How does this work?
Thread Starter
Advanced
Joined: Dec 2004
Posts: 72
Likes: 0
From: Stoneham MA
How does this work?
When trading down for a lower value car, where do you figure out the sales tax? I know when you trade up you pay the sales tax on the difference, but what about when you trade down?
Thanks in advance!
Thanks in advance!
Pro
Joined: Oct 2003
Posts: 639
Likes: 0
From: springfield missouri
I'm sure it depends on the state you live in. Here, you would have a credit due when tagging the new car at the DMV that could be used towards tax on another car within a certain time period or can be written off on your taxes at the end of the year. Contact the DMV in your state to see what they have to say.
Race Director
Joined: Mar 2005
Posts: 10,399
Likes: 26
From: Austin Texas
Look at how the State makes $$. (Assuming cash sales.)
$50,000 purchase = $3,000 @ 6% Then the next guy buys it @
$40,000 purchase = $2,400 @ 6% 2 years later, then the next guy;
$30,000 purchase = $1,800 @6% 2 years later.
The state makes $7,200 (+ license every year, + gas taxes every year)
$50,000 purchase = $3,000 @ 6% Then the next guy buys it @
$40,000 purchase = $2,400 @ 6% 2 years later, then the next guy;
$30,000 purchase = $1,800 @6% 2 years later.
The state makes $7,200 (+ license every year, + gas taxes every year)
Racer
Joined: Aug 2007
Posts: 304
Likes: 0
From: Ridgedale MO
Look at how the State makes $$. (Assuming cash sales.)
$50,000 purchase = $3,000 @ 6% Then the next guy buys it @
$40,000 purchase = $2,400 @ 6% 2 years later, then the next guy;
$30,000 purchase = $1,800 @6% 2 years later.
The state makes $7,200 (+ license every year, + gas taxes every year)
$50,000 purchase = $3,000 @ 6% Then the next guy buys it @
$40,000 purchase = $2,400 @ 6% 2 years later, then the next guy;
$30,000 purchase = $1,800 @6% 2 years later.
The state makes $7,200 (+ license every year, + gas taxes every year)
You ARE aware the goverment made stealing illegal because they were worried about competition aren't you??
Burning Brakes
Joined: Sep 2005
Posts: 864
Likes: 4
From: Clifton Park NY
