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09-03-2008, 06:24 PM | #1 |
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trade in and tax question
hello,
quick question: if I were to trade in my M3 to a dealer for order of a 135i for $30k, and say the 135 was 37k, would i pay tax on the difference,7k or on the whole 37k? i've heard some people say this but wanted to make sure or if it just depended on the dealer or what. thanks for the insight. |
09-03-2008, 06:32 PM | #2 |
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The dealer will give you 30k for your M3 but the 135i is 37k?
If thats the case, yes, you will have to pay the 7k difference, sometimes they can add the difference to the loan but usually they dont.
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09-03-2008, 06:49 PM | #4 | |
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Quote:
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09-03-2008, 06:51 PM | #5 |
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If the sale price on the 135i is $37k, you would have to pay sales tax on $37k. The sales tax is based on the sales price of the car not the difference in the amount you would owe.
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09-03-2008, 06:52 PM | #6 |
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09-03-2008, 07:30 PM | #10 |
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Garage List 2018 I01 i3s | CURRENT [0.00]
2018 G01 X3 | CURRENT [0.00] 2017 I01 i3 | SOLD [0.00] 2017 F48 X1 | SOLD ... [0.00] 2016 I01 i3 | SOLD [0.00] 2017 F22 M240 | SOLD [8.00] 2016 F25 X3 diesel ... [0.00] 2006 E60 550 | SOLD [6.00] 2011 E90 335 | SOLD [8.66] 2012 E82 135 | SOLD [5.50] 2011 E82 1M | SOLD [7.94] 2007 E85 Z4M| SOLD [4.50] 2003 E53 X5 4.6is S ... [9.00] 2008 E92 328 | SOLD [0.00] 2008 E82 135 | SOLD [0.00] 2008 E90 335 | SOLD [0.00] 2003 E46 M3 | SOLD [7.50] 2006 E90 330 | SOLD [10.00] 2003 E46 330ZHP | SOLD [0.00] |
yah CA state board of equalization gets their hands on everything and yet the state is STILL BROKE! you dont get the benefit of the trade in allowance in CA, i looked into that already
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09-03-2008, 07:53 PM | #11 |
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Wow, that sucks. In GA, on a high-end car, its usually just about a wash on trading in a car vs. selling it outright because of the Sales Tax advantage. It seems like you would be A LOT better off selling the car on your own in CA.
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09-03-2008, 08:00 PM | #12 |
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Usually, if I do not have a trade-in I'll go buy a car to trade from an individual since here in GA no sales tax when the sale is between individuals.
Last year I purchased a MINI Cooper JCW from an individual for $27K with about 1400 miles on it; then, the same day I traded for a 335i...they gave me $30K in trade. That's $2K in profit plus another $2100 in sales tax savings (7% in GA)...not bad for a days work. Also, purchased a MCS from an individual in Nebraska for $14K, hauling bill was $500, sold $2500 worth of parts off of it (returning it to stock), took it in for 24K mile service and had almost $1500 worth of work done free. When I went back to the dealer two days later I traded it in for a new MCS Cabrio MSRP $32K, trade-in $19K. Made $7K profit plus $1330 savings in sales tax...total $8330 savings...not bad for two or three days work. And three people are happy, the individual, me and the dealer:wink: Play your cards right...in some states you can't buy from an individual and dodge the tax but in many you can. Cakk
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