CA Resident buying an M5040 out of state

   / CA Resident buying an M5040 out of state #1  

muckdp

New member
Joined
Jun 13, 2010
Messages
24
Location
California
Tractor
2010 Kubota M5040HD
Good afternoon! So I've narrowed my choices for my new tractor down to either an M5040, or a NH TC55DA. I'm located on the Central Coast of California (Near San Luis Obispo), where prices are high, and selection is limited.

Right now I am borrowing dads 1980's Kubota M series. Based on my experience with Kubota, and all my research (Thank you very much TBN!), my first choice is the Kubota. I've also always been a fan of buying the "smallest of the big" instead of the "biggest of the small", and I think the M5040 fits that criteria nicely.

I have two local Kubota Dealers. The closest (10 miles) all but treated me like I had leprosy when I walked onto his lot asking (non $$$ related) questions. He won't be getting a dime of my money (I've since heard similar stories from other small hobby farmer friends). The second (60 miles) has been helpful. Unfortunately he doesn't have an M5040, in fact after looking at kubota stock said the closest one is in San Diego (7 hours away). However, he has a pretty decent deal on a NH TC55DA (2006, 500 hours, loader, Top n Tilt, R4 tires - $21k, with the 0%/60mo financing available from NH - we're still working on warranty) That is the exact setup I'm looking for.

We've been going back and forth on the NH, so basically the only remaining decent Kubota guy has become my NH guy. At this point I want to price shop the kubota, but its hard to negotiate two items at the same time with one dealer.

San Diego is further than Nevada, and about as far as Oregon, so I might as well look out of state. I've read several of the threads debating the merits and the blasphemy of out of state purchases. I understand why people might not be ok with it, both from a moral and logistical point of view. I'm OK with it from a moral POV, though. And to be honest, in this case, I value saving money over top notch service. Another hotly debated topic for sure, I'm very comfortable with that method when buying commodity purchases. With that said, I have some questions for other CA residents who have purchased out of state (or who tried and gave up?).

* Its my understanding that Kubota dealers are not allowed to deliver the tractor via a hired carrier, so basically they have to put one of their drivers in the delivery seat. How did you get around this?

* If you took the Kubota Financing, did your purchase get reported to the state of CA? Did you end up having to pay sales tax on the purchase? (I know the law here, I'm looking for practical experience).

* And the million dollar question, Where did you buy from, and did you get an awesome price? If you aren't comfortable posting prices in the public forum, I would welcome a PM with any pricing info you have for me!

I don't feel limited to western states other than the restrictions kubota puts on that it must be delivered by a dealer employee, so any ideas you have for me would be greatly appreciated. Thanks!

P.S. Yes I know that the Kubota won't be the same price as the NH. :) I recently paid off my '06 dodge cummins, so with 0%/60 month financing they'll both be less than the payments on my truck... At least thats the excuse I'm telling myself! :)
 
   / CA Resident buying an M5040 out of state #2  
I researched this issue pretty thoroughly when DW and I bought a motorhome a few years ago.

The real problem is that you have to take delivery out of state and then actually use the tractor out of state for six months before you can bring it into CA. You need to have fuel receipts or something to show you actually used it in the other state. A receipt from a storage facility is not sufficient.

I ended up paying the tax on the motorhome, because it was easier.

If you really want to do this, about the only legal way I can think of would be to purchase from an Oregon dealer and find someone who would "babysit" the tractor for you for six months. If he used it, even if only a few hours per month and could give you receipts for the diesel, you could get it shipped by someone like uShip after the six months is up.

Think about the tax saving vs. 6 months of payments, but no tractor, and 6 months of insurance, and then the shipping cost.
 
   / CA Resident buying an M5040 out of state #3  
but CurlyDave you had to register your motorhome to drive it on the streets of California. When was the last time you saw a tractor with license plates?:D
 
   / CA Resident buying an M5040 out of state #4  
When you finance a tractor Kubota will file with the city or state that you have a loan out on the tractor. With a car it gets added onto the title, but like you said tractors aren't titled. Does that info get shared with the tax department, I wouldn't know but there will be a record somewhere.

If you are allowed to buy something out of state and use it for 6 months then bring it into the state tax free I'm guessing what ever state you leave it in you will need to pay taxes unless you buy it in one state, say Nevada and then deliver it to a third state, say Oregon. That sounds like a lot of work.
 
   / CA Resident buying an M5040 out of state #5  
Try Barlows for Price, and I'm pretty they will deliver. You might also look for some posts by AKFISH I believe he lives in Alaska but buys in the lower 48 due to price. You might also consider buying the tractor and bringing it home. I'm sure you know someone with a truck and trailer.
 
   / CA Resident buying an M5040 out of state #6  
I bought my L48 out of state. It was about 1 1/2 years later that I got a call from the Board of Equalization (Not sure why the California tax agency is called that other than the obvious, to equalize). They told me they understand I bought a tractor and did not pay tax on it. I had to confess that they were indeed correct. I asked them what I needed to pay and they said the price I paid for it less handling charges which were not taxable. I payed them after subtracting out the handling charges. Those handling charges were enormous!
 
   / CA Resident buying an M5040 out of state #7  
If you buy in OR, there's no sales tax. If you buy in OR but finance through Kubota, they will notify the CA board of equalization, who will bill you. If, however, you can pay cash, borrow from some other source, etc., such that you hand cash to the OR dealer, nobody gets notified.
 
   / CA Resident buying an M5040 out of state
  • Thread Starter
#8  
I bought my L48 out of state. It was about 1 1/2 years later that I got a call from the Board of Equalization (Not sure why the California tax agency is called that other than the obvious, to equalize). They told me they understand I bought a tractor and did not pay tax on it. I had to confess that they were indeed correct. I asked them what I needed to pay and they said the price I paid for it less handling charges which were not taxable. I payed them after subtracting out the handling charges. Those handling charges were enormous!

That is helpful. Thanks!
 
   / CA Resident buying an M5040 out of state #9  
As the owner of a TC45, buy the Kubota. (that's all i have to say about that).

BTW My tractors have license plates. (required by law, commercial use in Colorado, ridiculously expensive)
 

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