Does trade-in value apply before or after tax in California?

Question

I want to buy a new car and I have a trade-in. On some dealership sales person said that trade-in value gets subtracted off the grand total of the new vehicle (after new car has been taxed). Is this true or it is a rip off?

Answer 1

That is a ripoff.
Trade is deducted from the price of the new, before sales tax is applied.
Unless your nutcake politicians changed the law so they collect double taxation.
You should only pay tax on the DIFFERENCE. You have paid tax on the trade-in once, and another buyer will pay tax again.