Trade in gs350 f sport?
03-11-13, 03:35 PM
#16
You have to pay sales tax in MD and VA if you move into the state whether your cars are new or not. Have to pay it on the book value. So, certainly also with a private sale.
NV has sales tax on dealer purchases new and used, but not private party sales
http://www.dmvnv.com/regfees.htm#sales
NV has sales tax on dealer purchases new and used, but not private party sales
http://www.dmvnv.com/regfees.htm#sales
If a vehicle is sold 5 times,the state get sales tax on that vehicle 5 times.Just isn't right.
Odd in NV that a used vehicle from a car dealer is taxable but not a private sale.
My brother lives in SC and he told me there's a $300 cap on vehicle sales tax which is nice.
Some states do charge a yearly registration fee of a % of the vehicle's worth.
Depending on weight class,in NJ it's around $65 or so but we get ripped off in other ways.Property taxes for one.I'm into the 5 digits on my home.
03-11-13, 03:55 PM
#17
Lexus Fanatic
The way they get around that is when you trade a car in the value of the trade is not taxed again on the cost of the new car. So, it works out that its not being taxed repeatedly.
But, if you sell it privately, you're hosed.
But, if you sell it privately, you're hosed.
03-11-13, 04:17 PM
#19
Your analysis is wrong due to faulty perspective. The value of the trade-in is certainly taxed. It is not taxed to the SELLER on sale, but it is certainly taxed to the BUYER on its eventual resale. NO transaction escapes taxation at some level unless someone is "fudging" on their fiduciary responsibility. If and when taxation is moved from sales tax to income tax, the government makes out like a bandit; taxes are assessed at federal, state, and often local levels, usually at much higher rates than sales taxes.
03-11-13, 09:18 PM
#20
Lexus Fanatic
Your analysis is wrong due to faulty perspective. The value of the trade-in is certainly taxed. It is not taxed to the SELLER on sale, but it is certainly taxed to the BUYER on its eventual resale. NO transaction escapes taxation at some level unless someone is "fudging" on their fiduciary responsibility. If and when taxation is moved from sales tax to income tax, the government makes out like a bandit; taxes are assessed at federal, state, and often local levels, usually at much higher rates than sales taxes.
Once the item is the property of the retailer and resold, its re-taxed. Same is true of consignment shops, second hand stores, etc.
03-11-13, 09:33 PM
#21
No, I think we're on the same page. My point was that the owner of the vehicle is only paying taxes on the value of that vehicle once, which is why the law stipulates that the trade value be taken into consideration for that owner.
Once the item is the property of the retailer and resold, its re-taxed. Same is true of consignment shops, second hand stores, etc.
Once the item is the property of the retailer and resold, its re-taxed. Same is true of consignment shops, second hand stores, etc.
In sum, the sales tax I paid to keep driving my $50k depreciating baby was on a total valuation of $135,000 (50+35+20+15+10+5). Now what were you saying about only paying sales tax on the value of the car just ONCE? Can you see how changing your perspective from that of a drive-by owner to that of the vehicle changes the tax? That's why governments LOVE charging sales tax on auto transactions and could care less about clipping the dealer. They'll get him on profits taxes
03-11-13, 10:00 PM
#22
Lexus Fanatic
Why the hell are you on my back all over the place? I am not presenting an opinion on whether or not the way vehicles are taxed is fair...I'm just presenting the facts on how sales tax is handled with vehicle sales.
If you buy Car A for $50,000, you pay sales tax on $50,000. If you trade Car A for $35,000 towards Car B which costs lets say $50,000...you are only taxed on $15,000 of the sales price of Car B, you get an exemption for the value you were paid for Car A because you have already paid sales tax on that value once. If you go back and trade Car B in on Car A again, and they give you $35,000 for Car B and Car A costs $35,000 or less...you pay NO TAX because the transaction is an even exchange.
Right or wrong, thats how it works. Now, if you sell the car privately and then go buy a car at a dealer, or sell Car A to a different dealer than the one you buy Car B from...you don't get the exemption.
If you buy Car A for $50,000, you pay sales tax on $50,000. If you trade Car A for $35,000 towards Car B which costs lets say $50,000...you are only taxed on $15,000 of the sales price of Car B, you get an exemption for the value you were paid for Car A because you have already paid sales tax on that value once. If you go back and trade Car B in on Car A again, and they give you $35,000 for Car B and Car A costs $35,000 or less...you pay NO TAX because the transaction is an even exchange.
