Possibly. I don't know the regulations on buying a car out of state and possible taxes. But I've never really heard of someone setting up a deal through a dealership like that It just seems rather queer. Who knows, he might be using his position at the dealership to do these kinds of transactions and not have to put titles in his name in order to buy/sell cars and not get flagged by the state as a dealer himself. If that makes sense. In that case, then I wouldn't see it being a problem if you're OK with the price and everything. The only "shady" part might be on him using the dealership to process titles so he doesn't get in trouble with the state for buying/selling too many cars, personally, in a year....but that shouldn't effect you or the car.