Missouri Man Sells His Truck, Then New Driver Finds Out He Owes the DMV $3,300

Truck Trade Trouble in Missouri

A recent TikTok video by car salesman @RideOrbuy3, which has gained 33,500 views, reveals an unfortunate situation involving a Missouri truck buyer. It turns out this new owner owes $3,300 to the DMV after trading in a truck with a dealer.

“Customers trying to dodge sales tax often end up costing us,” the salesman noted. He bought the truck, which came with a clear title from South Dakota and a service history report, while the transaction occurred in Missouri.

After securing the title, he sold the truck again. However, the new buyer took the vehicle to the DMV, only to find that they had a significant tax debt awaiting them.

“Missouri sees the South Dakota title linked to a Missouri address and flags it. They think there’s sales tax due,” he explained.

He added, “Registered customers in South Dakota pay roughly 4% in sales tax, which contrasts with Missouri’s rate near 9%.” Hence, the difference sparked complications.

Missouri’s DMV won’t let the new owner register the truck until the debt is cleared. This leaves new owners somewhat caught off-guard, assuming all was well upon purchase.

“Sellers are understandably frustrated. They paid a lower sales tax in South Dakota but never lived there, so they feel unjustly stuck with this extra charge,” he shared.

Who Should Foot the Bill?

In response to the situation, one commenter remarked that the responsibility lies with the buyer for not being aware of the pending fees. Another chimed in, emphasizing that the finance department should have caught such discrepancies.

“It’s a business’s duty to ensure everything checks out,” said yet another commenter, who, with two decades of experience in the field, noted that dealers typically absorb such errors. While the previous owner might be asked for assistance in resolving the debt, convincing them might be another story.

The consensus seemed to lean toward the dealer being liable. However, the sales tax typically falls on the buyer when registering the car.

As stated by JD Power, “Sales tax is applied to all vehicle transactions, generally paid by the buyer at registration.”

Understanding Car Sales Tax

According to Private Auto, sales tax on vehicles ranges from 5% to 9%, based on the purchase price. Notably, five states—Alaska, Delaware, Montana, New Hampshire, and Oregon—do not charge sales tax on vehicle purchases, although local taxes may apply.