Quote:
Originally Posted by rainfall
Quote:
Originally Posted by BEM-S4
Say your new car is $50k and your trade is $20k just to use round numbers. You'd pay tax on $30k. Which is what you're saying. Sell to private party you pay tax on $50k.
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I have never bought a used car in the US... who pays for the sales tax? Isn't usually the buyer? |
Yes buyer always pays tax (unless weird in some states that I'm not familiar with). Buying a new car though when you trade it reduces the tax on the new car. You're basically getting a credit for the tax you already paid on the car you are trading.