OT: Buying a car in AK (Taxes)- Mtbr.com
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  1. #1
    HowtoOverthrowtheSystem
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    OT: Buying a car in AK (Taxes)

    I love my '97 Subaru Legacy, but I need more room.

    I read there is no sales tax in AK. Does this apply to new car purchases? I'm in the military and am currently over in Italy. I'm looking at getting a new Honda CR-V and I can purchase one tax-free over here. I'm trying to decide whether I should get one here or wait until I move to AK this summer to purchase.

    Do you pay a premium for vehicles just because you are in AK?

    Thanks for any input.

    Dave

  2. #2

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    Last time I checked there was a there was a 3 to 5k "market adjustment" that the dealers added onto the price of the vechicle. Of course this was for full size trucks it could be more or less depending on the vechicle.

    Since your in the military and overseas I'd suggest bying your vechicle through aafes and have it delivered to a dealer locally for pickup.

  3. #3
    HowtoOverthrowtheSystem
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    taxes?

    I saw some prices advertised online and they seem to be average.

    So what about the tax deal? Can I purchase a car tax free in Anchorage?

  4. #4

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    No sales tax in Anchorage.

    You may pay other premiums, but there will be no sales tax involved.

  5. #5
    Baked Alaskan
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    No sales tax, prices are pretty much in line with everywhere else. Some buy in the states and get them shipped up. Depends on what you're looking for. Only one Honda dealer in Anchorage, so sometimes there's not a lot of wiggle. But if you're prepared to buy they will deal.
    The red couch has moved from Alaska to Florida...

  6. #6
    The king is on fire
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    My friend is in the coast guard in Anchorage, I talked to him about his purchase of a new RSX type-S and as far as I know he didn't get too great of a deal on it...weither it be from taxes or whatever.

  7. #7
    HowtoOverthrowtheSystem
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    thanks

    I contacted some dealers in Anchorage/Fairbanks and they both had a better price than this guy over here in Italy. He was trying to sell me on the tax free thing but was trying to charge $1400 over MSRP. I'm not in a huge hurry so I can get a good deal.

    I also heard that used cars are overpriced up there, so if I wait to get the Honda there I can have the military ship my Subaru there. If I bought the Honda over here I would have to trade in/sell the Subaru or pay to ship it myself ($$$$!)

    Thanks for your input...can't wait to get to AK and hook up and ride with some of you!

    Happy Holidays
    (Auguri & Buon Natale)

  8. #8
    ABC Rec Div / STA Trails
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    Smile No Sales Tax in Anchorage, Minor in Elsewhere, Plus IM Testing

    Quote Originally Posted by daveIT
    I also heard that used cars are overpriced up there, so if I wait to get the Honda there I can have the military ship my Subaru there. If I bought the Honda over here I would have to trade in/sell the Subaru or pay to ship it myself ($$$$!)

    Thanks for your input...can't wait to get to AK and hook up and ride with some of you!

    Happy Holidays
    (Auguri & Buon Natale)
    Hi, Just a couple of other things to consider...

    Anchorage is one of the only places in the state without some sort of basic sales tax in place, but that also happens to be where most of the car dealers are. The ones out in Palmer and Wasilla charge a flat $25 or $50 tax and not a percentage, otherwise they would not be able to compete with Anchorage. I personally have found better deals out in the Valley for a the last couple of car purchases. Though most of the dealers out there are Anchorage extensions or are domestic car dealers.

    A lot of Anchorage dealers have now been boughten up by "Lithia", where just a couple years ago almost all of them were locally owned. Lithia is a huge dealer and from my shopping around they generally can outprice the locally owned ones on the more popular vehicles.

    The Subaru dealer up here does a very high volume, and Anchorage has almost triple (2.6 I think to be exact) the natural average the number of Subarus for the same population size (per captia). (Not just a myth, according to DMV stats). They have a real good reputation and a lot of my friends have boughten from there. The are owned by <a href="http://www.continental.subaru.com/en_US/">Continental Motors</a>, still a local company. They also own the Honda dealership across the street (Old Seward Hwy), from talking to the sales people at both places, the Subaru dealer has a lot more flexibility to also work with you than the Honda dealer as Honda has very specific rules they most follow. Lastly, on Subarus, if you have been an IMBA member for greater than 6 months, the local dealer up here honors the "at cost" deal the Subaru and IMBA have. Check the <a href = "http://www.imba.com/tcc/subaru.html"> IMBA site </a> for details.

    Lastly, if you are thinking of shipping a car here... Anchorage has IM requirements, if it doesn't pass, it doesn't get registered. The rest of the state I don't beleive does yet,but even if you live in the valley and commute into Anchorage they now require a IM sticker.

    Christopher

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