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Question about buying a new Tesla

Discussion in 'Model S: Ordering, Production, Delivery' started by Suii, Nov 11, 2014.

  1. Suii

    Suii New Member

    Joined:
    Nov 11, 2014
    Messages:
    1
    Location:
    USA
    I see a lot of people mentioning that they are going to trade in their current car to wipe out the sales tax or are buying a temporary ICE car and then later will be buying a new Tesla and trade in their current car.

    Forgive me but is there an advantage I am not privy to when trading in a car to purchase a new Tesla? It seems that when we buy a new car we put a deposit and then pay the remainder when we take delivery so what am I missing? Thanks for all the help.
     
  2. Jace_91

    Jace_91 Member

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    Oct 11, 2013
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    Location:
    Hollywood, FL
    Depending on the state you are in and the value of your current car it could be beneficial to reduce the sales tax. In Florida: 6% Sales tax on $100k= $6000. If you trade in your $40,000 car, you only pay sales tax on the difference, 6% on $60,000 = $3600.

    Something to keep in mind when you consider that they may offer you less for a trade in than you could get selling private party, you also have the added tax savings.
     
  3. Kbsilver

    Kbsilver Member

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    Jul 25, 2014
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    Location:
    Central NJ
    In NJ there is no sales tax on zero emissions vehicles. It's a cost benefit (rebate of sorts) not clearly defined on the website. I suspect there are other states that may do the same, and it probably will not last forever. Along the same lines there probably will be at some point a system to collect taxes for miles driven because with the Tesla one does not pay fuel taxes that (are suppose) to be used for road infrastructure maintenance.
     
  4. spentan

    spentan Active Member

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    Dec 26, 2012
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    Location:
    SoCal
    Is there a list of states that do this? (Charge Sales tax on the difference only)?

    I presume California is not on this list
     
  5. ecarfan

    ecarfan Well-Known Member

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    Location:
    San Mateo, CA
    California collects sales tax on EVs.
     
  6. TexasEV

    TexasEV Active Member

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    Location:
    Austin, TX
    See my previous post on this topic:
    Preventing another Michigan-- Pushing back against dealers
    Only 4 states besides California charge sales tax on the full purchase price when there is a trade-in. The other states with sales tax have this gimmick which gives dealers extra profit on trade-ins.
     
  7. David_Cary

    David_Cary Member

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    Dec 17, 2012
    Messages:
    607
    Location:
    Cary, NC
    Learn something new every day. NC reduces sales tax based on trade. I never traded in a car so I didn't know. I didn't realize it was only 5 states that didn't do this. Only 3% here so not a big issue.
     

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