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Buy a Tesla in Michigan?

Buy a Tesla in Michigan?

I really want to order a M3 in Michigan but am unsure if it will be able to be serviced and delivered to the state with our wonderful Governor demanding dealerships for the right to sell in the state. I know Tesla has a lawsuit pending but am worried about ordering at this point. Any thoughts or experience?
Greg

HockeyEV | 24 juin 2017

From my understanding you just have to plan ahead a bit. Not sure where you are in Michigan but first figure out where your nearest service center is and determine if you are willing to make that trip for service. On the Tesla website they say a service center in Detroit is coming soon.

Second, you can always order online and see where the nearest delivery option is or talk to a Tesla showroom rep and get your options. Once you take delivery, you register it like any car.

Its doable, just need to see where things are and how to make it work.

KP in NPT | 24 juin 2017

+ You take delivery in a nearby state.

It would be nice if all MI residents who want to buy a tesla would jump through these hoops that the state is forcing them to go through as a nice FU to them and the automakers.

LA-Fohlen | 24 juin 2017

I got the same problem here in Texas. I don't know what those lawmakers were smoking when they made this decision.

topher | 24 juin 2017

"I don't know what those lawmakers were smoking"

Hundred dollar bills... from all the bribes.

Thank you kindly.

LA-Fohlen | 24 juin 2017

Must be because smoking the stuff that is now freely available in more and more states would probably lead to a more educated decision.

INGRAMATIC | 26 juin 2017

Thanks for the input from all of you. I thought it will be jumping through hoops but think it is worth it. I do not know how the state can dictate how an US manufacturer can be told how to run it's own company. States rights I guess with R legislature and Governor. Hope Tesla has some legal firepower to put to bear on this foolish law in my backwards state of Michigan

dsvick | 26 juin 2017

@INGRAMATIC

Another thing you should do is, after you have the car, make sure you write a letter to your representative and let them know you had to go to out of state to make the purchase and that that state got your tax dollars (I don't think states shift dollars around) and that you were supporting job growth in that state vs your own.

ReD eXiLe ms us | 27 juin 2017

dsvick: Actually, the States do shift tax dollars around. Once he registers the car in his State of Residence, Michigan, they will get their tax money. Typically, States have their own reciprocal relationships with each other on matters such as this. The Presumptive Interstate Commerce Provision of the Constitution of the United States of America prevents one State from charging a tariff on goods purchased in another State, but Sales Tax on big ticket items are typically shared when it comes to the purchase of things like a Car, Boat, or Airplane. States are not allowed to bar their Citizens from making purchases in other States either. That's why it is possible to BUY a Tesla product in Michigan, even though Tesla is not allowed to SELL their merchandise there. So, as long as there is at least one State (California) that allows Tesla to SELL, everyone in the U.S. will be able to BUY Tesla products. It just won't be as convenient as it should be in places like Utah, Iowa, Michigan, and Texas until a Federal Court Ruling comes down in Tesla's favor.

dsvick | 27 juin 2017

Thanks Red, I didn't know they actually shifted the money around.

ReD eXiLe ms us | 27 juin 2017

I found some official information about 'reciprocal sales tax States with Michigan' via a Google search...

"The sale of a motor vehicle is exempt from Michigan sales tax if the vehicle will be titled and registered in one of the following exempt or non-reciprocal states. Exempt States: Alaska, Delaware, Montana, New Hampshire and Oregon. Non-Reciprocal States: Arkansas, the District of Columbia, Georgia, Maryland, Mississippi, Nebraska, North Carolina,Oklahoma, South Dakota and West Virginia. Non-reciprocal states impose a use tax even though the sales tax was paid in another state. To avoid double taxation, vehicles to be titled and registered in these states are exempt from Michigan sales tax." -- Instructions for Collecting Vehicle Sales Tax from Buyers Who Will Register
and Title Their Vehicle in Another State

https://www.michigan.gov/documents/485_72279_7.pdf

Apparently the amount due per vehicle varies dependent upon the State where you purchase. In particular, for California, per the above Sales Tax Table... There is NO allowance for trade-ins, and there would be a 6.5% Sales Tax applied in Michigan.

If I understand this correctly... If you reside in Michigan, you may have to still pay Sales Tax there even for a vehicle you purchased and registered in another State. That is, if there is no exemption applied.

High Plains Drifter | 27 juin 2017

Most consumers would not purchase a Tesla under those conditions.

ReD eXiLe ms us | 27 juin 2017

Yeah... Interesting that though 'independent franchised dealerships' for the Detroit Big Three outnumber Tesla locations in Michigan by HUNDREDS to NONE, they still go so far out of their way to make sure it is not easy to get one of these cars there. It is particularly amusing that they claim that Tesla would represent 'unfair competition' to them in the State...

Michigan Sales Locations by Brand
100 ___ Buick
_51 ___ Cadillac
148 ___ Chevrolet
131 ___ Chrysler
126 ___ Dodge
126 ___ RAM
143 ___ Ford
_61 ___ Lincoln

Heh. There are even still 33 locations to service Mercury, 13 for Pontiac, and 11 for Saturn left in Michigan. None for Oldsmobile or Plymouth that I could find, though.