Quote:
Originally Posted by rainfall
Quote:
Originally Posted by BEM-S4
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.
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that's helpful, thanks.
In my case I don't see it making a big difference. If I were to trade in my car, I would lose more with the trade in value than the gain of the tax credit. |
Yeah that's the tradeoff. If you sell privately no way to combine, carmax yes.
Said another way say dealer is offering you like $1k less than private party on trade. You actually may be better off doing that if trade is $20k and you avoid $1500 in taxes.