If I trade in my 04 TSX, do I get credit against sales tax on an 06 model? That is, do I pay sales tax on the entire cost of 06 or just the difference of trade in? I'm in Chicago if that matters.

Also, any idea of how much I'd have to pay? My 04 has 10K miles. I have CGP auto nav and would like to stay with that.

 

only 10 thousand miles??

 

DPZ, in Chicago You only pay sales tax on difference of trade in not the entire cost.I just did it in november when I get my Rl. BTW i am in Chicago to.

 

Thanks slawek65, good to know.

Yes, only 10,000 miles, don't drive to work. Any guesses at what my cost would be to trade up?

 

Also depends, will the 06 be Nav or non-Nav? Do you know how much they will give you for your car?

 

You're looking at at least a few grand. Even with the best pricing that we've seen so far on the 06, and assuming you get about $22000 for your TSX, then you're looking at about a minimum $5500 out of pocket before TTL if you go with a non-nav. With the nav, you'd be looking at about $6500 out of pocket.

 

Don't do it... not worth it my 2cents..

 

Prepare to be raped.

 

Well, I was hoping I could trade for an 06 with nav for something like $5,000, in which case it would be just over $200 a month for the two years that I've had the car, which doesn't seem too bad to me. Granted, I haven't put a lot of miles on it, so the cost per mile is high.

The bluetooth is the one thing the TSX didn't have that I really wanted when I bought the car. I loved the implementation in the TL but just didn't want the TL. I know something new is always coming out, but with the bluetooth (and other upgrades), I think I'd really be happy with the car for 5-8 years.

Also, I know that depreciation is highest when you drive it off the lot, but it also seems to me that at some point when the car can no longer be sold as close to new or "pre-owned", maybe 4-5 years out, that the value takes a significant hit too.

 

You're hoping to get >23500 for your trade-in? That's going to be pretty hard, considering someone just bought an 04 AT Navi for 22k...

My 04 AT/Non-Navi->06 MT/Navi deal worked out to be 11k OTD, and I had 35k miles on mine. But, since the car was already paid off, my monthly payments are only going to be 200 dollars for the next 5 years. That's not too bad since my insurance just dropped by 100 dollars a month from turning 25. I wasn't sure about waiting until the end of 2006 to check out the 2007 and see if I'd rather upgrade to that instead of the 2006, but if I did that then my car would have depreciated another ~4-5 thousand dollars. But in the end, I think with the new features, the manual, and the navi, I'll definitely be willing to drive the car for 10 or so years.

 

Yui,

Glad to hear you got an 06. What combo did you get?


DPZ,

My suggestion would be to sell your 04 yourself. With only 10k miles, you should be able to do pretty well. If you trade the car in, you'll take a bath in comparison.

Another suggestion is to wait 2 years and get the redesigned model. Based on what we have seen from the Sports 4 Concept, it should be a cool car.

 

Yeah, JeffS, that's probably the best idea for DPZ, to sell the car himself, especially with the low mileage. I'm getting an NBP/Ebony 06 6MT Navi.

I was not feeling the front fascia, headlights, or the rear of the Sports 4 Concept so that kinda pushed me into getting an 06. The overall shape is nice but meh on those parts...

 

But I think I lose the tax break if I don't trade in. I'll pay about 9 percent on $28K+ rather than on say $7K+. That's almost $2K right there.

Actually, the only reason this came to mind was the guy who sold me the 04 left a message suggesting this. I'm going to email him and see what he offers. I got a reasonable price on the 04 from him, so I'll see what I can get from him.

 

why not get something else?? even though tsx is a sexy car, and before you know it they will redesign it again, and this time it will be a massive change.

 

Well, here's what you can do. Get the best deal you can on the 06 that you want, and see how much they'll give you for your trade-in. Then do some simple math

[(06 Selling Price - 04 Trade-in Price) * 1.09] vs [06 Selling Price *1.09 - Private Sale Price]

The tax break is only worth it if you think you can sell the car private party for much more. Seeing as how yours is only 10k miles, I think you'd definitely be able to get a lot more for it than what the dealer is asking.

By the way, 9% sales tax? Ouch. 7.1% here.

 

Wait and trade for '08.

 

Very good. I kind of wish I would have gotten the 6MT, but in LA that is not a good idea. When you do pick it up?

 

What state do you live in to be taxed 9%? New York? In CA trading a car in has no effect on your sales tax, so if you can lower your sales tax then work the trade. I think our tax in my city ended up being 8% on the car.