Why You Should Register Your Car Out of State: New York Residents

Photo by Mike C. Valdivia on Unsplash

New York, New York. The Empire State. New York state of mind. So many things come to mind when you think of the great State of New York. New York City is the largest single city in the U.S., with nearly nine million inhabitants. It is host to many iconic features (Empire State Building, One World Trade, Statue of Liberty) and events (Broadway, New Year's Eve on Times Square).

I could go on for pages about NYC, and NYC is only one part of the state. Upstate New York is a different world with extremely wooded forests, off-grid living, and abundant snow. If that isn't your thing, you can always enjoy the beaches. It is a state that truly has it all.

But, of course, with that comes a fairly hefty cost of living. While we can't help you with all of the living costs, we can help you get out of some of the expense of owning a car or truck in the Empire State by registering your car out of state. 

Much like their West Coast rival, New York attracts millions of people because of the unique, inviting, and vibrant culture, but they are generally put off by the expense of living there and the exorbitant expenses. For example, New York State is about 40% over the national average in transportation expenses.

Framing the Problem with New York

Much like California, most of the large population of New York (the fourth largest in the nation at a little over 20 million) is made up of the enormous urban sprawl which is the NYC metro, which, across the four states that make up the metro, amasses over 19 million people. New York’s slice of that pie comes in at about half. 

Let’s talk about money because New York, New York is practically made of the stuff. The NYC metro's combined statistical area (CSA) has a gross domestic product (GDP) of about $1.8 trillion. This would place NYC as the eighth wealthiest country in the world.  So the generation of wealth is certainly not the problem. However, that does not mean that the average person in NYC is wealthy in New York State. 

The median income in NYC is $68,244, which is just barely above the national average of $67,521, an increase of roughly 1% above the national average. But when we look at the overall cost of living, you are looking at a statewide average of over 20% higher than average, and transportation is a whopping 40% over the national average. So that 1% over the national average is woefully inadequate for the stout increase in the cost of living. 

Photo by Clay Banks on Unsplash

New York City Versus New York State

To frame this for context, we need to look at the different areas of the State. New York is a relatively large state. While a substantial part of the area is made up of NYC, that does not constitute the totality of the State, geographically or geopolitically. 

It is a land of stark contrasts; Hamilton County has one of the largest areas of a country in the entire State, yet has a population of fewer than 5,000 people, whereas New York county has an area of only about 33 square miles and has a population of around 1.5 million. 

The tail that wags the dog is the political power player in the NYC counties. In New York State, we see six counties with over one million inhabitants, and the tempo they set is what runs the tempo for the State. So when you have a metro that produces as much capital as NYC, the rest of the State will be wagged by that tail. 

Registering Your Car in New York

What does this have to do with out-of-state car registration? Much like California, which the Bay Area and L.A. direct, vehicle registration requirements are driven by the coming and going of NYC. While it might make sense in dense urban areas, it makes absolutely no sense in an unpopulated rural county hundreds of miles from the city.

So, let’s talk about the registration process and fees. 

New York Car Tax

The most significant cost component of car registration is the tax burden for registering your car or truck. Not surprisingly, New York has some of the highest tax burdens in the nation for car registration. 

The State sales tax rate is a flat 4% across the board. So, what does this mean for you? Let’s go back to the law of averages. As of June, a new vehicle in the United States averages over $42,000. Of that, the State is going to get you for $1,690.32. But each city or county sales tax rate is different, and they vary widely. The highest is, predictably, is NYC, where you can expect to pay a hefty 8.88% on your car, coming out to $3,752.51. 

So, you may say that this is just the price you pay for living in NYC. But why should you have to see thousands of dollars go out the window just to tag your car? Besides, it is not just the city that is out of control. The average tax rate for cars in New York rings in at a whopping 7.915%, so no matter where you are in the State, you are going to shell out somewhere in the ballpark of $3,344.72 for your New York car registration.

But New York is a state of stark contrast. For instance, a few working-class Buffalo's living cost index points are under the national average.

New York has a lot in common with its West Coast rival. Millions of hard-working, blue-collar workers would rather spend their money on a better house, boat, or R.V., really just about anything but exorbitant sales taxes and registration fees. 

Photo by Nelson Ndongala on Unsplash

Most of NY Is Not NYC

And then take the bulk of NYC residents who do not make up that 1% or so involved in the $1.8 trillion GDP of the city. The bartenders and waitresses, the plumbers and firefighters. While the adage is popular to suggest that these folks can vote with their feet and walk, you have to consider that it just isn't that easy for everyone.  Please think of the blue-collar police and firefighters who are several generations deep in their respective brotherhood. It is not so easy to walk away from that, yet they are skewered in the city they love by costs of living that are astronomically high.

