Why Everyone is Registering Their Car in Montana

Why Everyone is Registering Their Car in Montana

[Engine Revving] – Seeing a Supercar in person is rare but have you ever noticed
when you see one in the wild, it always has either a
Montana or Vermont plate? Why are these cars
registered in these states? Are they tax havens? Are they good driving states? Are Vermont and Montana
the only states like this? Well join us as we figure out the reason Supercars are registered
in states the owner probably doesn’t live in and how that benefits
them in the first place. I love license plates. Here in the U.S., every state has their own so it makes it super easy
to spot out of state cars. But what you might not have been aware of is that some of these license
plates you were spotting, were not on the up and up. In fact, most of the time
when you see a Supercar or RV with Montana plates, it’s actually a rich person
from a different state. Who does think they’re better than you. You see, when you’re
making a major purchase, like a $3.3 million Bugatti Chiron Sport, the sales tax can be quite a doozy. For example, if you lived in L.A., you would have to pay about
$315,000 in taxes and fees. Now what if I told you
that you could buy the same $3.3 million Bugatti and only pay a few thousand bucks in fees as long as you bought it in Montana. Is that something you’d be interested in? Of course it is. You could use that leftover $314,000 to buy more silk toilet paper or whatever rich people spend money on. If I was rich, I’d buy flannel sheets. The reason for this is because
Montana has no sales tax. Oregon, Alaska, Delaware,
and New Hampshire are also tax-free but Montana is the best because they are the only
state that doesn’t require a physical inspection of the car. Montana also doesn’t
require emissions testing so you can roll coal without
fear of government retribution. And all this means you can literally buy a car in Beverly Hills and tag it 1,274 miles away billings without the car setting
tire outside of the 90210. [Engine Revving] This doesn’t sound very legal, does it? But you’d be surprised. While it is illegal to
falsify the owner’s address, there is nothing illegal about opening a shell company in Montana, purchasing a car or RV
through that shell company, and operating it in another state. In fact, there are a bunch
of companies in Montana that will help you do just that. Simply create an awesome fake
name like Nolan Syke’s Cyclery and come up with a kick ass slogan like “we’re psyched for syke’s cikes” and the service will take
care of the rest of the stuff like mailing address and what have you. But just a word of warning, while this is technically legal, insurance companies are
not fans of this method. A traditional auto insurer
may refuse to pay claim if they can prove that a car
resides in a different area than that is listed on the auto policy. Speaking of insurance, sometimes people like to tag
their cars in different states to save on premium. For example, if you live in New York, you’ll be paying and average of $1789 but if you tag your car in
Vermont or New Hampshire, you’ll only be paying
about $1100 for insurance. Smart. Another reason some people
plate their cars in other states has to with emission standards. [Engine Revving] Say you want to buy your
Uncle Ronnie’s used C7ZR1. Now, Uncle Ronnie is the type
of man who likes restaurants that allow peanut shells on the floor and the exhaust systems
that sound kick-ass. That’s led him to delete a few things from his exhaust system which may cause the car to fail
a California Emissions Test so what do you do? Simple. Tag that biscuit in Vegas, where the emissions standards are lower and then drive it to California. Disclaimer, I’m not a lawyer so maybe don’t do that. I don’t know. And just so you know, this isn’t some California thing. Someone in Pennsylvania can save money and drive a less polar bear friendly car if they tag it in Ohio. Or if you live in New Mexico, you can go to Texas. Or if you live in Hawaii, you actually, you’re kind of
screwed if you live in Hawaii but at least the scenery is nice. [Upbeat Music] So far we’ve been focusing
on out of state plates, but what about out of
territory plates, hmm? While it’s definitely not
as common to see plates from U.S. territories like
the U.S. Virgin Islands, some of the coolest cars
come from U.S. territories. That’s because you can
import cars into territories that you can’t import into the U.S. and here’s the kicker, it’s omega easier to import a vehicle from a U.S. territory than another country. Mind blowing, right? Right now the most common
way to get a great market car that doesn’t meet U.S. standards from crash tests, side
marker lights, headlights, safety chimes blah, blah, blah is to wait 25 years. We’ve done, I feel like
10 videos on that subject. You could also modify that
car to have all those things, argue that it is similar to an existing car in the U.S. market, or apply for a “Show
and Display” Exemption, but all those options can be surprisingly more difficult than they sound. So what if you want to own an illegal car like a, I don’t know, Land Rover Defender 110 in Oklahoma? You can either buy one that is over 25 years old and costs about 125 grand or you can buy a relatively new one for 60 grand in the UK then spend another 15 grand in shipping and importing fees to get that biscuit unicorn tagged in the U.S. Virgin Islands. Not only do you save 50K, you also get an upgraded vehicle. Sounds like very specific example, I’m not pointing fingers at anybody. That’s just an example. No one has done this. [Chiming] At this juncture, I just want to remind
everyone that we here at Donut do not condone any illegal registering or insuring of vehicles. As a matter of fact, it should be pointed out
that an attempt to skirt taxes, insurance premiums
and emission tests, can really come back to haunt you. [Engine Revving] Imagine going through all the trouble of buying that Defender 110 and getting caught. Not only would you be
facing some legal troubles, there’s also a good chance that Johnny Law is going to crush that Land Rover like it’s a 94 Sunfire with terminal rust. And that would be heartbreaking. At the end of the day, plating a car with out of state plates or in extreme cases, out of territory plates may not be worth the risk or headache but depending on the owner, the car, and the state of residency some delicious juices just
might be worth the squeeze. [Beep] – Oh, did you miss the
holiday shipping deadline? Ugh, no problem. Introducing Donut digital gift cards, with numbers in the ‘puter, give it your lovey-dove and hope you rock your donut by January. [Chiming Music] [Beep] I’m going to say it right now, if people paid their sales tax on that $3.3 million Bugatti, maybe our roads in L.A.
wouldn’t be so (beep). How about that? The one car that I would do
that territory plate thing is the Alpine 110, the new one. It’s like a rear-engine French car. Super sick. Might have to do that actually. Be nice, see you next time.

