Originally Posted by Mr_Draco
Yea me too. This will be the 1st time I've ever bought a new car and I've not bought a used car in years. While I don't have any questions about the process of buying a new car, I am curious about the costs of tag and title and if tax on a new car is based on the states sales tax or if there is a different tax for new vehicles.
In TN it's 9.75% sales tax on the car, new or used. The thing to watch for here is if you have a trade in. Say the car is $30,000. The dealer says they're gonna give you $5,000 for your trade in (trade in allowance). Then you only pay tax on $25,000. (30,000 - 5,000 trade in allowance = 25,000).
That's how I figure if I should sell out right or trade the car in. I take the dealer's offer for trade in, add that together with the tax I'd save:
$5,000 (tia) x 9.75% (tax) = $487.50
$5,000 + $487.50 (tax) = $5487.50
So unless I could sell the car for $6,000 it' better to just trade it in and avoid the hassle.
Originally Posted by GoldFire
Well I have found a dealer that will give me $1000 over invoice. There is $1000 refundable downpayement. I know there must be more I should ask, just not sure what it is.
What's the doc fee? (I've seen this be anywhere from $100 - $500)
Is there a dealer prep fee? (I've seen this anywhere from $100 - $400)
Does that $1,000 over invoice include delivery fees? ($675?)
Remember to add in taxes (9.75% in TN to the purchase price). For a $30,000 car taxes alone are $2925 for me.
Don't forget to add in your tags.
That's all I can think of right now.