Is it worth driving to other states to buy a new car?

[Anonymous]

We live in Virginia and will be purchasing a car for an adult relative to drive, the relative lives in West Virginia and we would be paying for most expenses (registration fees, insurance, and maintenance ...but not things like gas) We would prefer to not actually legally give the car to the relative--but rather just let him use it for now, but we are wondering if the financial advantage of actually putting it in his name (therefore the lower WV taxes) might be worth it.

Also, since we already know we'll be driving it several hours away, are there any areas that are known for having lower prices on used cars? For example, do dealerships in the DC area generally have a higher mark up than dealerships in...West Virginia, North Carolina, etc.?

Thank you.

[Anonymous]

OP here
If it makes a difference, the car we are considering is a Subaru Crosstrek.

[Anonymous]

Don’t be pound wise snd penny foolish. Give the relative the car. If they have an accident in it, you are putting all of your assets at risk since it’s “your car”.

[Anonymous]

I’m sure the answer is that dealerships in lower COL areas have lower prices. The price for the real estate for the lot is lower, you have to pay the employees (salespeople but also the cleaning and maintenance staff and people in finance — everyone) less. So yes, I’m sure it will cost less outside of the DC area. Taxes will differ significantly state by state though so check that first. If the amount you pay in up front taxes, title, registration is more in one place than another, that would wipe out COL differences.

[Anonymous]

Anonymous wrote:I’m sure the answer is that dealerships in lower COL areas have lower prices. The price for the real estate for the lot is lower, you have to pay the employees (salespeople but also the cleaning and maintenance staff and people in finance — everyone) less. So yes, I’m sure it will cost less outside of the DC area. Taxes will differ significantly state by state though so check that first. If the amount you pay in up front taxes, title, registration is more in one place than another, that would wipe out COL differences.

I'm not sure this is true. Car dealerships around the DC area do a lot of sales, so they need to make less per sale to cover overhead. I guess ideally you would find a large volume dealer in a lower COL area.

[Anonymous]

As a Virginia owner, you would have to pay the sales tax and Virginia car tax. The car tax is the main reason not to register/title the car in VA.

[Anonymous]

WV dealers usually sell fewer cars and mark them up more. In any case, all cars are expensive now, sometimes above MSRP. Also, I have owned cars in WV and in VA. Va has much higher yearly auto taxes (Fairfax County)which start high and drop a lot per year. WV has much higher insurance rates. For me it was a wash.