When I Trade-In a car, do they deduct the price off of my new car?
#1
When I Trade-In a car, do they deduct the price off of my new car?
Thinking if Trade-in is worth it.
If I trade in my car at the dealership, would they subtract the value of my trade in from the car?
If I Trade in
$26537 - TSX Invoice Price with Navi
-$12475 - My Car's KBB Trade-in Price
-----------
$14062 - Total after deduction
x1.0825 - CA TAX
+ 300 - Docs
---------
$15522 - Total for my car
If I go sell my car in personal ads
$26537 - TSX Invoice Price with Navi
x1.0825 - CA TAX
+ 300 - Docs
---------
$29026 - Total after buying TSX
-$13515 - My Car's KBB Private Party Price
---------
$15511 - Total for my car
If they are the same, I'd rather go trade-in. Also... what's the likeliness that the dealer will pay me how much KBB quoted me or a private party paying me what KBB quoted?
If I trade in my car at the dealership, would they subtract the value of my trade in from the car?
If I Trade in
$26537 - TSX Invoice Price with Navi
-$12475 - My Car's KBB Trade-in Price
-----------
$14062 - Total after deduction
x1.0825 - CA TAX
+ 300 - Docs
---------
$15522 - Total for my car
If I go sell my car in personal ads
$26537 - TSX Invoice Price with Navi
x1.0825 - CA TAX
+ 300 - Docs
---------
$29026 - Total after buying TSX
-$13515 - My Car's KBB Private Party Price
---------
$15511 - Total for my car
If they are the same, I'd rather go trade-in. Also... what's the likeliness that the dealer will pay me how much KBB quoted me or a private party paying me what KBB quoted?
#2
Originally Posted by kenji4861
Thinking if Trade-in is worth it.
If I trade in my car at the dealership, would they subtract the value of my trade in from the car?
If I Trade in
$26537 - TSX Invoice Price with Navi
-$12475 - My Car's KBB Trade-in Price
-----------
$14062 - Total after deduction
x1.0825 - CA TAX
+ 300 - Docs
---------
$15522 - Total for my car
If I go sell my car in personal ads
$26537 - TSX Invoice Price with Navi
x1.0825 - CA TAX
+ 300 - Docs
---------
$29026 - Total after buying TSX
-$13515 - My Car's KBB Private Party Price
---------
$15511 - Total for my car
If they are the same, I'd rather go trade-in. Also... what's the likeliness that the dealer will pay me how much KBB quoted me or a private party paying me what KBB quoted?
If I trade in my car at the dealership, would they subtract the value of my trade in from the car?
If I Trade in
$26537 - TSX Invoice Price with Navi
-$12475 - My Car's KBB Trade-in Price
-----------
$14062 - Total after deduction
x1.0825 - CA TAX
+ 300 - Docs
---------
$15522 - Total for my car
If I go sell my car in personal ads
$26537 - TSX Invoice Price with Navi
x1.0825 - CA TAX
+ 300 - Docs
---------
$29026 - Total after buying TSX
-$13515 - My Car's KBB Private Party Price
---------
$15511 - Total for my car
If they are the same, I'd rather go trade-in. Also... what's the likeliness that the dealer will pay me how much KBB quoted me or a private party paying me what KBB quoted?
#7
One thing to think about also...when trading in a car, you only pay tax on the difference. So if you bought a 30K car outright, you pay tax on it. However, if you trade in a 15K car and buy the 30K car, you only pay taxes on 15K. Makes sense?!
If you sold your car outright, you have to pay full tax on your new vehicle. So if it's a difference of 500 to 1K, it might be better to just trade it in.
If you sold your car outright, you have to pay full tax on your new vehicle. So if it's a difference of 500 to 1K, it might be better to just trade it in.
Trending Topics
#8
Originally Posted by cmf
One thing to think about also...when trading in a car, you only pay tax on the difference.
Private party vs. dealer trade will not affect the sales tax you pay in California, which I assume the original poster is in based on his/her example.
#9
They offered me $3K below KBB on my Jetta, and $7K below KBB on the Audi A6. I negotiated to $8K on the Jetta (~$2K off). The car was in meticulous shape, but VW's simply don't hold value.
Consider yourself very lucky to get KBB.
Consider yourself very lucky to get KBB.
#10
Originally Posted by CDR
Private party vs. dealer trade will not affect the sales tax you pay in California, which I assume the original poster is in based on his/her example.
#11
Originally Posted by CDR
In California, and many other states, you pay tax on the full sales price of the car, not the difference between the new car price and trade in value.
Private party vs. dealer trade will not affect the sales tax you pay in California, which I assume the original poster is in based on his/her example.
Private party vs. dealer trade will not affect the sales tax you pay in California, which I assume the original poster is in based on his/her example.
Yet another reason I love living in Texas!
That sucks it doesn't work out that way in CA. I thought it would be the same across all states. Learn something new everyday!
#12
Originally Posted by slo007
They offered me $3K below KBB on my Jetta, and $7K below KBB on the Audi A6. I negotiated to $8K on the Jetta (~$2K off). The car was in meticulous shape, but VW's simply don't hold value.
Consider yourself very lucky to get KBB.
Consider yourself very lucky to get KBB.
#13
Originally Posted by CDR
In California, and many other states, you pay tax on the full sales price of the car, not the difference between the new car price and trade in value.
Private party vs. dealer trade will not affect the sales tax you pay in California, which I assume the original poster is in based on his/her example.
Private party vs. dealer trade will not affect the sales tax you pay in California, which I assume the original poster is in based on his/her example.
I found out the hard way. I traded in my old car for a new one. Got $12500 on a trade in, thought I would pay tax ONLY on the difference but NOPE. If you live in CA, you pay taxes on the full retail value of the car regardless of wheter or not you have a trade in......
#14
Originally Posted by CDR
In California, and many other states, you pay tax on the full sales price of the car, not the difference between the new car price and trade in value.
Private party vs. dealer trade will not affect the sales tax you pay in California, which I assume the original poster is in based on his/her example.
Private party vs. dealer trade will not affect the sales tax you pay in California, which I assume the original poster is in based on his/her example.
how about NY, anyone know s ?
#15
Originally Posted by blackjackman
how about NY, anyone know s ?
The "total sales amount" is the price you negotiate with the dealer, plus any extras. That's what you'll pay tax on in New York and most other states.
Incidentally, rebates are also considered part of the payment, not a discount off the sales price. If you buy a car with a rebate, you'll pay tax on the amount prior to rebate in most states.
Thread
Thread Starter
Forum
Replies
Last Post
Zonian22
Member Cars for Sale
3
11-14-2015 01:20 PM
Zonian22
Member Cars for Sale
1
09-02-2015 08:19 AM