06-07-2015, 09:06 PM | #1 |
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Payoff with sales tax ???? Help !!!
I have a 2015 m4 and was interested in trading it in.
I went online and got a payoff and it included sales tax. Balance = 72,188.74 Sales/Use tax= 3,878.19 Total lease payoff = 76,066.93 So if I trade in this car to a dealer do they pay the balance or total payoff ?? I'm in New York state. What if I go out of state ?? Is the dealer payoff 72,188.74 ?? Or they have to pay off 76,066.93 ? I get the part where my car isn't worth either Let's say I get 67k for my trade , am i 5k upside down or 9k upside down Help please !!! Last edited by Enzoyama_; 06-07-2015 at 09:34 PM.. |
06-07-2015, 09:29 PM | #2 | |
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06-07-2015, 09:29 PM | #3 | |
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06-07-2015, 09:31 PM | #4 | |
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I get the upside down part. But if I trade to a dealer is it 72k or 76k as my payoff. |
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06-07-2015, 09:35 PM | #6 |
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06-07-2015, 09:35 PM | #7 | |
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OP- if you want to trade it in, you will be required to pay the sales tax on the remaining balance of the vehicle (its like you're buying it out) but you will also get the sales tax as a trade in towards the new vehicle |
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06-07-2015, 09:36 PM | #8 |
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incorrect. just traded in a lease to CarMax, sales tax was removed from payoff. CarMax is a dealer. All dealers don't pay sales tax because their buying volume is > a specific amount.
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06-07-2015, 09:50 PM | #10 |
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06-07-2015, 10:27 PM | #13 | |
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06-07-2015, 11:45 PM | #14 | |
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If you sell the car to a dealer or a private person you still owe the taxes to NY because you have not paid them yet. If you trade it in you still have to pay them but you get the credit towards the next car. On a lease (depending on your state) if the tax is tied to the payment then you will only be responsible to the "used" portion of the car which includes the upside portion. (6K upside down, then taxes on 6K are due) If you rolled the taxes into the lease to avoid paying them up front, then its just like a purchase and you owe taxes on the whole thing. If you want to get rid of your lease, your better off with a swapalease or lease trader. Even if you give a 2K-4K incentive you would still be better off. Good luck
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06-08-2015, 12:06 AM | #15 |
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well in CA, you only pay sales tax on the difference if you trade in a car
ie: trade in value 50k new car purchase 45k sales tax is only on the 5k difference |
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06-08-2015, 12:48 AM | #16 |
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06-08-2015, 12:59 AM | #17 | |
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my GF just traded in her 2006 evo 9 for 21K and bought the new subaru forester for 24.5k and only paid the difference. it was 3825$ + title/lic and dealer prep fees, $4290 OTD |
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06-08-2015, 01:54 AM | #18 | ||
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06-08-2015, 07:50 AM | #19 |
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The problem is he asked two questions, and everyone is only giving 1 answer.
In a trade you pay taxes on the difference between the car you trade in and the car you get. It seems however that you did not pay taxes on the original car so you would have to pay taxes like you started from zero but also pay taxes on the upside down difference. If you sell it to a dealer - he wont pay taxes which means you will still have a tax bill.
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06-08-2015, 01:34 PM | #20 | |
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06-08-2015, 02:30 PM | #22 | |
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ie if this were reality: Trade In value = 10k New Car Price= 20k Sales Tax due (@10%) = $2k Out the door price = $12k A good negotiator would work this deal with the same reality to keep the dealer whole and pay a bit less out the door: Trade in Value: $8k New Car Price: $18k Sales Tax due: $1.8k Out the door price: $11.8k (Dealer makes the same profit of $10k, you pay slightly less in taxes) Did the GF work this deal with a franchise dealer or independent? I'm 99% sure that there is no way around this in CA anymore. |
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