How (and Why) to Immediately Register Your Ferrari or Lamborghini In Montana
Owning and operating a car is already a hassle. There are license and registration fees to budget for, annual inspections, and routine maintenance costs. And as if the cost of the car itself isn’t enough, you also have to factor in the additional sales tax.
Especially when it comes to buying a supercar, all these fees and taxes can be outstanding and amount to more than the actual price of the vehicle. Supply chain issues have also put a rift in the car-buying process. Due to chip and semiconductor shortages in 2021, prices for both new and old cars have skyrocketed, increasing nearly 40% over last year. According to Edmunds, the average used vehicle currently costs $29,000.
And with the current state of inflation seemingly going nowhere but up, buying a car in this market is more of a risk. So, how can car shoppers expect to find a good deal without sinking their bank accounts?
Fortunately, there are some solutions that car owners have already utilized. Hundreds of supercar enthusiasts are purchasing their vehicles free of sales tax. Additionally, they’re obtaining low licensing and registration fees, without having to worry about paying for pesky inspections each year.
But how is any of this possible? They’ve obtained a Montana car registration.
No, You Don’t Need to Live In Montana …
We know what you’re thinking: “I don’t live in Montana, so how does this apply to me?”
Lucky for you, this solution doesn’t demand you live, travel to, or operate anywhere in or near Montana. Whether you live in Los Angeles, New York, or Chicago, you don’t have to worry about transferring residency to obtain a Montana car registration.
Now, it’s likely your next question is, “How on earth is this legal?” Let’s analyze the legality of obtaining a Montana license plate, even if you live out of state.
Obtaining a Montana Car Registration: The Don’ts
There are a few factors to consider before immediately registering your car in Montana. Many car owners have made the mistake of being hasty, and run into trouble with insurance companies and local authorities. So, before taking any further steps, we advise you to consult with a legal professional.
Now, let’s get into the legality of obtaining a Montana license plate.
While an individual might think it insignificant to provide false information at the DMV or highway patrol, the government actually considers this an unlawful misdemeanor.
In the case of any state government, falsifying, altering, or forging your address or residency is completely illegal. The federal government also states this is a punishable offense, and doing so could result in thousands of dollars in fines or even jail time.
Also frequently referred to as “the wobbler offense,” knowingly making false statements or concealing information concerning your address of residency is completely illegal, and should never be taken lightly.
In more extreme cases, the government can impose felony charges. As Chambers Law Firm states, “If what a person does can be considered perjury, which essentially means lying under oath, then they could be charged with felony perjury. That comes with between two and four years in prison and fines of as much as $10,000.”
Of course, the chances of this happening to you are quite low, but it’s worth knowing what can happen if you don’t consult with a professional attorney before registering your car in Montana.
How to Register Your Car In Montana
Now that you know exactly what not to do, let’s discuss how to register your car in Montana. The first step is by establishing a limited liability company (LLC), or in this specific case, a “shell company.”
A shell company, as defined by Investopedia, is “a corporation without active business operations or significant assets.” While shell companies today are perfectly legal, they were originally used illegitimately, or to disguise business ownership from law enforcement.
Now, shell companies are legitimately set up to raise funds, acquire another business, give way to a company that intends to go public, or protect the assets of the company’s owner, such as a newly purchased luxury car.
In the case of registering your out-of-state vehicle in Montana, you would simply select a name for your LLC, open your shell company in Montana, and purchase your new car through that company. Even though you’d be operating the car in a different state, it would legally belong to the Montana LLC you’ve registered in Montana.
Other than that, there’s not much else to register your car in Montana. With the advice of a professional, setting up an LLC is a relatively simple process. Of course, we’ve answered the how, not the why …
So, here’s why you should choose Montana to register your car.
Why Many Register Their Luxury Vehicles In Montana
Sales tax: the pesky, annoying, and in most cases, a burdensome tax that the government sprinkles on to the purchase of nearly every product or service. Whether you’re buying a car, motorcycle, motor home, RV, truck, van, or any kind of moving vehicle, paying sales tax is never something any individual looks forward to.
The average U.S sales tax rate on vehicles is 4.78%, but depending on which state (and city) you live in, that number can fluctuate. For example, if you live in the small town of Chico, California, you can expect your sales tax rate to be around 6%. However, if you’re a resident of San Francisco, the sales tax is currently 9%.
So, let’s say you want to purchase the classy Ferrari Daytona SP3, whose current price tag is $2,250,000, you would have to pay an additional $202,500 as a resident of San Fransisco, or $135,000 in sales tax as a resident of Chico. Either way, that’s no small amount of money.
Now, we come to the biggest benefit of registering your car in Montana: there is no sales tax. Purchasing a luxury car is already a big decision, especially for your wallet. So, it’s understandable that any car owner would want to avoid paying extra hundreds of thousands of dollars on sales tax fees.
That’s why many consider Montana a tax haven. As one of just five states that don’t require sales tax, Montana is frequently coined as the best state to register your vehicle.
There is none.
Instead of drawing its funding from sales tax, Montana generates funding via wealthy property owners and energy producers, which — as an out-of-state car owner — doesn’t even affect you.
No Need to Worry About Expensive Maintenance Fees
As if no sales tax isn’t enough to convince you, Montana also doesn’t demand car owners conduct annual smog testing or inspections. Maintaining a car a luxury vehicle like a Ferrari or Lamborghini takes a lot of work and money. It isn’t just about the initial purchase of the car: An owner must consider all the potential future costs needed to keep the car operating smoothly.
For most states, the average cost of a standard inspection is around $150 to $250. But that isn’t an all-encompassing estimate. There are usually follow-up inspections and additional requirements that must be fulfilled. And especially if you own a luxury car, that price tag is only going to go up, reaching anywhere from $300 to $400.
However, according to the 1990 Clean Air Act, Montana does not have enough densely populated areas to demand such testing from any car owner. When considering just how expensive inspections can be, this saves car owners hundreds of dollars each year.
Say Goodbye to High Licensing and Registration Costs
Registering and obtaining a license for your car can be just as, if not more, of a burden than buying the car. Each state differs in its standard fees for licensing and registration. On average, these fees can be as low as $30, or as high as $300.
Various factors can determine the end value of those fees, and as mentioned throughout this article, buying a luxury supercar will only attract more expensive fees. Fortunately, Montana also offers all car owners affordable licensing and registration fees.
As Montana’s vehicle title and registration page outlines, your licensing and registration fee will vary on the age of your vehicle. For cars between zero and four years old, the registration fee is $217. Older vehicles are less expensive to register, with cars five to ten years old requiring an $87.50 registration fee — cars over 11 years old require only $28 to register.
Register Your Car In Montana Today!
Buying a luxury car should be exciting; the last thing a car owner wants to be faced with is hefty sales tax, expensive fees, and burdensome inspections. Fortunately, by registering your car in Montana, you’re rid of all three demands.
Now that you know all the benefits, we’re sure you want to start registering your car in Montana as quickly as possible. But before jumping in, it’s important to remember to consult with an expert. A professional attorney can ensure you set up your Montana LLC properly and guide you through the process of registering an out-of-state vehicle.
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