Are you saying that for DMV purposes, they take say the $50K msrp, deduct your $20K trade in as a “discount” then you just pay registration fees based on the $30K net you pay?
does this apply in California?
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Tesla Trade Value in Vs. CarMax Trade in Value
- Thread starter NY_Rob
- Start date
does this apply in California?
^ If by "registration fees" you are referring to the actual sales tax you pay when picking up the car, then yes.. in NY anyway.
In NY:
$50K New Vehicle
-$30K Trade in
---------
$20K taxable amount
After a quick online check, it seems CA is one of the handful of states who do not let you deduct the value of the trade-in vehicle from the price of the new vehicle for sales tax calculation.
"In 42 of the 50 states, you will pay the sales tax on the value of your new car minus the amount of your trade-in. Since Oregon has no sales tax, those who purchase vehicles there pay no taxes. In the seven remaining states, you pay the sales tax rate on the full value of the new car. These states are California, Hawaii, Kentucky, Maryland, Michigan, Montana and Virginia"
Do You Pay Sales Taxes on a New Car Minus the Trade In?
In NY:
$50K New Vehicle
-$30K Trade in
---------
$20K taxable amount
After a quick online check, it seems CA is one of the handful of states who do not let you deduct the value of the trade-in vehicle from the price of the new vehicle for sales tax calculation.
"In 42 of the 50 states, you will pay the sales tax on the value of your new car minus the amount of your trade-in. Since Oregon has no sales tax, those who purchase vehicles there pay no taxes. In the seven remaining states, you pay the sales tax rate on the full value of the new car. These states are California, Hawaii, Kentucky, Maryland, Michigan, Montana and Virginia"
Do You Pay Sales Taxes on a New Car Minus the Trade In?
Hey NY_Rob,
Did they say anything about you needing to get another estimate when the delivery date comes because it would over the 7 day carmax appraisal window? My primary delivery person said I would as my delivery is in 2 weeks? Does that make any sense?
^ We never got to that point because our discussion was back at the beginning of Feb when no one knew the release date of the MY.
I'm guessing that the Carmax written offer has an expiration date or Tesla has some sort of internal rules regarding how far back then offer can be from?
I'm guessing that the Carmax written offer has an expiration date or Tesla has some sort of internal rules regarding how far back then offer can be from?
Slumpey326
Member
I got a Tesla trade in quote for my model 3 on feb 26th the day I placed my order for a model y. My model y is ready now and in the trade in section on mytesla page now where you submit pics of your car you are trading in, the trade in price is $2500 less than what I got a quote for last week. There is no major cosmetic issues with car or Mechanical issues at all. Has this happened to anyone else or is there some shadyness going on here on Tesla’s part?
also does Tesla March quotes from vroom, carvana or CarMax?
also does Tesla March quotes from vroom, carvana or CarMax?
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^ Tesla will match a CarMax offer as long as that offer is in writing.. .which means you have to bring your car to a Carmax location for their appraisal.
Slumpey326
Member
I don’t mind taking my Tesla to a CarMax to get an offer but even if it’s a Tesla model 3 that I plan on trading-in for a model y? I thought Tesla doesn’t match CarMax anymore
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^ a good question for your Sales Advisor, and ask him/her what happened to warrant the $2,500 price drop?
CDMtoday
Member
A CarMax warning about lowball pricing. I'm a huge CarMax fan and have recommended them for years as a low-hassle way of getting a fair price for a trade - until this week.
As part of my Model Y acquisition, I needed to sell a 2019 Acura RDX Advanced, a truly amazing vehicle. With 17,000 miles, the car was mint and loaded. Anyway, CarMax offered $29,000 for the car - well below book. The Acura dealer a few blocks away offered $33,500 the same day. That's a $4,500 delta or 14%.
I would expect the dealer brand to offer slightly more for a premium trade as they can retail it, however, this big delta is nuts. CarMax, at least in this instance, was a low-ball on an in-demand vehicle. I'm not waiving anyone off of CarMax but strongly advising that they can no longer be taken on blind faith. Do your research and shop. FWIW.
Carmax is not great for getting a value on a Tesla. At least in my area, they don't sell Teslas, so they go straight to auction. When I got a trade in quote on my Model S they warned me it was going to be super low since and it was. Basically, under wholesale auction value since they wouldn't be selling it on the lot and it would be going straight to auction.
This might be different if they sell Tesla's in your area of course.
This might be different if they sell Tesla's in your area of course.
No, they just changed their offer to match the CarMax number. That makes no sense at all to me. I have finalized everything and am just waiting for a contract and a date....
I’m in Hawaii and the last two times I’ve traded in, the general excise tax (GET)* was applied to the difference between the new car and the trade.
* Hawaii doesn’t have a “sales tax” — that consumers pay — and uses a “general excise tax,” which is a tax the business pays. The business can pass it on (as most do) to the consumer. To me, a tax is a tax, doesn’t matter what you call it.
I can confirm that Tesla will match the written Carmax quote and will let you upload that 30 days before delivery even though the Carmax quote is good for 7 days. In my case, my vehicle was old enough with high miles to be certain to go to auction. Tesla's $2000 offer based on four pictures was exactly the same as Carmax based on full inspection. Even though I "accepted" the offer, they told me I could privately sell still before delivery. I may bring it to one of the places that KBB said wanted my car at a higher price but in IL you save tax on the first $10K of trade-in so that is another 7.25%.
I am still waiting to figure out what to do. I've gotten different trade estimates for my 2012 Jeep from everyone so far:
Tesla : $6800
Vroom: $8000
Carvana : $9200
Carmax : Still have to go there
KBB "Good" for my vehicle is $8300-$10000
Tesla says they base theirs on KBB "Good" value, but clearly that is not the truth.
Tesla : $6800
Vroom: $8000
Carvana : $9200
Carmax : Still have to go there
KBB "Good" for my vehicle is $8300-$10000
Tesla says they base theirs on KBB "Good" value, but clearly that is not the truth.
rxlawdude
Active Member
Seems you should sell it to Carvana, given their offer is right in the middle of the range.
Slumpey326
Member
regarding wanting to trade in model 3 for y with tesla, will Tesla accept written offer if you bring your tesla 3 to carmax?
everydaychris
Active Member
Seems like carmax, carvana, vroom, those are the good ones to get an offer and use that as leverage when you trade in your Tesla.
FredMertz
Member
rxlawdude
Active Member
I canceled a Model S order (that was to be scheduled for delivery) because they had not processed my trade in after two weeks. And I let them know that was the reason. Went back to Plan Y.
Yeah, mine took a while. Uploaded everything 2/26 and got the quote last Saturday 3/7. Now waiting on contract/VIN.
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