Online House Hunting

What are the financial benefits of buying a used car from a private owner vs a dealer?

I'm thinking of buying a used car for about $25k to $30k. If I buy - let's say a $30k car from a dealer in Mississippi, the sales tax will be $1500 (5%). But if I buy a $30k car from a private owner, there is no sales tax of course. My question is: Will I have to pay any additional taxes when I buy my tag if I go the private owner route?

Public Comments

1. Even if you buy in a state with no sales tax, you will have to pay sales tax in the state you live in -- assuming you don't live in Mississippi and your state has a sales tax on used cars. You pay at the time your register your car in your state.
2. MississippiSam, Maybe you need a new car. :) I found a nice list of Mississippi car dealers. I think someone in your town can help assist you. http://www.localnewcar.com/Mississippi-New-Cars.html Just call one of them or drop by one day when you are not busy. Some car dealers can even arrange a test drive.