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CA sales tax question on car purchase

Discussion in 'California & Nevada (Northern)' started by sjvalin, Oct 7, 2004.

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  1. sjvalin

    sjvalin Formula Junior

    Aug 31, 2004
    724
    Nevada County, CA
    Full Name:
    Steve Valin
    #1 sjvalin, Oct 7, 2004
    If one trades in a car to buy a more expensive car, is the tax based on the difference between the new car and the trade-in, or on the entire value of the new car? I was told it was the difference, but it was from someone in a nother state. I had never heard of this before in CA. I have bought many cars, but never actually traded anything in. TIA!

    -steve
     
  2. ben, lj

    ben, lj Formula Junior

    Aug 23, 2004
    594
    #2 ben, lj, Oct 7, 2004

    unlike most other states, there is no sales tax credit for trades in CA. iow, they *uck you for 100% of the new car regardless of what you're trading in. this is one of the several reasons that leases in CA (you only pay sales tax on the usage vs. 100% of the car) are often more advantageous than buying.
     
  3. sjvalin

    sjvalin Formula Junior

    Aug 31, 2004
    724
    Nevada County, CA
    Full Name:
    Steve Valin
    #3 sjvalin, Oct 7, 2004
    Thanks, Ben!

    I should have known CA would find yet another way to screw me over. At least the weather is nice... :)


     

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