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Buying a car in CT. I'm from NJ. How does Sales Tax work?

  • I believe NJ is 7% sales tax, CT 6%. I plan to go to CT and drive the car off the lot to NJ where I will register for new plates. 1) Who do I pay sales tax too? If CT, do I get some "credit paid" when I register in NJ? 2) Since I won't have plates driving off the lot, since unregistered in until I get to NJ, what happens if a cop pulls me over? Can I just explain the situation or will I get ticketed? 3) I assume I call my insurer 1 night before I plan to pick up the car as the car needs to be insured in my policy (replaced with old one) once I drive it even an inch off the lot? Thank you so much.

  • Answer:

    You mentioned drive off the lot so you must be buying from a dealer. 1) You will pay tax, tag and title fees to NJ, the dealer will either collect it from you for them or you will pay when you go to get your tags. 2) The dealer will give you a temp. tag and registeration. 3) Wait until the deal is done to call your ins. agent. They will need the make, model, miles and vin. no. They will fax verification of ins. to you at the dealers office.

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You pay sales tax at the time of registration to the state of registration. (at the DMV) The dealer will issue 'temporary' plates. (These are only for transporting the vehicle. You may not use these to cruise around for the 30 days or so that they are 'valid'.), OR you may register the car (and get plates) as soon as you have a Bill of Sale, and the Title. You will be summonsed, and risk having your car impounded if driven without a registration, or temporary in-transit tags. (Your dealer can explain further). You can call your insurer today, and tell him the effective date of the new policy, and the VIN of the new car, and he will issue insurance cards to you and a copy to your dealer. No need to wait. You will not be charged until the effective date. Get your 'ducks in a row' right away, so that there are no surprises.

I don't know why your buying a car in CT over 1% difference in interest because, the $ for gas, tolls and temporary plates+ tolls and fees for going to the dmv in jersey doesn't seem like it out weighs 1% + time.. But to help you out with part of your question, you can request a temp plate at the Dmv for a fee

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