Why are inventory cars only able to be registered in certain states?

[whizfish]

(Note: I couldn't find an appropriate forum for this, so I chose the Tesla Inc forum as the best I could come up with.)

When you see a car in Tesla inventory in another state, it invariably says "This car can only be registered in <a list of nearby states>". Why is that? Is this a restriction imposed by the state(s), or by Tesla? I haven't found any other state where the list of permitted states includes California, so only cars already in California inventory can be registered in California? Worse yet, I haven't found cars in inventory where the list includes Maine, and I don't think there's any inventory in Maine itself, so people in Maine can't ever buy from inventory?

(We live half time in California and half time in Maine--would be happy buy and register in either state, but prefer Maine due to timing and taxes.)

Thanks,
Dan

 

[HankLloydRight]

Good question. Someone in another thread said it might have to do with state tax reciprocity agreements.
And since Tesla handles all the sales tax collection and registration/titling of new car sales, they might be limiting sales to states where the buyer can get credit for the taxes paid to another state.

But I believe if you press it hard enough, you can buy a new car from any state without paying sales tax** and have the car shipped to your own state where you have it registered, insured, and pay your state the sales tax upon registration. But my guess is that Tesla won't let you do that due to their policies, or maybe new car dealers are required to register new cars and collect the local sales tax.


**Except California.

 

[CapeOne]

When you see a car in Tesla inventory in another state, it invariably says "This car can only be registered in <a list of nearby states>". Why is that? I

This question has come up in at least one other thread but I don't think there's been a definitive answer. I've even come across existing inventory cars that couldn't be registered in the very state they were located.

 

[MikeKFE]

I tried to buy an inventory MXP at the end of 2022. I got the same message on the website. I randomly spoke with the regional sales manager that day and she was able to make it happen for me.

As she explained, there is enough demand for Tesla that they want to avoid shipping cars all over due to time and logistics PITAs.

They’re trying to keep cars in certain hubs since demand is sufficient. But a manager can override this.

I have zero clue if this is accurate but it is what I was told.

 

[HankLloydRight]

They’re trying to keep cars in certain hubs since demand is sufficient. But a manager can override this.

Great info, thanks for adding it.

 

[DblOSmith]

And since Tesla handles all the sales tax collection and registration/titling of new car sales, they might be limiting sales to states where the buyer can get credit for the taxes paid to another state.

Not always. In Alabama, I had to pay TT&L separately on my own. I believe my family in Texas had to do the same thing.

 

[four-walling]

But I believe if you press it hard enough, you can buy a new car from any state without paying sales tax** and have the car shipped to your own state where you have it registered, insured, and pay your state the sales tax upon registration. But my guess is that Tesla won't let you do that due to their policies, or maybe new car dealers are required to register new cars and collect the local sales tax.


**Except California.

you can avoid paying tax in CA if you take delivery out of state. If I remember correctly, the car buyer needs to have a notarized statement that delivery was taken out of state as proof.

 

[four-walling]

found the form

 

[beewang]

you can avoid paying tax in CA if you take delivery out of state. If I remember correctly, the car buyer needs to have a notarized statement that delivery was taken out of state as proof.

LOL!! Yes and no... If you take delivery of a new vehicle outside of CA (being a California residence), Upon returning to California (within first 6 months if the purchase) you'd have to pay California Use Tax at the CA DMV, which incidentally, is the exact % as the Sales Tax rate of your registered address (county).

So Yes! Technically you are correct... you aren't paying "Sales Tax" but you are paying "Use Tax".

 

[whizfish]

LOL!! Yes and no... If you take delivery of a new vehicle outside of CA (being a California residence), Upon returning to California (within first 6 months if the purchase) you'd have to pay California Use Tax at the CA DMV, which incidentally, is the exact % as the Sales Tax rate of your registered address (county).

So Yes! Technically you are correct... you aren't paying "Sales Tax" but you are paying "Use Tax".

