Sounds like a weird question. BUT, I'm buying a new car. I was hoping to have my Maxima sold by the time I bought the new one, but doesn't look that way.

My issue is this. My dealer is willing to do a courtesy trade - means if I sell my car privately, the dealer will handle the "sale" to the private party so I don't pay tax on that amount of money for the new car - just as if I were trading it into the dealer, but I get more money.

So, say I have a car valued at $10k, which I sell privately. I'm buying a car at the dealer for $30k. Dealer does the "trade" to the private party, and I'm only paying tax on the difference - $20k.

Now, since my Maxima isn't sold, how can I possibly get around this? I don't care if I have to sit on the Max for a month, but I don't want to have to pay the extra tax money ($10k = $600 in PA.) Thoughts? Even if I got the dealer down another $600 on the new car, I'm still "losing" $600.

www.buymycar.info

 

New Hampshire... but good luck getting this done. It violates a few different laws at the state and federal levels, so if the dealer does it he's taking a chance.

 

i don't know what the consequesnces are if you get caught.
you just gotta ask yourself if it's worth it

 

be a pastor

 

Chances are that if a dealer is doing this for you he is gonna get you screwed sooner or later.

 

That's what my grandfather and his friends did and they rob the government blind.

 

couldn't you buy one out of state to get past the state taxes? kind of like how you can buy stuff online and not pay tax.

 

I'm not sure how I understand it being illegal. As far as I know, if I traded my car into the dealer and they bought it for $10k and I bought a car for $40k, wouldn't I pay tax on only the $30k? And I assume that's legal since it's done everywhere?

The dealer is then turning the car around for no profit and selling it to a customer. Where's the legality issue?

 

No, you pay tax in the state that your register the vehicle.

 

sorry, when I read "buy a car with no sales tax" I thought you meant you were going to try to buy it where there's no sales tax and get it back to your state without paying. My bad.

Why is the dealer going to do this? Aren't they going to take a money hit somewhere? And they're not going to pass it on to you?

 

Alot of dealers will do this for their customers (Especially if they want to make the sale!) I've never heard of it being a problem for them later, otherwise, I assume they wouldn't do it.

 

The dealer will always make a profit on used cars. They are good at fudging numbers also. If they are selling the car on consignment, they will ask for more than what you are selling it for so they can make their profit.

 

It's true the "YOU" only pay tax on the net amount that the dealer writes the sale up for however he has to record the VIN & other data onthe trade..... so you realize that if the dealer is going to "handle" the sale to the private party the dealer is obligated to collect sales tax on the ten grand from the buyer. The state gets their due no matter what and I find it a little hard to believe that a dealership would risk a sales tax audit to do this.

Pay the tax and try instead to get something else out of the dealer - like a years worth of oil changes or even better a free 15 & 30K service on your new car.

 

the only way you can get by it that i know of, is if you get the dealer to "give" you the car as a "gift" in which case, you only have to pay a gift tax of about $5 or so. but you can go to jail for tax evasion or pay a fine or both, if caught. Just bigup and pay the tax. it's not worth the stress.

 

People here in WA used to drive down to Oregon and buy cars (no sales tax) then bring them back. The gov figured it out a long time ago and now as soonas you register it in WA, you pay the taxes...