About the Author: Michael Flood


  1. Hold up I live in PA and it's been long known Ohio cars don't get inspected.

    We don't buy used cars from Ohio lol. So you're wrong with only 1 state doesn't have inspection.

  2. I live in Montana, man don't spread this around we got enough people from out of state coming here already. Don't give Helena a excuse to change the car laws too here..

  3. You have to have a gas/water line on land you own to do this. I sold new cars on the Idaho/Montana line. Most dealers will not do this unless you can prove it. Ironically most MT people that buy Chrysler/GM cross into ID to buy their vehicles.

    My wife was born in MT and can we can get permanent plates but Idaho is just as good for us.

  4. Trucking companies will register their trucks in north dakota, or oklahoma because they can pay a 1 time fee. So, you pay xxx dollars, and never have to worry about it again! This is popular in a lot of oilfield companies, because a lot of the HQ's reside in either one of these states. LOVE YOU GUYS. Solen18twitch.

  5. It is perfectly legal, Massachusetts tried to sue states that allowed this, they lost. Plus, if California didn’t suck so much when it came to modified cars, people wouldn’t register in other states.

  6. Yeah plus there are hella strait roads with no cops. Every one with race you. But donor it in the winter. You'll be screwed trying to drive our rods in a mclaran. But EVERYONE will pull you out of a ditch if you need it.

  7. Until you get pulled over and the officer how long you will be driving out of your state. If they see you again later..its over.

  8. Once one concedes that a single world government is not necessary, then where does one logically stop at the permissibility of separate states? If Canada and the United States can be separate nations without being denounced as in a state of impermissible ‘anarchy’, why may not the South secede from the United States? New York State from the Union? New York City from the state? Why may not Manhattan secede? Each neighbourhood? Each block? Each house? Each person?

    Murray N. Rothbard

  9. It’s insane that I just saw a Chevy crossover with a Montana license plate. Now I’m not sure if they are from there or just saving money

  10. Hmm. No one registers their supercar to Montana where I live. We have some LaFerraris in Washington, and a lot of supercars in general, and all are registered with Washington state plates.

  11. @donutmedia I live in Billings and I see at least 3 Ferrari’s a day in the summer and it’s Montana pretty frickin awesome

  12. You don't HAVE to have insurance. You can simply provide proof of fiduciary responsibility
    If you can afford to replace it, you don't need insurance anyway.

  13. This seemed like a perfectly informative and watchable video, up until I saw an apostrophe in what should be “sales.” I died a little inside.

  14. I work in insurance…and they WILL deny a claim if they find out about the different registration as they almost always ask for the registration to show ownership and where.

  15. Here in Australia the whole country has a luxury car tax of 33% (they deem luxury to be any car over about $67000 k AU or about $46,000US) , plus you have to pay a 10% GST (goods and services tax ) . Not only that depending on the state you are in you end up paying a heap of stamp duty when registering a car

  16. Does anyone know how to get a 3 cylinder VW TDI w/ 70 mpg fuel econ into the U.S.? EPA won't allow them here. All I need is the engine to install in a golf or Jetta.

  17. i dont think defenders are any different on the last models made than the ones 25yrs ago lol. except maybe a few interior bits and engines

  18. How the crap do you register a car you own in a state where you have no legal domicile? YOU CANT. You can only have 1 Drivers license legally.

  19. Tell uncle ronnie not to tag that vett in vegas but 40 miles west of vegas in Pahrump, or Nye county Nevada where there is no smog tests at all for cars. Thats right ZERO smog testing on anything ever!!!!

  20. As an insurance agent this is factually not true as this constitutes fraud. First, you have to demonstrate legal residency to register your vehicle in that state and second, your insurance company also requires full time residency in the state you are getting the insurance in (the insurance has to be in the same state as the registration or they will suspend your drivers license). Anything that deviates from this constitutes material misrepresentation and thus fraud.

  21. Every time I see a super car I see it registered in the state I see it in lol. Idk if this is a Cali thing or not but cool vid nonetheless.

  22. I guess they take their ques from criminal Trump that doesn't pay taxes and skirts the law and using the power of the president of the United States fire investigators and his mobster administration to defend him and protect him from justice!

  23. no this is still ILLEGAL in California. I looked this up once and ir the car spends most of its time (180+ days) in California, it must be registered in the state.
    You also cannot buy out of state to cheat regulations.

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