Go to the license plate portion of the office. Tell them you need an "out of state" inspection. This inspection is simple and costs about $3.50. They check the v.i.n. against the title, verify mileage and give you a copy of the form.
Take this paperwork, with the Michigan title to the title portion of the BMV office. They will issue a new Ohio title. About $50.
Then walk back to the license part of the office and get your tag. Usually, they will tell you to just go to the head of the line, since you've already waited in line for the inspection.
I bought a van from a Troy, MI dealership about a month ago:
Insurance: in Ohio, your insurance covers any new car purchases you make as long as your report it within thirty days. In Michigan, they won't let you drive it off the lot without proof of insurance, even if you pay cash. So you just need to get your insurance company in contact with the dealership in order to get the VIN, so the insurance company will issue a policy/binder.
Sales Tax: dealer will collect the equivalent of the Michigan sales tax based on the price of the car. You then go to the Clerk of Courts office (with the out-of-state inspection like HF mentioned), where you pay the difference between the Michigan sales tax and our rate. Note, though, I bought an extended warranty on my van. Michigan does not tax this, but Ohio does, so I had to pay the full 7% on that, plus the difference on the price of the van.
Temp tags: I think these cost $10 for 14 day tags.
Loan: another difference between Michigan and Ohio is that in Ohio, the bank keeps the paper title until you pay off the loan; in Michigan, the bank does not keep the paper title they are just noted as a lienholder. So the Clerk of Court took my title, mailed it to the Michigan lendor, who promptly turned around and mailed it to me.