akim47

I've been thumbing around the posts and been walking around various dealerships... found a decent '05 997 C2 that's CPO, but not a great price...

i thought i heard that if i trade in a car, that it would reduce the value that's used to calc the sales tax. is this true? i've never traded a car into the dealership before, but it may definitely affect my final decision as they gave me a decent offer on my car...

thanks.

jcnesq

Not true in California. Sales tax on the total price of the new car.

doctorpcar

It does where I am. I am not sure by how much but I believe you pay tax only on the difference of the value of the car you trade in and the larger value of the car you're buying. Which means if you trade it in for a car of lesser value you pay no tax? Can anyone confirm that?

Cope

In my state sales tax is 5% on autos. If you tade in a vehicle then you only pay sales tax on the difference of the 2 cars. This always makes the decision of trading-in or selling the vehicle on your own a little bit more tricky. What I do before I trade-in is see what the dealer is offering me as trade-in value, add 5%, and try to decide if I could sell the car myself for that amount or more.

akim47

thanks. hmmm... so i guess ill have to find out what the deal is here in CA.... lol.. i'd ask the dealer, but i suspect i wont get the best answer out of them... i've talked to downtown LA, rusnak pasadena, mckenna, and beverly hills porsche in so cal... everyone acts as if used porsches are "flying off the shelves"... is it really that true? is so cal really that immune what's happening in the larger economic landscape? geee... can a brother get a deal here? for the most part, the advice from rennlisters has been to get a CPO vehicle, but it's at such a premium it is kind of hard to swallow. either that or i may just have to delay the purchase of a car for a bit...

jhbrennan

I don't know the sales tax regs in California but you can bet if there is a benefit to trade, the sales guy will pitch it to you.

Da Hapa

Absolutely correct.

fast1

As others have stated, it depends upon the state. In MD they just raised the sales tax by 20% but they now allow you to deduct your trade from the amount on which you are taxed. When the sales tax was lower, you had to pay on the entire amount regardless of the trade. No doubt in a couple of years they will again tax on the entire purchase price.

p-cardriver

In MI you have to pay on the entire amount of the new car, and if you buy out of state you either have to provide a dealer receipt that it has been paid or bring your check book when you title/register the car.

p-cardriver

jrgordonsenior

And used cars too unfortunately....

stubenhocker

Oregon has NO sales tax on cars or anything else for that matter, but they eat you up on everything else!

Putt-Putt

This is almost an insult. Here's a state governed by thieves.

mitch236

WOW! So there's no incentive to trade a car in. You would think the dealers would try to change that. Also, there is less incentive to buy as opposed to leasing. If you lease, do you have to pay tax on the value or are you taxed on the monthly payment (we're talking about Cali)?

Here in Fla, when you trade you only pay tax on the difference. That makes total sense since you already paid tax on the full value of the car you are trading.

Putt-Putt

fyi In AZ no sales tax if you buy from a private party.

rmillnj

In NJ you only pay sales tax on the difference which is a big incentive to trade. Bascially you figure the cash value of your car is the trade-in price plus 7%. If the value of the trade in is equal to or greater than the price of the new car, you will pay no sales tax at all.