Do you have to pay sales tax when you trade in a vehicle and buy another that costs less than your trade?

Question

The car salesman said we do not have to pay sales tax because our trade is worth more than the car we plan on buying. I just want to make sure that it isn't one of those car salesman tricks.

Answer 1

If your trade would have been worth less than your purchase then you would have been paying tax on the difference, in your case there is no tax to be paid.

If your interested how dealerships appraise your trade go to this link on my web site http://www.usedcartips.org/TRDE.html

Answer 2

It depends upon the sales tax guidelines for your state. Check your state's sales tax info on its web site. Check also with the auto license branch as they need to make sure sales tax obligation is satisfied before they issue a license.

This may be true; then again it may not.

Answer 3

no if the car is less than your trade you wont have to pay the sales tax. even if it was turned around you counld get them to pay the sales tax by telling them they pay it or you walk. thats what i did and it worked. but to answer your question no their not poking your eyes

Answer 4

The amount of money you are taxed on would be the amount of the sale. If there is no amount, then there is no sales tax.

Answer 5

The revenues tax ingredient varies from state to state. the only ingredient approximately California is they have very strict emission regulations. the motor vehicle you purchase in MN will possibly no longer bypass the CA emission regulations once you bypass to sign up it. once you do purchase the motor vehicle, make constructive it truly is CA legal. stable success and have a secure trip.

Answer 6

Yes you do. Tax on everything you buy. It is a sales tax, sorry.