Nissan 370Z Forum - View Single Post

im89 · 08-19-2010, 06:26 PM

is it true that if you trade in a car you pay only pay tax on the difference? i live in new york. only reason im asking is because another memeber states so in a post and i thought this was true for new york i spoke to a lady at a dealership and she had no clue what i was talking about. just want to know if anyone in new york ever traded in and paid tax for the difference. thanks

"Do you recommend that consumers trade in? Or should they sell on their own?

Weismann: It depends on what they've got. If you bought right in the first place, you might have something to trade in that will bring a good price.

Mills: Heck, yes. It is quick and doesn't cost you as much as you might think, especially if you drive the right kind of car. Also, many states (all the ones I have worked in) give you credit for your trade when figuring sales tax. For instance, let's say you are buying a $20,000 car, and have a $12,000 trade. The sales tax in my state is 6 percent on cars. You will pay taxes on $8,000 in most states, instead of $20,000, for a savings of $720."

http://www.edmunds.com/advice/buying...4/article.html

08-19-2010, 06:26 PM	#1 (permalink)
im89 Base Member Join Date: Jul 2010 Location: NY Posts: 148 Drives: 2010 370z PW 7SP Rep Power: 15	tax break on trade in? is it true that if you trade in a car you pay only pay tax on the difference? i live in new york. only reason im asking is because another memeber states so in a post and i thought this was true for new york i spoke to a lady at a dealership and she had no clue what i was talking about. just want to know if anyone in new york ever traded in and paid tax for the difference. thanks "Do you recommend that consumers trade in? Or should they sell on their own? Weismann: It depends on what they've got. If you bought right in the first place, you might have something to trade in that will bring a good price. Mills: Heck, yes. It is quick and doesn't cost you as much as you might think, especially if you drive the right kind of car. Also, many states (all the ones I have worked in) give you credit for your trade when figuring sales tax. For instance, let's say you are buying a $20,000 car, and have a $12,000 trade. The sales tax in my state is 6 percent on cars. You will pay taxes on $8,000 in most states, instead of $20,000, for a savings of $720." http://www.edmunds.com/advice/buying...4/article.html Last edited by im89; 08-19-2010 at 06:42 PM.