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Shouldn't Tesla deduct my Trade-in before taxes are calculated?

42 States have some sort of tax credit or deduction on new cars with trade in

States without Tax Benefit​

The state of Oregon has no sales tax, so if you live in that state and buy a car, the tax calculation is easy -- zero. In seven other states, there is no credit or sales tax reduction when you trade in a car. Those states are California, Hawaii, Kentucky, Maryland, Michigan, Montana and Virginia. If you live in one of these states you calculate sales tax by multiplying the full new car purchase price times the local sales tax rate.

 
Not 100% true. The tax process is entirely depends on your state, not Tesla. Also, your order page lists the phone number that you call and ask anything.
"The man" is the only reason that you are driving your Tesla.
No, Musk is a brilliant man and a spoiled man child too. "Also, your order page lists the phone number that you call and ask anything." No, not 7 moths ago

"The man" is the only reason that you are driving your Tesla." so I should bow down to him, is that right? He is a massive character flaw..
 

mswlogo

Well-Known Member
Aug 27, 2018
7,902
7,359
MA, NH
If you do the trade when placing the order they will calculate taxes correctly. If you put the trade on later, they just subtract trade from total. They will fix it a few days before your delivery. They said they would fix it and they did on mine. It’s stupid it works that way but that’s how it is.
 
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jjrandorin

Moderator, Model 3, Tesla Energy Forums
Moderator
Nov 28, 2018
14,608
18,687
Riverside Co. CA
Pick up from Nevada (Las Vegas) - they deduct trade-in value. Ask first tho if they do for California registration.

This absolutely does not matter, as its your location, not the location you pick up the car, that determines taxes. Otherwise everyone on the west coast would fly to Oregon to buy cars since oregon doesnt have sales tax.
 

jjrandorin

Moderator, Model 3, Tesla Energy Forums
Moderator
Nov 28, 2018
14,608
18,687
Riverside Co. CA
I am going to make a general statement here that the off topic comments should cease. Along with this comment, I will say that, in general, moderators will generally give escalating actions if they need to take action on a member who has already been subject to action previously.

I am being vague and speaking generally on purpose, but if this applies to you (previous moderation action) you are already aware of that.
 
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RoBoRaT

Zero Farts Given!
Nov 22, 2018
1,778
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NorthSoCal
This absolutely does not matter, as its your location, not the location you pick up the car, that determines taxes. Otherwise everyone on the west coast would fly to Oregon to buy cars since oregon doesnt have sales tax.
Sure. I was talking about credit for trade-in in Nevada, not California or Oregon.

As you can see in the attached MVPA, Tesla Nevada had credited trade-in value and only charged sales tax on the remaining cost (the car was registered in Washington).

I emphasize, that this might not be applicable for California (if OP decide to trade-in and pick up in Nevada, register in California) - that is why I said to first ask Tesla Nevada.
Screenshot_20220503-223620_Adobe Acrobat.jpg
 

jjrandorin

Moderator, Model 3, Tesla Energy Forums
Moderator
Nov 28, 2018
14,608
18,687
Riverside Co. CA
Sure. I was talking about credit for trade-in in Nevada, not California or Oregon.

As you can see in the attached MVPA, Tesla Nevada had credited trade-in value and only charged sales tax on the remaining cost (the car was registered in Washington).

I emphasize, that this might not be applicable for California (if OP decide to trade-in and pick up in Nevada, register in California) - that is why I said to first ask Tesla Nevada.View attachment 800312


That has nothing (zip, nada, zilch) to do with "Tesla Nevada" and everything to do with the purchase location, which is washington, which allows tax credits. It will not do any good at all for this OP, whose location is stated in CA to contact tesla nevada (or any other tesla location in another state) if the state the car will be registered in is CA.
 
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RoBoRaT

Zero Farts Given!
Nov 22, 2018
1,778
1,740
NorthSoCal
That has nothing (zip, nada, zilch) to do with "Tesla Nevada" and everything to do with the purchase location, which is washington, which allows tax credits. It will not do any good at all for this OP, whose location is stated in CA to contact tesla nevada (or any other tesla location in another state) if the state the car will be registered in is CA.
You are correct.
 
Dredging up this oldish post - I feel like I'm just overthinking things, but the examples given on the state website are confusing me.

In Washington, which has these sales tax credits - Does it affect the credit if Tesla isn't the one paying off the existing loan? I only ask this because the example wording on the state website is odd (highlighted below)

  1. A dealer accepts a trade-in vehicle with a fair market value of $4,000 upon purchase of a new $10,000 vehicle. The purchaser still owes $1,500 on the trade-in vehicle, but the dealer agrees to pay off this remaining balance to the bank. Sales tax exemption is still allowed for the full $4,000 trade-in value, and sales tax is computed on the remaining $6,000 of the new purchase price.

Scenario: Existing auto loan with a 3rd party bank. New Tesla loan with the same 3rd party bank. So for the old loan payoff no check is needed, they basically just handle it all on the backend.

So:
1. Bank gives a blank draft check
2. Loan recipient fills out the amount and gives to Tesla for all of the costs minus full Trade-In Value, Tesla obviously gets the old vehicle as well.
3. The bank then finalizes the loan to the borrower in the amount of the amount written to Tesla + loan remainder

At #2, the sales taxable amount should be reduced by the full trade-in amount, even though technically Tesla isn't the one paying off the trade-in, right?
 
The state of Oregon has no sales tax, so if you live in that state and buy a car, the tax calculation is easy -- zero. In seven other states, there is no credit or sales tax reduction when you trade in a car. Those states are California, Hawaii, Kentucky, Maryland, Michigan, Montana and Virginia. If you live in one of these states you calculate sales tax by multiplying the full new car purchase price times the local sales tax rate.

Just a point of clarification, as the linked-to article is out-of-date: Maryland provides trade-in tax credit. Given that Tesla's trade-in offers are typically lower than others like CarMax, it's worthwhile to do an A:B compare, taking tax credit into consideration. I just went through this earlier this week. Tesla's offer for my 2020 MYLR was lower than CarMax, but when I factored in the tax-credit, the resulting net cost was nearly the same, affording me a bit of flexibility of trade-in timing, along with whether I want to apply the entire trade-in value to my new car, or just keep some/all of the resale money in-pocket.
 

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