BMW M3 and BMW M4 Forum - View Single Post - Trade-in question

Krish_1 · 01-05-2023, 03:59 PM

Hey all, been a while since I posted here, quick question on trade-in.

If I trade a car that I own that's worth $40K to a dealer, and buy a car that's worth $100K, I would only pay sales tax on the difference, which is $60K.

If I trade a car that I own that's worth $40K to a dealer, and lease a car that's worth $100K, would I pay only the difference in taxes on the difference? Or does it not work like that?

I have an opportunity to trade in my 2018 Imola M3 for an F90 M5 for a good deal, but I am being told that trade-in/lease doesn't work the same as trade-in/purchase. Am I losing it? I thought it was the same.

01-05-2023, 03:59 PM	#1
Krish_1 Second Lieutenant 117 Rep 240 Posts Drives: '18 IR F80 Join Date: Nov 2014 Location: NY iTrader: (0)	Trade-in question Hey all, been a while since I posted here, quick question on trade-in. If I trade a car that I own that's worth $40K to a dealer, and buy a car that's worth $100K, I would only pay sales tax on the difference, which is $60K. If I trade a car that I own that's worth $40K to a dealer, and lease a car that's worth $100K, would I pay only the difference in taxes on the difference? Or does it not work like that? I have an opportunity to trade in my 2018 Imola M3 for an F90 M5 for a good deal, but I am being told that trade-in/lease doesn't work the same as trade-in/purchase. Am I losing it? I thought it was the same.
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