I financed $19452. I still owed $12, 703 on my trade-in, which I originally borrowed $15,000 for. The sales tax in my county is 6%. Do I pay the 6% on the total I financed (the $19452)?
2007-07-13 02:46:20 · 5 answers · asked by *~HoNeYBeE~* 5 in Business & Finance ➔ Taxes ➔ United States
The amount financed and the payoff on the trade-in are irrelevant to the tax calculation.
The tax is based upon the net sales price of the new car minus the trade-in allowance on the old one.
2007-07-13 03:41:53 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
The amount financed and what you owed don't matter. The sales tax is calculated on the final calculated sales price of the car minus what they gave you for your trade in.
Sales tax is paid on what the car is actually sold for. It doesn't matter what it's financed for. So, the amount you paid sales tax on is probably less than the $19K you financed.
Hope this helps!
2007-07-13 10:54:15 · answer #2 · answered by starlight_chic06 3 · 0⤊ 0⤋
I hate to give you a third answer, but I think that you pay sales tax on either the agreed price of the vehicle, or the agreed price less the value of your vehicle, depending on the state. I don't think that the amount financed is relevant.
2007-07-13 10:26:34 · answer #3 · answered by hottotrot1_usa 7 · 0⤊ 0⤋
No you don't. I'm in Nebraska and just bought a car. I paid sales tax on just the difference between what your trade in is worth, and what the new car cost.
2007-07-13 09:56:31 · answer #4 · answered by mustangamer 3 · 0⤊ 0⤋
yea you have to pay the 6% sales tax on the entire amount financed,i know that sucks.
2007-07-13 09:55:17 · answer #5 · answered by amy f 3 · 0⤊ 2⤋