Right or wrong, thats how it works. Now, if you sell the car privately and then go buy a car at a dealer, or sell Car A to a different dealer than the one you buy Car B from...you don't get the exemption.
03-11-13, 10:07 PM
#23
Did I forget to mention I am on a mission to eradicate innumeracy once and for twice? No? Well, we are.
03-11-13, 10:12 PM
#24
Lexus Fanatic
Did I forget to mention I am on a mission to eradicate innumeracy once and for twice? No? Well, we are.
In sum, the sales tax I paid to keep driving my $50k depreciating baby was on a total valuation of $135,000 (50+35+20+15+10+5). Now what were you saying about only paying sales tax on the value of the car just ONCE?
If you sold the car privately each time and then somehow it wound up on a dealer lot and then you bought it, then yeah...you paid taxes as you described.
Last edited by SW17LS; 03-11-13 at 10:36 PM.
03-12-13, 08:57 AM
#26
Pole Position
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Good info from this thread all. I thought that a new GS would run about 52 k. My Bro-In-Law wants one. I'll check the other sites such as KBB, Amex, Edmunds.
I thought about the GS before I bought my RX. I'm always picking up stuff at Home Depot,Costco. The room in the SUV is needed for me.
The emotional side told me to get the GS-F.
Well practical beat emotional.
I thought about the GS before I bought my RX. I'm always picking up stuff at Home Depot,Costco. The room in the SUV is needed for me.
The emotional side told me to get the GS-F.
Well practical beat emotional.
03-14-13, 04:34 PM
#29
lets keep this thread on topic... thanks for the understanding.
So I buy my dream car (CPO) for $50k and pay tax on it. A year later, I stupidly trade it for $35k off what I thought was my "real" dream car. Big mistake. So I sell the "nightmare" to the guy next door and head back to the dealer. He's still got my "baby" on the lot and its going for exactly what I sold it for - $35,000. Yiippee! I rebuy it for what I traded it in for and am taxed on $35k. Unbelievably, I do the same damn thing the following year and end up rebuying and paying tax on my baby's new price of $20,000. And again at $15k and again at $10k and again at $5k and then luckily, I total the POS when I fall asleep at the wheel in the Rocky Mountains. No, I was barely injured - thanks for your concern!
In sum, the sales tax I paid to keep driving my $50k depreciating baby was on a total valuation of $135,000 (50+35+20+15+10+5). Now what were you saying about only paying sales tax on the value of the car just ONCE? Can you see how changing your perspective from that of a drive-by owner to that of the vehicle changes the tax? That's why governments LOVE charging sales tax on auto transactions and could care less about clipping the dealer. They'll get him on profits taxes
In sum, the sales tax I paid to keep driving my $50k depreciating baby was on a total valuation of $135,000 (50+35+20+15+10+5). Now what were you saying about only paying sales tax on the value of the car just ONCE? Can you see how changing your perspective from that of a drive-by owner to that of the vehicle changes the tax? That's why governments LOVE charging sales tax on auto transactions and could care less about clipping the dealer. They'll get him on profits taxes
Why the hell are you on my back all over the place? I am not presenting an opinion on whether or not the way vehicles are taxed is fair...I'm just presenting the facts on how sales tax is handled with vehicle sales.
If you buy Car A for $50,000, you pay sales tax on $50,000. If you trade Car A for $35,000 towards Car B which costs lets say $50,000...you are only taxed on $15,000 of the sales price of Car B, you get an exemption for the value you were paid for Car A because you have already paid sales tax on that value once. If you go back and trade Car B in on Car A again, and they give you $35,000 for Car B and Car A costs $35,000 or less...you pay NO TAX because the transaction is an even exchange.
Right or wrong, thats how it works. Now, if you sell the car privately and then go buy a car at a dealer, or sell Car A to a different dealer than the one you buy Car B from...you don't get the exemption.
If you buy Car A for $50,000, you pay sales tax on $50,000. If you trade Car A for $35,000 towards Car B which costs lets say $50,000...you are only taxed on $15,000 of the sales price of Car B, you get an exemption for the value you were paid for Car A because you have already paid sales tax on that value once. If you go back and trade Car B in on Car A again, and they give you $35,000 for Car B and Car A costs $35,000 or less...you pay NO TAX because the transaction is an even exchange.
Right or wrong, thats how it works. Now, if you sell the car privately and then go buy a car at a dealer, or sell Car A to a different dealer than the one you buy Car B from...you don't get the exemption.
