8 ms·
One thing to keep in mind, if your trade in has significant value, is that your trade in amount reduces the tax you pay on the new price. For example, if you b
by tmuir 12y ago
One thing to keep in mind, if your trade in has significant value, is that your trade in amount reduces the tax you pay on the new price. For example, if you buy a $25000 car, and have a trade in value of $10000, you only pay tax on $15000.
- ghaff 12y agoGood point. In my case, I basically only buy a new car when the old one is on its last legs so we're talking about $1K-$2K at most.
- jandrese 12y agoThat also assumes the dealer doesn't rip you off on the trade in, which is pretty rare. Selling the car yourself for cash is pretty much always better, even if you aren't a slick salesman type.
- dragonwriter 12y agoThis is not true in California; you pay tax on the whole price, even if part of it is paid via a trade in. http://www.boe.ca.gov/sutax/faqpurch.htm#9 http://www.boe.ca.gov/sutax/faqpurch.htm#9