I'm thinking trading in my '03 and getting an '06 from South Coast Mitsu due to the incredible deal they are offering right now.

Where I live (Texas) you don't need to pay tax on the trade-in portion.

For example,

$32,999.00 -> '06 new car price
$20,000.00 -> '03 trade in value (estimate)
----------------
$12,999.00 -> Difference
+ $187.44 -> Sales Tax ($12,999.00 * 6.25%)
+ $250.00 -> Title & Registration (estimate)
----------------
$13,436.44 -> Total OTD


As you can see, you don't need to pay tax on the trade-in.

Is it the same in CA also?

Thanks in advance

 

I dont think you pay tax on the trade in.

Just got my IX at South Coast, they're great, great deals.

 

Thanks, anymore comments on this?

I'm hearing different answer on this subject. Someone told me I have to pay full tax when you take delivery on the new vehicle in the state of California and there's no tax deduction on your trade-in also.

 

There was some one on this forum that picked up a car in Cali and drove it back home to the east coast. In his thread, he talks about what he had to do regaurding tax on the new car.

Also you above math problem is a little wrong. here you go...

$32,999.00 -> '06 new car price
+ $2,062 -> Sales Tax ($32,999.00 * 6.25%)
+ $250.00 -> Title & Registration (estimate)

35,281. Toatl for new car
-20,000. trade in

15,281. What you'll still owe

 

Actually that is exactly what I'm asking.

You see, here in Texas you don't need to pay tax on the trade-in. Which means you're getting a tax deduction from it.

So you only have to pay tax on the different between your new car price and trade in price.

Hence this,

$32,999.00 -> '06 new car price
$20,000.00 -> '03 trade in value (estimate)
----------------
$12,999.00 -> Difference
+ $187.44 -> Sales Tax ($12,999.00 * 6.25%)
+ $250.00 -> Title & Registration (estimate)
----------------
$13,436.44 -> Total OTD

Actually, I think you just anwer my question.

No tax deduction on trade-in in CA...