That's consistent with what I was told when I inquired about a similar situation. We were thinking of buying a (non-Tesla) car in Maine where we have a vacation home and then re-registering a few months later in California. I was concerned about double-taxation, but we were told by CA DMV that we would be charged a use tax equal to the difference between the tax we paid in Maine and what CA would have charged if the car were bought there.

In any case, we went ahead and bought a new Tesla from California inventory, so we're off and running. (Although, the car's LTE connectivity is already on the fritz. Grrrrr!)

 

[four-walling]

LOL!! Yes and no... If you take delivery of a new vehicle outside of CA (being a California residence), Upon returning to California (within first 6 months if the purchase) you'd have to pay California Use Tax at the CA DMV, which incidentally, is the exact % as the Sales Tax rate of your registered address (county).

So Yes! Technically you are correct... you aren't paying "Sales Tax" but you are paying "Use Tax".

The rules are clear-no sales or use tax is due if the vehicle remains out of CA for 1 year.

 

[jboy210]

The rules are clear-no sales or use tax is due if the vehicle remains out of CA for 1 year.

Works the same for other vehicles like airplanes also. It is a reason many aircraft end up in Oregon for a while and then come home to California.

 

[rattanw]

I tried to buy an inventory MXP at the end of 2022. I got the same message on the website. I randomly spoke with the regional sales manager that day and she was able to make it happen for me.

As she explained, there is enough demand for Tesla that they want to avoid shipping cars all over due to time and logistics PITAs.

They’re trying to keep cars in certain hubs since demand is sufficient. But a manager can override this.

I have zero clue if this is accurate but it is what I was told.

Do you have the contact for Regional Sales mgr? I am having no such luck. I booked a MY 7seater two weeks ago. I tried to reach multiple people at Tesla via phone and today even walked directly in to Tesla NY location. I was politely but firmly kicked out LOL . According to this Tesla manager (unsure of designation) Tesla cannot legally offer out of state vehicles for sale in New Jersey. There is no way around this. And apparently I cannot speak to anyone higher up within Tesla as well on this.

 

[CapeOne]

According to this Tesla manager (unsure of designation) Tesla cannot legally offer out of state vehicles for sale in New Jersey. There is no way around this.

The "Tesla manager" is is incorrect. Below is a link to an inventory car located in Pennsylvania yet New Jersey is one of the states listed as where it can be registered.

Inventory | Tesla

www.tesla.com

 

[B.Ellis]

Probably been discussed in the last but it is frustrating that car can only be registered in certain states. I am in Louisiana and already have to go to Tennessee to pick up. Why is that? I mean take my money!

 

[MY1stEV]

Probably been discussed in the last but it is frustrating that car can only be registered in certain states. I am in Louisiana and already have to go to Tennessee to pick up. Why is that? I mean take my money!

I believe the LA legislature passed a law several years back banning manufacturer-to-consumer car sales in the state.

 

[CapeOne]

Probably been discussed in the last but it is frustrating that car can only be registered in certain states. I am in Louisiana and already have to go to Tennessee to pick up. Why is that? I mean take my money!

There are basically two matters here. One is related to state laws which prohibit/restrict the operation of manufacturer-owned dealerships in the state. The other (and the topic of this thread) is about Tesla's own restrictions on where new inventory cars can be registered which I have yet to get a reasonable answer for. One explanation for the latter has been that Tesla wants to balance/manage the availability of inventory cars and therefore limits where certain cars can be registered but I'm not convinced that's the reason.

 

[HankLloydRight]

I think they just want to minimize shipping costs and make it sound like it's a 'legal' thing most people won't question. But a few people have already said they've been able to work around it.

 

[CapeOne]

I think they just want to minimize shipping costs and make it sound like it's a 'legal' thing most people won't question. But a few people have already said they've been able to work around it.

It's the customer who pays the shipping cost. If there is a particular inventory car at another location which a customer wants and they are willing to pay the shipping, why would Tesla not want to allow the customer to do so and get the car they want quicker?

 

[HankLloydRight]

The customer only pays shipping costs on used inventory, not new. I’m pretty sure they legally can’t charge extra shipping on new cars above and beyond the fixed and federally mandated“destination fee”.