| Author | Message | ||
     Xl1200r |
Having trouble finding this info... In New York State, when you buy a car and trade one in, you only pay tax on the difference (i.e., if you buy a $20,000 car and trade in one for $5,000, you only pay tax on $5,000). Does anyone know how it works if you live in New York State but the dealer you're buying from is in another state? | ||
| Sifo |
In IL you pay state sales tax on the difference. In your example wouldn't you pay tax on $15K, no $5K? | ||
| F22raptor |
I worked at a new car dealership for 25yrs.The-rule-of-thumb was that you had to make a $5000 pop on each trade.They do this by making you think (on paper) that they are giving you X-amount of dollars for your trade,but it is just "rolled" into the deal.what I am saying is that the tax you will save is not worth how much the dealer is going to "get in your pants",as they say.I am going to write a book as a in-sider how from the moment you step in the door,how they are making money off of you..Do not EVER,finance thru a dealer,if you only knew how that works...The F-and-I people made in excess of 250K! | ||
| Xl1200r |
Sifo, I meant tax on $15,000, my bad. F22 - I don't really need a lesson in 'tactics'. I know what my car is worth and I know what the one I want is worth... my concern is they're pretty close in value. If they have a "make a $5k pop" rule then they aren't getting my business. | ||
| F22raptor |
Sorry,just trying to help... | ||
| Xl1200r |
I didn't mean it like that... I have lots of family in the car bis and know how the tricks work (even have a brother who is a finance manager, lol), so I'm not worried about the deal so much as I am about what I'm going to owe DMV when I register the thing. | ||
| Toona |
The sales tax goes back to your resident state, even if you buy the car out of state. So your deal of $20k minus a $5k trade, you'd pay your taxable amount on the $15k difference. The out of state dealer should know how to do this. The out of state dealer will collect the NY state sales tax, then remit it back to NY. Depending on the dealer, you may have to write one check for the sales tax and a separate check to the dealer for their notary/dealer fees | ||
| Xl1200r |
Toona, I don't know if they do that for New York... I bought a bike in NH once and I had to take care of the tax on my own at the DMV the next day. The car I'm interested in is in Mass, so maybe it's different there? | ||
| Toona |
I think it goes back to the dealerships notary dept experience and whether they feel like doing it or not. My brother bought a HD in Maryland and they did all the paperwork/sales tax for him. They remitted the proper tax amount to PA. My father bought a car in VA and the dealership just issued him a temp tag and told him to do the paperwork on his own when he got back to PA... | ||
| Ratbuell |
When we sell out of state, Maryland has a "Verification of Residency" form that gets filled out. Basically, it tells Maryland why this particular sale didn't net any sales tax for the state - the vehicle left the state, and all taxes were collected by the HOME state once the owner and vehicle returned. If we finance, we include tax and tag amounts in the financing so the buyer is not out-of-pocket for the expense, and once we get funded we send the customer their "change", so they can pay their home DMV. Yes, tax is on the difference. Maryland has a $640 minimum purchase price. For ANY vehicle. In other words, they want their $38 if the vehicle is staying in MD. Look at the two states' DMV websites, see what they say. My guess, unless the dealer is right on the border...you'll get a temp tag and pay your dues when you get home. | ||
| Augustus74 |
Don't know, I usually pay the taxes upfront. | ||
| Dcc46 |
I'm in Ny. When I traded in my HD for my Buell in NJ ,i still got the same tax savings. 14k hd trade in value 12k new buell payed no tax when i registered it in NY I told them they actually owed me money ,but no luck. | ||
| Xl1200r |
Dcc, thanks, that's the exact info I needed. | ||
| Tiltcylinder |
You pay tax on the price you paid for the car in NY. The trade-in takes 5k off that price, so you pay tax on the 15k. If you buy out of state, you'll pay the tax when you go to register the car here in NY. It will be tax on the 15k, not the total. You already paid sales tax on the first car. | ||
| Xbniner |
It depends on the states themselves. As others have said, your tax is going to NY anyway, the only difference is whether the dealer collects it or if its up to you when you register the car. It's not up to the dealer, it is based on if your state reciprocates with Mass. Best way to find out is call the dealer (they have a list) or get on your state's website. |
