Nissan 370Z Forum - View Single Post

LinPark · 02-21-2010, 12:32 PM

Wasn't sure the appropriate forum to post this in so ended up going with the General Discussion area (please move if needed).

I've been trying to rationalize this for the last few days and its not making any sense whatsoever. Here is the scenario:

Person A buys brand new 370Z from dealer and pays sales tax
Person A owns car for 2 months putting average wear on the car
Person A sells used car to Person B (who I believe has to pay sales tax)

Assuming I have everything correct in that scenario why in the world does Person B have to pay practically the same amount of sales tax as Person A? If Person A instead traded in the car on a new one they would deduct the trade in value from the overall price before applying sales tax so it seems to me that Person B shouldn't have to pay any sales tax at all.

I'm not trying to

here - I'm just trying to understand exactly how private party used car sales work since my research on the internet isn't returning me many hard facts in this specific area.

Thanks!

02-21-2010, 12:32 PM	#1 (permalink)
LinPark A True Z Fanatic Join Date: Jan 2010 Location: Columbus, OH Posts: 1,077 Drives: '17 Camaro 2SS A8 Rep Power: 23	Please Explain Used Car Sales Tax Wasn't sure the appropriate forum to post this in so ended up going with the General Discussion area (please move if needed). I've been trying to rationalize this for the last few days and its not making any sense whatsoever. Here is the scenario: Person A buys brand new 370Z from dealer and pays sales tax Person A owns car for 2 months putting average wear on the car Person A sells used car to Person B (who I believe has to pay sales tax) Assuming I have everything correct in that scenario why in the world does Person B have to pay practically the same amount of sales tax as Person A? If Person A instead traded in the car on a new one they would deduct the trade in value from the overall price before applying sales tax so it seems to me that Person B shouldn't have to pay any sales tax at all. I'm not trying to here - I'm just trying to understand exactly how private party used car sales work since my research on the internet isn't returning me many hard facts in this specific area. Thanks! Last edited by LinPark; 02-21-2010 at 01:42 PM.