For instance, the overall cost of living index for NYC is approximately 85% higher than Dallas, Texas! The Dallas/Fort Worth metro is the fourth largest metro in the U.S. 

New York Vehicle Inspection Requirements

Now it's time to get down the nitty-gritty of the article: the New York car inspection program. New York has a high concentration of cars due to the extremely high population density. Some would undoubtedly question that this has more to do with political expediency than roadway safety and emissions controls, but that is neither here nor there. The truth is that if you register your car or truck in New York as a resident of the State, you will have to comply with state requirements. But, of course, that is unless you have registered it in South Dakota through our out-of-state registration service.

The New York State Vehicle Safety/Emissions Inspection Program

Here is the most accurate summary of the New York State vehicle safety and emissions program that you will find, straight from the source.

According to the sacred texts, i.e., the statute Part 79.2, “every motor vehicle (including a trailer, other than a mobile home trailer) sold or transferred for use on the public highways of this State by a dealer..must be inspected”. So there you have it: it gets inspected if it drives on the road.

Furthermore, according to §79.2 (C), “Every motor vehicle must be inspected and bear a valid certificate of inspection before an original registration, reregistration, or renewal registration for that motor vehicle may be issued.” Translated: your car has to be inspected to be registered. That also means that it has to pass the inspection before registration.

The State was kind enough to remind residents that they are free to get as many inspections as they want, as long as you have at least one passing inspection in a 12-month period. Oh, but you will receive a fee if you are overdue. For overdue stickers of less than 60 days, the fine will be between $25-$50; if it is over 60 days overdue, you are in it for $50-$100, depending on how generous they feel at the moment. Also, you will get dinged for an expired sticker by the meter reader, even if you have time on your meter.

How Much Will a New York Car Inspection Cost?

On the bright side, the inspection fees are a fixed rate set by Part 79, so at the very least, you shouldn’t have to worry about getting ripped off on this part of the deal. According to §79.7(c) (1), all motor vehicles with 15 or fewer passengers (i.e., church vans) and with a maximum gross weight of under 10.001lbs are $10. There are quite a few other brackets in the table, but this one is the most common and most likely to fit your situation.

So ten bucks is not exactly going to break the bank, but when you add that onto the initial tax averaging 7.915%, you can see how quickly this starts to add up. Remembering that transportation in New York State averages about 40% over the national average, usually not found in one lump sum, but more of a death by a thousand paper cuts.

New York State Emissions

Unsurprisingly, New York runs an emissions program very similar to that of California. The emissions test is conducted annually, in conjunction with the annual safety inspection. If your car passes the safety portion but fails the emissions component, they might say no to registering the vehicle until it comes back with a passing grade. And remember, if you get caught with a bad emissions test, you guessed it: you get fined.

New York conducts an OBDII emissions test on vehicles registered in the State, known as the New York Vehicle Inspection Program (NYVIP2). It is nothing more than a credentialed shop plugging in an OBDII reader and pulling the emissions information to see if the car matches what it’s supposed to be.

The Benefits of an Out-of-State Registration Package

We have thoroughly unpacked the issues that give pause to New York residents who must register their cars and trucks. Thankfully, we at Dirt Legal are the one-stop shop with the solutions to get you on the road with minimal fuss and a lot more green in your wallet.

Photo by Dennis Guten on Unsplash

Why South Dakota?

You are from Yonkers and have only heard rumors of South Dakota’s existence? That’s fine; you can still proudly register your ride in South Dakota. The wonderful freedom-lovers in South Dakota do not care that you happen to live a lot closer to Hoboken than Rapid City. There is no requirement to reside in the State of South Dakota or even provide proof of any residence at all. That’s right; they will register a car for anyone, anywhere in the United States, no questions asked. 

South Dakota has absolutely no inspection requirements. So say you just found a hot deal on a new ride, but it keeps failing the NYVIP2 OBDII test. South Dakota does not care. It is pretty straightforward as long as you ante up the 4% excise tax (unless you have paid at least 4% to another state). And, of course, no inspections. Not any of any kind. No safety or roadworthiness inspections, no emissions inspections. Just the 4% excise on top of the nominal fee for our services, and you are on your way. 

How Much Will I Save?

Great question. Let’s go back to the $42,258 new car. If you register it in South Dakota, you will only owe $1,690.32, plus our services for a total of $2,039.42 at the time of writing this article. So right off the bat, you are going to save a shade over $1,300, and you never have to worry about failing a New York State car inspection, or emissions check ever again. 

New York has many incredible things to offer, but practicality and affordability are not among them. The Dirt Legal car registration program is a great way to get you permanently out of the red and into the black by registering your car or truck.