Why are supercar owners registering their cars in Montana?

Many American supercar owners have Montana license plates for a very specific reason.

Montana is a state renowned for many things – ranchers, mountains and all things outdoorsy.

The Big Sky Country has also developed a reputation for cars too.

So, what’s behind this increasingly common trend?

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Why are Montana license plates on the rise?

LLCTLC, a Montana company specializing in limited liability company (LLC) registration, provided several reasons for this phenomena.

They pointed to the northern state’s lack of sales tax as a big draw for supercar enthusiasts.

Montana is one of five states with no sale tax, alongside Alaska, Delaware, New Hampshire and Oregon.

Given that supercars already carry a hefty bill, it’s understandable why buyers would want to avoid the additional expense of a tax.

A $500,000 car with a 8.53% sales tax – like you’d see in New York – would land a driver with a sales tax of $42,650.

Factor in that many states have both local and state-wide taxes, and you can see how it quickly becomes a financial headache.

The states with the highest sales tax are Louisiana, Tennessee, Arkansas, Washington and Alabama.

With 45 states enforcing this tax, it’s clear why many supercar owners have taken their business up north.

It doesn’t hurt that the state has also a booming car culture – this graveyard filled with post-war classics has been drawing in enthusiasts for years.

The Treasure State also offers some very low registration fees.

By way of comparison, buying a $1.5 million McLaren P1 in California would land you with a $120,000 bill for the license plate alone, as reported by hotcars.

Registering a P1 in Montana would cost roughly $200, which is a huge difference.

So ultimately, it’s a matter of saving money.

What else is influencing drivers to register in the Treasure State?

Ironically, most of these cars will have never driven on the road of the state plastered over their license plate.

Not that this is an issue – the state doesn’t require a mandated vehicle inspection.

So drivers don’t even need to travel to the state to register there.

This loophole can carry risks with it, as you might expect.

Say you get into a car crash driving through Florida – your insurance company might want to know why you have a Montana license plate.

This could lead to your claim being denied, which isn’t a good place to be.

In addition to this, there is the chance that Montana could change this rule or the other states could start cracking down on it.

In fact, California even set up a program for residents to report neighbors with out-of-state registrations.

Loopholes are nothing new and people have been using them since the dawn of time.

This driver managed to get one over on London’s congestion charges by driving a tank through the streets of the capital.

There was also the case of the guy using a loophole to snag himself a Tesla Model 3 for less than $14,000.