Sales taxes on new purchase... - Camaro5 Chevy Camaro Forum / Camaro ZL1, SS and V6 Forums

CamaroJim56 · 01-16-2013, 06:00 PM

Don't see a better place for this post, so here it is.

Read something on here a while back along these lines, so that is why I am asking.

Could be different from state to state, I am interested in Virginia.

Here goes.

Is the state sales tax charged different for a cash sale or when you use a trade-in?

Someone alluded somewhere that your sales tax is less with a trade-in.

Anyone know?

Thanks,

Jim

motorhead2011 · 01-16-2013, 06:03 PM

In illinois you are taxed on the final price after trade-in.

ec1990 · 01-16-2013, 06:10 PM

a

Quote:

Originally Posted by CamaroJim56

Don't see a better place for this post, so here it is.

Read something on here a while back along these lines, so that is why I am asking.

Could be different from state to state, I am interested in Virginia.

Here goes.

Is the state sales tax charged different for a cash sale or when you use a trade-in?

Someone alluded somewhere that your sales tax is less with a trade-in.

Anyone know?

Thanks,

Jim

In most states the trade-in value is taken off before sales tax is applied.
So for example a car costs $30,000, you trade in a car for $20,000, you're only taxed at X% Sales tax on $10,000.

You'll get more money on the private market, but if it's not much more than a trade-in offer you may lose money if you don't include the money saved on sales tax.

Chi-One · 01-16-2013, 06:12 PM

Motorhead is correct regarding IL. You should contact your state Dept. of Revenue.

dkp2LT · 01-16-2013, 06:14 PM

http://www.dmv.virginia.gov/webdoc/c...hicles/sut.asp

skibik · 01-16-2013, 06:44 PM

Not sure but I would think it would be the same in all states. Here in Minnesota you pay tax on the cash you invest. If there is no trade you are taxed on the full price you negotiated for. If trading in you pay tax after the trade has been subtracted.

Dean.

dkp2LT · 01-16-2013, 06:47 PM

Quote:

Originally Posted by skibik

Not sure but I would think it would be the same in all states. Here in Minnesota you pay tax on the cash you invest. If there is no trade you are taxed on the full price you negotiated for. If trading in you pay tax after the trade has been subtracted.

Dean.

Basically the same not 100%. Some states say you must trade your car with the same person to take the sales tax credit. Other states, like Missouri, you can sell to one person, buy from another, and only pay sales tax on the difference. I noticed in VA that the sales tax also includes dealers fee - which since is a service and not a product is a rip off.

Buckbo · 01-17-2013, 07:14 AM

Delaware doesn't have a sales tax (7% income tax) but on cars in addition to registration and tag fees we pay a 3.75% sales tax on the price paid, minus trade-in.

JimE · 01-17-2013, 07:31 PM

It's likely like that in most states as you have already been taxed on the vehicle being traded.

FINALLYSATISFIED · 01-20-2013, 11:42 AM

VA sales tax is expensive plus you pay property tax each year for your vehicle. I have NC sales tax and military so I only pay 3% of the difference of my trade and no vehicle property tax.

belladabin · 01-21-2013, 01:45 AM

agree with you,Motorhead is correct regarding IL. You should contact your state Dept. of Revenue.

Blue17CamaroZL1 · 01-21-2013, 01:54 AM

ec1990 has hit it square on the head here in NJ. Even if you aren't fully paid off, you only pay sales tax on the difference between car price and trade price:

I had a 2008 Colorado that I traded in for the 2010 Camaro. I owed $18K+ on the Colorado, and the Camaro was selling for $31,900. The dealer gave me $20K for the trade in of the truck, so even though the dealer was paying off the remaining $18K+ that doesn't factor into the sales tax (at least here in NJ).

So my sales tax was the difference between $32K+ (for tags and docs) - $20K @ 7%.

Dr. Evil · 01-25-2013, 03:47 PM

In Tennessee you are taxed on the difference only. Military in TN dont even pay sales tax.

