Here’s how smart buyers legally avoid sales tax on six‑figure vehicles

20 Dec 2025 · 1 min

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1:17

A short YouTube video by Dan Novaes explaining a legal strategy to avoid state sales tax on high‑value vehicles by forming a Montana LLC, titling and registering the vehicle to the LLC, and thus paying no Montana sales tax. The video gives a $300,000 RV example (saying a buyer would otherwise pay about $25,000 in sales tax in California or New York), contrasts that with an estimated $2,000–$3,000 cost to set up the LLC/registration, and notes attorneys offer services to implement the approach; not recommended for low‑value vehicles.

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What if I told you there's a way to legally skip $20,000 or more dollars in sales tax when buying a luxury car, RV or exotic vehicle? This isn't just a loophole, it's a strategy. And the savvy have been using it for years. It all starts with Montana. So you may have noticed why so many cars. RVs have Montana license plates. Well, I'm here to tell you. Say you buy a $300,000 RV in California and you're handing over $25,000 in sales tax before you even turn the key. Most states will hit you with anywhere from six to register your vehicle. But Montana, they charge zero sales tax. And there's a legal way to tap into that without even living there. Here's how the strategy works. You form an LLC in Montana. You title the vehicle under the LLC's name. You register the vehicle in Montana, you pay zero sales tax. You avoid inspections, admissions, and inflated fees. There are attorneys that do this for you. This is something that's super, super valuable if you're buying a vehicle that's six figures and above. Probably not very worthwhile to do if your vehicle is 5 or $10,000. So you're all in at about 2 to $3,000 as compared to $25,000 in the example about the $300,000 RV that we explained for California or New York. Sick of wasting all this money? Follow us and get all of our hacks for free.