You can install our site as a web app on your iOS device by utilizing the Add to Home Screen feature in Safari. Please see this thread for more details on this.
Note: This feature may not be available in some browsers.
Huh? We in AZ -- like buyers in most states -- only pay sales tax on the trade difference so does that mean the tax shouldn't be called sales tax?You pay on the 200k because that is the sale and it is sales tax....
The DMV doesn't care what you owe. To them, it's 100% about the purchase PRICE (you paying Tesla) for the new car minus the purchase PRICE (Tesla paying you and/or your lender) for the trade-in. They don't care if the trade-in involves paying two parties or one. I'm sure there's a process by which they can pull the title from the lender; we went through something similar in December when I totaled my wife's MB GLE300d. The salvage auctioneers sent me paperwork to sign over the title to be pulled from the lender, and I suspect the notarized/signed copies of those forms are sufficient to allow the state to treat it as legit for transfer purposes.Does it matter if you still owe on the car that is getting traded in?
My Tesla trade-in value is $21,700, but I owe $21,664 on its current loan. My local sales tax in Philadelphia is 8%. Do I save 8% on the $21,700 or 8% on the $36 difference? Obviously this is a big difference and will determine if I go with Carvana or not.
My final payment changed when I accepted Tesla's trade-in value. My SA said it's because I still owe on the trade. So if I pay off my current car's loan before delivery next week, then I'll save the additional $1,733? It's either that or get the $2,229 additional from Carvana. And my SA just told me I need the physical title for the car, so it's doubtful I'll be able to move money around fast enough to pay off plus get the physical title in time.
I was willing to go with Tesla's offer + sale tax savings if less than $500 for convenience. It was $496 less, but if this is true with still owing on my current loan, then that's a big hassle to get the sales tax savings. Which one is correct? I am able to schedule delivery for Monday next week.
So are you saying Tesla is doing this incorrectly? My friend who owns a Cadillac dealership also confirmed this for the state of PA.The DMV doesn't care what you owe. To them, it's 100% about the purchase PRICE (you paying Tesla) for the new car minus the purchase PRICE (Tesla paying you and/or your lender) for the trade-in. They don't care if the trade-in involves paying two parties or one. I'm sure there's a process by which they can pull the title from the lender; we went through something similar in December when I totaled my wife's MB GLE300d. The salvage auctioneers sent me paperwork to sign over the title to be pulled from the lender, and I suspect the notarized/signed copies of those forms are sufficient to allow the state to treat it as legit for transfer purposes.
It depends on the state. See What New Car Fees Should You Pay? | Edmunds under Trade-in sales tax credit.So are you saying Tesla is doing this incorrectly? My friend who owns a Cadillac dealership also confirmed this for the state of PA.
I even dug up an old purchase agreement for when I traded in a 2006 Civic that I owned outright. I was given $2,000 for the trade. There is a net trade-in allowance field. This makes me feel reconfirmed at least for PA that it is truly only on the positive equity of the car for saving on sales tax. And reiterating, I'm not dwelling on this, since I'm getting more with Carvana anyway. It would have just been nice to know in advance.
View attachment 671469
See my reply in post 11. Trading in a car in CA does NOT reduce sales tax on purchase of a new one. It does in AZ.Huh? We in AZ -- like buyers in most states -- only pay sales tax on the trade difference so does that mean the tax shouldn't be called sales tax?
If you're talking about the CA CVRP (CVRP Eligible Vehicles) it has gone down to $2000 and there are numerous Eligibility Guidelines including limits.CA Tesla buyers get that nice fat $2500 but buyers from most states get a nice tax break on a trade difference.