01-16-2013, 06:00 PM	#1
CamaroJim56 Obsessed Drives: 2016 Hyper Blue 2SS RS Join Date: Jun 2011 Location: Riverview, FL Posts: 2,603	Sales taxes on new purchase... Don't see a better place for this post, so here it is. Read something on here a while back along these lines, so that is why I am asking. Could be different from state to state, I am interested in Virginia. Here goes. Is the state sales tax charged different for a cash sale or when you use a trade-in? Someone alluded somewhere that your sales tax is less with a trade-in. Anyone know? Thanks, Jim __________________ 2016 Hyper Blue 2SS

01-21-2013, 01:54 AM	#12
Blue17CamaroZL1 650HP soon to come Drives: 2017 Chevy Camaro ZL1 Join Date: Jul 2011 Location: Sayreville, New Jersey Posts: 2,882 View My Garage	ec1990 has hit it square on the head here in NJ. Even if you aren't fully paid off, you only pay sales tax on the difference between car price and trade price: I had a 2008 Colorado that I traded in for the 2010 Camaro. I owed $18K+ on the Colorado, and the Camaro was selling for $31,900. The dealer gave me $20K for the trade in of the truck, so even though the dealer was paying off the remaining $18K+ that doesn't factor into the sales tax (at least here in NJ). So my sales tax was the difference between $32K+ (for tags and docs) - $20K @ 7%. __________________ 2017 Camaro ZL1 Hyper Blue Metallic A10, PDR, NAV, Premium floor mats

01-25-2013, 03:47 PM	#13
Dr. Evil Drives: 2013 SS Join Date: May 2011 Location: Tennessee Posts: 350	In Tennessee you are taxed on the difference only. Military in TN dont even pay sales tax. __________________ 2013 model 2SS LS3 1969 model wife. Factory stock, no mods. Redhead package. 2005 model son. Special ordered with the hell on wheels package.

01-16-2013, 06:03 PM	#2
motorhead2011 Drives: 2011 IPC,2014 GT500 Join Date: Jan 2013 Location: So.ILL. Posts: 69	In illinois you are taxed on the final price after trade-in.

01-16-2013, 06:12 PM	#4
Chi-One Drives: 2013 DUSK Special Edition Join Date: Sep 2012 Location: Glenview, IL Posts: 362 View My Garage	Motorhead is correct regarding IL. You should contact your state Dept. of Revenue.

01-16-2013, 06:14 PM	#5
dkp2LT Drives: '11 2SS, '11 C6 GS, '04 MDX Join Date: Feb 2012 Location: Kearney, MO Posts: 2,848	http://www.dmv.virginia.gov/webdoc/c...hicles/sut.asp

01-16-2013, 06:44 PM	#6
skibik Guest Drives: bbbbbb Join Date: Dec 2012 Location: bfe Posts: 713	Not sure but I would think it would be the same in all states. Here in Minnesota you pay tax on the cash you invest. If there is no trade you are taxed on the full price you negotiated for. If trading in you pay tax after the trade has been subtracted. Dean.

01-17-2013, 07:14 AM	#8
Buckbo Drives: 2010 Camaro Join Date: Jan 2009 Location: Wilmington,Delaware Posts: 432 View My Garage	Delaware doesn't have a sales tax (7% income tax) but on cars in addition to registration and tag fees we pay a 3.75% sales tax on the price paid, minus trade-in.

01-17-2013, 07:31 PM	#9
JimE Drives: 2013 2SS/RS/1LE Join Date: Apr 2010 Location: St Louis, MO Posts: 3,087	It's likely like that in most states as you have already been taxed on the vehicle being traded.

01-20-2013, 11:42 AM	#10
FINALLYSATISFIED Est.1775 Drives: '15 Challenger Hellcat (sold) Join Date: Sep 2009 Location: SoCal Posts: 5,502	VA sales tax is expensive plus you pay property tax each year for your vehicle. I have NC sales tax and military so I only pay 3% of the difference of my trade and no vehicle property tax.

01-21-2013, 01:45 AM	#11
belladabin Drives: camaro Join Date: Jan 2013 Location: NY,USA Posts: 6	agree with you,Motorhead is correct regarding IL. You should contact your state Dept. of Revenue.